Interdisciplinary Perspectives on Social Sciences [1 ed.] 9781443857673, 9781443855792

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Interdisciplinary Perspectives on Social Sciences

Interdisciplinary Perspectives on Social Sciences

Edited by

Georgeta RaĠă, Hasan Arslan, Patricia-Luciana Runcan and Ali Akdemir

Interdisciplinary Perspectives on Social Sciences, Edited by Georgeta RaĠă, Hasan Arslan, Patricia-Luciana Runcan and Ali Akdemir This book first published 2014 Cambridge Scholars Publishing 12 Back Chapman Street, Newcastle upon Tyne, NE6 2XX, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2014 by Georgeta RaĠă, Hasan Arslan, Patricia-Luciana Runcan, Ali Akdemir and contributors All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-4438-5579-0, ISBN (13): 978-1-4438-5579-2

TABLE OF CONTENTS

List of Tables .............................................................................................. xi List of Illustrations ................................................................................... xiii Foreword ................................................................................................... xv

Chapter One: The Human Factor in Management and Marketing Metaphors of Human Resources: Colours of Collars Sümeyra Alpaslan-Daniúman ...................................................................... 3 Profitability, Growth and Size: The Case of Turkish Industrial Companies Hasan Ayaydin .......................................................................................... 11 Consumers’ Point of View on Brand Equity and Brand Extension Strategies According to the Level of Consumer Innovativeness Enes-Emre Baúar and Aysel ErcÕú ............................................................. 19 Validity of Company Bankruptcy Models: The Borsa Istanbul Alper-Veli Çam ......................................................................................... 29 The Persuasive Power of Internet Advertising Handan Çam .............................................................................................. 37 Talent Management: Organizations and Practices Canan Çetin and Nursel Çetinkaya ............................................................ 45 Using Social Networks to Promote Global Brands among Romanian Young People Lia-Codrina ConĠiu and Manuela-Rozalia Gabor ...................................... 55

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Applicability of the Kazuyiko Kurosawa Model to a Production Business as an Effective Productivity Assessment and Evaluation Method Orhan Elmaci, ùerafettin Sevim, Ahmet Özkan and Kadir Tutkavul ........ 63 An Investigation of the Level of Awareness of Taxpayers’ Rights Ufuk Gencel and Burak Sari ...................................................................... 71 Extraversion and Neuroticism: How Personality Affects Employees’ Perceptions of Fit Doruk Uysal-Irak ....................................................................................... 81 Effect of Feedback on Feeling-of-Knowing Metehan Irak and Cansn Özgör ................................................................. 89 A Critical Approach to Privatization Policies in the Global Economy and the Role of Cooperatives in the Privatization Process Abdullah Ökcesiz ...................................................................................... 97 Changing the Meaning of “Control” Due to the Transformation of the Labour Markets from Fordism to Post-Fordism Hande ùahin ............................................................................................ 105 Employers’ Demand for Labour Force in Georgia’s Big Cities Mzia Shelia .............................................................................................. 113 Impact of Customer and Technology Orientations on Performance of New Product Development: A Study Based on Turkish Manufacturers Tulin Ural and Gözde-Gülin Otken ......................................................... 119 State Mechanism to Ensure Enterprise Competitiveness in Textile and Clothing Industries: Use of International Experience for Kazakhstan Svetlana Yepanchintseva ......................................................................... 129 Concept of Leadership in Ancient History and its Effects on the Middle East Ercüment Yildirim ................................................................................... 137

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Chapter Two: International Relations Destination in the Middle of the Buzz Gökçe Özdemir-Bayrak and Ferika Özer-Sari......................................... 147 The Influence of International Relations on the Status of the Ruthenians, their Language and Culture Mihajlo Fejsa ........................................................................................... 157 The Italian Renaissance and the Origins of Totalitarian Thought in Germany Denis Forasacco....................................................................................... 165 On the Concept of Diaspora Kübra HÕdÕro÷lu....................................................................................... 173 One Piece of the Kyrgyz Culture: The Epic of Manas Vefa Kurban ............................................................................................ 179 Space and Politics: Changing of Social Activities in Tahrir Square, Egypt Usama Nassar .......................................................................................... 189 Administrative Reform in Thailand: Who Gets What? Arunee Santhitiwanich and Bidhya Bowornwathana .............................. 199 Turkish Perceptions of the Euro-Zone Crisis and EU Normative Power Beyza-Ça÷atay Tekin .............................................................................. 207 2012 French and Greek Election Results: An Assessment Nihat Yilmaz ........................................................................................... 215 The Importance of Comparison in Political Science Nihat Yilmaz ........................................................................................... 221

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Chapter Three: Sociology Expectations from the “Prodigal Son”: Metaphor as Methodology Muhammad Tanweer Abdullah, Omar Zayyan Alsharqi and Khadija Nowaira Abdullah ............................................................... 229 Divorce in Turkish Society: People’s Reasons and Opinions about Getting Remarried Fatma Arpaci and ùadan Tokyürek ......................................................... 241 Family Structure and Family Ties Depending on Generation Hüsne Demirel and Gürcü Erdamar ........................................................ 251 Constitutional Role of Islam in Predominantly Muslim Countries and Its Effects on Women’s Rights Senem Ertan ............................................................................................ 261 Encounter Space and Transformation Turgut Gümüúo÷lu................................................................................... 271 Correlation between German and Croatian Legal Phraseology: A Sociolinguistic Perspective Ljubica Kordiü and Dubravka Papa ......................................................... 281 “Alternative” Modernisms in the Discourse on Postmodern Roida Rzayeva Oktay .............................................................................. 293 Sociology of Language: Romanian Bordei ‘Pit-House’ Georgeta RaĠă, Ioan Petroman and Cornelia Petroman ........................... 301 Christian Denominations Views on the Legalisation of Prostitution Remus Runcan ......................................................................................... 307 Considering Everyday Life Practices as Tactics for a New Perspective for German Turks Gaye Gökalp-Yilmaz and Muammer Tuna ............................................. 315 Gender Problem of Moslem Woman in Turkey: What Is It, If Not Feminism? Yasemin Yüce-Tar................................................................................... 325

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A Billet-Doux to the Stranger in the Mirror: Psychosocial Challenges of the Post-modern Feminine? Elisabeta Zelinka ..................................................................................... 335 Contributors ............................................................................................. 343

