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International Journal of Management Science and Business Administration
Volume 3, Issue 1, December 2016, Pages 17-30Extension to Brand Category, An Exploratory Investigation on Brand Extension Attitude
DOI: 10.18775/ijmsba.1849-5664-5419.2014.31.1002
URL: dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.31.10021 Department of Textile Designing, National Textile University, Faisalabad, Pakistan;
2 Department of Textile & Clothing, G.C University Faisalabad, Faisalabad, Pakistan;
3 Department of Business Administration, G.C University Faisalabad, Faisalabad, Pakistan.
Abstract: The purpose of this research study is to identify the impact of the brand category on brand extension attitude. The concept of brand extension is used for the marketing of any brand which is associated with the firm. Most of the large industries are using well-known names to launch a new product range to earn more profile for the organization as well as to make new position rather than other brands. This study especially identified that those brand who want to extend the product range of brands. Data was collected from a convenience sample of different brand buyers in the Faisalabad via surveys. The final sample consisted of 200 responses. Correlation, Linear regressions and ANOVA were used to test the hypotheses Results revealed that initial parent brand image has a positive relationship toward the brand extension attitude. Parent brand quality has a positive effect on brand extension attitude. Brand extension information toward the brand extension attitude is significantly impacted. The results provide some suggestion to marketers who want to expand their parent brand or launch fashion extension products.
Keywords: Brand extension category, Initial parent image, Perceived parent brand quality, Initial parent brand information, Brand extension attitude, Brands, Textile, Garments, Faisalabad, Pakistan
Extension to Brand Category, An Exploratory Investigation on Brand Extension Attitude
1. Introduction
Brand name elaborated by Smith and Park [1992] can be an integral complement in consumption that enhances consumers’ desires to pay. Where Cleary [1981] said that branding is essential to construct the product image. It affects, according to Arthur Rooney [1995] and Smith and Park [1992], a product’s perceived value or worth, tends to build customers’ brand loyalty and increases the probability for brand extensions to succeed. Through constructing on consumers’ brand awareness, knowledge and loyalty, brand extension strategies seek to enhance profits by promoting consumer purchases across product categories. As D. A. Aker [1996] discussed that brand extension has been one of the most common strategies to launch new products for decades.
All the strong brands according to D. Taylor [2006], are trusted and valued by users, consequently, an extension can leverage brand reputation to develop a worthy compelling proposition in a new market. According to D. A. Aaker and Keller [1990], using a contemporary famous brand name to introduce new lines or types of products, decreases the need to create awareness and to communicate with users. Plans using extensions to facilitate adding new segments and markets have been broadly adopted. For instance, already established durable famous and fine brands [i.e. automobiles] have been leveraged to promote entering soft products types including home bedding, fashion clothing and accessory markets.
Fashion products, according to Kim [2012], including textiles, footwear, accessories, and different other goods that bear some characteristics, make them identifiable and distinguishable from other user products. Fashion products, according to Forney, Joo Park, and Brandon [2005], can reflect self-image and they assume personal importance to the individual. This rich industry provides jobs to millions of people around the globe and affects almost all consumers today, more than ever before with our economy becoming more global. According to Solomon and Rabolt [2006], fashion reflects one’s culture and society; as a symbolic innovation, it reflects the way through which people define themselves. Diverse theorists Auty and Elliott [1998] have presented the use of clothing as a code, a communication that enables a message to be prepared and selectively understood.
However, research, conducted by Shen, Bei and Chu [2011], on finding elements forecasting the success of fashion garment extensions is still bounded. According to Zhang [2013], the current international automotive industry is very competitive, with production capacity far ahead than current demand. Many producers with relatively high fixed labour costs have to bound facilities and reduce fixed costs.
It is so difficult, according to Zhang [2013], for the automotive industry to keep their profitability sustainable. With their well-organized brands, auto organizations have been increasingly looking for opportunities to increase their demand for other goods types, in pursuit to broaden the halo of the brands. Now almost every car brand is growing its licensed merchandise plans, including specialty outdoor, sporting goods, apparel, eyewear, electronics, luggage, bikes and kids riding toys. For instance, BMW even launched a whole lifestyle collection, which features trendy apparel, such as polo shirts, T-shirts, hooded sweatshirts, and zip-up tops, as well as sporty caps, poncho-blankets, and light-weight jackets, as well as BMW gadgets, collectibles and travel accessories.
