UNIVERSITY OF GHANA SERVICE BRAND AVOIDANCE IN BUSINESS-TO-BUSINESS RELATIONS: EVIDENCE FROM GHANA DOROTHEA SEKYIWA OTOO (10461422) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MPHIL MARKETING DEGREE JULY, 2020 i DECLARATION I hereby declare that this work is the result of my own research and has not been presented by anyone for any academic award in this or any other university. All references used in this work have been duly acknowledged. I bear sole responsibility for any shortcomings. …………………………………………. …………………….. DOROTHEA SEKYIWA OTOO DATE (10461422) Dr. Raphael Odoom Typewriter 03/03/2021 ii CERTIFICATION I hereby certify that this thesis was supervised in accordance with procedures laid down by the University of Ghana, Legon. …………………………………………….. …………………… DR. RAPHAEL ODOOM DATE (SUPERVISOR) …………………………………………… …………………… DR. STEPHEN MAHAMA BRAIMAH DATE (CO-SUPERVISOR) Dr. Raphael Odoom Typewriter MARCH 3, 2021 Dr. Raphael Odoom Typewriter MARCH 3, 2021 iii DEDICATION This work is dedicated to my lovely mother, Mrs. Dorothea Halm Otoo in appreciation of her immense support and motivation throughout my time of work and study. iv ACKNOWLEDGEMENT I am profoundly grateful to God Almighty who has sustained me through this journey – may His name be forever praised. I also wish to appreciate my supervisors; Dr. Raphael Odoom and Dr. Stephen Mahama Braimah for their counsel and support. Additionally, I would like to thank Dr. Godfred M. Y. Owusu as well as the faculty of the Marketing and Entrepreneurship Department for the advice and critiques that helped shape my MPhil thesis. Finally, I acknowledge and appreciate the support of Mrs. Dorothea H. Otoo, Dr. K. Asamoa- Bonsu, and my lovely family, friends and course mates who advised, prayed with and encouraged me. To you all, I say thank you. May the good Lord richly bless you. v TABLE OF CONTENTS DECLARATION ............................................................................................................................................ I CERTIFICATION ........................................................................................................................................ II DEDICATION .............................................................................................................................................. III ACKNOWLEDGEMENT ............................................................................................................................ IV LIST OF ABBREVIATIONS ....................................................................................................................... IX ABSTRACT ................................................................................................................................................... X CHAPTER 1 ...................................................................................................................................................1 INTRODUCTION ..........................................................................................................................................1 1.1 BACKGROUND ........................................................................................................................................ 1 1.3 OBJECTIVES OF THE STUDY ............................................................................................................... 7 1.5 SIGNIFICANCE OF THE STUDY .......................................................................................................... 8 1.5.1 CONTRIBUTION TO LITERATURE ............................................................................................................. 8 1.5.2 CONTRIBUTION TO PRACTICE ................................................................................................................. 9 1.7 CHAPTER SUMMARY .......................................................................................................................... 10 CHAPTER 2 ................................................................................................................................................. 11 CONTEXT OF THE STUDY ....................................................................................................................... 11 2.1 INTRODUCTION .................................................................................................................................... 11 2.2 OVERVIEW OF THE SERVICES SECTOR ........................................................................................ 11 2.3 THE GHANAIAN TELECOMMUNICATION INDUSTRY ............................................................... 13 2.4 CHAPTER SUMMARY .......................................................................................................................... 15 LITERATURE REVIEW ............................................................................................................................ 16 3.1 INTRODUCTION .................................................................................................................................... 16 3.2 THEORETICAL FRAME....................................................................................................................... 16 3.2.1 Anti-consumption .............................................................................................................................. 16 3.2.2 Attachment Theory and Brand Attachment ..................................................................................... 19 3.3 THE BUSINESS-TO-BUSINESS (B2B) MARKET .............................................................................. 23 3.3.1 Consumption in Business-to-Business Markets ............................................................................... 23 3.3.2 Factors that influence Organizational Buying................................................................................. 25 3.4 EMPIRICAL LITERATURE REVIEW ................................................................................................ 27 3.4.1 Brands and Branding in Business-to-Business Markets ................................................................. 27 3.4.2 Brand Avoidance ............................................................................................................................... 31 3.5 TYPE OF BUSINESS ............................................................................................................................... 47 3.6 CONCEPTUAL FRAMEWORK AND HYPOTHESES FORMULATION ....................................... 49 3.6.1 Drivers of Brand Avoidance and Brand Avoidance ......................................................................... 49 3.7 CHAPTER SUMMARY .......................................................................................................................... 54 METHODOLOGY ....................................................................................................................................... 55 4.1 CHAPTER OVERVIEW ......................................................................................................................... 55 4.2 RESEARCH PARADIGM ...................................................................................................................... 55 4.2.1 Positivism ........................................................................................................................................... 56 4.2.2 Interpretivism .................................................................................................................................... 57 4.3 RESEARCH DESIGN ............................................................................................................................. 59 4.3.1 Research purpose .............................................................................................................................. 59 4.3.2 Research logic ................................................................................................................................... 61 4.3.3 Research process ............................................................................................................................... 63 4.4 RESEARCH STRATEGY ....................................................................................................................... 64 vi 4.4.1 Survey ................................................................................................................................................ 65 4.5 SAMPLING DESIGN .............................................................................................................................. 65 4.5.1 Target population .............................................................................................................................. 66 4.5.2 Sampling technique ........................................................................................................................... 66 4.5.3 Sampling size ..................................................................................................................................... 67 4.6 DATA SOURCE AND DATA COLLECTION ...................................................................................... 68 4.6.1 Questionnaire design and administration ........................................................................................ 69 4.7 PRETESTING OF QUESTIONNAIRE ................................................................................................. 71 4.8 THE RELIABILITY AND VALIDITY OF THE SCALE .................................................................... 71 4.8.1 Reliability ........................................................................................................................................... 71 4.8.2 Validity ............................................................................................................................................... 72 4.9 ETHICAL CONSIDERATIONS ............................................................................................................ 73 4.10 DATA ANALYSIS TECHNIQUE ........................................................................................................ 74 4.11 CHAPTER SUMMARY ........................................................................................................................ 75 CHAPTER 5 ................................................................................................................................................. 76 DATA ANALYSES AND DISCUSSION OF FINDINGS ........................................................................... 76 5.1 CHAPTER OVERVIEW ......................................................................................................................... 76 5.2 DATA EDITING AND ENTRY .............................................................................................................. 76 5.3 PROFILE OF RESPONDENTS ............................................................................................................. 77 5.4 EXPLORATORY FACTOR ANALYSIS .............................................................................................. 78 5.5 TEST OF NORMALITY ......................................................................................................................... 79 5.6 DESCRIPTIVE STATISTICS ................................................................................................................ 81 5.7 ASSESSING THE MEASUREMENT MODEL .................................................................................... 83 5.7.1 Internal Consistency ......................................................................................................................... 83 5.7.2 Indicator Reliability........................................................................................................................... 