Abstract
Brand extension strategy, based on the idea that the built-in value of the familiar brand name is transferable to new products. The major aim of this research paper was to find out that how consumer evaluate brand Extension. Authors have used four variables to establish the relationship with the dependent variable “consumer evaluation” of brand extension. The variables used in the study were listed as (1) Innovativeness (2) Multiple Brand extensions (3) Brand concept and consistency (4) Brand extension fit. In addition, four real life brands have been used as stimulus in this study. Questionnaire was developed and through Convenience sampling; it was administrated among sample population of 110. Regression analysis was used as statistical tool to analyze the relationship among dependent and independent variables. The findings showed that Consumer evaluation would be positive for those brand extensions that have a strong reputation for introducing multiple brands. Likewise, there was a positive relationship between consumer level of innovativeness and how consumer evaluates brand extension. Innovative consumers were more positive and favorably inclined towards brand extensions.
Highlights
As current reviews of the literature indicated (Czellar, 2003; Grime et al, 2002), there has been a plethora of research on consumer attitudes to and evaluation of brand extensions and on their impact on the „equity‟ of the parent brand
This study statistically evaluated only quantitative data and assumed full response to all questions by all participants
Data collected was analyzed using multiple regression; H1 and H2 were accepted
Summary
As current reviews of the literature indicated (Czellar, 2003; Grime et al, 2002), there has been a plethora of research on consumer attitudes to and evaluation of brand extensions and on their impact on the „equity‟ of the parent brand. Aaker and Keller (1990) in the paper “Consumer Evaluations of Brand Extensions” conducted an exploratory research in the consumer product setting to gain knowledge on how consumers form attitudes toward brand extensions strategy by testing 4 hypotheses based on 6 deep-rooted successful brands, 20 hypothetical brand extensions (e.g. Heineken beer to Heineken wine and Heineken popcorn) and having sample size of 107 respondents. Quite a small amount of researchers have examined how managers choose whether to launch a new product as a line extension or as a second brand or the planning and decision process underlying such marketing decisions (Amber and Styles, 1997). In the last few decades, researchers have made noteworthy contributions and aid for explaining how consumers evaluate brand extension (Riley et al, 2004)
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