Brand Extension in FMCG Sector Through Social Media Enabled CRM and Investigating Its Impact on Brand Equity

Abstract

Web technologies have enabled companies to have a personalized and interactive relationship with the customers, thus engaging customers in improved experience. The disruptive free tools and techniques of social media are used to foster effective E-CRM. Companies like ITC, HUL, P&G, and many multinational companies are using the existing brand name for new product launch as a marketing strategy for brand extension and therefore exploiting brand equity amongst loyal customers. The study is an effort to examine the effects of FMCG ITC Aashirwaad Social CRM brand extensions strategies on customer engagement behaviour and brand equity. The study further investigates the effect of product extension perceived fit, brand image, brand experience, and brand love on customer engagement behaviour. To test and validate the proposed model, the present study has employed structural equation modelling with a sample size of 462 respondents. The findings show that Social CRM brand extensions strategy does affect customer engagement and brand equity.