Brand Extension Strategy Evaluations Based on Consumer Perception

Brand marketers are looking for ways to expand their portfolios, meanwhile decrease the costs of the new products introduced as well as diminish the risk of new product failure, in order to win and survival in an ever more rising competitive situation. Brand extension, which is to put a new product created in another category under the name of an existing brand, is one of the most popular ways to achieve this. However, the brand owners must realize that brands are one of the most precious assets and need to be managed with care and deliberation when deciding to extend the brand. If this strategy can be evaluated based on consumers´ perception before putting it into practice, it will be one of most secure way. This study intends to find out how to evaluate brand extension strategy based on consumers´ perception. Based on related literature review, mainly focus on the factors related to brand extension, it explicates the research hypothesis, then design questionnaire which including a 2*2 study (four brand extension proposals), the questionnaire survey used to collect consumer´s evaluation and the sample size is 150. The thesis illustrates how to analyze survey data by using duplicate measurement variance analysis. The thesis concludes with results and findings of the analysis performed which the authors hope will help brand marketers in improving their market strategies.