83 5.7.3 Convergent Validity ........................................................................................................................... 84 5.7.4 Discriminant Validity ........................................................................................................................ 85 5.8 ASSESSING THE STRUCTURAL MODEL......................................................................................... 86 (Source: Field Data, 2020) ......................................................................................................................... 89 5.8.1 Analysis of Hypothesised Relationships ........................................................................................... 89 5.9 ANALYSIS OF VARIANCE (ANOVA) ................................................................................................. 91 5.10 DISCUSSION OF FINDINGS ............................................................................................................... 92 5.10.1 Objective One: Determine the factors that influence service brand avoidance in B2B relations. 92 5.10.2 Objective Two: Assess dissimilarities in customer responses to service brands based on customer business type ............................................................................................................................................... 96 5.11 POST-HOC ANALYSIS (TEST OF MEDIATION) ........................................................................... 97 5.12 CHAPTER SUMMARY ...................................................................................................................... 101 CHAPTER 6 ............................................................................................................................................... 102 SUMMARY, CONCLUSIONS AND IMPLICATIONS ............................................................................ 102 6.1 CHAPTER OVERVIEW ....................................................................................................................... 102 6.2 SUMMARY OF THE STUDY............................................................................................................... 102 6.4 CONCLUSION....................................................................................................................................... 105 6.5 MANAGERIAL IMPLICATIONS AND RECOMMENDATIONS .................................................. 105 6.6 IMPLICATIONS FOR THEORY AND FUTURE RESEARCH ....................................................... 107 6.7 RESEARCH LIMITATIONS ............................................................................................................... 108 BIBLIOGRAPHY ........................................................................................................................................ 110 APPENDICES .............................................................................................................................................. 140 vii LIST OF TABLES Table 3. 1: Types of Anti-consumers ....................................................................................... 19 Table 4. 1: Research Paradigms ............................................................................................... 58 Table 5. 1: Profile of Respondents ........................................................................................... 78 Table 5. 2: Skewness and Kurtosis .......................................................................................... 80 Table 5. 3: Descriptive on Constructs and Exploratory Factor Analysis ................................. 82 Table 5. 4: Confirmatory Factor Analysis ............................................................................... 85 Table 5. 5: Fornell-Larcker Criterion....................................................................................... 86 Table 5. 6: Inner VIF Values ................................................................................................... 87 Table 5. 7: Effect sizes ............................................................................................................. 88 Table 5. 8: R-square and Adjusted R-square ........................................................................... 88 Table 5. 9: Cross-Validated Redundancy ................................................................................ 89 Table 5. 10: Standard Coefficients and Significance values for Hypotheses .......................... 91 Table 5. 11: ANOVA Output .................................................................................................. 91 Table 5. 12: Model 2 (PLS Mediation output) ....................................................................... 100 viii LIST OF FIGURES Figure 3. 1: Four types of Brand Avoidance............................................................................ 43 Figure 3. 2: Five types of Brand .............................................................................................. 46 Figure 3. 3: Conceptual Framework ...................................................................................... 544 Figure 4. 1: Theory and Evidence in Research Logic……………………………………….. 62 Figure 5. 1: Model 1 (PLS Bootstrap Output)………………………………………………. 90 Figure 5. 2: Model 2 (PLS Mediation)..................................................................................... 98 ix LIST OF ABBREVIATIONS ANOVA -- Analysis of Variance AVE -- Average Variance Extracted B2B -- Business-to-Business B2C -- Business-to-Customer CA -- Cronbach’s Alpha CBBE -- Customer-Based Brand Equity CB-SEM -- Co-variance Based Structural Equation Modelling CR -- Composite Reliability CV -- Convergent Validity DSL -- Digital Subscriber Line DV -- Discriminant Validity EFA -- Exploratory Factor Analysis GDP -- Gross Domestic Product IT -- Information Technology KMO -- Kaiser-Meyer-Olkin PLS -- Partial Least Squares SEM -- Structural Equation Modelling SPSS -- Statistical Package for Social Sciences SSA -- Sub-Saharan Africa URL -- Uniform Resource Locator VIF -- Variance Inflation Factor VSAT -- Very Small Aperture Terminal WTO -- World Trade Organization x ABSTRACT This study examines service brand avoidance within the business market. Specifically, it assesses the applicability of the drivers of brand avoidance within the business-to-consumer (B2C) market in business-to-business (B2B) relations and assesses dissimilarities in customer responses to service brands based on customer business type. Employing an explanatory research design and a quantitative research approach, data for the study was attained through self-administered questionnaires and a uniform resource locator (URL) through Google forms. The population of interest was businesses within the Accra metropolis of Ghana avoiding a telecommunication network brand. Respondents were selected using a purposive sampling technique. 346 out of the 398 questionnaires administered were used to analyse hypothesised relationships using partial least squares structural equation modelling (PLS SEM) technique. The findings revealed that unmet expectations, symbolic incongruence and failed communications have direct significant influences on brand avoidance, while ideological incompatibility has a significant influence on symbolic incongruence. Additionally, unacceptable trade-offs and ideological incompatibility though not directly, influence brand avoidance when symbolic incongruence acts as a mediator. Further, the study revealed that customers’ business types account for some disparities in their responses to Telecommunication brands. This study contributes to literature new knowledge regarding brand avoidance within the business market from an emerging economy perspective. It provides empirical evidence as well as makes recommendations to brands and organisations on what to do and stay away from in order not only to ensure a purchase, but secure repeat purchases and loyalty. Future studies may consider examining brand avoidance by business clients within other industries as well as the impact it may have on co-branding agreements. 1 CHAPTER 1 INTRODUCTION 1.1 BACKGROUND In a service-driven world, businesses contend with a globally fierce competitive landscape (Skaalsvik, 2017). Johannessen and Olsen (2010) describe this landscape as progressively intricate, turbulent and ambiguous, rendering some recognisably effective recipes for competitive advantage and value creation within the industrialised world inutile for service providers. Accordingly, Skaalsvik (2017) propose service branding as a pathway to consistent economic growth and value creation at the organisational level. However, traditional paradigms in business markets typically regard branding as being of minimal significance to industrial and business-to-business (B2B) marketing (Malaval, 2001; Low & Mohr, 2001). Thus, despite the continuous growth of attentiveness to B2B branding, studies in this regard have not been as forthcoming as those that examine the activities and implications of brands in consumer markets (Brown, Zablah, Bellenger & Johnston, 2011; Seyedgorban, Matanda & LaPlaca, 2016). Despite that, evidence from empirical studies forward that brands are highly influential in organisational buying decisions as they enhance confidence in the decision- making process and minimise perceived risk (Ohnemus, 2009; Zablah, Brown & Donthu, 2010). Primarily, branding serves as a means of differentiation, focused on affecting consumers by creating positive, enticing and sellable concepts (Rindell, Strandvik & Wilen, 2014). Extant literature supports arguments that a company’s brand presents a multi-dimensional market- based asset, which if harnessed and sustained offers a considerable advantage to the company in a competitive marketplace (Lee, Fernandez & Hyman, 2009; Belch & Belch, 2012). For services, branding presents companies a means of minimising perceived risks and building 2 trust. The gains of attaining positive consumer-brand reactions such as loyalty, brand affection, brand love among others are extensive and palpable, rendering the study and pursuit of them justified (Yim, Tse & Chan, 2008; Jaiswal & Niraj, 2011; Batra, Ahuvia & Bagozzi, 2012). However, negative brand relationships pose a threat of greater measure to companies (Krishnamurthy & Kucuk, 2009; Fournier & Alvarez, 2013). This threat is partly because the probability of a consumer sharing their displeasure, a negative experience or review is much higher than that of sharing an equally positive experience (Kavaliauskė & Simanavičiūtė, 2015); a connotation of “negativity bias” (Kanouse & Hanson, 1972). The dreadful repercussions of this phenomenon are more pronounced for companies, given the power and ubiquity of social media and the internet (Grégoire, Tripp, & Legoux, 2009; Delzen, 2014). Also, having established that familiarising with the distastes of customers is as critical as knowing their likes, the significance of studying negative customer brand relationships is now more prominent and needful than ever (Lee, Conroy & Motion, 2009; Knittel, Beurer & Berndt, 2016). Likewise, it is noteworthy that investigating what spurs anti-consumption behaviour (such as brand avoidance) is important to all marketers regardless of whether it relates to a competing brand, as this knowledge could be utilised strategically for positioning their brand as a preferable alternative (Lee, Motion & Conroy, 2009). Numerous studies assert that anti-consumption behaviour, predominantly brand avoidance, is broad and thus is predicated by multifaceted motives (Lee et al., 2009; Safana, 2018). Brand avoidance denotes the conscious effort made by customers to keep away from a brand, especially when they possess the purchasing power (Lee et al., 2009b). Just as customers like to get closer to and spend more time with brands they like, they are prone to keep distant brands they dislike (Zarantonello, Romani, Grappi & Bagozzi, 2016). A careful review of literature 3 reveals unmet expectations, incongruence between a brand’s image and an individual’s identity, disparity between consumer’s ideological beliefs and brand values, consumer’s refusal to accept cost-to-benefit trade-offs offered by brand, and disapproval of brand advertisement (Lee at al., 2009; Riefler & Diamantopoulos, 2007; Kim, Lee & Mattila, 2014; Khan & Lee, 2014; Knittel et al., 2016) as factors that spur brand avoidance. Additionally, Zarantonello et al. (2016) and Hegner, Fetscherin and Van Delzen (2017) identify brand avoidance as a consequence of brand hate, presupposing that brand hate could induce brand avoidance. As explained by Chen and Bargh (1999), just as positive favourable stimuli induce approach behaviour, negative stimuli prompt avoidance behaviour. 