Consumer Evaluation of Brand Extensions: An Empirical Assessment in the Indian Context

Abstract

Marketers are increasingly leveraging the strength of Brand to enter into various product categories. Using an extensive survey, the authors examine the evaluation of brand extensions for real brands in hypothetical product categories. Comparison of success evaluation is obtained for the following products: Lux and Nirma brands into deodorant, Amul and Maggi brands into potato chips; LIC and Reliance into banking sector; Tata Motors (four wheeler) venturing into bikes (two wheeler); and Bajaj Auto Limited (two wheeler) entering in car. The findings show that extensions into similar categories tend to be more readily accepted. These findings are consistent across various product and service categories. Based on regression analysis, the study identifies brand relevance success factors. The findings indicate that success of brand extensions depends not only on strong parent brand associations but also on extendable category borrowed brand association.