10 Apr 2012
The findings of previous research on brand extension supports the importance of perceived fit in reaching favorable consumer evaluation. However studies under the condition of weak perceived fit of brand extension is still very limited, espeally in the service market. This study combines both weak perceived fit and service market to see how product knowledge of the parent brand and brand extension strategy influences the evaluation of brand extension using a 2x2x2 factorial experimental design. The results shows that product knowledge has signficance influence of supporting favorable brand extension evaluation under weak perceived fit condition; brand extension stragegy (direct and associative/indirect) inflluence, on the other hand, was not supported in this study. The later result raise the question of the importance of using different brand extension strategies when introducing new products. The former results that shows strong support for the importance of product knowledge, on the other hand, shows the importance of making sure that the different target market for a weak perceived fit brand extension also has a strong product knowledge of the parent brand.
Copyrights © 2012