Consumers Evaluation of Brand Extensions: Durable Goods Market

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Addis Ababa University


In developing and introducing a new product to a market, there is an evident possibility that the new product may or may not be accepted. This situation has made many firms in the world engaged in a struggle to overcome the uncertainty through brand extensions. In Ethiopia, there are domestic firms involved in producing products by means of this strategy and again there are lots of firms that import extended brands and sale in the domestic market. Despite this, a lack of study around how these extensions are being evaluated by consumers has been noticed. Again, researches conducted so far around the world addressed the issue with brands of all types of products i.e. Services, FMCG, & Durable Goods. This study therefore is conducted to touch the untouched area of interest and makes a conclusion of how Ethiopian consumers’ evaluate brand extensions from the perspective of durable goods market. Five hypotheses were developed and tested to find out the relationship between consumers attitude (dependent variable) and Parent Brand Reputation, Perceived Fit between the parent and the extended brand/product, and Difficulty of producing the extension (independent variables). The subjects achieved by a statistical formula (115) and used as a sample for the study were undergraduate regular session students of Addis Ababa University School of Commerce. The data collected from them through a questionnaire was analyzed via correlations and multiple regressions by using IBM.SPSS. V.21. Concerning the findings, all independent variables were confirmed significant and predictors of favorable consumers’ attitude except substitute that resulted with a negative correlation coefficient that may indicate the reverse.



Brand extension, attitude, parent brand reputation