LIST OF TABLES

Table 1-1. Definitions of variables, expected signs .................................................14 Table 1-2. Descriptive statistics ..............................................................................14 Table 1-3. Table 1-3. Empirical results from estimations of growth models ...........15 Table 1-4. Canonical discriminant function, Wilks’ lambda values and fundamental values ..........................................................................................23 Table 1-5. Construction matrix ...............................................................................25 Table 1-6. Test of ensemble average equality .........................................................25 Table 1-7. Ensemble averages .................................................................................26 Table 1-8. Classification results ..............................................................................26 Table 1-9. Z-score values of the companies operating in the food sector .................................................................................................................32 Table 1-10. Z-score values of the companies in the service sector ..........................33 Table 1-11. Z-score values of the companies in the textile sector ...........................34 Table 1-12. Demographic characteristics of respondents ........................................39 Table 1-13. Using the internet .................................................................................39 Table 1-14. Attitudes toward internet advertising ...................................................40 Table 1-15. Model fit values ...................................................................................41 Table 1-16. Evaluation of hypotheses .....................................................................42 Table 1-17. Generational Theory: details of generations, their characteristics and options to be offered at workplace .............................................................46 Table 1-18. Sample configuration ...........................................................................58 Table 1-19. Social networking sites used by subjects .............................................58 Table 1-20. Average means for purchasing power assessment ...............................59 Table 1-21. Results of the bivariate F2 test ..............................................................61 Table 1-22. Analysis results of the arithmetic mean and standard deviation ...........77 Table 1-23. Results of one-way analysis of variance ..............................................78 Table 1-24. Frequency and percentage of participants’ awareness..........................79 Table 1-25. Means, standard deviations, reliabilities, and inter-scale correlations for measured research variables ....................................................85 Table 1-26. Effects of internal and external factors on strategic orientations ........123 Table 1-27. Effects of strategic orientations on NPD performance .......................125 Table 1-28. International background of government support of the textile and clothing industries ............................................................................................133 Table 2-1. Meanings of the review rating range ....................................................154 Table 2-2. Auto and xeno stereotypes in deliberations of Turkish political actors ....212 Table 2-3. 2012 Presidential First Round Election Results - France Totals ..........216 Table 2-4. 2012 Presidential Runoff Election Results - France Totals ..................217 Table 2-5. Results of 2009 and 2012 general election ...........................................218 Table 3-1. Demographic features of the participants (N=186) ..............................243

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List of Tables

Table 3-2. Reasons for people to get divorced (N=186) ........................................244 Table 3-3. Effect of Gender on Getting Married Again.........................................247 Table 3-4. Descriptive statistics of family structure and family ties......................254 Table 3-5. Comparison of family structure and family ties depending on age .....255 Table 3-6. Comparison of family structure and family ties depending on education .........................................................................................................256 Table 3-7. Relationship between family structure and family ties.........................257 Table 3-8. Predominantly Muslim countries classified by constitutional role for religion (Stahnke & Blitt, 2005) ................................................................264 Table 3-9. Descriptive statistics of women rights indicators in predominantly Muslim countries (1990-2010) ........................................................................265

LIST OF ILLUSTRATIONS

Figure 1-1. Research model.....................................................................................23 Figure 1-2. Aspects of the regression model and standard regression loads............42 Figure 1-3. A Framework for attracting and retaining talent (Ready, Hill & Cogner, 2008) .....................................................................................49 Figure 1-4. Promotional influences .........................................................................59 Figure 1-5. Social networking sites attendance .......................................................60 Figure 1-6. Time spent on social networking sites ..................................................60 Figure 1-7. Distribution of respondents according to their answers provided to the question, “The personnel of which category do you find most difficult to employ?” ........................................................................................115 Figure 1-8. Distribution of the respondents according to their answers provided to the question “Why can you not find suitable employees?” ...........116 Figure 1-9. Distribution of the respondents according to their answers provided to the question “Which challenges are you facing while training-retraining your personnel?” ................................................................117 Figure 1-10. Conceptual framework: The effects of company’s internal and external variables and strategic orientations on new product development performance (Jeong, Pae & Zhou, 2006) ....................................120 Figure 1-11. State mechanisms for ensuring enterprise competitiveness in the textile and clothing industries .....................................................................133 Figure 2-1. Urban development for Tahrir Square (Egyptian Geographic Society Maps, Egypt) .......................................................................................190 Figure 2-2. Visual image change in the square (Old issues of Alahram newspaper, www.ahram.org.eg/pdf).................................................................191 Figure 2-3. Current urban form and building uses of Tahrir square (U. N.) ..........191 Figure 2-4. Diagram of protests in Tahrir Square in January 2011 (Google Earth, adapted by U. N.) ...................................................................................192 Figure 2-5. Quantitative analysis findings on the perception of negative and positive social behaviour and activities in Tahrir Square (U. N.) .....................194 Figure 2-6. Distribution of activities in Tahrir Square (U. N.) ..............................195 Figure 2-7. Types of activities in Tahrir Square (April 2013 by U. N.) ................195 Figure 2-8. Proposed activities and uses in Tahrir Square (U. N.) ........................196 Figure 2-9. Tahrir Square through history (1905, 1919, 1941, 1945 and 1969: www.ahram.org.eg/pdf) (2011 and 2013: U. N.)..............................................197 Figure 3-1. Mean of women’s economic rights in religious and non-religious states 1990-2010 (Scale: 0=worst 3=best) ..................................266 Figure 3-2. Mean of women’s political rights in religious and non-religious states 1990-2010 (Scale: 0=worst 3=best) ........................................................267

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List of Illustrations

Figure 3-3. Mean of women’s social rights in religious and non-religious States 1990-2010 (Scale: 0=worst 3=best) .......................................................267

FOREWORD

This book is a collection of essays concerned with society and the relationships among individuals within the society. The essays are circumscribed to the fields of economics, political science, and sociology. Fifty-six researchers from ten countries and three continents present the results of their research in an interdisciplinary approach. Chapter One is dedicated to the role of the human factor in the production, distribution, and consumption of wealth, at both micro- and macro-economic levels. Microeconomics, where the unit of analysis is the individual agent, is illustrated by essays on human resources (from a rhetorical perspective), on consumers’ behaviour in Romania and Turkey (from a marketing perspective—advertising, brand, global brand, new product development), on talent (from a management perspective), on taxpayers’ rights (from a biological psychology perspective), on employees’ personality (from a psychological perspective), on feedback (from a psychological perspective), and on the concept of leadership (from a historical perspective). Macro-economics, where the unit of analysis is an economy as a whole, is represented by essays on Turkish manufacturing companies, on economic (Kazuyiko Kurosawa) and financial (the Istanbul Stock Exchange) models, on privatisation policies in the global economy, on control mechanisms in Post-Fordism, on the evolution of the labour market in Georgia, on Turkish manufacturers, on enterprise competitiveness in Kazakhstan. Most essays can be ranged into the positive economics group (seeking to predict and interpret economic phenomena) while only a few essays fall in the class of normative economics – ordering choices and actions by some criterion (critical approaches to privatisation policies, control mechanisms). Chapter Two contains essays in which political science is represented by one of its sub-disciplines—international relations. With the exception of two essays with a strong theoretical nature (tackling with comparative politics and diaspora), the essays in this chapter focus on the role of the sovereign State from different perspectives—historical, social, sociopolitical—in Egypt (the changing of social activities in Tahrir Square), France (the 2012 presidential elections), Germany (the origins of the totalitarian thought), Greece (the 2012 presidential elections), Serbia (the status of a minority), Thailand (the administrative reform), and Turkey

