Abstract

Focus of this research is analysis on the influence of brand equity upon brand extenssion. In this research, the brand equity was measured by dimensions (brand awareness, perceived quality and brand association). The analyzed variables in this research are classified into exogenous variables consisted of brand awareness, perceived quality and brand association variables, and endogenous variables comprised of brand equity and brand extension variables. Likert scale of 5 points was implemented for measuring variables in the research model. Samples of the research are consumer respondents, those are consumer respondents bought and consumed Filma brand fried oil product category in Surabayacity. There are 200 respondents of consumers have been taken for the purpose of conducting this research. Data obtained from the research are analyzed by applying the SPSS program of 11.0 verssion and the AMOS program of 4.01 verssion. The SPSS program was used for the purpose of conducting the preliminary tests (validity and reliability tests), mean while, the AMOS program was used for executing statistical technique analysis, namely Structural Equation Model (SEM). Test of pre-research has been conducted in order to know the validity of the measurement tools in functioning the measurement function and the reliability of the research data. The validity and reliability tests are based on the collected data received from the consumer respondents through distributing questionnaires addressed to 30 consumer respondents. From this research model, it is expected that the relation among variables in conjunction with observing reciprocal effects between brand equity and brand extension can be explained. Through SEM, the researcher can observe the fitness of the model with empirical data, and also the researcher knows the causal relation among the constructed or observed factors in the model. The results of this research indicated that (1) Brand awareness has no influence upon brand equity (hypothesis is rejected); (2) Perceived quality has influence upon brand equity (hypothesis is accepted); (3) Brand association has no influence upon brand equity (hypothesis is rejected); (4) Brand equity has influence upon brand extension (hypothesis is accepted); and (5) Brand extension has no influence upon brand equity (hypothesis is rejected).

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