Impacts of Brand Extension Strategy on Concumer's Attitude of New Products

Numerous companies are applying brand extension projects and invest heavily on brand extension strategy. The purpose of this study is to examine the factors that influence consumers’ attitude toward new products that use brand extension. In this research, consumers’ responses on 12 hypothetical new products that used four established brand names are investigated. In this descriptive survey a questionnaire was used to collect the required data. Research finding indicates that consumers’ attitude toward hypothetical new products is positive when: 1) their perceived quality of the main product is high and 2) there is a strong fit between the main and hypothetical product. Research finding also indicates that some of brand associations are transferred from the main brand to new hypothetical products.