Faisalabad is the third biggest urban city after Karachi and Lahore. The region territory of Faisalabad is 5,856 square km with 12.786 million people; the city population is 7.14 million with an education rate of 66%. Faisalabad has most prestigious brand outlets, e.g Chen-one, Metro, Khadi, Firdous, Charcol, Royal Tag, Cambridge, Eden Robe, Five Star etc.
1.1 Problem Statement
In Faisalabad there is a number of registered brands which provide precious products to the buyer and fulfill the expectation of the customer in branding industry. This study is to investigate brand extension category of industries which are going to extend a product range of brands. In this society most of the brands are not becoming successful in extending a brand category as well as quality of the brands, so the researcher thought that there is a gap of knowledge existing there in brand extension category of Faisalabad city.
Objectives of the Study
- To identify the influence of parent brand image on brand extension attitude;
- To investigate the influence of parent brand quality on brand extension attitude;
- To identify the influence of brand extension information on brand extension attitude.
1.1 Hypotheses of the Study
H1: Initial parent brand image is positively associated with brand extension attitude
H2: Parent brand quality is positively associated with brand extension attitude
H3: Brand extension information is positively associated with brand extension attitude
2. Review of Literature
2.1 Brand Extension Attitude
As D. A. Aaker and Keller [1990]; Völckner and Sattler [2006] think, a brand extension succeeds if shoppers hold an optimistic attitude towards the extension, but some other researchers reflect that feat only occurs when consumers intend to purchase the extension. According to Lafferty [2007], O’Cass and Grace [2004], a user holding a positive attitude toward a product is not the same as buying the extension. Corporations want to know consumers’ attitude, however, their buying intentions are much more significant, because it tells about profits. Thus the consumers’ purchase intention, or Acceptance, is the focus of the parent brand firms.
As discussed by Solomon and Rabolt [2006], fashion decision-making framework labels the last stages such as: assessment of substitutes [consumer compares several styles and brands of the products in terms of construction, country of origin, or added features] product choice [consumer chooses one product and tries it on] outcome [consumer buys the product and enjoys the purchase]. Regarding this framework, after assessing a product, consumer holds a positive or negative attitude to the product, and his/her decision of buying is depended on the attitude.
Woodside and Clokey [1974] identified that consumers’ attitudes are affected by competitors’ activity, as well as, numerous other information sources. They developed a multi-attribute/multi-brand model of attitude formation and systematically evaluated the process of brand attitude formation. The results of the [Woodside and Clokey, 1974] study state that “brand choice was more accurately predicted when attitudes toward other brands were also considered.” In summary, associations that are unique to the brand, strongly held, and favourably held, are vital for success. However, since the specific associations a consumer holds are dependent on personal values and individual purchase situations, managers must learn what they are and when they operate. In addition, competitive offerings blur the uniqueness of the brand’s associations. Therefore, it is important, on a product by product and situation by situation basis, to assess consumers’ relevant brand associations [Zhang, 2013].
2.1.1 Horizontal Extensions
Typically, horizontal brand extensions either apply or extend an existing product’s name to a new product in the same product class or to a product category new to the company. There are two varieties of horizontal brand extensions which differ in terms of their focus [Aaker and Keller, 1990]. They are termed line extensions and franchise extensions. Line extensions involve a current brand name which is used to enter a new market segment in its product class. Diet Coke and Diet Pepsi are examples of line extensions since they focus on the diet conscious segment for colas not served by their parent products. In contrast, franchise extensions use a current brand name to enter a product category new to the company [Tauber, 1993]. Jell-O Frozen Pudding Pops exemplifies a franchise extension from Jell-O gelatine dessert. Most of the recent research in brand extension has focused on horizontal extensions.
2.1.2 Extension Distance
One brand extension variable studied recently is the distance of the extension from the core product. Close extensions may be in the same product category and share the same feature set as the parent product. Distant extensions may be in unrelated product categories and rely on overall quality associations from the parent for success. Horizontal extensions lend themselves to natural distancing. Distancing is the purposive increase in the perceptual distance of the extension from the core product. Unsuccessful horizontal extensions are less likely to damage the core brand than vertical extensions since horizontal extensions are often in different and more distant – product categories. Typically, consumers will recognize that such horizontal extensions are not closely related. The downside to distancing is that distancing reduces the amount or strength of the brand associations and reduces the halo effect of the extension. Horizontal extensions may suffer if the core and extension are perceived to be too distant from each other. Brand associations cannot stretch over too large a gulf. Research indicates that if the core product is perceived to be of high quality, and the “fit” between the core and extension is high, then brand attitudes toward the extension will be more favourable [Aaker and Keller, 1990]. Without the perceived similarity between the parent and extension, consumers find it more difficult to attribute original brand associations to the extension.