1.2 RESEARCH PROBLEM Traditional consumer research is shifting from a fixation on positive consumer-brand relations to negative relations (Grappi, Zarantonello & Romani, 2019). Prevailing branding literature mainly explores positive customer-brand relations including brand affection (Yim et al., 2008), brand love (Bergkvist & Bech-Larsen, 2010; Sarkar, 2014; Silden & Skeie, 2015), loyalty (Jaiswal & Niraj, 2011) and emotional attachment (Grisaffe & Nguyen, 2011), reiterating their importance and contributions to firms and brands. Nevertheless, negative brand associations are equally significant (Lee et al., 2009; Knittel et al., 2016). Prior studies propose that possessing knowledge of what customers find distasteful is as important as knowledge of what they like (Banister & Hogg, 2004), hence, the growing interest in the area. For instance, a call for papers on negative consumer-brand relations was made recently by the Journal of Product and Brand Management, which informed the publication of its Volume 28, Issue 5. Even so, interest in issues of anti-consumption is still emergent (Bryson, Atwal & Hultén, 2013), particularly brand avoidance (which is counted among the most prominent), accentuating the need to probe further (Knittel et al., 2016). 4 Moreover, existing studies in the domain of anti-consumption, particularly brand avoidance have focused on relations between brands and the end-user (Lee et al., 2009; Lee, Conroy & Motion, 2012; Kavaliauske & Simanavicinte, 2015; Zarantonello et al., 2016), neglecting B2B relations. This act of negligence exists even though other businesses remain a major consumer segment for most brands (Kotler & Pfoertsch, 2006). Consequently, there have been calls for investigation into issues of avoidance concerning B2B relations (Lee et al., 2009; Safana, 2018). Organisations benefit greatly in B2B branding as branding efforts do not end with the buying business but transcend to all its stakeholders including its other suppliers, investors, partners, customers, employees, competitors among others (Queicb, 2003). Although this offers greater market and opportunities to brands, falling into the bad books of business clients could be damaging, as the business may not only avoid but discourage other related stakeholders (Kotler & Pfoertsch, 2006). This study therefore seeks to investigate the drivers of brand avoidance in B2B relations. Although there may be some similarities, organisational buying and decision-making vary from that of end-users in many ways. Unlike end-user buying, organisational buying involves input from more people; mainly professionals from different departments (Turka & Sasan, 2015). Also, organisations buy in larger quantities and place paramount importance on negotiation (Kotler & Pfoertsh, 2006; Kuhn, Alpert & Pope, 2008). Turka and Sasan (2015) argue that organizational decision making differs from that of individuals, in that it places more emphasis on rational factors (such as product/service quality, price, feasibility, running and maintenance cost among others) in comparison to emotional elements. However, Kotler and Pfoertsh (2006) opine that business decisions are still made by people who make both cognitive and affective considerations in decision-making. Also, the introduction of branding and relationship- building in B2B markets introduces emotional elements as branding efforts and development 5 of brand equity thrive on the affective for optimal result (Lynch & De Chernatony, 2004). Moreover, the characteristics and preferences of the people who partake in the buying process informs organizational decisions to some extent (Turka & Sasan, 2015). For instance, each person in the buying centre has a unique preference for brands and products/services for one reason or another (Lysons & Farrington, 2006), and those of deciders, influencers and buyers in some organizations may be weightier in influencing brand choice. Thus, the drivers of brand avoidance that apply to individuals may reflect on the organizational level as well. Furthermore, due to larger order sizes, more attention to details, higher switching costs, investment of more resources and access to other stakeholders, the buyer-seller relationship is often of greater value to both parties in B2B relations than in B2C relations (Turka & Sasan, 2015). Hence, the study of brand avoidance in B2B relations is off great importance, not only to academics but businesses alike. Extant branding literature is suffused with arguments that consumer brand preference or rejection is triggered by various intrinsic and extrinsic stimuli (Lee et al., 2009a; Odoom, Kosibi, Djamgba & Narh, 2019). For instance, Hegner et al. (2017) assert that development of negative consumer-brand relationships could flow from consumer, product or context-related factors. Also, scholars like Lim and O’Cass (2001) contend that consumers patronise specific products as purposive expressions of who they are and select brands to represent their lifestyles, personalities and other characteristics symbolically. In like manner, firm decisions and purchases can be considered a reflection of their characteristics. A plethora of studies including (Wagner, 1995; Orlitzky, 2001; Tsai & Wang, 2005; Kogan & Tian, 2012) spells out the centrality of firm characteristics in strategic and managerial activities and outcomes. 6 Many studies have investigated the roles and impacts of firm size, age, ownership structure and other idiosyncrasies on firm performance (Kipesha, 2013; Kisengo, 2014; Oyewobi, Windapo, Rotimi & Jimoh, 2016; Elshabasy, 2018), brand-building and brand management (Berthon, Ewing & Napoli, 2008; Spence & Essousi, 2010), export intensity (Bonaccorsi, 1992; Majocchi, Bacchiocchi & Mayrhofer, 2005) among others. However, studies to examine the roles specific features as business type play in influencing customer response to brand activities within B2B markets are scanty. Meanwhile, Turka and Sasan (2015) and Inoni, Salami and Olannye (2019) mention the importance of organisational attributes in influencing organisational purchasing behaviour. Until further research is conducted to examine the dynamics business type introduces to business responses and its impact on brand avoidance, marketing literature would remain somewhat porous. Also, owing to the relative novelty of brand avoidance as a research topic and the recent surge in interest, most of the studies in this area committed to its exploration and conceptualisation, thus employed the more suitable qualitative research approaches. As such, most of the studies in brand avoidance are qualitative (Bryson et al., 2013; Khan & Lee, 2014; Kim, Ratneshwar, Roesler & Chowdhurry, 2016; Knittel et al., 2016; Berndt, Petzer & Mostert, 2019) with just a few quantitative studies (Hegner et al., 2017; Safana, 2018; Odoom et al., 2019), creating a methodological gap which this study seeks to fill. Quantitative research, acting as a build-up on qualitative studies is more explanatory. It seeks to give more clarity to a research topic as well as understand cause and effect relationships (Yin, 2014), making it a relevant approach for studies in the ongoing development of brand avoidance literature. Furthermore, there have been calls for further studies in negative consumer-brand relations in emerging economies (Izberk-Bilgin, 2010; Bryson et al., 2013) as studies have focused 7 predominantly on developed regions, including Germany, UK, Sweden, New Zealand and Australia (Sandikci & Ekici, 2009; Lee et al., 2009; Bryson et al., 2013; Khan & Lee, 2014; Knittel et al., 2016). Per the assertions of Izberk-Bilgin (2010), perspectives from developed contexts differ from developing regions based on varying levels of modernisation and cultural development. This claim is also supported by Bochner (2013) who acknowledges the influence of varying cultural perceptions among consumers. In the bit to address this gap, this study examines brand avoidance from the perspective of an emerging market, specifically Ghana. A thorough review of literature gives an indication that most studies have thrown more light on negative relations in the overall consumption of general goods and service brands (Kozinets, 2002; Banister & Hogg, 2004). Studies with more specificity considered the service industry in general (Safana, 2018; Berndt et al., 2019), creating the need for research into other specific industries as well as specific sectors within the industries (Roper et al., 2013; Knittel et al., 2016; Safana, 2018). This study, therefore, seeks to investigate the drivers of brand avoidance in B2B relations. More specifically, it determines the applicability of the B2C brand avoidance drivers within the B2B terrain. It further examines the dynamics business types introduce in business responses to brands in the Ghanaian Telecommunications sector; a fiercely competitive industry. 1.3 OBJECTIVES OF THE STUDY Hinged on the identified problems and gaps in both theory and practice, this study seeks to: 1. Determine the applicability of the drivers of brand avoidance in the B2C market within the B2B terrain. 2. Assess dissimilarities in customer responses to service brands based on customer business type. 8 1.4 RESEARCH QUESTIONS This study is aimed at answering the following questions: 1. What are the factors that influence brand avoidance in business-to-business relations? 2. a. Are there dissimilarities in customer responses to service brands based on customer business type? b. What are the dissimilarities in customer responses to service brands based on customer business type? 1.5 SIGNIFICANCE OF THE STUDY The significance of this thesis is multifaceted, offering contributions to various categories of people, including academia, brand managers, brand consultants, and marketing agencies. These contributions are discussed under to broad headings as follows; 1.5.1 Contribution to Literature First and foremost, this study contributes to existing literature, an emerging market perspective of service brand avoidance, thus filling the gap that currently exists, as most of researches in these areas have focused on developed contexts. Additionally, the findings of this study expand knowledge on brand avoidance within the B2B domain. This entails the factors that drive businesses to avoid brands when making purchase decisions, specifically regarding services provided by telecommunication network brands. The study considers established drivers of brand avoidance within the B2C context and how they may apply in business markets. This study also exposes the dissimilarities in client reactions to brands that are attributable to the business type of the client. 