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(accession to the European Union), and on the study of relationships among countries from different perspectives—cultural (the status of the Ruthenians in Serbia), historical (Kyrgyz epics), information technology (buzz marketing in Turkey), literary (Kyrgyz epics), sociological (Italian Renaissance-rooted totalitarian German thought). Chapter Three deals with the sociology of culture (modernism and post-modernism, everyday life practices as tactics for German Turks, the post-modern feminine), sociology of the family (divorce in the Turkish society, family structure and family ties in Turkey), sociology of language (a diachronic approach of a Romanian word), sociology of law (legalisation of prostitution, a sociolinguistic approach of legal phraseology), sociology of religion (the gender issue of Moslem women in Turkey, Islam and women’s rights, legalisation of prostitution). Two essays focus on the role of social activity in the development of scientific knowledge (metaphor as methodology, translation as encounter space).

The Editors

CHAPTER ONE THE HUMAN FACTOR IN MANAGEMENT AND MARKETING

METAPHORS OF HUMAN RESOURCES: COLOURS OF COLLARS SÜMEYRA ALPASLAN-DANIùMAN

Introduction The goal of this paper is to draw the attention of researchers towards metaphors for human resources in the context of the economic transformation of societies. The term “blue collar,” which identifies manual labour workers, first appeared at the beginning of the 20th century. The use of this term has increased the popularity of the contrasting term “white collar,” referring to the class of administrative workers. With the development of the service industry came more stereotypical female jobs and the term “pink collar” has begun to be used. The growth of the knowledge economy has created new jobs such as knowledge engineering and information management, and the term “golden collar” has been coined with reference to knowledge workers. Furthermore, the development of environmental sectors of the economy has created “green collar” workers. In this paper I present a framework structured on economic evolution of the societal groups mentioned above and the effects of this evolution on the transformation of human resources. As a conceptual evaluation, I critically discuss whether the “collar” metaphors can be accepted as indicators of transformation of human-resources profiles in the context of the economic evaluation of those groups.

Economic Transformation of Societies Large scaled factories were one of the metaphors for the socio-economic structure of industrial society (Toffler, 1984) which were raised from these forms (Harvey, 1975). Industrial society is defined by Raymond Aron (1968) as a society that implies two important features. The first is as an enterprise separating work from family (Grint, 1999) and the second is the development of a complex technological division of labour through largescale industrial production (Harvey, 1975). Jobs were formalized as more rational systems (Grint, 1999). Harvey (1975) underlines the unique features

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Metaphors of Human Resources: Colours of Collars

of industrial societies, such as generation of complex, technologically based structures of labour and increases of industrial activities in urban centres. Modern industrial society has a high-level of anxiety about making money but also has financial worries. Tocqueville summarizes industrial society with the key words industry, trade and money (Aron, 1997). Conflicts and wars between classes (Drucker, 1994) became one of the main features of industrial society. The owners of the instruments of production and workers were on opposite sides, struggling with each other (Aron, 1997). Because of industrialization, unity of production and consumption was destroyed. While producers focused on high profitability, wages and incomes, low prices became the main issue for consumers (Toffler, 1984). People do not only produce as individuals but also behave as members of a society (Giddens, 1971). Change in societies based on increased knowledge and globalization is sufficiently social, cultural and political to cause lifestyles to evolve (Qureshi, 2006). Through the effects of new dynamics in economy, social structure and dynamics, societies change rapidly (Drucker, 1994). The main indicators of the transfer to a knowledge society are developments in computer technology, production and application of information (Hatch, 1997). Today, knowledge is the most significant resource. In a knowledge society, the important issue is the productivity of the non-manual workers, which requires the application of stored knowledge (Drucker, 1994). According to Blumberg (1974), the views of theories on post-industrial societies are generally similar and they point out individual choices, new opportunities for personal interests and high levels of education. The importance of information, books and methodology instead of experience, apprenticeship and confidence has increased and a transformation has been experienced on the aspect of knowledge (idem, ibid.). Kumar claims that the core of the industrial society is production; on the other hand, post-industrial society is based on information (Kumar, 2004).

Metaphors of Human Resources: From Blue to Green The scope of this study is based on the role of metaphors in social life. It can be possible for people to understand and believe in linkages with the new and unfamiliar and to have the ability of envisioning the world in a new way by using metaphors (Kendall & Kendall, 2006). Metaphors gain meaning by context and it is possible to analyse social phenomena by investigating metaphors (Addleson, 1998). In this paper, metaphors are understood as cognitive lenses used to make sense of situations (Kendall & Kendall, 1993). The metaphors of human resources are both subject and

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medium in this discussion (Schmitt, 2000). It is discussed that colours of collars can be accepted as indicators of the transformation of human resource profiles. Collars as metaphors are seen as a phenomenon for evaluation and for the interpretation of the mentioned transformation, and in this way this paper may contribute to the functionality and importance of metaphors on human resource literature. The aim of this study is to shed light on the colours of collars as defining specific human resource profiles. The colours of blue, white, pink, gold and green are the most popular ones used to emphasize different socio-economic contexts: 1. Blue Collar as a Metaphor of Physical Labour: In the industrial society, one of the main requirements for employees was technical ability. In the organizational structure, the importance of administrative ability increased towards the top positions while the importance of technical ability increased towards the bottom. Weber used the machine metaphor for defining organizational structuring in which employees were the cogs of this mechanism (Weber, 2005; Fayol, 2005). The story of colours of collars starts with the special protective clothing, coloured blue (Halle, 1984), of manual labourers. The blue collar metaphor was first used in reference to trade jobs in 1924 in an Alden, Iowa newspaper, appearing in the New York Times for the first time in 1945 (Wickman, 2012.) According to Wickman, the meaning of blue colour was working class. It was underlined particularly by etymologist Popik (in Kohn & Schooler, 1983) that blue-collar workers were mentioned in contrast to white colour workers as early as 1924. Hence, the blue collar has been the symbol of trades since, experiencing a growth of popularity after World War II. Blue-collar workers work above all with substances or materials, machines, tools, equipment or products (Kohn & Schooler, 1983), and the jobs involve physical, dirty and often dangerous characteristics, tending to be closely supervised with limited opportunities for development, growth and upward mobility (Halle, 1984). 2. White Collar as a Metaphor of Professionalism: The role of service sectors in employment has increased in the new social structure (Castells, 2000). Professionalism fundamentally began with industrial societies (Toffler, 1984), and white collar has been used to describe office positions. Hence, blue collar is the symbol of trades and white collar of professionals, being defined as the work done or the people who work in an office or another professional environment (Oxford Dictionary, 2013). The term was first used for clerical, administrative and management workers during the 1930s. In contrast to demanding blue-collar jobs, white-collar workers principally work with data such as numbers, words, symbols, ideas, concepts, information and knowledge. White-collar

