A Study On Brand Extension Evaluation On Customer’s Perspective

In a highly competitive market environment， With social progress andtechnological development，technologies of production become more and morehomogeneous，product lifecycle also shorten gradually. In such a situation,brand isseen as significant for companies and consumers, and used by more and morecompanies. But the brand extension is a double-edged sword， the failure of thebrand can bring the company severe damage．The example is not uncommon inreality. And the success or failure of brand extension depends largely on consumer’sevaluation of the brand extension. So in the past20years,research on brand extensionin have received wide attention.This thesis make a local research on the evaluation of brand extension bycustomer perspective on the base of leaning from the foreign research results of brandextension. The biggest innovation is construct a performance evaluation model ofbrand extension, and examine the practicality of the model by Chinese customer’sdate. The results are as follows:1．The “perceived quality of the original product” have a significant impact oncustomer’s brand extension evaluation. The higher perceived quality of the originalproduct,the customer have better evaluation.2．The fit between extension product and original product have a significantimpact on the customer’s evaluation of brand extension. The higher fit betweenextension product and original product, the better customer’s brand extensionevaluation. And as three dimension of the fit between extension product and originalproduct, customer consider the “substitute” and “metastatic” doing their judgment.but the role of “complement” failed to be verified.3．The price of extension have a significant impact on customer’s brandextension. The higher perceived quality of extension product,but lower prices don’tmean stronger willingness to buy.4．The fit of product and price have a interactive impact on the process of theconsumer’s evaluation of brand extension; The similarity and price have a interactiveimpact on the perceived quality and willingness to buy. The price of extension product has significant impact on “willingness to buy” for lower fit extension，butnegative effect for higher fit extension．...