9 1.5.2 Contribution to Practice Currently, the Ghanaian Telecommunications Industry offers services that have become very critical and almost indispensable in the everyday activities of people and businesses alike. This creates grand opportunities for telecommunication network brands. However, it leaves little room for tolerance of mistakes, oversights and failures, especially amidst such great competition. This study thus serves as a reference document to all service brands, specifically within the telecommunication sector as well as brand consultants and agencies in identifying and strategizing against the factors that could make their business clients avoid their brands, thus staying competitive. 1.6 CHAPTER DISPOSITION This thesis is comprised of six chapters. Chapter one is the introductory section of the study. It gives a background to brand avoidance as a concept and discusses the problems the study addresses. Additionally, the objectives and significance of the study are mentioned. Chapter two throws light on the context of the study. Chapter three also presents a review of existing literature on business-business markets, branding, brand avoidance and all related issues. In this section, theoretical and conceptual frameworks of the study are thoroughly discussed. Chapter four presents a thorough account of the study methodology. Specifically, it describes the research paradigm, design, strategy and sampling design as well as data collection, pretesting procedure and ethical considerations. Chapter five outlines and discusses the techniques applied in analysing data and the study findings. Chapter six then summarises the study, discusses the major findings, highlights the implications and limitations of the study and makes recommendations. 10 1.7 CHAPTER SUMMARY This chapter presented the background to this thesis, identified gaps in extant literature and highlighted the problems to be solved by the study. The objectives and significance of the study were then outlined. 11 CHAPTER 2 CONTEXT OF THE STUDY 2.1 INTRODUCTION This chapter builds the context of the study. It provides an overview of the services sector, and a synopsis of the Ghanaian telecommunications industry, throwing light to the various services provided and consumed within the industry. 2.2 OVERVIEW OF THE SERVICES SECTOR Marketing literature is thronged with a plethora of definitions for services. In Edvardsson’s (1997) view, services form a part of the wider product concept. Lovelock (1991) on the other hand, views services as a performance or process instead of a thing. Grönroos (2001) defines a service as “an activity or series of activities of a more or less intangible nature that normally, but not necessarily take place in the interaction between the customer and service employees or systems of the service provider, which are provided as solutions to customer problems”. Diverse interpretations of this concept highlight that although services may feed into the development of physical goods, the final output of the service itself is not physical or tangible (Lovelock & Patterson, 2015). Universally, the service sector is seen as the driving force for many economies, spurring globalisation and technological development (Enu, Addey & Okonkwo, 2015). For instance, the services sector in developed countries such as Japan, USA and UK as well as developing countries such as India, Indonesia, Ghana and China have become a major source of state and national incomes, employment, FDI inflows and trade flows. In countries like Brazil, Germany, the US and France, over 65% of overall gross domestic product (GDP) is contributed by services. According to data from the World Trade Organization (WTO), this sector is the fastest 12 growing in the global economy, employs about a third of the workforce and provides 70% of accounts and global output for a quarter of overall global trade (ISSER, 2015). Africa is not left behind in this development, as Hassan and Abdullah (2015) point out. The authors mention that over half of the total GDP of developing economies is accounted to their respective services industries. For instance, between the years 2000 and 2015, 47% of total GDP sourced from services, 37% form industry and 16% from agriculture (Hassan & Abdullah, 2015). The authors further assert that recent spurs in Africa’s economic growth are heavily dependent on the services sector. The story is no different in Ghana. The Ghanaian service sector has gradually outrun the agriculture and industry sectors (known as the traditional economic sectors) and contributes over 50% of Ghana’s GDP (GSS, 2016), proving to be the trigger for the country’s development. In 2012, the service sector accounted for 49.3% of Ghana’s GDP, surpassing the year’s target of 7.7% by 1.1% to attain 8.8% growth (MoF, 2013). Furthermore, in 2016, the sector witnessed growth in GDP share of 54.3% from 53.3% in the previous year. Conversely, the industrial and agricultural sectors decreased from 25.1% in 2015 to 24.3% in 2016 and 20.3% in 2015 to 18.1% in 2016 respectively (MoF, 2017). The main sub-sectors in the Ghanaian service sector are; transport and storage; trade and repair of vehicles; hotels and restaurants; households and goods; information and communication; real estate; health and social work; business; social and personal; community; social security; public administration and defence; education and financial intermediation. Of the various sub-sectors, the information and communication sector stands out as a prime driver of the services sector (ISSER, 2016; NCA, 2017). Within this sector are the mobile network operators, network infrastructure operators, software operators, internet service providers, Very Small Aperture 13 Terminal (VSAT) data operators, internet backbone providers, telephone systems and dedicated transmission networks (TV, Cable, Digital Subscriber Line (DSL)). 2.3 THE GHANAIAN TELECOMMUNICATION INDUSTRY The telecommunication industry forms part of the larger service industry, specifically the information and communication sector, and plays a critical role in the development of an economy (Boohene & Agyapong, 2011). According to Boohene and Agyapong (2011) and Ofori, Osei, Ato–Mensah and Affum (2015), telecommunications provide how all day-to-day transactions transpire, thus, facilitate activities such as decision-making, instructing, organising, information exchange, provision of feedback as well as the promotion of business and interpersonal relationships among others. In an organisation, calls within the firm (within and between departments) and out to suppliers, customers and other stakeholders, text messages and emails are reliant on the services of telecommunication networks. Also, voice and internet services for holding meetings over conference and video calls, accessing cloud storage services, as well as platforms for making and receiving payments, are powered by telecommunication networks. Furthermore, financial institutions such as investment and commercial banks and credit unions are heavily dependent on centralised systems for operation, which are accessed via the internet. Moreover, news media agencies, internet cafes, medical centres among others rely on telecommunication services to store, access, share data and provide optimal services to their customers. In the Sub- Saharan African (SSA) telecommunication market, the Ghanaian Telecommunications Industry has been one of the prominent leaders for the past two decades (Nimako, 2012). 14 Following the Accelerated Development Programme, the Ghanaian industry was deregulated in 1994, opening the gates to foreign companies (Nimako, 2012). Before this, the industry was state-controlled and constituted of just a few firms to control the telephone (fixed-line and mobile) and internet services (Boohene & Agyapong, 2011). The era was marked by exorbitant pricing and highly restricted services which were mostly shoddy (Boohene & Agyapong, 2011). Currently, the sector is recognised as a part of the largest and most efficient sectors in Ghana, characterised by fierce competition and innovation (Ofori et al., 2015). The players within the industry are MTN (Scancom Ghana Ltd.), the largest mobile network operator; Vodafone Ghana which took over Onetouch; Glo (Globacom Ltd.); and AirtelTigo, the product of a merger between Airtel Ghana and Tigo Ghana in November 2017 to become the second- largest mobile network operator. Primarily, the market offerings of telecommunication networks constitute voice, data and SMS services. For instance, a customer may choose prepaid or post-paid service. Prepaid subscribers call, text and browse without paying monthly fees but recharge at their convenience, whereas post-paid subscribers are free to perform these activities without limits but pay monthly bills. Encapsulated in these are various bundle packages, for instance; unlimited call bundles, fuse bundles, Good Morning pack, Sunday bundles, free night call services among others. For business clients, there are specialised packages such as red business, which allows employees of a firm to talk to each other for free, browse and text; smart business, which allows firms to customise their data and voice plans; caller ring back tunes, aimed at assisting firms to advertise, improve their brand identity and better engage their customers while saving money. There is also global MPLS which allows businesses located in Ghana to seamlessly connect their offices to various locations across the globe, including South Africa, Nigeria, Tanzania, United Kingdom, Senegal, among others. Some other service packages for business clients are 15 ready office, VAS short codes, toll-free numbers, corporate WIFI, roaming bundles, bulk SMS solutions, enterprise fixed voice, multi-caller service and leased line services. Some businesses may, however, choose to patronise the regular individual or family packages for several reasons such as sheer preference, small business size and financial capabilities. Telecommunication providers also offer insurance, entertainment (music and movies) and mobile money services. The mobile money service was introduced into the Ghanaian market by MTN and has since grown in coverage and scope (Business Day, 2017). Currently, all telecommunication networks provide mobile money services. MTN mobile money popularly referred to as MTN Momo alone in 2017 signed on over 1.5 million active subscribers recorded an average of 18.5 million monthly transactions and employed about 19,500 merchants across the country (Business Day, 2017). Due to its handiness, security and convenience, most people and businesses have signed on, making it a major mode of payment for goods and services in both B2C and B2B markets (Ofori et al., 2015). 2.4 CHAPTER SUMMARY The chapter discussed the context within which this study is examined. More precisely, an overview of the service sector and a discussion of the Ghanaian telecommunication sector were given. 16 CHAPTER 3 LITERATURE REVIEW 3.1 INTRODUCTION This chapter aims to review literature germane to brand avoidance thoroughly. First, the theoretical foundation of the study is determined, under this, anti-consumption and attachment theory are discussed to aid in the comprehension of brand avoidance as a concept. Second, some background is given to business markets, how businesses behave like customers and the factors that influence decisions. The study then provides an empirical review, where literature on branding, brand equity and brand avoidance. Also, this chapter discusses the various types of brand avoidance with their corresponding motivators as well as firm characteristics. 3.2 THEORETICAL FRAME Anti-consumption being the broader construct from which the concept of brand avoidance emanates forms the basis of this study. Additionally, this study is informed by the attachment theory as it explains some consumer behaviours critical to this study. 