The Study of Brand Extension Acceptance through Logit Model

With increasing competition in today’s markets, the vital point for companies is to maintain their market shares. Therefore, marketers try to vitalize the companies’ brand, in order to maintain their positions in the market. Whereas, creation of a new brand is very costly and time consuming and its chance of success is limited, nowadays, more than ever, marketers are trying to achieve their goals through brand extension strategy. This research is conducted to evaluate acceptance of brand extension through Logit model. So, the reactions of consumers toward Samand’s brand extension were evaluated. In this descriptive survey, data has been collected by questionnaire. Research findings indicate, among others, that with hypothesis of Logistic function and Logit model, the probability of success of brand extension of Samand is 99.7%. Furthermore, the factors of purchase involvement with 90%, the factors of product involvement with 69%, and quality with 69.8% influenced acceptance of brand extension.