The Experiment Study On The Impact Of Brand Extension Strategies On Brand Equity

Nowadays, with the fierce competitions among corporations and increasing homogeneity of products, brand equity is important to modern companies, it can reduce the instability and risk because of market changes, it can increase products future profitable ability. As an important brand strategy, brand extension has been widely used. It is often used for the enterprise to introduce new products. But, brand extension has two sides, the successful ones can be used fully and enhance parent brand's equity and the unsuccessful ones have many disadvantages, it may be do harm of parent brand's equity. Question views are inconsistent in the impact of brand extension on brand equity.Based on the previous study, The paper presents two experiments, the object of the studies is to explore the impact of brand extension on brand equity .The studies use cognitive psychology method to measure brand equity, and pay much attention to experimental ecological characteristics. A 2×2×2 three-factor mixed experimental was taken by study 1, the object of it is to explore the impact of brand extension on brand equity and which are the medi-factors. The independent variables are extension fit, extension number, parent brand dominance, the dependent variable is brand equity, It used response time and accuracy rate to measure, the results are those:1. Extension fit doesn't have significant effect on brand equity;2. Extension number doesn't have significant effect on brand equity;3. The effect of Extension fit, Extension number on brand equity has medi- ated by parent brand dominance.Study 2 introductions advertisement as a variable because it is very important in real life, considering of product category crowdedness have a impact of parent brand recall, the study 2 adopted a 2×2(advertise type, product category crowdedness )two-factor completely random experimental design. It used recall position to measure brand equity. The results were as follow:1. Advertise type doesn't have significant effect on brand equity;2. Product category crowdedness doesn't have significant effect on brand equity;3. The effect of Advertise type, Product category crowdedness on brand equity has medi- ated by product type.This research contributes a lot to the impact of brand extension on brand equity, besides, it suggests much to the Chinese enterprise how to manage brand equity, because the research use Chinese consumer.