Attributes Ensuring Positive Consumer Evaluation in Brand Extension of Pakistan

Abstract

Brand extension is an important cost-effective marketing method to offer new products. However, ordinary Least Square regression with control variables has been applied for estimation of variable coefficients. In the study, consumer evaluation of brand extension in Pakistan is dependent on quality of the original brand, substitutability of the extension with the original brand in certain usage situation and helpfulness of people, facilities and skills used in developing, refining and making the original brand for constructing its extension. Furthermore, other independent variables including complementarity, difficulty and moderating the role of quality of the original brand with fit attributes has been found irrelevant for determining consumer evaluation of brand extension in Pakistan. The author has found an expected significant outcome on the ideal point effect of substitutability at 15%.