Brand extension impact on parent brand

Purpose of survey: The chief intent of this survey is to look into the impact of trade name extensions on trade name image. For this purpose Johnson is selected as parent trade name for current research. The targeted trade name extensions are Johnson shampoo, Johnson ‘s isosmotic drinks, Johnson ‘s athleticss wear and Johnson ‘s suntan lotion. Research Methodology: sample was selected from Bradford, UK. Sample consists of alumnus pupils including males every bit good as female. Entire sample size is 60 and informations was collected through ego administered questionnaires. For each trade name 15 respondents were selected. Convenient sampling was selected as sampling technique. Consequences: Results show that Johnson ‘s have high trade name consciousness and sensed quality. While there is negative correlativity consequences for trade name tantrum on trade name image for those merchandise extensions which are non in same trade name class i.e. Johnson ‘s athletic wear and Johnson ‘s isosmotic drinks. Decision: It is concluded from survey consequences that establishing new merchandise in same parent trade name class have high opportunity of success while in different class is hazard.

Cardinal words: Brand Extension, Brand Fit, Johnson, Product extensions, selling

Hire a custom writer who has experience.
It's time for you to submit amazing papers!


order now

1. Introduction

Many companies adopt trade name extension as scheme with the purpose of profiting from the trade name cognition achieved in the current markets ( Aaker et. al. , 1990 ; Milberg et al. , 1997 ) . When a company launch a new merchandise and market under the umbrella a well-known trade name name, failure rates and selling costs are reduced ( Keller, 2003 ) . Keller ( 2003 ) states that more than 80 per cent of houses resort to trade name extensions as a manner of marketing goods and services.

Fierce competition forces houses to follow schemes that create a competitory advantage for the house. Making a trade name name with well-established associations is one manner of accomplishing this purpose. Firms invest to a great extent in developing a trade name. It is a really dearly-won procedure but has many returns one time success is achieved ( Keller, 2008 ) . However, houses do non ever have the fiscal strength to make a new trade name name for each freshly developed merchandise. Normally a more economical scheme is used to present a new merchandise under the umbrella of already bing merchandise. Harmonizing to James ( 2006 ) , companies need non to make a new trade name name for new merchandise class ; companies should utilize the name of known, successful and good established trade name alternatively of making new merchandise name, in other words, trade name extension is used.

It is a well-known fact that developing a new trade name requires much more investing than making a trade name extension which is what motivates houses to prefer trade name extensions of already good established trade name. Market is a topographic point of competition and cost associated with debut of new trade name ever zooms, many houses are seeking to diminish the hazards involved in new merchandise debut and market the new merchandise utilizing the name of already good known bing trade name as trade name extension.

Brand extensions leverage a house ‘s most valuable concealed plus, its trade name name ( Tauber, 1981, 1988 ) . For this ground the last decennary shows that many houses use trade name extension schemes to come in new markets. Harmonizing to Amble et. Al. ( 1997 ) , it is common scheme of last decennary that companies prefer trade name extension instead than presenting a new merchandise under new merchandise name. Companies save their cost every bit good as minimise the hazard by establishing a new merchandise as trade name extension under the trade name name of already well-known trade name. Amble suggested that merchandise introduce under trade name extension have more opportunities of endurance biddy presenting merchandise with new trade name name. Sellers believe that trade name extensions are evaluated favourably by consumers because consumers transfer positive attitudes or impact toward the parent trade name to its extension. Yet, this transportation may non be automatic but may depend upon the perceptual experience which consumer had in his memory about parent trade name and its extension ( Aaker et.al, 1990 ) . For current paper, trade name chosen was Johnson ‘s shampoo and selected similar trade name extensions were suntan lotion and distant trade name extensions are sportswear and isosmotic drinks.

2. Literature Reappraisal

Companies in order to cut down the cost ever program and follow new methods. The trade name extension is besides a new manner for trade name direction which creates the value for individual name and makes it a mega trade name. Companies prefer to widen the trade name instead than making a new trade name. Companies introduce new merchandise or widen the merchandise line to avoid the hazard involve in presenting new trade name. In trade name life rhythm ( growing, enlargement, range and adaptability ) , trade name extension ever plays a really important portion ( Kapferer, 2001 ) . Many companies use the image of bing trade names in new markets and launch new merchandises e.g. Virgin Group. Virgin is ab initio worked on retailing and publication of popular music. By utilizing his old reputation, the company launched their bing trade names in new market. They started their concern from music and now they own air lines, good reputed fiscal adviser and Cola manufacturer ( Randall, 2000 ) .