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workers are generally employed in resourceful jobs with challenging work and more control (Van den Broeck et al., 2009). 3. Pink Collar as a Metaphor for the Female Workforce: Because of the increased number of organizations, the employment of women has increased and their roles in societies have changed (Toffler, 1984). In general, the number of women entering the paid working population has continued to increase since the post-war period. Theoretical questioning on the basis and nature of women’s social positions may have begun earlier, but issues about female contributions to working life began in the late 1960s and early 1970s (Bose & Rossi, 1983). According to Beneria and Sen (1981), the role of women in economic development had been largely ignored, but in 1970 Boserup attracted attention to a variety of subjects that were systematically related to the role of women in economies. Tzannatos (1999) underlines the significant adverse effects of inequalities on welfare, suggesting the greater access of women to education and training, equal pay and employment opportunities legislation, and a taxation and benefit structure. Wickman (2012) underlines that in the late 1970s the term pink collar was popularized by the writer and social critic Lauise Kappe Howe. The term was used for jobs perceived to be feminine, such as nurses, secretaries and elementary school teachers. In addition, Quinion (2013) claimed that the term was invented to describe the female equivalent of blue-collar workers. McLaughlin (1983) defined offices as a world of pink and white-collar workers because of expanding economies and the rapidly growing service sector segment. In 1994, it was discussed that women’s work trips were shorter than men’s were and their labour market areas were smaller and their employment opportunities more limited (Hanson & Pratt, 1994). 4. Gold Collar as a Metaphor of Knowledge: The version of human labour in the new era comprises communication technology and knowledge. Although Darwin and Marx improved their perspective from the view of competition and struggle, today transformation in human life must be evaluated from the view of communication, knowledge and technology (Warner, 1999). Offices have become the new workplaces of those categorized as working on more abstract issues, being the main classification of knowledge workers (Toffler, 1984). Although countries such as the US and the UK were based on labour for many years, today the main dynamic of such developed countries is knowledge (Beniger, 1988). The most permanent characteristic of information societies is their organization around knowledge instead of the coordination of workers and machines for production. The quality of the production and services is more important than quantity. Actors of the new knowledge-economy era

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are scientists, professionals and engineers (Stehr, 1994). The heroes of the new era are neither managers nor blue-collar workers, but those who innovate and invent (Toffler, 1992). The term gold-collar was first used by Robert Earl Kelley (1985) to describe knowledge workers at peak performance, who demanded special benefits along with high payment. Gold collars are defined by Wonacott (2007) as being experts in problemsolving abilities, creativity, talent and intelligence, performing nonrepetitive and complex works. The reason for applying the term “gold” to these workers is their feature of being highly skilled, which means knowing several areas of a company’s work that are crucial to its continuing profitability. In addition, the term “gold collar manager” is used for those who supervise gold collar workers. Other terms for gold collar are knowledge worker, new economy worker and professional eclectics (Quinion, 2013). 5. Green Collar as a Metaphor for the Environment: The global financial crisis caused a greater need to find a new economic growth model for consumption and production practices. Intelligent and innovative thinking identifies policies, measures and strategies for future green growth. The paradigm of green growth has been catalyzed by the efforts made within science and technology as well as by community and environmental groups (Martinez-Fernandez et al., 2010). A green economy is suggested as a cure for the current economic problems and a way to address the issues of global warming. From this perspective, new investments can be encouraged to create millions of new green jobs (Michaels & Murphy, 2009). Green jobs are discussed by Jacobs (1994) as the employment implications of an environmental policy. The term green collar was first used in 1976 by Patrick Heffernan, and is defined as those involved in the work of installing solar panels, weatherizing homes, brewing biofuels, building hybrid cars and erecting giant wind turbines. Lucy Blake (the chief executive of the Apollo Alliance) argued that the green collar job is in essence a blue-collar job that has been upgraded to address environmental challenges (Greenhouse, 2008). There are key industries (renewable energy, energy efficiency, sustainable water systems, biomaterials, green buildings and waste recycling) which promise strong prospects of growth in numbers of green-collars (Pearce & Stilwell, 2008). There is no doubt that green-collar jobs are increasing (Greenhouse, 2008). According to Pinderhughers (2006), moving away from work which pollutes the environment, towards more restorative work, will bring significant changes and immediate benefits to workers, communities and societies.

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Metaphors of Human Resources: Colours of Collars

Conclusion In this paper, blue, white, pink, gold and green collars are investigated as the most popular human resource metaphors. The metaphorical usages mentioned are discussed as symbols of socio-economic structures. It seems that each economic progression causes a new human resource profile such as manual workers, professionals, female workers, knowledge specialists and workers for environmental protection. They can be accepted as the increasingly important results of technical ability in the original industrial society, the need for administrative and feminine workers in the service sectors, the development of technology, knowledge and communication and the green growth paradigm. The human resource of each aspect of progress is known by the figurative usage of colours of collars. These collar metaphors do not only symbolize the human resources but also the main characteristics, priorities and requirements of economic structures. Consequently, collar metaphors are not ordinary usages, they are the outcomes of economic structures that shape and influence human resources.

