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Feedback Effects of Brand Extension Based on Customer Equity

Author: ZhangJunHui
Tutor: QuWeiMing
School: Harbin Institute of Technology
Course: International Trade
Keywords: Brand Extension Feedback Effects Drivers of Customer Equity
CLC: F713.56
Type: Master's thesis
Year: 2012
Downloads: 27
Quote: 0
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Abstract


Brand extension is a strategy that commonly used when the company introduces new products, it can take advantage of the core brand’s market position and influence to reduce the new product’s marketing expenses, improve success rate of the new products, and increase the probability of prolonging the successful brand’s life cycle. However, brand extension is also a double-edged sword. Inappropriate brand extension would blur the positioning consumer held about the brand. For the products that use the same brand name, if one product fails, the credibility of other products may also be ruined, and in the worst situation consumers would totally repudiate the whole products. So scholars not only analyze the factors that influence consumer’s attitude toward brand extension, also investigate the impacts of brand extension on parent brand, but these impacts are mainly confined to brand image, brand personality and so on, neglecting customer equity. Therefore, this article discusses the feedback effects of brand extension based on customer equity.This paper starts with the classification of researches on brand extension and customer equity home and broad, then on the basis of defining related concepts describes the impacts of brand extension on the parent brand’s value equity, brand equity and relationship equity, and make theoretical assumptions, then construct the brand extension feedback effects model based on consumer equity. The model mainly includes two aspects:on one hand, it discusses whether the drivers of the parent brand’s customer equity would change after brand extension; on the other hand, it discusses whether fit and consumer’s attitude toward brand extension would influence the drivers of the parent brand’s customer equity, whether consumer’s attitude toward brand extension would play a mediating effect in the relationship between fit and the drivers of the parent brand’s customer equity. Finally this paper using data collecting from questionnaires and SPSS software conducts empirical analysis of the theoretical assumptions.

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CLC: > Economic > Trade and Economic > Domestic Trade and Economic > The circulation of commodities and the market > Market > Market management
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