Consumers Evaluation of Brand Extensions: Durable Goods Market
No Thumbnail Available
Date
2014-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
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.
Description
Keywords
Brand extension, attitude, parent brand reputation