Does Brand Trust Influence Brand Extension? An Empirical Evidence in Taiwan

Abstract

Perceived fit has long been recognized as an important determinant of brand extension strategy. However, perceived fit could not offer a comprehensive explanation to exemplify successful cases of brand extension, such as Yamaha's piano and Yamaha's motorcycle. This study proposed that ”brand trust” could provide a better explanation in addition to perceived fit. A 2 (high and low brand trust) x 2 (fit and non-fit) between-subjects experimental design was conducted in this study. Results indicated that brand trust as well as perceived fit influenced consumers' trust and purchase intention toward an extension product. In addition, when a high-trust brand with a well-fit extension product presented, consumers presented higher purchase intention toward the extension product than a high-trust brand with a non-fit extension product presented. However, a low-trust brand with a well-fit or non-fit extension product presented insignificant influence on consumers' trust and purchase intention toward this extension product. Moreover, an auxiliary finding showed that high-trust with non-fit extension product stimulated higher trust and purchase intension toward the extension product than that low-trust with fit extension product. This study suggested that the interaction of brand trust and perceived fit could be taken as a comprehensive explanation for the success of brand extension strategy.