Factors Affecting Attitude towards Brand Extension

Abstract

When businesses want to introduce a new product to the market, they sometimes give the name of their prestigious existing brand to the new product or product group that has been introduced to the market. This is called the brand extension strategy. Since creating a new brand will be very costly for the business, businesses both get rid of the cost of creating a new brand and benefit from the positive associations of the well-known brand by giving the well-known current brand name to new products. The brand extension strategy provides many benefits to businesses, but sometimes also harms them. The brand extension strategy has advantages as well as disadvantages. Therefore, suitable conditions must be found for the implementation of the brand extension strategy. The aim of this study is to determine the factors affecting consumers' attitudes towards brand extension. For this purpose, a questionnaire was applied to consumers of a well-known brand. The cognitive dimension of the brand attitude scale developed by Wu and Wang (2011) was used to determine consumers' attitudes towards brand extension. The scale developed by Bhat and Reddy (2001) was used to measure perceived fit, which is one of the factors thought to affect brand attitude. The scale developed by Erdem and Swart (1998) was used to measure brand credibility, and the scale developed by Manning et al. (1995) was used to measure consumer innovativeness. The data obtained as a result of the research were analyzed in the AMOS program and the results were interpreted. The results of the research are as follows; consumer innovativeness has a positive effect on perceived fit and brand credibility; perceived fit and brand credibility have a positive effect on attitude towards brand extension