Harmonizing to Buday ( 1989 ) , the companies rational behind widening trade names are to achieve economic systems of graduated table. Basically companies use the one trade name name and present merchandise in different classs, it will cut down their communicating outgo as drawn-out trade name uses the name good positioned parent trade name. The client easy additions acquaintance with new merchandise due to their consciousness and fond regard with parent trade name. Most of import consideration for establishing a new merchandise is to capture more market portion and better their net net income border by utilizing the name of good established trade name. Harmonizing to Pitta et al. , ( 1995 ) , observed that alteration in top direction of companies is some clip ground for trade name extension. Change in direction mean alteration in company vision because of updated cognition of members which may belie the past construct of individual trade name image. Constitution of R & A ; D sections in every organisation initiated the procedure of market research which favors technological alteration and procedure betterment.

Ambler and Styles ( 1997 ) suggested that it is of import for companies to hold cognition of trade name, its mechanism, extension techniques and their execution in market which make a trade name successful and do its placement easy. He suggested that the managerial procedure play a really important function for successful trade name extension.

Whenever a company initiates a new merchandise it is considered as new merchandise development. Establishing new trade name maximise the hazard of failure so there is need to alter the merchandise development procedure and therefore increasing the opportunities for all new initiated merchandises to be successful in market ( Brassington & A ; Pettitt, 2000 ) . Developing a trade name extension is considered as development of new merchandise. Brassington & A ; Pettitt ( 2000 ) suggested an eight phase new merchandise development model describes the merchandise development procedure. These eight stairss for new trade name extension includes thought coevals ; thought showing ; concept development and testing ; concern analysis ; merchandise development ; trial selling ; commercialisation and monitoring and rating.

There are three most important surveies which provide footing for client trade name rating. The first survey was conducted by Aaker and Keller in 1990. They started with two research designs to measure the client trade name rating. Harmonizing to consequences of their first survey, client associations with any specific trade name can either injury or better the rating about trade name extensions. If parent trade name is good recognized and good positioned, trade name extension acceptableness in market additions. Similarly, parent trade name lays the footing for successful credence of his extensions ( Aaker & A ; Keller, 1990 ) . The 2nd survey was conduced by Sundae and Brodie ( 1993 ) . They adopted the same methodological analysis and hypothesis tested by Aaker and Keller in 1990. Some of their consequences showed relevancy with Aaker surveies while others were different. Harmonizing to their consequences the relationship between how hard it is to do the merchandise category of the extension and the attitude towards the extension was non important. However if the parent trade name perceived quality is high so client attitude towards credence merchandise extension is higher. Their consequences besides supported the Aaker and Keller decision that the tantrum between the parent trade name ‘s merchandise category and the extension ‘s merchandise category has a positive association with the attitudes one has towards the extension. Third survey was conducted by Bottomley and Doyle in 1996. This is the 2nd reproduction of Aakle and Keller survey. The writers were interested to prove of consequences of both surveies which conducted on client trade name rating. Harmonizing to their findings perceived quality and sensed tantrum of the parent trade names are the two factors which make trade name extension association in client head. Their survey consequences did non supported the Aaker and Keller impression that an easy to do extension is viewed as more favourable by the client.

2.1 Problem Statement

Along with benefits there are figure of disadvantages of trade name extension. There is the possible that the extension could harm the equity which has been developed by the parent trade name ( Loken & A ; John, 1993 ) .In recent old ages, trade name extension was preferred by many companies non merely to cut down cost but besides to minimise the hazard of merchandise failure. It increases the opportunities of consumer credence due to awareness about parent trade name. Harmonizing to Kim and Lavack ( 1996 ) , sometimes trade name extension creates negative perceptual experience in consumer head, which consequence the repute of parent trade names every bit good. Earlier literature reappraisal ( Aaker et.al ( 1990 ) ) fail to happen any grounds that trade name extension influence the trade name. However, it was found by many research workers that inconsistent trade name extension ( merchandise non relevant with parent trade name class ) leads towards trade name dilution. The chief ground of trade name extension failure is deficiency of new trade name linkage in regard of its maps, similarity and acquaintance with parent trade name ( Loken et. Al ( 1990 ) ; Tauber, 1981 ) .

