The Associated Mechanism And Empirical Research Of Brand Extension And Brand Equity

Brand equity has been becoming a focus issue since 1980s, and is still one of hot topics in management community. Brand equity not only is the company's most valuable intangible assets, is the most powerful weapon for the company participates in the competition. Has a strong brand though create a difference in the product or service can gives companies a unique competitive advantage, helps company to enhance their market competitiveness, to bring about sustainable and stable corporate profits. So, how to build and manage corporate brand assets becomes more and more attention. Today, creating a new brand will cost more money in the fierce market competition, at the same time, accompanied great risk. So, brand extension becomes an important means of firms seek brand equity's continuing value-added. However, the brand extension is a "double-edged sword," using properly can promote the development of new products and contribute to the development of the entire enterprise; using improperly it may have devastating consequences to the enterprise. The main purpose of this paper is to study which main factors affecting brand extension and these main factors how affecting the value of brand equity in the process of brand extension. The paper wishes to use the results of this study to guide the business more effective brand extension strategies, further enhancing the brand equity.In this paper, author summarizing and collating the relevant theories of the brand extension and brand equity in the domestic and foreign. Identifying the brand equity and brand extension dimensions structure, thereby, building a model to study the relationship between brand extension and brand equity. Using statistical software SPSS11.5 make an empirical analysis both Lenovo and Nokia mobile phones, studying relationship between brand extension and brand equity by quantitative analysis.