3.2.1 Anti-consumption Over decades of years, consumption and exchange have been the focus of attention for marketing practitioners and academics alike (Kotler, 1972; Bagozzi, 1978; Lee et al., 2009a). However, recent trends have revealed a growing interest in anti-consumption behaviour across the globe, exemplified by studies of Knittel et al. (2016), Hegner et al. (2017) and Odoom et al. (2019). In the world of business, the Nivea brand recently faced some avoidance and rejection issues after launching racist advertisement, and Liverpool dropped Addidas for Nike. Iyer and Muncy (2009) explain anti-consumption as a conscious or optional attempt by consumers to keep away from consumption and could take the form of minimising overall 17 consumption or avoiding specific brands or products. Zavestoski (2002) however describe it simply as a distaste of and resistance to consumption in general. Extant literature reveals multiple streams or perspectives of anti-consumption. They include boycotts (Farah & Newman, 2010; Albrecht, Campbell, Heinrich & Lammel, 2013), anti-loyalty (Krishnamurthy & Kucuk, 2009), ethical consumption (Carrigan & Attalla, 2001; Hoffmann & Hutter, 2012; Zollo, Yoon, Rialti & Ciappei, 2018), consumer resistance (Cherrier, 2009; Lee, Roux, Cherrier & Cova, 2011), brand avoidance (Lee at al., 2009b; Kim, Choo & Yoon, 2013; Knittel et al., 2016), brand rejection (Sandikci & Ekici, 2009; Nenycz-Thiel & Romaniuk, 2011), pre- purchase brand avoidance (Khan & Lee, 2014), moral avoidance (Sudbury-Riley & Kohlbacher, 2018) as well as brand apathy and opposition (Kucuk, 2008; Fournier & Alvarez, 2013; Wolter, Brach, Cronin & Bonn, 2016). Hogg (1998) in exploring the impact of negation on consumption highlighted the fundamental motivations that promote the two prime anti-consumption phases; non-choice and anti-choice behaviour. Non-choice behaviour is predicated on the inaccessibility, unaffordability or unavailability of a product or brand to a consumer for purchase, thus, the consumer has no say (Hogg, 1998; Hogg, Banister & Stephenson, 2009). However, with anti-choice behaviour, the decision lies with the consumer. He or she may find the product or brand distasteful and thus avoid or abandon it (Hogg, 1998). In this case, anti-consumption is not dependent on the expensiveness or availability of the product or brand, but the preference and perceptions of the consumer (Hogg & Banister, 2001). It is, however, important to note that, as stressed by Chatzidaki and Lee (2013), the reverse of the reasons for anti-consumption behaviour should not be automatically considered as drivers 18 of consumption. For this study, the focus shall be on anti-choice consumption, where the buying organisation has enough resources to make any service choice. 3.2.1.1 Dimensions of Anti-Consumption Product or brand anti-consumption could come in diverse forms; some reject consumption for personal reason (e.g. living a simpler life) and those who do so for universal purposes (e.g. environmental preservation) (Cherrier, 2009). Iyer and Muncy (2009) point out the existence of four distinct groups of anti-consumers – dependent on the object and purpose of anti- consumption, as seen in Table 3.1. They are anti-loyalists, global-impact consumers, market activists and simplifiers. Global impact consumers take a keen interest in diminishing general consumption levels for societal or planetary benefits. For instance, members of the buying centre in a refrigerant-using firm could boycott the purchase of chloro-fluoro carbons (CFCs) and hydro-chloro-fluoro carbons (HCFCs) refrigerants to help fight against ozone layer depletion and global warming. Simplifiers, the next set of anti-consumers, seek to avoid fast- paced, excessive-materialistic lifestyles and opt for less-materialistic and simpler lives. In this case, the purpose of anti-consumption is personal, however, the object is universal (Shaw & Newholm, 2002; Iyer & Muncy, 2009). There are also the anti-loyalists; who reverse the concept of brand loyalty. Anti-loyalists refuse to patronise specific products or brands either because of a negative or unfavourable experience with the product or brand or low quality of the product (Iyer & Muncy, 2009). Here, the object of anti-consumption is specific, and the purpose is personal. Last but not least are the market activists. This group of anti-consumers avoid patronising certain products or brands due to their perception of the harmful effects it may have on the environment or promote negative social behaviour (Iyer & Muncy, 2009). The purpose of anti-consumption here is societal and the 19 object is specific. For instance, the decider or influencer in a firm’s buying centre could avoid or reject a certain brand or service because of the potential harm it may cause to the firm or its end-consumers. Table 3. 1: Types of Anti-consumers Object of Anti- Consumption Purpose of Anti-consumption Societal concerns Personal concerns General (All consumption) Global Impact Consumers Simplifiers Specific (Individual Brands or Products) Market Activists Anti-Loyal Consumers (Source: Iyer and Muncy, 2009) The focus of this thesis is anti-consumers who avoid specific brands for societal reasons i.e. market activists. This is because, in an organisation, although personal factors may come to play, the prime foci of purchasing decisions are the organisation and its end-consumers (Turka & Sasan, 2015). Per the assertions of Lee et al. (2009) and Kim et al. (2013), brand avoidance corresponds to brand-level rejection, which is a subset of the larger anti-consumption phenomenon. 3.2.2 Attachment Theory and Brand Attachment Attachment theory attempts to bring understanding to the nature of the affective bonds made by people (Smith, Murphy & Coats, 1999). This theory emanated from a study of how baby animals imprint on their mothers and the effect of severing their bonds and progressed to emotional bonds formed by human infants and adolescents (Lorenz, 1935; Suomi, Harlow & Domek, 1970; Ainsworth, Blehar, Water & Wall, 1978). As propounded by Bowlby (1969, 1980), humans form emotional attachments; which are resolute emotional connections between 20 an individual and an entity that persists across space and time. He asserts that these attachments feed into the basic requirements for human survival and are attributable to the period of the dependence of an infant to its mother to an adolescent's need for affection and relationships. Per the assertions of this theory, an individual’s relations with an entity bothers on the degree of emotional connectedness the individual has to the entity (Bowlby, 1982). Impliedly, a person who is extremely affectionate towards another is predisposed to be devoted to, protect, work more closely with and sacrifice a lot for that person, on the other hand, in the event of disappointment from the receiving entity, the individual in question will be hurt and displeased (Bowlby, 1982). Extensive research has shown that emotional attachments go beyond just caretakers, partners and other humans to collectables, places of residence, brands, gifts and other objects of interest and fondness (Wallendorf & Arnould, 1988; Hill & Stamey, 1990; Mick & DeMoss, 1990; Schouten & McAlexander, 1995; Slater, 2001). Park, McInnis and Priester (2006) explain brand attachment as the robustness of the cognitive and emotional bond between a consumer and a brand. This explanation reveals the existence of a bond between the consumer and brand, and an emotional and cognitive correlation. The nature of this correlation informs the portion of resources the consumer apportions to the brand (Park et al., 2006). The consumer-brand connection portrays the degree to which the brand links to the consumer and influences the functional, symbolic and experiential goals of the consumer (Thomson, MacInnis & Whan Park, 2005). Just like babies form attachments to their caregivers (based on the caregiver’s reaction to the baby’s needs), consumers form attachments to brands based on the extent to which the brand can satisfy their needs (Bowlby, 1982; Thomson et al., 2005). Although in comparison to adults, the needs of babies are less complicated, the underlying process of attachment is similar. 21 The associations between brands and consumers manifest in both the cognition and emotions of consumers (Sperling & Berman, 1994); thus, whenever the thoughts of the brand come to mind substantial reasoning schemes are induced and bonds some parts of the consumer to the brand (Mikulincer & Shaver, 2005). Moreover, embedded in brand attachments are strong feelings of self-relevance and self-implications which bind the consumer to the brand (Mikulincer & Shaver, 2005). This goes to say that brand attachment goes beyond just attitudes to more complex consumer behaviours related to commitment to a relationship (Park et al., 2006). The establishment of relationships, according to Hazan and Shaver (1994), is complex and dependent on the consumer's attachment style. 3.2.2.1 Attachment Styles and Consumption Attachment styles may be described as the systematised patterns of a person’s behaviours, feelings, memories of past occurrences and anticipations (Bowlby, 1982; Mikulincer & Shaver, 2005). Ainsworth (1979) derived three attachment styles from an experiment on infants, namely; secure, avoidant and anxious-ambivalent or resistant. Bartholomew and Horowitz (1991) building on this developed a 2x2 matrix of adult attachments, with the axes being low or high dependence and low or high avoidance. From this matrix, they identified four attachment styles, namely, secure, preoccupied, dismissing and fearful attachment. Mende and Bolton (2011) however make the case that attachment styles are not limited to only person-to- person relations but influence relations between companies as well, hence, the attachment style of consumers portrays the kind of relationship they have with firms. Mende and Bolton (2011) identify two distinct dimensions of consumer attachment styles, namely; attachment anxiety and attachment avoidance. According to Thomson, Whelan & Johnson (2012), attachment anxiety focuses on an individual's self-view; considering the 22 degree to which an individual perceives him or herself as deserving of love or not. They add that, anxious people are constantly concerned about their self-worth and self-esteem and tend to transfer undue attention to the object of their attachment. As a way of dealing with their excessive sensitivity to relationship threats, anxious persons require constant assurance and crave interdependence. In contrast, attachment avoidance relates to how an individual perceives others (Mikulincer & Shaver, 2003). People who are high on avoidance tend to be highly self-reliant and prefer independence (Mikulincer & Shaver, 2003). Prior studies reveal that the patterns of consumers' devotion, satisfaction, involvement and commitment to brands and service providers are influenced by their styles of attachment (Thomson & Johnson, 2006). Additionally, Swaminathan, Stilley and Ahluwalia (2009) maintain that attachment styles inform brand choice based on the consideration of brand personality types. Consumer attachment is not limited to B2C relations only but comes into play in B2B relations as well; this is because, the internal working models of people inform their behaviours in business relationships as well (Paulssen, 2009). Paulssen (2009) in the investigation of the application of attachment theory in B2B markets identified two attachment styles that come into play; secure business attachment and close business attachment. Generally, employees who exhibit secure business attachment view others as being well-intentioned, reliable and responsible. They also have a high propensity to keep positive expectations, make positive appraisals and construct positive explanations to cover the behaviours and traits of business partners (or suppliers or brands). Thus, an organisation with a predominantly secure buying centre will be predisposed to greater levels of trust, satisfaction and repurchase intention in business transactions. However, it is worth noting that securely attached customers in B2B relations can possess a high willingness and ability to depend on a brand or business partner without an obligation or desire to be personally close to the brand or business partner (Paulssen, 23 2009). On the other hand, people who exhibit close business attachment prefer to have personal relationships with business partners (Paulssen, 2009). For instance, a brand or service provider would have to develop relationship marketing tactics aimed to personal bonding (showing interest in the personal lives of staff), so, if the brand’s representatives are friendship-averse, the chance of perpetuating a good relationship will be little. 