What Makes Brand Extension Successful: An Empirical Study of Direct and Indirect Effect
Journal Title: European Journal of Business and Social Sciences - Year 2012, Vol 1, Issue 4
Abstract
Purpose of this study is to explore how brand extension's success gets influenced by direct and interaction effects. From past literature, we understand key success factors, but we don't know the dynamics of their direct and interaction effects. This study has analyzed direct and interaction effects of brand equity and extension similarity; where study has 2X2 research model. Author has used factorial design (experimental research design), where real brands were selected and made hypothetical extensions to test direct and interaction effect. Quota sampling used to recruit respondents and self-administered approach used to collect questionnaire. Direct effect of factors were found positive and therefore endorse the findings of previous studies. In interaction effect, both factors had minimized the negativity of other factor while in High/Low scenario. But it was found that effect shall be more positive and negative, depending on interaction scenario, due to interaction effect on extension than direct effect. Research model was tested in soft-drink brands in Glasgow UK. Therefore, results of interaction effect are at early days and subject to further testing in other product categories and brands. Though, this study had contributed to our knowledge about behavior of success factors on brand extension success.
Authors and Affiliations
Muhammad Anees-ur-Rehman| COMSATS Institute of Information Technology, Pakistan. Email: marbhatti@gmail.com
Keywords
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