2.1.3 Vertical Extensions
In contrast, vertical extensions involve introducing a related brand in the same product category but with a different price and quality balance. They offer very little distancing. Vertical extensions offer management the quickest way to leverage a core product’s equity. However, since the new product is in the same category, distancing is difficult and the risk of negative information is higher than with a horizontal extension. As a strategy, the vertical brand extension is widely practiced in many industries. For example, within automobile brands, the various models attempt to offer distinct price-quality bundles to attract a variety of market segments. Often a product will be extended in an attempt to garner more of the market.
2.1.4 Feedback to Parent Brand
Keller et al. [2011] and Martinez and De Chernatony [2004] defined that brand families are sensitive to the evidence presented by the extension, and improved or diluted conferring with the calculation of the new extension group. Previous research by Martínez et al. [2009] and Alexander and Colgate [2005] also presented consumers attitude towards the extension category has an outcome on the overall brand image. Basic point, according to Alexander and Colgate [2005], is that consumers satisfied with retail brand extensions are progressively more satisfied with the parent brand. It was indicated by Keller et al. [2011] that brand extension may improve the parent brand image by “strengthening an existing brand association, improving the availability of an existing brand association, adding a new brand association or a combination of these”. For example, it was found that a successful brand extension enhanced the observations of the skill and honesty of the parent brand [Keller and Aaker, 1992].
2.2 Initial Parent Brand Image
Psychological researchers like Keller et al. [2011] suggest that persons do not purposely and separately assess each new stimulus to which they are visible; in its place they ordinarily assess a stimulus in period of whether they can categorize it as a member of a formerly distinct intellectual group. Thus it is argued that customers practice their knowledge of brands and goods to streamline assembly and understand their marketing atmosphere.
As founded by Lane [2000], exposure to a brand name or other stimuli by customers have higher effective favorite for the stimuli. If consumers saw a brand extension as carefully linked or alike to the brand category, they could simply transmit their current attitude about the parent brand to the extension, then straight imply the brand associations to more positive assessments of brand extensions. Martínez et al. [2009] and Yeung [2005] even found that if a brand suggests a strong positive sensitive attraction, consumers are likely to be less influenced by the perceived fit between the parent brand and the extension.Therefore, product introduction with a similar brand name can function as a lever in brand image, brand awareness and in general in reaching the brand equity in the established market [Zhang, 2013]. Low cost and high possibility of success have led to selection of brand extension by more than 80% of the companies as a way of product marketing and services [Keller et al., 2011]. The relation or linkage of an existing brand with a newly-named geographical phenomenon, a person or in this case a product, may affect the relations and linkage of the existing brand image. This effect can be positive, therefore memory and power increases. These relations and connections often happen as attitudes which are not very serious [Morrin, 1999].
2.3 Perceived Parent Brand Quality
It was elaborated by D. A. Aaker and Keller [1990] that the next theory pursues to find out what issues show significant roles when customers assess the extension. Found that both a perception of fit between the original and the extension product categories and a perception of high quality for the parent brand led to more constructive extension assessments.The perceived quality D. A. Aaker and Keller [1990], of the parent brand is one of the significant issues that affect the attitude toward the extension. Customers often think superior brands are more trustworthy and skilled. If the brand [Fedorikhin, Park, and Thomson, 2008] is related to extraordinary quality, the extension may advantage consumers are ready to pay more for the brand extension and endorse it to others. As a result [Keller and Aaker, 1992], even if they trust a comparatively distant extension that does not really fit with the parent brand, they may be keener to give a high-quality brand the advantage of the hesitation than a brand measured as normal quality.
2.4 Brand Extension Information
Defined by Keller et al. [2011], some relations with the parent brand may assist as a possible foundation of fit. The most researchers like MacInnis, Nakamoto, and Mani [1992] consider that the more mutual and the less distinctive relations that exist, the superior the awareness of overall resemblance, whether based on product or non-product connected qualities and benefits. A number of research studies by Keller et al. [2011] have exposed that the facts delivered about brand extension, by “triggering selective retrieval from memory”, may process the customer decision making and affect extension assessment. In overall Keller et al. [2011], the most effective plan seems to be one that identifies the type of information already noticeable for the brand in the minds of customers when they first consider the projected extension, and that highlights extra information they would then oversee or mistake.Keller and Aaker [1992] stated that explaining briefly on exact extension attributes on which customers were uncertain or worried led to more constructive assessments. Bridges Keller et al. [2011], as well as Klink and Smith [2001], found that providing evidence could progress insights of fit when customers alleged low fit between the brand and the extension, whichever by supporting an ignored root of fit or by talking a disturbing negative association. It was found by Lane [2000] that recapping an ad that induced principally brand associations could overawe negative insights of a highly dissimilar brand extension. Moreover, Keller et al. [2011], for be one that identifies the type of information already salient for the brand in the minds of customers when they first consider the planned extension, and that highlights extra information they would then oversee or mistake.
