What really matters? A triumph of brand extension: Evidence from Engro Corporation

Abstract

The intent of this study is twofold; firstly, to find out the different elements of the brand extension in different category product that influences it, secondly, evaluate the impact of these dimensions on brand extension. The study considered Engro as parent brand. The targeted brand was Engro Foods. A total of two hundred valid responses were collected from Lahore and Sahiwal through a self-administered survey. Reliability was tested by using Cronbach’s alpha. The study used descriptive statistics; correlation analysis and regression analysis. Correlation results indicate that all variables; similarity, perceived risk, brand reputation, and innovativeness were positively correlated with evaluation of brand extensions. However, “brand reputation” was strongly correlated with the evaluation of extensions as compared to other variables. As far as regression analysis is concerned adjusted R² indicates that 48.0% of “Engro” extension was affected by the independent variable. The mean score highlighted that “Engro extension” was positively evaluated by customers and have a positive attitude towards them on all the variables. The study showed due to the strong reputation of parent brand, the Engro unrelated category extension “Engro Foods” was more favorably evaluated by customers.

Keywords

• Brand Extension,brand reputation,perceived risk

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