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Learning objectives of this case is to understand the hairdressing industry and develop the sub-branding strategy. After reading this case and practicing in class, students should be able to understand this business and marketing terminology and apply them in the real world. Students will learn the branding strategies: brand extension, brand architecture and brand portfolio. Students will design (DS) the brand name for the new store.

Case synopsis Mr. Tai-Hua Teng (aka TR) was a hair artist and opened his first hair salon, vis-à-vis (VS), in 1989 using a high-end positioning strategy. VS focused on offering superb and diverse services to keep ahead of the competition rather than trying to undercut prices. VS hair salon had a solid foundation based mainly on the elite, celebrities and high-salary customers. In 2017, TR owned 16 stores (including one in Canada and two intern salons), 1 academy, 265 employees and 3 brand names. The three brand names were VS, DS and concept (CC). DS and CC were less known to the public, so now these two brands had been carried the parent name and were known as VS DS and VS CC. Quick cut hairdressing businesses were thriving because customers needed quick and cheap hairdressing services. Acknowledging the benefits of entering the highly competitive quick haircut market, TR began to contemplate the new brand name and services to offer. VS had adopted the brand house strategy but TR wondered if it was better to have an individual brand name when entering the quick haircut market. The sub-branding strategy carried the established quality assurance of VS but there was possible brand overlap. An individual new brand name might lack the well-established values from VS but it also showed the potential to reach different segments of customers. TR’s decision to make: a branded house or hybrid? This case showed a high-end hair salon facing the need for simplicity in the market and considered how to expand its business to the lower-end market. Keywords: hairdressing, brand extension and sub-branding strategy.

Level of difficulty: easy/middle level to undergraduate courses specific prerequisites: it is not necessary for students to prepare or read any marketing theory or chapters of the textbook. However, it would help a more in-depth discussion if students know the CCs of brand architecture, brand portfolio, brand extension and line extension.

Teaching Notes are available for educators only.

CSS 8: Marketing.

The purpose of this paper is to investigate whether self‐service technology (SST) can enhance customer value (CV) and customer readiness (CR). In addition, it is proposed to inspect the effects of CV and CR in customers' continued use of Internet banking.

An online survey was used with a sample of 771 respondents. Structural equation models (SEM) were used to examine 11 hypotheses in the theoretical framework.

SST characteristics (i.e. ease of use, usefulness, costs saved, and self‐control) demonstrated positive effects on CV and CR. CR is positively related to CV. Furthermore, customers are willing to use Internet banking when CV and CR are high.

The study examines the factors contributing to positive effects on customers' continued use of Internet banking. Further research is recommended to investigate the effects of negative factors, such as risk and complexity. In addition, the same methods should be used to reproduce the survey in other industries to support generalizability.

Managers should reinforce SST in order to increase CV and CR, which would influence customers' willingness to continue using Internet banking.

Unlike previous research, the study focuses on consumers' continued use of Internet banking as opposed to initial use. It concentrates on customer retention rather than customer acquisition. It is the first study to conclude that CV and CR significantly affect continued use of SST.

Gray market activities have become global, occurring not only in less developed or volatile markets, but also in many well‐developed markets. Although the gray market problem has been discussed in the literature, pertinent research from a demand perspective remains scarce. This study establishes a valid measure of consumer attitude toward gray market goods and investigates the relationships between consumer attitude toward gray market goods and their antecedents. Data analysis reveals that both price‐quality inference and risk averseness significantly and negatively affect consumer attitude toward gray market goods. Strategies for managers of international brands to address gray market problems are presented.