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Qureshi, S. (2006). Why Is The Information Society Important to Us? The World Summit on the Information Society in Tunis. Information Technology for Development 12 (1): 1-5. Schmitt, R. (2000). Systematic Metaphor Analysis as a Method of Qualitative Research. Qualitative Report 10 (2), June 2000: 358-394. Stehr, N. (1994). Knowledge Society. London: Sage. Toffler, A. (1984). Third Wave. London: Bantam. —. (1992). Yeni Güçler Yeni Soklar [Powershift: Knowledge, Wealth and Violence at the Edge of the 21st Century]. Istanbul: AltÕn Kitaplar YayÕnevi. Tzannatos, Z. (1999). Women and Labour Market Changes in the Global Economy: Growth Helps, Inequalities Hurt and Public Policy Matters. World Development 27 (3): 551-569. Van den Broeck, A., De Cuyper, N., Luyckx, K. & De Witte, H. (2009). Employees’ job demands–resources profiles, burnout and work engagement: A person-centred approach. Paper presented at the 14th European Congress of Work and Organizational Psychology, Santiago de Compostella, Spain. Warner, J. (1999). An Information View of History. Journal of the American Society for Information Science 50 (12): 1125-1126. Weber, M. (2005). Bureaucracy. Ankara: Adres Publishing. Wickman, F. (2012). Working Man’s Blues: Why do we call manual labourers blue collar? Online: http://www.slate.com/articles/business/explainer/2012/05/blue_collar_ white_collar_why_do_we_use_these_terms.html. Wonacott, M. E. (2007). Gold-Collar Workers. ERIC Digest.

PROFITABILITY, GROWTH AND SIZE: THE CASE OF TURKISH INDUSTRIAL COMPANIES HASAN AYAYDIN

Introduction Firm growth has been one of the most important topics studied in business literature. A firm’s growth has appeared to be a multifaceted phenomenon, since there are many variables that could affect it. Deterministic and stochastic models have provided the theoretical basis to support the different analyses conducted on this topic in the scientific literature. Gibrat (1931) was the first to investigate firm growth patterns, his work resulting in Gibrat’s Law, or the Law of Proportionate Effects (LPE). According to the LPE, firm size has no systematic effect on the rate of firm growth. Owing to the formulation of Gibrat’s Law, the literature on the topic of the determinants of growth has greatly increased. Industrialization is an essential process that forms the basis of socioeconomic development. The stone and soil-based industrial sector includes ceramics, glass, cement, bricks, tiles and clay for construction work. This branch of industry is the backbone of the construction industry in our country and it has been since ancient times. The aim of our work is to enhance the analysis of the variables influencing firms’ growth: thus, we focus our investigation on the study of the effect of profitability and size on firm growth. To estimate the relationship between growth and profitabilityand in Turkish stone and soil-based industrial companies, I use dynamic panel estimators. The present article is organized as follows: following this introduction, the theoretical background of firms’ growth and influencing factors are provided in Section 2; methodology is presented in Section 3; and empirical analysis and conclusions are presented in Section 4.

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Profitability, Growth and Size in Industrial Companies

Theory and Literature Firm growth and profitability have drawn a great deal of attention in the literature. It is extensively believed that firm growth and profit rates are related to each other (Goddard, Molyneux & Wilson, 2004). Growth of the Fitter theory was presented by Alchian (1950). According to this theory, fitness is depicted by the firm profit, and the profitable firms grow and survive in the market while the other firms exit due to poor performance (Kouser et al., 2012). Thus, if profit rates reflect the degree of fitness, it is possible to predict that profitable firms will grow (Jang & Park, 2011). Growth and profitability are both great concerns for the organization but there is still no generalized relationship between them. Some researchers argue that the profit of a firm has a positive effect on the growth (Goddard, Molyneux & Wilson, 2004; Serrasqueiro, 2009; Jang & Park, 2011; Mudambi & Swift, 2011; Kouser et al., 2012; Delmar, McKelvie & Wennberg, 2013). Other studies (Reid, 1995; Hoy, McDougall & D’Souza, 1992) found that profitability is negatively affected by growth. Roper (1999) and Gschwandtner (2005) showed there is no relationship between growth and profitability. Gibrat’s (1931) law is a reference point for empirical studies of firm growth (Goddard, Molyneux & Wilson, 2009). Gibrat’s law implies that with a random growth process, the expected growth rate is independent of a firm’s size and other identifiable firm and industry characteristics. The issue of whether firm size has a systematic influence on the growth rate of a firm has been the subject of extensive investigation in empirical studies (Mukhopadhyay & Khalkhali, 2010). Empirical studies show mixed evidence about the relationship between firm size and growth; some studies have found no relationship, others have found a positive relationship (Mansfield, 1962; Utton, 1971). Several studies have used Gibrat’s law to explain the firm size-distribution of the large firms in the United States (Chesher, 1979; Vining, 1976). Recent empirical studies have rejected Gibrat’s law and claimed that there is an inverse relationship between firm growth and firm size (Geroski & Gugler, 2004; Wilson & Morris, 2000; Mudambi & Swift, 2011; GarciaManjon & Romero-Merino, 2012; Delmar, McKelvie & Wennberg, 2013). These studies showed that small firms grow more rapidly than large firms. The reason behind these studies is that small firms struggle to achieve economies of scale. Small firms grow more rapidly than large firms while the firms that have gained economies of scale cannot grow any further, due to the reduction of cost to an absolute minimum level. The optimal capital structure theory indicates that the negative effect of leverage on growth enhances firm value because the leverage prevents managers from

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taking on poor projects (Jang & Park, 2011). Opler and Titman (1994) and Billett, King and Maurer (2007) found that sales growth is lower in firms with higher leverage. Mudambi and Swift (2011) and Wu and Yeung (2012) found that corporate debt had been linked to lower firm growth. The possible catalyzing effect of liquidity on profitability, because of the greater possibility of meeting short-term commitments, seems not to be sufficiently relevant for greater liquidity to mean increased profitability. However, the possible restrictive effect of liquidity on profitability, also seems insufficiently relevant for greater liquidity to mean diminished profitability because of managers investing in unprofitable projects (Serrasqueiro, 2009). Adams and Buckle (2003) obtain a negative relationship between liquidity and profitability, unlike Goddard, Tavakoli and Wilson (2005). Thus, in companies withn optimal level of working capital, liquidity is expected to positively affect firm growth. Otherwise, liquidity level adversely affects firm growth.

Methodology and Data In a period where economic and financial behaviour is largely influenced by past experiences and old patterns of behaviour, economic or financial relations lagged values of the variables examined in the research model. Thus, adding the lagged value as an explanatory variable is important to research the model. Methodologically, to estimate the relationship between growth, profitability, and size in Turkish stone and soil-based industrial companies, I use dynamic panel estimators: system generalized methods of moments. The dynamic panel model in eq. (1) requires instruments for the endogenous transformed lagged dependent variable (Baltagi, 2005) and other potentially endogenous explanatory variables. I use Blundell and Bond’s (1998) generalized methods of moments estimators (System GMM) methodology to estimate eq. (1). I estimate the following models: Growthit=‫ڜ‬Growthit-1+ȕ1Probabilityit+ȕ2Liquidityit+ȕ3Sizeit+ ȕ4Leverageit+viteq.

