The Influence of Knowledge about Product Category and Difference in the Quality among Brands in Acceptance of Brand Extension

One of the main objects of companies in the market is to maintain and develop their market shares through using their brand. Whereas، creation of a new brand is very costly and time consuming and its chance of success is limited، nowadays، more than ever، marketing agencies are trying to achieve their goals through brand extension strategy. So، factors which influence acceptance of brand extension should be considered. According to this research only a knowledge about product category and the difference among brands in product category، and their interaction are considered as factors which have effects on acceptance of brand extensions. But، because of the importance of product involvement، this research is conducted to evaluate acceptance of brand extensions in both high and low involvement products. The purpose of this study is to examine the influence of knowledge about product category، difference in the quality among brands in product category، and their interaction on acceptance of brand extension. In this research، consumers’ responses on eight hypothetical new products that used eight established brand names -four high involvement products and four low involvement products- are investigated. In this descriptive survey، the data has been collected by questionnaires. For data analysis، analysis of variance، covariance، and general linear model repeated measures have been used. Research findings indicate، among others، that: the two above-mentioned factors and their interaction have effects on acceptance of brand extensions in just good products (low involvement) and service products (high involvement) which are made in a foreign country.