Failure to run into client outlooks creates negative perceptual experience about parent trade name which consequences weak trade name association and upset the original trade name every bit good as related merchandises. Harmonizing to Martinez and de Chernatony ( 2004 ) , trade name image can be classified into two chief classs i.e. general trade name image besides known as parent trade name image and merchandise trade name image besides known as drawn-out trade name. Harmonizing to their theoretical account and consequences failure of drawn-out trade name image can non impact the parent trade name if parent trade name is good established and strong plenty like Nike and Sony. In such instance, merchandise image dilution is greater than that of trade name image.

3. Research Methodology

3.1 Sampling and Data aggregation

Wiedersheim ( 1997 ) suggested that there are two classs while roll uping informations i.e. primary informations and secondary informations. Secondary information is already collected and available for usage informations while first clip collected informations fro specific intent is called primary informations. Data aggregation is most of import portion of research design. Primary Data is collected from immature University pupils in Bradford Area, UK who re familiar with the trade name and already utilizing trade name extensions of Johnson. Self administrative Questionnaire is used. The information is collected from respondents for look intoing impact of similar every bit good as distant trade name extension on parent trade name. Variables under consideration will be trade name image, consumer innovativeness, perceived quality, perceived tantrum and trade name acquaintance. The existence of survey is Bradford, UK. Secondary information was collected through different Diaries i.e. JSTOR, Emerald and Science Direct. Population for current survey is determined from literature study. Harmonizing to definition provided by Sekaran ( 2001 ) , a group of elements, objects and events which are of research involvement is called population. The sample size for this survey is 60 alumnus pupils sooner male and female both. For each merchandise class, 15 respondents will be selected. Convenience trying technique will be used for pulling sample from the population of Bradford metropolis UK. Survey every bit good as face to face technique was used for informations aggregation. For information analysis, descriptive statistics every bit good as correlativity is used. SPSS were used for analysis of informations.

3.2 Measurement Development

Four different structured questionnaires were used. In current research, the qualitative issue was factors of trade name extension which may impact trade name image. First these factors were conceptualized and operationalised for development of questionnaires. Harmonizing to Joseph et Al. ( 2007 ) , “ Questionnaire is formal papers contain inquiries for respondent to enter their replies and those responses were measured ” . Questionnaire improves the cogency every bit good as dependability of informations as questionnaire is recommended by many research workers an accurate tool for aggregation every bit good as measuring of informations. The full questionnaire was self-administered by the research worker himself, this improve the cogency of research. To guarantee the cogency, those methods and samples were targeted which already used by old research workers.

3.3 Variables

Harmonizing to Kim and Lavack ( 1996 ) , trade name extension can be categorized into two types. These are perpendicular and horizontal extension. When a company introduces a complete0new merchandise either in merchandise category and merchandise class is called Horizontal extension. Similarly, when a company introduces a new extension in same merchandise class but monetary value and quality of merchandise is different0is called perpendicular extension. Largely the largely the companies use the same trade name name with horizontal extension while in perpendicular extension another trade name name with nucleus description of parent trade name name is used. Literature study highlights the point that Aaker and Keller ( 1990 ) were two writers who initiated the surveies on consumer rating of trade name. Similarly Mahony ( 2000 ) depict the point that there is really few writers who work in this country. They suggested that there is demand for surveies on client trade name rating at international degree as its aid states to better their strategic planning.

Literature reappraisal concluded the undermentioned variables which considered as of import factor while analyzing the relation between parent trade name and its related trade name extensions. These includes sensed tantrum, trade name perceived quality, trade name acquaintance and consumer innovativeness ( consumer attitude towards trade name ) . The following measure is to reexamine literature about above mentioned variables and their relation with trade name image.