(1)

where subscripts i and t indicate firm and time, respectively; ȕ0 is common to all recipient firms; Growthi,t, is firm sale growth in the current period; and Growthi,t-1 is firm sale growth in the previous period. I use three alternative probability measures (Roa, Roe and Ros) and two alternative firm size measures (Size1 and Size2). Our study of the relationship between probability, size and firms’ growth is developed for Istanbul Stock Exchange (BIST)-based industrial companies listed in 22 stone and soil from Turkey (2003-2012). All data was obtained from the public

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Profitability, Growth and Size in Industrial Companies

disclosure platform (KAP) and Istanbul Stock Exchange (BIST). Table 1-1 shows definitions of variables, expected signs. Table 1-1. Definitions of variables, expected signs Variables

Definition

Growth

the change the firm’s sales

Roa

return on assets +

Roe Ros

return on equity + return on sales +

Size1

the logarithm of a +/firm’s total assets the logarithm of +/firm’s sales current +/assets/liabilities Total debt/assets +/-

Size2 Liquidity Leverage

Expected sign

Related studies Jang & Park, 2011; Mudambi & Swift, 2011; Rahaman, 2011; Wu & Yeung, 2012; Delmar et al., 2013 Vijayakumar & Devi, 2011; Kouser et al., 2012; Delmar et al., 2013 Hall & Weiss, 1967 Jang & Park, 2011; Vijayakumar & Devi, 2011 Hall & Weiss, 1967; Rahaman, 2011; Kouser et al., 2012 Samuels & Smyth, 1968; Wu & Yeung, 2012 Goddard et al., 2005), Serrasqueiro, 2009, Rahaman, 2011 Serrasqueiro, 2009; Mudambi & Swift, 2011; Wu & Yeung, 2012

Empirical Results Table 1-2 provides descriptive statistics of all variables. The three measures of probability do not differ during the entire period of 20032012. During the entire period of 2003-2012, the mean value of Ros, Roa and Roe are 0.047, 0.049 and 0.069, respectively. As can be seen from Table 1-1, I get similar pictures for firm size from the two alternative measures. Size1 variable is a value between “5.4” and “14.3”. Size 2 variable is a value between “4.6” and “10.3”. Table 1-2. Descriptive statistics Variables Growth Ros Roa Roe Liquidity Size1 Size2 Leverage

Obs. 1131 1131 1131 1131 1131 1131 1131 1131

Mean 0.572 0.047 0.049 0.069 1632.46 8.15 7.72 0.332

Std. Dev. 3.997 0.615 0.081 6.744 54811.34 0.705 0.799 0.201

Min -1 -10.05 -0.49 216.72 0.165 5.424 4.633 -0.396

Max 129.68 1.318 0.367 6.833 184334 14.394 10.387 1.236

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Table 1-3 reports the empirical results from our estimations of firm growth, modelled by (eq. 1). All coefficients on firm-specific variables have expected signs. The results of the entire model (Model 1a, b, c, d and e) are parallel largely. Table 1-3. Empirical results from estimations of growth the models Variables Growtht-1 Ros

Model 1a -0.025** (0.032) 0.298* (0.069)

Model 1b -0.026** (0.037) 0.256* (0.077)

Roa

Model 1c -0.025** (0.047)

Size1

0.0011*** (0.000) -0.098*** (0.000)

Size2 Leverage AR(1) AR(2) Wald chi2 F Prob. Observations Firms Instruments

Model 1e -0.026** (0.036)

0.003* (0.093) 0.0015*** (0.000) -0.101*** (0.000)

0.004* (0.091) 0.0011*** (0.000)

2.68*** (0.000)

Roe Liquidity

Model 1d -0.025** (0.030)

-0.616*** (0.008) 0.000 0.288 801042.54 0.000 1053 22 883

0.0014*** (0.000) -0.120*** (0.000) -0.942*** (0.000) 0.000 0.580 786775.71 0.000 1053 22 883

0.0016*** (0.000) -0.065*** (0.000) -0.197 (0.282) 0.000 0.804 779769.69 0.000 1057 22 885

-0.662*** (0.000) 0.000 0.126 667631.33 0.000 1057 22 885

-0.125*** (0.000) -1.036*** (0.000) 0.000 0.337 693704.33 0.000 1053 22 883

Robust SEs of coefficients is reported in parentheses. *, ** and *** indicate the coefficient significant at the 10, 5 and 1% levels, respectively.

The study reveals that profitability and liquidity have a strong positive relationship with the growth of the firm; however, size and leverage have a negative impact on the firm growth.

Conclusion The three alternative probability variables are statistically significant in all of the models. The results show that firm growth is significantly and positively associated with firm profitability. This finding is consistent with the Fitter growth theory that was presented by Alchian (1950) that the profitable firms grow and survive in the market while other firms exit due

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Profitability, Growth and Size in Industrial Companies

to poor performance. Thus, it can be said the that theory is true for Turkish companies of the stone and soil-based industry. The coefficient on liquidity is negative and statistically significant, meaning that stone and soil-based industry companies reached an optimal working capital. Size1 and Size2 have negative signs in all growth regressions. This finding is not consistent with Gibrat’s (1931) law. The results show that small firms grow more rapidly than large firms because small firms struggle to achieve economies of scale. Small firms grow more rapidly than large firms while the firms that have gained economies of scale cannot grow further, due to the reduction of cost to a minimum level. The leverage has negative signs in all growth regressions. The negative influence of leverage suggests that an increase in firm leverage level brings about a decrease in firm growth. This finding appears to be consistent with the optimal capital structure theory that indicates that the negative effect of leverage on growth enhances firm value because the leverage prevents managers from taking on poor projects. Thus, it can be said that stone and soil-based industrial companies cannot reach an optimal capital structure, due to inefficient investment areas in which they invest without benefiting from the positive impact of leverage. Empirically, all our results are consistent with the previous empirical evidence. Academically, this study contributes to the existing literature and shows that the relationship between growth and profit rates could differ depending on the lag structure of the tested models. As explained earlier, this study made a unique contribution in addressing the analysis issues embedded in the growth studies by using dynamic panel system GMM estimator. The results of this study provide managerial implications for the stone and soil-based industrial companies. The results indicated that profitable restaurant firms could grow. Profitable firms, small firms, firms that reach an optimal level of working capital and optimal capital structure, can be said to have grown faster than other companies. If you want your company to grow, as a manager you should seek, increasing profitability, reaching economies of scale, an optimal capital structure level, and reaching the optimal level of working capital level due to the evidence that firms in these conditions grow faster than other companies.

