The NACF has discerned a brand as one of the significant intangible assets of the company, thus has managed it consistently. Today, however, as numerous brands emerge within a single product category, the brand is losing its cutting edge as a source o...
The NACF has discerned a brand as one of the significant intangible assets of the company, thus has managed it consistently. Today, however, as numerous brands emerge within a single product category, the brand is losing its cutting edge as a source of product differentiation. Moreover, the overuse of brand extensions has caused additional problems for firms seeking effective branding strategies. These problems are especially evident within corporate groups that need to manage various individual brands. The present study attempts to provide insight into these issues by reevaluating the role of the brand of NACF. Specifically, it examines the role of the brand of NACF in building loyalty for brand of Hanaro Mart. In the present study, the literature on brand of Hanaro mart extensions is extended to the brand of NACF construct, and the relationship between individual and corporate brands of as well as the critical factors that affect this relationship is addressed.
Based on marketing theories of brands and corporate associations, and the social psychological theory of identity, the effects of the brand of NACF on brand of Hanaro Mart loyalty were established via two major routes. In the brand level, with focus on consumers’ reaction to Hanaro Mart, this study has tried to sort out the relationship of association about the NACF. The effect of brand associations of NACF on brand loyalty of Hanaro Mart was tested via 7 pathways, which resulted in support for the main predictions.
From this research, some implications can be suggested. Firstly, NACF’s ability associations and social responsibility associations have a positive influence on the reliance of consumers using Hanaro Mart. And it was clarified that NACF’s such associations could make the identity of NACF more attractive. So, in order to continue to give a good impression to the consumers, there should be a consistent, deliberate supervision of the brand. Also, NACF must, through advertisement, remind more people about NACF’s unique service and its ability and its responsibility as a corporate level brand. Secondly, the relationship between the consumer and NACF has had a positive influence in its loyalty. Therefore, it can be seen that certain measures and management must be made to encourage consumers as to be part of NACF. Also, NACF must understand and interpret carefully what kind of identity of the company is it that the consumers are looking for so that they can get closer to being a more favorable company. Lastly, it is defined that the loyalty towards NACF is to have influence on the loyalty of Hanaro Mart, an individual brand. So, in order to raise the loyalty of Hanaro Mart, the positive association toward to NACF must be managed. It is also possible to maximize the loyalty of Hanaro Mart through the combination of different association between the existing value of NACF such as popularity, convenience and the new image of company’s ability involving of new advanced technology. Furthermore, the association from activities of Social responsibility can contribute to improve the loyalty of Hanaro Mart.