The Determinants of Brand Extension’s Success in an Emerging Market: Identifying The Effects of Parent Brand Image, Category Fit And Consumer Characteristics
Brand extension is the use of an established brand name to launch new products. It is one
of the most used branding strategies because it gives the new brands faster acceptance. But the
brand extension contains risks as well as it has opportunities. The wrong extension could create
damaging associations that may be expensive to change. The failure affects the extension
strategy as well as the existing brand either through brand dilution or damaging the existing
brand image. In sum, “if the judgement is wrong, substantial time and resources are lost and
other market opportunities may be missed”. In that scope the success of the brand extension is a
crucial issue for a company. Through that, this study aims to identify the key determinants
influencing the brand extension’s success in an emerging market.
In this study, the data is collected by face-to-face interviews with 453 students. In order
to test the research hypothesis structural equation modelling was conducted.