References Adams, M. & Buckle, M. (2003). The Determinants of Corporate Financial Performance in the Bermuda Insurance Market. Applied Financial Economics 13: 133-143.

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Alchian, A. (1950). Uncertainty, evolution, and economic theory. The Journal of Political Economy 58: 211-221. Baltagi, B. (2005). Econometric Analysis of Panel Data. Place: John Wiley & Sons LTD. Billett, M., King, T. & Mauer, D. (2007). Growth opportunities and the choice of leverage, debt maturity, and covenants. Journal of Finance 62: 697-730. Blundell, M. & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics 87: 115-143. Chesher, A. (1979). Testing the Law of Proportionate Effect. Journal of Industrial Economics 27 (4): 403-411. Delmar, F. McKelvie, A. & Wennberg, K. (2013). Untangling the relationships among growth, profitability and survival in new firms. Technovation. In Press. Garcia-Manjon, J. V. & Romero-Merino, M. E. (2012). Research, development, and firm growth. Empirical evidence from European top R&D spending firms. Research Policy 41: 1084-1092. Geroski, P. & Gugler, K. (2004). Corporate growth convergence in Europe. Oxford Economic Papers 56: 597-620. Gibrat, R. (1931). Les Inegalites Economiques. Paris: Librairie du Recueil Sirey. Goddard, J., Molyneux, P. & Wilson, J. (2004). Dynamics of growth and profitability in banking. Journal of Money, Credit and Banking 36: 1069-1091. Goddard, J., Tavakoli, M. & Wilson, J. (2005). Determinants of Profitability in European Manufacturing and Services: Evidence from a Dynamic Panel Data. Applied Financial Economics 15: 1269-1282. Goddard, J., Tavakoli, M. & Wilson, J. (2009). Sources of variation in firm profitability and growth. Journal of Business Research 62: 495508. Gschwandtner, A. (2005). Profit Persistence in the ´Very` Long Run: Evidence from Survivors and Exiters. Applied Economics 37: 793-806. Hall, M. & Weiss, L. (1967). Firm size and profitability. The Review of Economics and Statistics 49: 319-331. Hoy, F., McDougall, P. P. & D’Souza, D. E. (1992). Strategies and environments of high-growth firms. In D. L. Sexton & J. D. Kasarda (Eds.), The state of the art of entrepreneurship. Boston: PWS-Kent. 341-357.

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Jang, S. C. & Park, K. (2011).Inter-relationship between firm growth and profitability. International Journal of Hospitality Management 30: 1027-1035. Kouser, R., Bano, T., Azeem, M. & Hassan, M. (2012). Inter-Relationship between Profitability, Growth and Size: A Case of Non-Financial Companies from Pakistan. Pakistan Journal of Commerce & Social Sciences 6 (2): 405-419. Mansfield, E. (1962). Gibrat’s Law, innovation, and the growth of firms. Am Econ Rev 52: 1023-51. Mudambi, R. & Swift, T. (2011). Proactive R&D management and firm growth: A punctuated equilibrium model. Research Policy 40: 429440. Mukhopadhyay, A. & Khalkhali, S. A. (2010). Profitability Performance and Firm Size-Growth Relationship. Journal of Business & Economics Research 8 (9): 121-126. Opler, T. C. & Titman, S. (1994). Financial distress and corporate performance. The Journal of Finance 49: 1015-1040. Rahaman, M. M. (2011). Access to Financing and Firm Growth. Journal of Banking & Finance 35: 709-723. Reid, G. C. (1995). Early life-cycle behaviour of micro-firms in Scotland. Small Business Economics 7: 89-95. Roper, S. (1999). Modelling Small Business Growth and Profitability. Small Business Economics 13: 235-252. Samuels, J. & Smyth, D. (1968). Profits, variability of profits and firm size. Economica 35: 127-139. Serrasqueiro, Z. (2009). Growth and profitability in Portuguese companies: a dynamic panel data approach. Economic Interferences 9: 565-573. Vijayakumar, A. & Devi, S. S. (2011). Growth and profitability in Indian Automobile Firms-An analysis. Journal for Bloomers of Research 3 (2): 168-177. Vining, D. R. (1976). Auto-correlated Growth Rates and the Pareto Law: A Further Analysis. Journal of Political Economy 84 (2): 369-80. Wilson, J. & Morris, J. E. (2000). The size and growth of UK manufacturing and service firms. The Service Industries Journal 20 (2): 25-38. Wu, X. & Yeung, C. K. (2012). Firm Growth Type and Capital Structure Persistence. Journal of Banking & Finance 36: 3427-3443.

CONSUMERS’ POINT OF VIEW ON BRAND EQUITY AND BRAND EXTENSION STRATEGIES ACCORDING TO THE LEVEL OF CONSUMER INNOVATIVENESS ENES EMRE-BAùAR AND AYSEL ERCIù

Introduction The survival of brands depends on their ability to innovate. Internalizing these innovations is related to the innovativeness of a target group. Because of this, it is a factor that raises the chance of success for the firms who consider innovativeness while applying brand strategies. The most valuable property of current firms is their brands. Because of this value, it makes brand management necessary for constituting and maintaining brands while increasing brand power. An important advantage of having a strong brand is to ease the acceptance of a new product, which is produced by using that brand name. Brand extension has become a common strategy with new products since it decreases the consumer’s risk and considerably reduces the costs of marketing promotion programs. The concept of brand extension is described as using current brand names to enter new product categories. The basic logic underlying producing a new product under a well-known brand name is to provide consumer perceptions of confidence and similarity by using the positive features of the brand (Keller & Aaker, 1992). Strong brands have high brand values. The brands with high values also have high brand loyalty, recognition, quality perception and association. Many firms can be seen taking advantage of these assets while putting new products or services on the market. Brand extension is the leading strategy which businesses use to benefit from their brand values. Research shows that new product development costs have significant risks because they are high and there is no guarantee of the return of expenses. However, brand extension strategy has been shown to significantly lower costs and to increase the market success of new products.

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Brand Equity and Brand Extension Strategies

Consumer Innovativeness Consumer innovativeness is the tendency of purchasing new products or brands which are quite different from former preferences and form of consumption (Steenkamp, Hofstede & Wedel, 1999). When examining the literature, the concept of consumer innovativeness held in studies is seen to be discussed in three different ways. These are natural innovativeness or innate innovativeness, which is a general personality trait; interest-specific innovativeness; and the innovativeness which is known as performed behaviour or innovative behaviour. In this study, the significance of the natural innovativeness aspect of the concept of consumer innovativeness is discussed.

