The Effect of Rebranding on Brand Loyalty: Brand Reputation As Mediator

Abstract

The fatal accident that took hundreds of life that caused the Malaysian Airline System (MAS) to rebrand their organization by performing a changing on their corporate level, business unit level, and a part of their brand visual identity such as name to rebuild their brand reputation and retain customer brand loyalty. Therefore, this study is attempted to explore the effect of rebranding as name change on brand loyalty and rebuild brand reputation. This paper utilized quantitative analysis method. The total number of 372 flight passengers from Penang and Alor Setar airports used in this study. Seven Likert scales was used to measure the degree of rebranding on brand loyalty and brand reputation. SPSS 20.0 and Smart PLS software was used to test the reliability of the items and hypothesized relationship. The result found that rebranding has no effects on branding loyalty. However, rebranding does rebuild brand reputation. Brand reputation has a significant influence on brand loyalty and it also acts as a mediator between brand loyalty and rebranding. This paper presents significant theoretical contribution for academic purpose and useful contributions to the practitioners.