3.3 THE BUSINESS-TO-BUSINESS (B2B) MARKET Rope (1998) asserts that B2B marketing is premised on the buyer in the business transaction being either a company or another organisation. B2B marketing clientele may be classified into three broad categories, namely, commercial organisations, public organisations and non-profit organisations (Rope, 1998). Public organisations comprise of government and municipalities agencies and community–based service institutions such as schools and clinics, whereas non- profit organisations include unions, religions, institutions, fellowships (Rope, 1998; Webster& Wind, 1972; Turka & Sasan, 2015). Commercial organisations include service enterprises, industrial enterprise as well as whole and retail businesses (Rope, 1998). The commercial organisations, unlike the aforementioned, make purchases to facilitate their business processes, produce other products or resell at a profit (Turka & Sasan, 2015). As emphasised by Rope (1998), the prime qualification for a B2B transaction is not necessary for the specific use of the product or service but the fact that the purchase is made on organisational demand rather than for individual use. 3.3.1 Consumption in Business-to-Business Markets Prior studies reveal that B2B interactions differ from B2C interactions on various fronts, including market structure, buying behaviour, products, buyer-seller relationships, promotions, price and channels (Giglierano & Vitale, 2002; Holvitie, 2006). B2B markets generally consist 24 of fewer customers or buyers who purchase in larger proportions (Giglierano & Vitale, 2002). The revenue distribution of most businesses that serve other businesses follows the Pareto Principle, which avers that 80 per cent of revenue is generated by only 20 per cent of customers (Hague, Hague & Harrison, 2017). Products could range from simple to technically complex depending on the line of business of the customer and are usually customised to the preference of the buyer (Giglierano & Vitale, 2002). Additionally, the demand for business clients is determined by their final consumers, thus may fluctuate more frequently (Kotler & Armstrong, 2012). Negotiation plays a key role in B2B transactions, as well as careful consideration of factors such as price, product or service availability, quality, running and maintenance cost, delivery and feasibility (Webster & Wind, 1972; Giglierano & Vitale, 2002; Turka & Sasan, 2015). Furthermore, B2B transactions are characterised by shorter promotional and distribution channels, which could be attributed to the emphasis on personal selling and the use of little to no market intermediaries (Giglierano & Vitale, 2002). Additionally, in B2B markets, buyer- seller relationships are greatly valued by both buyers and sellers; this may be due to the large investments made by both parties and high switching costs (Turka & Sasan, 2015). Relationships have a long-term orientation and involve the exchange of significant information between members (staff) of the participating organisations (Giglierano & Vitale, 2002). Purchasing tasks normally include multilevel functional involvement (Turka & Sasan, 2015). In smaller organisations, purchases may be conducted by a manager or the owner of the business. As expressed by Anton and Jones (2017), the actions of SMEs are mostly a direct representation of the psychological and behavioural characteristics of the business owner(s). However, in large organisations, purchases made result from the consolidated effort of largely professionally trained personnel who make up the buying centre (Rope, 1998; Lyson & 25 Farrington, 2006). The buying centre is described as the various people within an organisation who directly or indirectly participate in the buying process (Rope, 1998; Lyson & Farrington, 2006). According to Rope (1998), Lyson and Farrington (2006) and Turka and Sasan (2015), the buying centre comprises of: • Initiators – those who establish the need for the product • Influencers – those who specify the requirement to be met by the product or provide information that assists with the evaluation of alternatives • Deciders – those who wield the formal or informal authority to make the final purchase • Buyers – those who have the authority to choose the vendors and make the actual purchase • Users – those who directly use the purchased product in their operational duties and • Gatekeepers – those who have access to other members of the buying centre and have some control over information flow. 3.3.2 Factors that influence Organizational Buying Organisational buying like many other activities in the corporate environment is affected by various controllable and uncontrollable factors. Prior studies show that organisational buying is influenced by organisational, environmental as well as group/interpersonal and individual/personal factors (Hutt, 1998; Thomas & Grashof, 1982; Glock & Hochrein, 2011). According to Lyson and Farrington (2006), environmental influencers include political factors, technological change, interest rate, competition, national economy, level of demand and government regulations. Besides, they posit that these factors fall out of the control of the organisation; thus, firms only adjust to accommodate and survive. The organisational factors, on the other hand, stem from within the institution and may be altered by the firm (Lyson & Farrington, 2006; Turka & Sasan, 2015). These factors feed into the firm’s ideology, strategic 26 priorities, strategic trends of purchasing and strategic role of purchasing (Hutt, 1998). They include the organisation’s policies, goals, objectives, procedures, structure and system of rewards (Lyson & Farrington, 2006; Turka & Sasan, 2015). For instance, whether an organisation has a centralised or decentralised structure informs the degree of complexity of the purchasing process, whilst, the policies and goals form the basis for drawing up contracts and relationship – building (Turka & Sasan, 2015). Interpersonal attributes, as defined by Turka and Sasan (2015) encapsulates the relations between the various members of the buying units during the decision-making process. The factors that come to play here include members’ awareness, education, ability to take risks, mutual trust, the degree of conflict between members as well as the differing levels of authority, empathy, status and persuasiveness (Lyson & Farrington, 2006; Turka & Sasan, 2015). Also, Martilla (1971) found that interpersonal communication within the firm is rudimentary and crucial, whereas its significance between firms is dependent on the nature of the product and geographic market factors. Conversely, individual factors relate to the characteristics of the people who partake in the buying process and how they affect decisions (Turka & Sasan, 2015). For instance, each person in the buying centre has a unique preference for brands and products/services (Lyson & Farrington, 2006). Also, the dynamics introduced by multiple personalities, ages, attitude towards risk and professional identification creates different levels of information processing, product/service evaluation criteria and risk-reduction strategies which all feed into purchases (Hutt, 1998; Lyson & Farrington, 2006). Moreover, people move in certain directions in decision-making to attain some personal objectives such as recognition, power, prestige, promotion and job security; normally categorised as non-task objectives (Turka & Sasan, 2015). 27 3.4 EMPIRICAL LITERATURE REVIEW 3.4.1 Brands and Branding in Business-to-Business Markets De Chernatony and McDonald (2003) describe a brand as an aggregate of functional and emotional benefits that present a unique and desirable promise, whilst Farquhar (1989) defines branding simply as the process of making a product more valuable. Per the assertions of Kotler and Pfoertsh (2006), the general roles brands play in consumer markets can be translated to the B2B markets. However, Leek and Christodoulides (2011) point out that many marketers have viewed branding myopically in business markets. Branding was regarded as of little value to the business clients because of the traditional perception of organisational decision-making as very rational, whereas branding appeals more to the emotions (Robinson, Faris & Wind, 1967). Conversely, later studies, such as that of Lynch and De Chernatony (2004) reveal that just like in B2C markets, brands in B2B markets must build both affective and cognitive ties with customers to foster trust. It is evident in extant literature that branding is beneficial to both the brand\firm investing in branding and the customer (Leek & Christodoulides, 2011). For instance, branding enhances the perceived value of a product/service, and consequently, makes it more appealing (Cretu & Brodie, 2007; Rindell et al., 2014). A brand, according to Michell, King and Reast (2001), gives identity and a consistent image to a product/service, and in turn, confers uniqueness unto that product. In situations where firms bid for contracts, those with strong brands are favoured as they get unto the bid lists and can request premium prices (Michell et al., 2001; Low & Blois, 2002; Ohnemus, 2009). Furthermore, promotional efforts of branded products are accepted more readily, and the firms behind the brands enjoy the transfer of positive brand evaluations from one product category to the other in the event of brand extensions (Michell et 28 al., 2001; Low & Blois, 2002; Ohnemus, 2009). Plus, strong B2B brands stand a higher chance of receiving referrals (Holt, Quelch & Taylor, 2003; Bendixen, Bukasa & Abratt, 2004). On the side of the business client, brands reduce perceived risks and intricacies involved in purchase decisions, as brands act as guarantors of product origin, quality and performance (Belch & Belch, 2012). According to Low and Blois (2002) and Mudambi (2002), brands boost the confidence of business clients, increase satisfaction and promote comfort as well as the “feel good” factor. Moreover, the buying firms may attain some legitimacy from being connected to a reputable company or brand (Low and Blois, 2002). 