Innate Innovativeness Midgley and Dowling (1978) are among those who first described innate innovativeness as a generalized personality trait. They stated in their research that innovativeness was a function of dimensions of human personality and that members of a society had more or less innovativeness. Innate innovativeness is the tendency of purchasing a different and new product or brand in preference to consumption patterns that remain quite the same (Steenkamp, Hofstede & Wedel, 1999). According to Roehrich (2004), such a tendency can be defined through four different concepts: (1) stimulation need, (2) novelty seeking, (3) independence toward others’ communicated experience, and (4) need for uniqueness.

Brand Equity Brand equity is the supplementation of assets and liabilities, which are based on the name, shape, design and symbol of the brand, to the goods and services offered to customers (Erdil & Uzun, 2010). These assets and liabilities, which are the basics of brand equity, are related to the name or indicators of brand. In the case that brand name or symbol is changed, the assets and liabilities can partially or wholly be affected (Aaker, 1991). The concept of brand equity is explained by approaches which are based on finance or consumer behaviour and in which both of these approaches are used together. The assets such as the building, machine, or stock of a company, which puts its branded products on market, constitute its financial-based brand equity. When explaining brand equity with a consumer behaviour-based approach, consumers’ attitudes and behaviours towards the brand are considered; that is, brand equity means that the

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unique, strong and positive sides related to the brand are explained by consumer perspective (Lee, Lee & Kamakura, 1996). In reviewing the research, the variables constituting brand equity are classified in four categories (Aaker, 1991; Yoo, Donthu & Lee, 2000). These categories are the perceived quality, brand loyalty, brand awareness, and brand associations. Perceived Quality The perceived quality is the consumer perception, which is related to the general quality or superiority of the brand compared to its competitors, in line with the aim of the product or service (Han, 1998). According to Aaker (1991), brands with high-perceived quality create a reason for purchasing for consumers since the brands become distinct from the similar. Brand Loyalty There is brand loyalty when a consumer has positive feelings about the brand, buys it more often than other brands and uses it for a long time (OdabaúÕ & BarÕú, 2002). Consumers’ thinking that they buy a higher quality product of a certain brand for a lower price makes them loyal to that brand. The consumers who feel brand loyalty add value to the brand by repurchasing the products of the same brand (Farguhar, 2000). Brand Awareness The basic recognition of a brand can be provided by creating brand awareness. Awareness leads to the brand sticking in a consumer’s mind (Erciú, YapraklÕ & Can, 2009). Because of this, it can also be described as a consumer’s ability to recognize and remember a brand. Brand Associations Brand associations are the group of concepts and properties to which the consumers refer when thinking of the brand. These associations are effective in that the properties related to the brand are stuck in consumers’ minds and remembered by them.

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Brand Equity and Brand Extension Strategies

Brand Extension The effort to use a successful brand name in a new product or service is called brand extension (Kotler, 2010). Aaker and Keller (1990) describe the concept of brand extension as the use of current brand names to enter new product categories or classes. The basic logic underlying the production of a new product by a well-known brand name is to provide consumer perceptions of confidence and similarity by using the positive features of the brand in a new product category (Han, 1998). Businesses benefit from brand equity, which is one of their most valuable assets, when offering new products and services. Firms use brand extension strategies to benefit from this equity (Marangoz, 2007). The firms making brand extension by using current brand equity gain a number of advantages and thus they decrease the risks related to constituting new products (Phang, 2004). Well-run brand extension strategies not only offer new sources of income but also help in constituting brand equity by making the brands meaning stronger. Successful brand extensions satisfy the current customers of the firm and lead the firm to gain new customers. This brand extension raises the brand equity (Davis, 2002).

Aim of the Study The aim of the study is to establish whether there are differences in consumers’ points of view on brand equity and brand extension strategies according to the level of their innovativeness. Accordingly, this study points out which brands are internalized by which type of consumers (innovative and non-innovative) when two technology brands with high and low brand equity apply a brand extension strategy compatible with the main brand (the idea of opening an airline company). The brands in our study are called brand A and brand B.

Model and Hypotheses of the Research The model of the research is shown in Figure 1-1 and the hypotheses in Table 1-4. In accordance with the aim and model of the research, the outcome is as follows: -

H1: There is a difference between the innovative and non-innovative consumers’ perceptions of brand equity.

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H2: There is a difference between the innovative and non-innovative consumers’ acceptances of new products put on the market through brand extension. Brand equity Perceived equity Brand loyalty Brand associations and awareness

Difference

Brand extension

No difference

Consumer innovativeness

Figure 1-1. Research model

Table 1-4. Canonical discriminant function, Wilks’ lambda values and basic values Function

Basic Value 1 0.252 Wilks’ Lambda Function Wilks’ Test Lambda 1 0.799

Variant %

Cumulative %

100.0

100.0

Chi-Square

Df

96.321

8

Canonical Correlation 0.448 Significance Level 0.000

Research Method While selecting the technology brands in our study, 50 consumers were pre-tested. In this test, 10 technology brands in the Turkish market have been chosen. Next, the respondents have been asked to put in order the brands they like the most and the least. At the outcome of the test, the two most and least liked brands are used as the base. The survey method has been used as a data collection tool in this study. The survey has been responded to by academia working in three state universities in Turkey. The survey is constituted by four sets of questions, and there are 45 questions in total. The six questions on the scale of innovation used by Roehrich (1995) are asked in the first set of survey questions, the thirteen questions on the scale of brand equity used by Yoo, Donthu and Lee (2000) are asked in the second set of survey questions, and the single question on the scale of brand extension used by Keller and Aaker (1992) is asked in the third set of survey questions. The survey has been applied to 550 people. However, because of the incoherent replies given to the

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Brand Equity and Brand Extension Strategies

reverse questions in the survey (the 11th and 24th questions of the survey), 115 survey forms were ignored and 435 survey forms were included in the research. The data obtained from the survey were applied in a reliability test, Z test and multiple discriminant analysis.

Data Analysis The data gathered has been subjected to the Cronbach reliability test. The results have been seen to have a high internal consistency (Consumer Innovativeness: 0.859, Brand A Perceived Quality: 0.912, Brand A Brand Loyalty: 0.873, Brand A Brand Associations and Awareness: 0.842, Brand B Perceived Quality: 0.934, Brand B Brand Loyalty: 0.876, Brand B Brand Associations and Awareness: 0.859). The relationship between the demographic characteristics of the respondents and consumer innovativeness has been analysed. Considering the relationship between the demographic characteristics of the respondents and consumer innovativeness, it is seen that there is a negative relationship between age (-0.097, p