3.3.1 Perceived Quality

From consumer point of position, quality of drawn-out trade name is most important when he comprehend about the trade name. Harmonizing to Aaker ( 1990 ) , consumer evaluate trade name harmonizing to his or her ain perceptual experiences about quality which is some clip really hard for companies to measure. Harmonizing to consequences of 2nd survey conducted by Aaker and Keller, satisfied consumers have strong attitude about the quality of the trade name and this attitude remains same for drawn-out trade names besides. These consequences were besides justified by the survey by James ( 2006 ) . In simple words if consumer fond regard with parent trade name is higher, it will decidedly increase the opportunities of trade name extension to be acceptable by consumers. Similarly consumer credence for extension additions if consumer is satisfied with the sensed quality of parent trade name. Therefore it is concluded from literature support that perceived quality of the trade name have positive impact on trade name extensions.

3.3.2 Brand Familiarity

Consumer trade name acknowledgment shows the acquaintance of trade name. How good customer0recognizes the product0is0depend on0consumer acquaintance with0brand. Harmonizing to Keller ( 1993 ) definition of trade name acquaintance

“ The figure of merchandise related0experiences that have been accumulated by the consumer ( through merchandise use, advertisement, etc. ) ”

Literature supports the point that consumer interaction with or any sort of promotion of trade name addition consumer acquaintance with trade name ( James, 2006 ; Keller, 2003 ) . Harmonizing to Aaker consumer prefer to buy a trade name with which he/she is familiar and had experience of that merchandise. Aaker in 2004 conducted experimentation about consumer trade name rating. Postgraduate pupils are the elements of his survey. During the experiment he showed participant some significance less words and subsequently in 2nd experimentation he observed that most of the participants chooses those meaningless words which they showed them in first unit of ammunition. Therefore he concluded that consumer experience or any kind of interaction maintain client integral with merchandise. Consumer consciousness about trade name additions the opportunities of trade name acquaintance and every bit good as trade name extensions. Harmonizing to definition of trade name acquaintance by Broniarczyk et Al. ( 1994 ) ,

“ Knowledge of the brand-specific association is required for consumer ‘s to appreciate the rightness of the trade name in the extension class ”

Therefore it is concluded from above treatment that client parent trade name acquaintance increase the opportunities that consumer have positive image of its drawn-out trade names besides. Harmonizing to Alba et Al. ( 1991 ) , there are two mechanism of consumer0knowledge. First is trade name acquaintance and second is trade name related expertness. Consumer gain the trade name acquaintance by sing and utilizing the trade name while consumer addition trade name expertness ability by perform merchandise related undertakings. Therefore it is non of import that consumer must hold expertness to go familiar to trade name. The sufficient status is consumer entree to merchandise for trade name acquaintance. Marks et Al. ( 1981 ) proposed that increased trade name acquaintance improves the trade name trueness as client cognition towards trade name. They concluded in their consequences that for trade name acquaintance is high among those consumer who have strong trade name association and consciousness about trade name.

3.3.3 Brand Fit

Brand tantrum mean that how closely drawn-out trade name resembles with parent trade name I term of quality and characteristics. Brand tantrum is non merely restricted to same merchandise class but it is besides related to other merchandise categories. Harmonizing to suggestion of Park et Al. ( 1991 ) , consumer evaluates trade name extension fit by two different ways. First client justice the trade name extension similarities with parent trade name while steadiness of trade name construct is the 2nd beginning. Customer can comprehend trade name tantrum by sing any of the trade name similarity. Harmonizing to Aaker ( 2004 ) , trade name fit may0exist in0consumer0mind because of his/her association with trade name. This association with trade name may be because of following grounds i.e. merchandise characteristics, merchandises functionality, merchandise application and used engineering. The strength of trade name tantrum is extremely dependent on consumer association and fond regard with parent trade name.

