Factors Influencing Brand Extension at Road Machinery Market: A Study on Heavy Equipment Production Company (HEPCO)

Analysis of the factors influencing brand extension may require studying five factors such as parent brand evaluation, difference in perceived quality of brand portfolio, perceived fit, consumer’s behavioral intentions and consumer’s attitude towards brand extension. By brand extension, we may supply a new product to the market with current brand. This research deals with identifying the relationship between the above-mentioned five factors and brand extension evaluation. The research is an applied one in terms of the purpose classification, and a descriptive-survey one in terms of collecting data. To collect data, a questionnaire was used. Its statistical population includes grade-one road development companies in Road and Transportation Organization. Since the statistical population involved a small number of members, all-count method was used. The control unit included purchase managers of these companies. By analyzing the data collected from 87 companies, it can be said that there are no relationships between HEPCO parent brand extension and perceived quality with HEPCO brand extension. However, two factors of consumer’s behavioral intentions and perceived fit are related to HEPCO brand extension. There is also a relationship between independent variables and consumer’s attitude. Moreover, consumer’s attitude and behavioral intention are related. Complementary tests showed that there is an interactive effect between these two variables. Yet, there is no relationship between HEPCO parent brand extension and perceived fit and between perceived quality and consumer’s attitude.