The Antecedents of Brand Extension Success and Research on an Apparel Brand

Abstract

Brand extension strategy using the current brand name when offering new products for the market, has become a frequently used branding strategy for firms since 1980s. Brand extension strategy is an appealing strategy for many firms as it helps reducing costs of a new brand creation and benefiting from the parent brand's brand equity. The aim of this study is to explore the antecedents of brand extension success from the perspective of generation Y cohort and propose marketing strategies.

The proposed model examines the relationships among success factors such as "parent brand's perceived quality", "perceived fit between parent brand and extension brand", "consumer innovativeness", "perceived risk" and "consumer knowledge". To test the proposed model in this study, we chose an apparel brand that is highly popular and favorable, especially among the generation Y cohort. The sample is composed of university students in Bursa. A hypothetical product was chosen and data is analyzed by means of structural equation modelling. Research findings show that all of the antecedents have direct or indirect effects on brand extension success. Especially, perceived fit between the parent brand and the extension brand has a strong direct effect on brand extension success.

 

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