“ A meaningful association that is common to both the trade name and the extension can supply the footing of tantrum ” ( Aaker, 1990 )

Harmonizing to Han ( 1998 ) , if there is low tantrum between parent trade name and trade name extension so that trade name extension is perceived as of lower quality so the other trade name extensions. Such instance of lower tantrum can ne’er be overcome by advertizement neither by bettering merchandise properties. Harmonizing to the consequences of old conducted surveies, strengthen trade name tantrum between parent trade name and extension in client head made client to comprehend trade name extension more positively ( Aaker0and Keller, 1990 ; Park0et al. , 1991 ; Broniarczyk and Alba, 1994 ; Han, 1998 ; Martinez and de Chernatony, 2004 ; James, 2006 ; Kim and Roedder John, 2008 ) .

3.3.4 Consumer attitude ( innovativeness )

Consumer overall judgement of the trade name is called consumer attitude. Attitude of consumer about any trade name can be judged by many ways. For illustration, how often consumer use the trade name, how frequent consumer purchase the merchandise, his trueness with trade name etc. Brand failure occurs merely when there is negative consumer attitude towards trade name. This negative attitude leads consumer to avoid certain trade name ( Keller, 1993 ) . Therefore consumer attitude is really of import consideration to make up one’s mind before establishing trade name extension is market. Keller ( 1993 ) concluded in his surveies that improved consumer attitude towards extension has positive consequence on merchandise trade name image and if consumer attitude is low, it leads towards trade name ignorance. Keller suggested selling to make a positive trade name association for favourable results and on subsequently phase this trade name association has positive impact on trade name image

4. Conceptual Model

Perceived Fit

Perceived Quality

Brand Image

Brand Familiarity

Consumer innovativeness

Figure-1 Conceptual model for Brand Image

Following hypothesis were suggested based on comprehensive literature study

H 1: Perceived Fit has important relationship Brand image.

H 2: Perceived quality has important relationship with Brand image.

H 3: Brand acquaintance has important relationship with Brand image.

H 4: Consumer innovativeness has important relationship with Brand image.

5. Consequences and Analysis

5.1 Descriptive Statisticss

Most of the respondent ( 42 % ) has age scope between 15 to 20 old ages. While female participants are more than that of males. As per centum of female participant in study is about 62 and that of male are merely 38. The ground behind high female engagement is Johnson babe shampoo which is pick of most of female participants. Most of the respondents have completed their high school instruction and their per centum is 45 while respondents with merely simple instructions are 32 % . Sample for Johnson babe shampoo consist of working ladies, house married womans, divorced and single. About 54 % of the sample consists of house married womans while 26 % are single. These are really baby ‘s sisters or some relations who are market to purchase shampoo for babe or want to endow Johnson shampoo to their friends holding freshly born babe. 13 % of sample consists of working ladies and merely 6 % are divorced. Most of the sample house wives seem loyal with Johnson shampoo trade name.

Merely 5 % of respondents have postgraduate instruction. Almost 67 % of the respondent heard the trade name name more often while 20 % replied that they heard the Johnson but merely few times. Consumer are extremely satisfied with trade name quality as 73 % of consumer agreed that Johnson trade name has high quality and reliable while merely 21 % respondents replied that merchandise has mean quality. This low response is due to two trade name extensions i.e. suntan lotion and Johnson athleticss wear.

5.2 Reliability and Validity of Data

Harmonizing to Leary ( 2004 ) , Reliability is regularity and soundness of tool used for measuring of informations. Its shows how much reliable is our measuring which has been adopted to mensurate the collected informations. Most of the research worker used the construct of cogency for the measuring of quantitative informations. Different trials were adopted to reinsure the consequences. Same questionnaire is distributed about different trade name extensions to same sample to look into the extensions impact on trade name image. Where as cogency is degree to which adopted measuring tools helpful to mensurate the asked inquiries. Yin ( 1994 ) explained that cogency is confirmation of research tool adopted for measuring. Harmonizing to Yin ( 1994 ) , there are three types of cogency trials i.e. content cogency, concept cogency and standard cogency. Yin suggested that research worker can follow any method suitable for his surveies

Table-1 shows the Cronbach ‘s Alpha of variables in consideration. The consequences indicated Cronbach ‘s Alpha for questionnaire ( 25 points ) was 0.901. The Cronbach Alpha for single variable of sensed tantrum is ( 0.875 ) ; perceived quality ( 0.812 ) ; trade name acquaintance ( 0.792 ) ; consumer innovativeness ( 0.813 ) and trade name image ( 0.864 ) ..

