EFFECT OF CORPORATE REBRANDING ON CUSTOMER ATTITUDINAL RESPONSES AMONG KENYA POWER BUSINESS CUSTOMERS IN NAKURU TOWN

Abstract

Background: Kenya Power and Lighting Company is a state owned corporation founded in the year 1954.In 1997 it demerged from Kenya Power and Lighting Company and rebranded to Kenya Electricity Generating Company and in 2008 the electricity transmission infrastructure function was curved out of Kenya Power and Lighting Company and transferred to newly formed Kenya Electricity Transmission Company. In June, 2011 Kenya Power and Lighting Company was rebranded Kenya Power. Despite the high costs incurred during corporate rebranding it remains unclear whether the initiative has contributed towards customer attitudinal response as envisaged by the strategy. Hence, the study aimed at establishing the effect of corporate rebranding on customer attitudinal responses among Kenya Power business customers in Nakuru Town. The study used descriptive survey research design and targeted a population 305 respondents comprised of Kenya Power business customers. Cluster sampling was applied to identify the respondents for the study. The study sampled 173 Kenya Power business customers in Nakuru Town. The data obtained for this study used structured questionnaires, which had both open and closed ended questions. The analysis of data was conducted used SPSS version 21.0 program. The analysis involved both descriptive and inferential analysis. Descriptive analysis conducted was to assess the varied opinions of the respondents on the variables of study while inferential statistics applied to provide a basis for testing the hypothesis through correlation and regression analysis. The findings revealed that change in corporate image had a positive impact on the attitudinal responses of business customers at Kenya Power. This supported by a positive Pearson Correlation between change of corporate image and attitudinal response at (r = 0.383). The findings also indicated that management change had a positive effect on the attitudinal response among business customers of Kenya Power with a positive correlation between management change and attitude responses among their customers at ( r = 0.398). Further findings revealed that product revitalization had a positive effect on customer attitudinal responses among business customers of Kenya Power and this was supported a moderate positive Pearson Correlation between product revitalization / renewal and attitudinal responses towards Kenya Power‟s products and services at ( r = 0.367). The researcher recommended that the management of Kenya Power should consider paying attention to the dimensions of corporate image The study recommended that the corporate rebranding should be done after careful consideration of customer‟s attitude and perception changes on a company‟s products and services and the management of Kenya Power needs to reexamine the procedure incidental and needs to consider conducting prior market research and share these findings with the stakeholders. The study will add knowledge to the existing literature on rebranding and highlight the relationship between rebranding and customer attitudes.