3.4.1.1 Service Branding Services have a fundamental characteristic of intangibility, which makes service quality evaluations difficult (Parasuraman, Zeithaml & Berry, 1985). Berry (2000), however, points out that branding presents consumers a means of substantially differentiating between offerings of competing brands. Murray and Schlacter (1990) assert that in comparison to the branding of goods, service branding is more pertinent because of the intricacy of service purchases. This is especially true for B2B services (Geigenmuller & Bettis-Outland, 2012). Contrary to product branding, services rely on the image and designation of the firm that provides then when being branded. Consequently, the entire firm is perceived as the service provider by consumers (Berry, 2000). Thus, as stated by Alexandris, Douka, Papadopoulos and Kaltsatou (2008), the core of a service brand is dictated by the characteristics of the firm. For instance, how employees of the firm offer services and the nature of the relationship between the firm and its clients. Furthermore, business services, according to Parasuraman (1998), are frequently highly individualistic and require intensive correspondence between the consumer 29 and provider. Thus, information asymmetry between the client and provider could make effectively evaluating strategies for the provider; and service quality for the client difficult (Karantinou & Hogg, 2001; Hausman, 2003). As Marquardt, Golicic and Davis (2011) point out, in B2B transactions goods and services provided across firms in the industry are more susceptible to speedy standardisation, resulting in commoditisation. Webster and Keller (2004) thus stress the need for brand managers to focus on consistently creating and promoting points of difference, including the reputation strength and technical competence of a firm as a way of differentiation and providing superior value (Webster & Keller, 2004). Services notably possess high credence and experience qualities, consequently associate more with high risk and uncertainty. However, when services are branded, the uncertainty decreases as the brands act as proxies for quality (De Chernatony & Dall’Olmo Riley, 1999; Grace & O’Cass, 2005). Moreover, service brands assure customers of consistency in service delivery, whereas brand equity is very instrumental in B2B service differentiation (Gordon, Calantone, di Benedetto & Kaminski, 1993; Berry, 2000). 3.4.1.2 Brand Equity Brand equity has been interpreted severally in literature. From a financial viewpoint, brand equity is regarded as the disparity in cash flow a firm sees when they add a brand name to their service or product against when they do not (Simom & Sullivan, 1993). Also, brand equity is described as the financial worth generated by a brand, as evidenced by the profit generated by the brand (Biel, 1992; Bailey & Ball, 2006). Kimpakorn and Trocquer (2010) point out, however, that, the financial approach to defining the concept fails to assist brand managers to fully grasp the various processes that feed into the development of brand equity. Aaker (1991) from a marketing viewpoint defines brand equity as an amalgamation of assets and liabilities 30 associated to a brand which results in the increment or reduction of value attained by a firm and its clients from a market offering. Additionally, these assets are broken down into five categories: perceived quality, brand association, brand awareness, brand loyalty, as well as other proprietary assets (Aaker, 1996). Tsiotsou, Ratten, Rosenbaum & Wong (2010) also add that the extra value added to a product or service to attain brand equity comes from acquiring some brand attributes such as a name, reputation, association and symbols. Furthermore, Keller (1993), who takes it from a consumer-based view, considers brand equity as a resulting reaction brand knowledge generates to marketing efforts. According to Hoeffler and Keller (2003), positive brand equity is attained when in the event of brand recognition, the customer responds more favourably in comparison to how he/she would respond in the absence of brand recognition. In conceptualising Customer-Based Brand Equity (CBBE), Keller (1993) notes that by comprehending brand equity from where the consumer stands, a firm understands some consumer reactions to marketing efforts and can consequently improve their marketing programs. Berry (2000) posits that brand equity places brands/firms in a favourable position. Various studies point out that brand equity provides significant merits in marketing, such as forming a concrete and distinct bond between a firm and its shareholders and engenders long- terms patronage (Capron & Hulland, 1999; Davis, 2000; Ambler, 2003). Moreover, Yoo, Donthu and Lee (2000) assert that an appreciation of and investment into brand equity increases profitability and makes market accessibility and penetration difficult to other firms. Contrary to the concept of positive brand equity is negative brand equity. According to Lee (2007), there are some instances where a brand may be negatively re-created in the process of marketing or consumption, which may result in its avoidance or rejection. This rejection, as 31 argued by Lee (2007) leads to a market-based liability which is the reverse of the improved efficiency and effectiveness a firm attains as a market-based asset. Drawing from the conceptualisations of Keller (1993) and Aaker (1996), the repeated rejection of brand results in negative brand equity as the reaction from consumers to the brand is unfavourable. Thus, rather than enhancing the value creation assets of the firm, the brand may stifle cash flow and impede the overall possibility of value generation of the firm (Lee, 2007). 3.4.2 Brand Avoidance Brand avoidance is described as an antithesis of brand loyalty, implying that whereas satisfaction results in loyalty, dissatisfaction breeds avoidance (Thompson, Rindfleisch & Arsel, 2006). According to Kavaliauske and Simanavicinte (2015), the first attempt at formally defining brand avoidance was made by Lee at al. (2009a). They define brand avoidance as a deliberate choice by consumers to reject or keep away from a brand. This phenomenon represents a form of consumer behaviour which involves the pre-meditated rejection of a brand despite the consumer having access to it, and the resources and ability to purchase it (Lee et al., 2009b; Rindell et al., 2014). Thus, being a dimension of the parent anti-consumption concept, brand avoidance is identified as an anti-choice behaviour (Hogg, 1998; Lee et al., 2009a). Knittel et al. (2016) highlight the necessity of brands and firms understanding the origins and motivations of brand avoidance as they bear the brunt. Backed by Kavaliauske and Simanavicinte (2015), they argue that brand avoidance has a significant impact on the brand or firm's reputation and profitability. The study of brand avoidance has mainly concerned end-consumers or individual consumers. These studies have identified that no matter the promises brands offer or not, customers avoid brands when the negative emotions, beliefs and attitudes they have towards the brand 32 strengthens or grows and serves as a barrier to purchasing (Thompson et al., 2006; Nenycz- Thiel & Romaniuk, 2011; Romani, Grappi & Dalli, 2012). Although business clients are prime contributors to the success of brands in the B2B market (Turka & Sasan, 2015), and avoid certain brands at points in time, little attention has been given to brand avoidance by business clients. Arguments in areas of organisational purchasing behaviour have stressed on rationality over emotionality (Robinson et al., 1967; Turka & Sasan, 2015) however, the introduction of branding and relationship-building in B2B markets introduces emotional elements as branding efforts and development of brand equity thrive on the affective for the optimal result (Mudambi, 2002; De Chernatony & McDonald, 2003; Lynch & De Chernatony, 2004). Also, every organisation comprises of individuals who make both cognitive and affective considerations in decision-making, despite the ratios (Kotler & Pfoertsh, 2006). Besides, in situations where affective measures are disregarded, brands may be rejected or avoided by business clients for other reasons, making their investigation critical. Due to the scanty literature in brand avoidance in the B2B context, discussions on the motivations and types of brand avoidance will be heavily reliant on studies from the consumers. 3.4.2.1 Types of Brand Avoidance 3.4.2.1.1 Experiential Avoidance Potentially the most perceptible type of brand avoidance, experiential avoidance relates to situations where the result of service delivery or product performance falls short of fulfilling the brand promise or meeting customer expectations, sourced from poor performance, unpleasant store environment or consumption hassles (Lee et al., 2009a, 2009b). Halstead (1989) posits that in market exchange, consumer expectations could be either confirmed or disconfirmed, hinged on the juxtaposition of the product or service performance with their 33 initial expectations. When there is a match between expectations and product or service execution, there is confirmation (satisfaction). There is, however, disconfirmation when performance falls either below or above expectations. In the occurrence of the latter, the customer is delighted when performance falls above expectation and dissatisfied when the reverse transpires, in which case brand avoidance may be triggered (Oliver, 1980; Lee et al., 2009b). Kim et al. (2013), supported by Lee et al. (2012) argue that unmet expectations are effective in eliciting brand avoidance behaviour. This argument is reiterated by Nenycz-Thiel and Romaniuk (2011), who state that negative brand experiences spur anti-consumption behaviour. Thus, the occurrence of experiential avoidance of a brand reveals that a customer has been disappointed by a brand’s service – experienced a service that fell short of their expectations because of poor performance, inconvenience, service environment or service encounter failures (Lee et al., 2009b; Berndt et al., 2019). Similar to B2C relations, core service failures such as unmet expectations will logically spur brand switching in B2B markets, (Naumann, Haverila, Khan & Williams, 2010). Poor performance, consumption hassles and unpleasant store appearance are the outstanding dimensions of unmet expectations, resulting in experiential avoidance (Lee et al., 2009a). Poor performance As reported by Lee et al. (2009a), service experiences that fail to meet customer expectations account for most occurrences of experiential avoidance. In such situations, where the customer perceives the brand’s inability to execute its promises or fails to affirm its image, poor performance is evident (Odoom et al., 2019). De Chernatony and McDonald (2003) in their conceptualisation of a brand, highlight the significance of functional benefits offered. Delasus 34 and Descotes (2012) in like manner, place gravitas on the performance of a product or service when they link it to its functional value. Particularly in industrial markets, functional value performs a pivotal role (Doyle, 2001). Within the service industry, poor service covers all actions and events associated with the service brand that may result in disappointing service experiences (Berndt et al., 2019). Poorly functioning products or services result in the waste of time, distress, feeling of loss of control and dissatisfaction (Thompson, 1997; Cho & Song, 2012). Furthermore, business clients may encounter major setbacks and frustrations in attending to their external and internal customers (Kapustina & Babenkova, 2010), which could result in the displeasure and defection of their customers. Hassle The term hassle captures the additional effort and stress of consumers encounter when handling product or service failures and complaints when dissatisfied; leading to avoidance of the brand or service (Lee at al., 2009; Knittel at al., 2016). In a situation where a customer is presented with a defective product or encounters a poor service and needs to act to remedy the underperformance, reaching out to customer service is often considered unworthy of the effort. After consideration of the inconvenience suffered, avoidance of the service or product may seem a plausible alternative in the future (Lee et al., 2009a). Similarly, the findings of Keaveney (1995) reveal that customers are more likely to switch brands when they are inconvenienced and encounter poor employee response to service failures, resulting in avoidance of the failed brand. In the B2B setting, the effect of service failures heighten, because the failures are not limited to the client’s operations, but due to “domino effects”, spreads to the client’s customers (Zhu & Zolkiewski, 2015). Even in the instance where service recovery schemes such as product returns or service warranties are 35 