Table-1 Cronbach Alpha Coefficient

Variables Cronbach Alpha No of points

Perceived Fit 0.875 5

Perceived Quality 0.812 5

Brand Familiarity 0.792 5

Consumer Innovativeness 0.813 5

Brand Image 0.864 5

All Overall Alpha for instrument 0.901 25

5.3. Trial for Normality of Data

As values of Cronbach Alpha for two of the variables is above credence degree so in order to prove collinearity, collinearity trial was undertaken. Consequences are at Table 2.The consequences reflected that Tolerance degrees ( & lt ; or equal to 0.01 ) and Variation Inflation Factor ( VIF ) values ( below 10 ) were within acceptable scope ( Kleinbaum et al. , 1988 ) . Durbin Watson values for all factors were between 1.5 and 2.5 ) . The consequences did non bespeak multicollinarity between variables. Consequences are at Table 3.

Table-2 Test of Collinearity

Variables Tolerance Variance Inflation factor ( VIF )

Perceived Fit 0.651 1.537

Perceived Quality 0.545 1.904

Brand Familiarity 0.743 1.709

Consumer Innovativeness 0.702 1.364

Durban Watson Test value = 2.3

5.4 Correlation Analysis

There are four correlativity matrixes harmonizing to different merchandise class. Table-3 shows the correlativity matrix about Johnson shampoo. Johnson ‘s shampoo is pioneer trade name of Johnson and Johnson ‘s. Harmonizing to table 3, consequences reveal that Johnson shampoo trade name image has positive relation with trade name acquaintance and value of r= .64 i.e. r-square is 64 % ( important at 1 % ) . Johnson shampoo trade name tantrum is high and important at 5 % . Similarly, perceived trade name quality is besides high ( r-square= 78 % , P & lt ; 0.01 ) and has positive impact on trade name image. Brand image of the merchandise ever enhances if company retain the sensed trade name quality harmonizing to client specification.

Value of sensed tantrum is besides positive with trade name acquaintance i.e. r-square= 56 % , P & lt ; 0.01. This high significance value shows that if the merchandise is in same class so that merchandise has high trade name acquaintance. All the value of consumer innovativeness is positive with trade name image, trade name acquaintance, perceived quality and sensed tantrum and about important. It means that consumer trade name consciousness and trade name use is really high. Consumer trade name acquaintance besides has positive value with sensed quality i.e. r-square= 72 % and important at 1 % .

Table-3 Johnson ‘s Shampoo Correlation Matrix

Table 4 shows the correlativity consequences for Johnson Suntan lotion. Harmonizing to table 4.3, there is negative correlativity between trade name image and trade name acquaintance. Value for r= -40 and relation is besides important at 1 % . This means that there is low Johnson sunburn lotion trade name acquaintance which has negative impact on Johnson trade name. Perceived tantrum has positive correlativity with trade name image and value for r-square is 67 % and important at 5 % . As Johnson suntan lotion is in same merchandise class that ‘s why trade name image and sensed tantrum has positive relation. Similarly sensed quality is besides positively associated with trade name image.

Table-4 Correlation consequences for Johnson Suntan Lotion

Table 5 shows the correlativity consequences for Johnson athleticss wear. It ‘s the first merchandise which is non in merchandise class of Johnson. Johnson Launch this extension in late 80 ‘s. Harmonizing to consequences, there is negative correlativity between trade name acquaintance and trade name image ( r= 0.40, P & lt ; 0.01 ) . As Johnson is largely celebrated for its shampoo so due to low trade name consciousness, trade name acquaintance is besides low. Similarly there is besides negative correlativity between trade name image and sensed tantrum ( r= 0.788, P & lt ; 0.01 ) . Low trade name tantrum is due to trade name extension in new class. There is besides negative correlativity between trade name tantrum and trade name acquaintance ( r= 0.345, P & lt ; 0.01 ) . Literature reappraisal suggests that widening trade name in new class has negative impact trade name image every bit good as on trade name acquaintance.