Figure 1: Theoretical Framework
3. Materials and Methods
3.1 Research Design
This study used the way to distribute the questionnaires among respondents. Data has been collected through questionnaires and administrated by the researcher. The data collection approach was non- probability sampling and sample size of 250 respondents taken. The population for this study consists of all brand sector of Faisalabad. The questionnaire was filled by the customer in the non-contrived conditions in their workplace and researcher interference was minimal. The core objective of this investigation is to find out the brand extension category on brand extension attitude of a brand sector of Faisalabad. To approach this purpose researcher selected the option of quantitative research type. Since no workable data relating this topic was available, so the researcher thought to apply a quantitative investigation. Therefore, researcher used exploratory research design because he wants to explore the importance of this topic for the prosperity of industry as well as the body of knowledge. All the findings and analysis are based on that quantitative data that has been collected through questionnaires. Through different appropriate statistical tools this data has been analysed i.e. descriptive analysis, correlation analysis and regression analysis.
3.2 Sample Size
It is already mentioned above that Faisalabad is the third biggest city of Pakistan. The data collection from customers of existing brands was really a tuff and the most time taking part of this investigation. In this task before data collection from each unit firstly researcher has to provide data collection permission letter from university to unit administrated then they did allow collecting the data for only research purposes. The researcher has visited 100 brands shop of Faisalabad and collected 250 questionnaires aggregately the questionnaire as the respondent had completed it and verified the completeness of this questionnaire at the same time.
3.3 Sample Characteristics
Sample characteristics are showing from following tables. Table No. 1 describes the gender share of the employees. Table No.2 demonstrates the age classes of employees and table No. 3 identified the % of that data which falls in diversified level of education changes from Matric to M. Phil and above. The following table highlights the employee’s characteristics from whom the data has been gathered.
Gender of Respondents
Table 1: Gender of Customers
Figure 2: Gender of Customers
Age Group of Respondents
Table 2: Age distribution of Customers
Figure 3: Age distribution of Customers
Education of Respondents
Table 3: Customers education
Figure 4: Customers education
3.5 Instrumentation
The questionnaire items in this research have been adopted from previous literature. Every item has been measured at five points as Likert scale and answers are ranked as 1=strongly disagree, 2=disagree, 3=neutral, 4=agree and 5=strongly agree. Every link and source have been mentioned below from where ever the items have been adopted. Some little modifications have been made in the questionnaire in order to make it easy and understandable for targeted employees. To estimate the only Independent variable of IPBI these items adopted from [Zhang, 2013] of this measurement include six items. For the measurement of the first independent variable [PPBQ] [Zhang, 2013] three has been adopted from this study. To measure the BEI that is the second independent variable five items has been also adopted from [Zhang, 2013] study. This variable also adopted from the same study [Zhang, 2013] from which other two dependent variables are adopted and three items for this variable. [Zhang, 2013], three most usable demographic variables like gender, age and education for developing people equity has been adopted.
3.6 Reliability Analysis
The results of Cronbach`s alphas in table no. 3.4 highlights three independent variables IPBI, PPBQ and PBI as well as our dependent variable of BEA. My first independent variable “initial parent brand image” IPBI was consisted of six items with reliability score [α = .64]. Four items were used for the second independent variable of “perceived parent brand quality” PPBQ with Cronbach`s alpha score [α = .75]. At the end, third and last independent variable “Brand extension information” with three items showed the value of Cronbach’s alpha [α = .85].
Table 4: Reliability Analysis
4. Result and Discussion
4.1 Data Analysis
The researcher used SPSS version 20 for the analysis of collected data. This investigation has been used different statistical tools to evaluate above formulated hypothesis. Some tables’ used and a better description of data makes it easy to understand, evaluate and useable. And the crux of this research article precisely interprets the suggested goals and the results following the application in firm`s environment.
Table 5: Descriptive Statistics
Table 6: Correlation Matrix of Variables
*p