available and invocable, the consumer could still regard them as complicated and additionally inconveniencing, strengthening the feeling of dissatisfaction (Lee at al., 2009a, 2009b). Store environment Lee et al. (2009a, 2009b) point out that an unpleasant store environment or service delivery setting could add up to a negative brand experience. The store environment delineates the non- interpersonal and interpersonal components of the shopping experience, such as ambience, stimuli and social factors (D’Astous, 2000; Arnold, Reynolds, Ponder & Lueg, 2005). It may also be described as the tangible settings of a firm inclusive of lighting, signs, music and people (staff uniforms, behaviours and characteristics (Turley & Milliman, 2000; Lin & Chiang, 2010). Per the assertions of Kotler (1973) and Donovan, Rossiter, Marcoolyn and Nesdale (1994), these factors within a service environment or store setting could create positive feelings in the consumer and increase the chances of purchase or vice versa. A store or service environment of a brand is considered strategic; aimed at influencing consumer cognition and behaviour, while adding to the delivery of distinctive experiences (Turley & Milliman, 2000; Lemoine, 2005). Nevertheless, Lee et al. (2009b) hint that customers generally have expectations of the kind of experiences a brand’s store or office should present. Thus, when reality deviates from the expectations, the negative store experience could spur avoidance (Lee et al., 2009b). Findings of Noad and Rogers (2008) reveal that just like in B2C settings, store atmospherics plays a significant role in affecting purchase decisions in B2B transactions, with product display being the major influencer. Similar to how as an appealing environment favours positive consumer reaction, an unappealing environment created displeasure, dissatisfaction and avoidance (Tai & Fung, 1997; Knittel et al., 2016). 36 3.4.2.1.2 Identity Avoidance It is normal to find consumers choose certain brands because they perceive a correspondence between the brand and their self-concept or self-image (Belk, 1988). Conversely, still driven by a desire to enhance their self-concept, some brands may be rejected by consumers (Hogg & Banister, 2001). Similar to individuals, organisations strive to protect their identities. Organisational identity, as defined by Albert and Whetten (1985), is a set of statements concerning the organisation which are considered as distinct, central and enduring by the members of the organisation. This identity gives the organisation a sense of who they are, what they do and what they should strive to attain in future (Lin, 2004). Albeit, with a solid comprehension of an organisation’s identity, managers and other firm leaders develop a fundamental base that guides all decision-making activities (Albert & Whetten, 1985). Identity avoidance refers to brand avoidance that stems from a consumer's perception of the discordance between the symbolic meanings of a brand and their actual or preferred self- concept (Lee et al., 2009a). Simply put, identity avoidance happens when a brand is unable to attain a customer’s self-concept requirements (Lee et al., 2009b). In such instances, the consumer may perceive the brand as unauthentic, affiliated with an unacceptable reference group (Charmley, Garry & Ballantine, 2013; Kim et al., 2016), and other attachments and values they do not want to associate with (also known as the consumer’s undesired self) (Ogilvie, 1987; Lee, 2007). According to Lee et al. (2009b), the concept of identity avoidance is informed by undesired self-concept and disidentification. Also known as self-identity, self-concept describes the desire of a customer to establish a psychological attachment with a corporate brand (Hudson, Roth, Jadden & Hudson, 2015). Disidentification theory postulates that in constructing their self-concept, consumers may 37 dissociate themselves from groups and organisations with values and standards that are inconsistent with theirs (Bhattacharya & Elsbach, 2002). Thus, the inconsistencies and symbolic connotations a brand presents, as well as the self-concept of a consumer could stir up antagonistic feelings towards the brand (Hegner et al., 2017). Just like brands and consumers, business clients have organisational concepts they uphold and with which they operate (Hunt, Wood & Chonko, 1989; Beyer, 1981; Dose, 1997) and are likely to reject a brand that does not identify with these values. Lee et al. (2009a) highlight inauthenticity, negative reference groups and deindividuation as the sub-themes of identity avoidance. Inauthenticity Lee et al. (2009a) make the argument that a brand's lack of authenticity is a reason why it will be avoided. Authenticity, as elucidated by Arthur (2006), connotes trustworthiness, genuineness and realness. On that account, a consumer that avoids a brand based on inauthenticity regards the brand as a counterfeit (Lee et al., 2009). Thompson et al. (2006) mention that obtaining and maintaining associations of brand authenticity is challenging for brands. Holt (2002) and Beverland (2006) share in this view and link the difficulty to the brand's growth in popularity and over-commercialisation. Thus, a brand can be perceived to have lost its authenticity or unique symbolism (or termed ordinary) as it loses its ability to keep hardcore clientele and convey the positive associations it initially represented (Lee et al., 2009a). Lee (2007) further iterates that embedded in brand inauthenticity is the disparity between the image of a brand as perceived by a consumer and intended image of the brand. Negative reference groups A consumer is likely to reject a brand because of its association with a negative reference group (Lee et al., 2009a). As postulated in the social identity theory, the uniqueness of a person is 38 reliant on the associations he/she makes as well as the significance of these associations to the person (Hogg, 1998). Additionally, various studies suggest that consumers develop and define their social reference and self-concept by what they do or do not consume (Hogg, 1998; Banister & Hogg, 2001). Moreover, consumers hold the view that as they consume brands, they display self-concepts akin to those of other consumers of the same brands (Grubb & Hupp, 1968). Thus, in respect of self-congruity, consumers relate self-concepts to the image of the product or brand-user (Sirgy, 1982). Consequently, firms invest a lot into connecting their brands to preferred reference groups in hopes that their targets will lean towards their brands (Lee, 2007). Knittel et al. (2016), therefore, assert that the basis for evading a product or brand is evident in consumers’ eagerness to be dissociated from a specific group. Deindividuation Deindividuation may be described as an emotional state of diminished self-assessment and diminished regard for judgment, resulting in disinhibited and anti-normative behaviour (Zimbardo, 1969; Diener, 1980). Lee et al. (2009a) contend that deindividuation results from brand consumption due to a loss of individuality. Knittel et al. (2016) add that it is also seen when consumers reject popular brands to avoid losing their uniqueness and individuality. Hence, instead of promoting significance by using the brand (Banister & Hogg, 2000), the consumer’s individuality is rather eroded or concealed. The brand loses its ability to build distinctive individuality as more and more people patronise the brand (Lee, 2007). 3.4.2.1.3 Moral Avoidance This typology of avoidance is driven by ideological incompatibility and is often the outcome of brand promises that socially or politically oppose the belief system of customers (Lee et al., 2009; Sandikci & Ekici, 2009). This absence of like-mindedness in moral values between the 39 brand and the customer may prompt the customer to avoid the brand (Lee et al., 2009a); for instance, portraying some behaviours considered as immoral per the standards of consumers (e.g. forced labour, discrimination, unfair trade prices, cruelty, non-transparency, monopolistic), engaging in unethical practices as well as socially irresponsible behaviours (Kozinets & Handelman, 2004; Rindell et al., 2014). Lee et al. (2009) and Knittel et al. (2016) label country effects, anti-hegemony and consumer cynicism as the ideological sub-themes that underlie moral avoidance. Country of origin Country of origin is of importance to the customer (Abrashi & Beurer, 2013). According to Gurhan-Canli and Maheswaran (2010), it is a critical determinant of the behaviours, attitudes and purchase intentions of consumers. As stated by Peterson and Jolibert (1995), country of origin is considered as a prompt based on which consumers assess the consistency and superiority of products from a country and progressively influences consumption intents. Although the country of origin signals are properties that are not substantially associated with the product itself, interacting with the other conditions surrounding the purchase, it may serve as an assessment criterion for consumers (Elliott & Cameron, 1994; Kaynak, Kucukemiroglu & Hyder, 2000). Underpinning the concept of country of origin is the idea that once a consumer becomes aware of the source of a product or brand, it affects their behaviour towards the product/brand (Lee, 2007). Furthermore, as expressed by Aiello et al. (2009), it influences consumer evaluation of a product or brand. Existing literature discloses animosity and financial patriotism as some sub-themes of the country of origin (Lee, 2007; Lee et al., 2009). Per the postulates of the animosity model, consumers may baulk a product or brand from a country, not because of the product or brand 40 quality but for reasons relating to military, economic and political activities regarded as serious and reprehensible (Klein, Ettenson & Moris, 1998). Financial patriotism, on the other hand, relates to instances where consumers keep away from brands, they believe could have destructive implications on the resident economy (Lee, 2007). Anti-hegemony The idea that a multi-cultural group is dominated or controlled by just one group is termed as hegemony; thus, anti-hegemony may be depicted as "against domination" (Lee, 2007). Gramsci (1971) submits that anti-hegemony involves consumers contesting multi-national brands that are perceived to wield too much authority in the marketplace, otherwise known as hegemonic brands. As maintained by Kozinets and Handelman (2004) and Rindell et al. (2014), consumers are driven to maintain a strategic distance from dominant brands in anticipation of monopoly prevention or to combat corporate irresponsibility whiles protecting the society and environment. Here, customers are not motivated to lessen overall consumption but reject brands because of their conduct in the marketplace (Cromie & Ewing, 2009). Moreover, consumers may also be driven by the lop-sidedness of power between a multi-national brand and the consumer (Lee et al., 2009a; Odoom et al., 2019). In these cases, consumers are drawn to brand avoidance because of their feelings of disempowerment from lack of freedom of choice (Cromie & Ewing, 2009), and a desire to lessen the power wielded by the organisation (Berndt et al., 2019). 3.4.2.1.4 Deficit-Value Avoidance According to Lee et al. (2009a, 2009b), deficit-value avoidance comes about when consumers perceive a brand as parading unacceptable cost-to-benefit trade-offs. This brand avoidance typology is built on concepts of quality and value (Parasuraman & Grewal, 2000; Lee et al., 41 2009b). Research has shown that the benefits consumers attain from brands are two-fold: functional and symbolic (Ligas, 2000; Chaudhuri & Holbrook, 2001). Lee (2007) links this dimension of brand avoidance to the inability of brands to fully satisfy the functional desires of consumers, per the brand promises, thus, offering poor value.