Abstract/Description
Brand extension can dilute the single mindedness and can create confusions in the mind of customers but on the other hand, its success can result in more profits and trustworthiness. Sometimes it is difficult for companies to decide whether to introduce a sub-brand or not. As business is a game of risk, companies try to play it well. At times their decision worth millions of dollars and at times it results in negative cash flows. Different companies have launched number of skin care products under the Parent brand with an aim to capture the larger market share but some of them were successful and the rest taste failures. As the customers are the prime focus of any business, it is necessary the products that company launches should be acceptable by its customers. Expanding only the portfolio does not increase the revenue unless the company increases its customer base. Therefore, the aim of the study is to explain the effect of several independent variables on a brand extension towards the skin care products. Past researches have studied the importance of brand extension to get more insight of it. Brand extension had been simultaneously studied in many aspects like its impact on parent brand image, variation in customer’s interest after extension and brand Identity in predicting extension’s success or failure. Previous studies have emphasized more to find out the after effects of extension on various factors. Fewer researches have studied the factors that help in predicting the extension success but in other contexts and regions. In Pakistan, particularly in Karachi no research have been yet conducted to identify the factors that have an effect on line extension in context of skin care products. Therefore, the aim of the study is to identify the factors that effects brand extension in Pakistan in the context of skin care products. To quantify the study correlational research design is used. The primary data was collected using survey questionnaire. The target audiences for the data collection were the skin care product users and the age limit were to be set as above 18 in order to generate rational opinions. To analyze the results statistical techniques Factor analysis and Multiple Regression Analysis were used. The variables taken into the consideration were Parent Brand Experience, Perceived Quality, Parent Brand Credibility, Fit, Brand loyalty, Brand Association and Brand Awareness to examine their impact on to the dependent variable Brand Extension. The data was collected using convenience sampling from 500 respondents. Findings of the study suggest that parent brand experience, parent brand credibility, fit, brand association and perceived quality are the factors that can influence the brand extension. Furthermore, it suggests that creating brand association in the mind of customers will help brand managers to captivate strong place in customers’ mind and as a result, it is more likely that a customer will accept the extended brand. Companies should also make an effort to enrich the customers’ experience with the brand and to create and maintain the credibility in the market.
Keywords
Brand extension, Parent brand credibility, Parent brand experience, Brand association, Perceived quality
Location
Seminar Room, S6 Tabba Block
Session Theme
Session 3: Parallel Sessions
Session Type
Event
Session Chair
Dr. Shahzad Amin
Start Date
3-5-2014 2:30 PM
End Date
3-5-2014 5:00 PM
Recommended Citation
Thanwarani, A., Virani, A., & Thanwarani, M. (2014). Parallel Sessions (Brand Management): Customers’ evaluation of brand extension: an empirical study of skin care products. International Conference on Marketing. Retrieved from https://ir.iba.edu.pk/icm/2014/day1/14
Included in
Parallel Sessions (Brand Management): Customers’ evaluation of brand extension: an empirical study of skin care products
Seminar Room, S6 Tabba Block
Brand extension can dilute the single mindedness and can create confusions in the mind of customers but on the other hand, its success can result in more profits and trustworthiness. Sometimes it is difficult for companies to decide whether to introduce a sub-brand or not. As business is a game of risk, companies try to play it well. At times their decision worth millions of dollars and at times it results in negative cash flows. Different companies have launched number of skin care products under the Parent brand with an aim to capture the larger market share but some of them were successful and the rest taste failures. As the customers are the prime focus of any business, it is necessary the products that company launches should be acceptable by its customers. Expanding only the portfolio does not increase the revenue unless the company increases its customer base. Therefore, the aim of the study is to explain the effect of several independent variables on a brand extension towards the skin care products. Past researches have studied the importance of brand extension to get more insight of it. Brand extension had been simultaneously studied in many aspects like its impact on parent brand image, variation in customer’s interest after extension and brand Identity in predicting extension’s success or failure. Previous studies have emphasized more to find out the after effects of extension on various factors. Fewer researches have studied the factors that help in predicting the extension success but in other contexts and regions. In Pakistan, particularly in Karachi no research have been yet conducted to identify the factors that have an effect on line extension in context of skin care products. Therefore, the aim of the study is to identify the factors that effects brand extension in Pakistan in the context of skin care products. To quantify the study correlational research design is used. The primary data was collected using survey questionnaire. The target audiences for the data collection were the skin care product users and the age limit were to be set as above 18 in order to generate rational opinions. To analyze the results statistical techniques Factor analysis and Multiple Regression Analysis were used. The variables taken into the consideration were Parent Brand Experience, Perceived Quality, Parent Brand Credibility, Fit, Brand loyalty, Brand Association and Brand Awareness to examine their impact on to the dependent variable Brand Extension. The data was collected using convenience sampling from 500 respondents. Findings of the study suggest that parent brand experience, parent brand credibility, fit, brand association and perceived quality are the factors that can influence the brand extension. Furthermore, it suggests that creating brand association in the mind of customers will help brand managers to captivate strong place in customers’ mind and as a result, it is more likely that a customer will accept the extended brand. Companies should also make an effort to enrich the customers’ experience with the brand and to create and maintain the credibility in the market.
