Do Brand Extensions Affect Consumer Attitude: An Empirical Experience-With Reference To Pakistani Consumers

Abstract

This study examines consumer attitude and empirically test the factors that differentiate between successful and unsuccessful brand extensions, on the basis of parent brand attributes and characteristics, in reference to variables such as brand similarity, brand reputation, multiple brand extension, parent brand characteristics and brand concept consistency using actual extensions of two brands i.e. Olpers Cream (extension of Olpers Milk) and Lipton tea bag (extension of Lipton tea). A sample of 430 consumers of Bahawalpur District (Pakistan) was selected for the survey. Stratified proportionate sampling (in proportion to the population of each Union Council) was used for drawing these samples. The study suggests a more prominent role of parent brand attributes and characteristics than brand extension that had been acknowledged in the literature. Further, the study documents the importance of an extensions fit with the parent brands image while at the same time suggesting that similarity between the brand extension and its core brand has positive effect on extension evaluation. It also shows that as perceived appropriateness between the extension and the core brand decreases, attitude toward the core brand on brand-extension evaluation decreases.