Table 5 Correlation consequence for Johnson ‘s Sports wear

Table 6 shows the correlativity consequences for Johnson isosmotic drinks. Isotonic drinks were used to retrieve the doomed energy after exercising. Johnson introduced isosmotic drink for sportswomans. Table 4.5 shows that there is important positive correlativity between trade name image and trade name acquaintance ( r= 0.70, P & lt ; 0.01 ) . There is negative correlativity between trade name image and trade name tantrum ( r= -0.76, P & lt ; 0.05 ) . Negative relation is due to alter in merchandise class. Similarly trade name tantrum has negative correlativity with trade name acquaintance ( r= -0. 74, P & lt ; 0.01 ) . Low trade name acquaintance consequences when there is low trade name consciousness. Consumer is good cognizant about Johnson shampoo and Suntan lotion but they do n’t hold adequate consciousness about Johnson Isotonic drinks.

Table 6 Correlation consequences for Johnson Isotonic Drink

Harmonizing to the consequences explained in above tabular arraies it is really clear that all these variables contribute significantly in branding. Almost all the consequences are harmonizing to literature reappraisal. Harmonizing to consequences revealed, trade name tantrum is of import variable which has major impact on dilution of trade name image. Establishing new merchandise extension in new extension is some clip utile but consumer consciousness and trade name acquaintance are major points to be considered before launch. As consequences shows that Johnson Suntan Lotion has positive correlativity consequences on trade name image while there is negative trade name tantrum for both Johnson athleticss wear and Johnson isosmotic drinks. Although Johnson trade name perceived quality is positive for all the trade names but low trade name tantrum thining the parent trade name image.

Similarly, 2nd most of import observation is consumer innovativeness. Consumer innovativeness additions with trade name acquaintance and trade name consciousness. In instance of Suntan lotion which is Johnson merchandise in parent trade name class, consumer has positive innovativeness but for athletics wear and isosmotic drinks, it ‘s negative. Overall consequences suggest that Johnson has to increase the consciousness among consumer about their drawn-out trade names.

6. Discussion

Current survey is little attempt to progress the information available on trade name extension. First, survey consequences shows that perceived trade name tantrum or trade name tantrum is the most important factor in order to measure trade name extensions. As survey consequences reveal that if the drawn-out merchandise is in same class of parent trade name, so it receives high consumer acknowledgment ( Aaker et al. , 1990 ) . Suntan lotion is has high and important value for trade name tantrum as its merchandise class is same as parent trade name. While athleticss wear and isosmotic drinks has negative trade name tantrum due to alter of their merchandise class. So it is concluded from above treatment that establishing merchandise in new merchandise class dilute the image of parent trade name.

Second of import factor is parent trade name repute. If repute of parent trade name is high, so there is a high opportunity of success for trade name extension. Harmonizing to Aaker ( 1991 ) and Keller ( 1998 ) , extension is helpful to better net income border but new merchandise must in same class. They suggested that companies must construct positive trade name repute as its aid and lend a batch for successful trade name extensions. In instance of Johnson ‘s, parent trade name is really celebrated and popular among consumer but due to extensions in other merchandise class, trade name image may loss its repute. As consumer has different perceptual experiences about different merchandises so constructing positive trade name association limit the hazard of extension failure. So it is concluded from above treatment that trade name repute is important factor for success of trade name extensions.

Finally, harmonizing to Roselius ( 1971 ) , if there is more innovativeness from consumer towards trade name so it will prefer the freshly launched trade name extensions excessively. As in instance of Johnson ‘s, consumer innovativeness is high in instance of Suntan lotion but it ‘s negative in instance of athleticss wear. So it is besides concluded from consequences revealed that positive trade name fit lead towards more consumer innovativeness.

7. Deductions of the findings

Consequences reveal that establishing a merchandise in same merchandise class is more acceptable so that of new class. Introducing new merchandise in same class leads towards high trade name tantrum, high trade name quality and more consumer innovativeness. It is suggested that Johnson should follow trade name extension scheme but merchandise must be in same class. Negative trade name tantrum and consumer innovativeness for athleticss wear and isosmotic drinks shows that these trade names are thining Johnson ‘s trade name image so Johnson ‘s has to follow policy that should synergy the state of affairs.

x

Hi!
I'm Heather

Would you like to get such a paper? How about receiving a customized one?

Check it out