The impact of extension category characteristics : on the attitdude towards brand extensions

Abstract

This thesis is aiming to find out whether extension category characteristics have impact on consumer attitude towards brand extension. In this study, the author focused on three specific extension category characteristics, which are respectively (1) the role of dominant brands in the extension category, (2) the potential for a differentiated brand positioning in the extension category, (3) the consumer attitude towards the extension category. The author conducted an experiment and finds out that the perceived similarity between the extension and dominant brand in the extension category and attitude towards extension category has positive influence on the attitude towards brand extension; and dominant brand oriented positioning strategy is more effective than parent brand oriented positioning strategy in extension positioning in both high and low perceived fit between parent brand and extension situations.