The Brand Extension Evaluation’s Influencing Factors Study In Service Based On Consumers’ View

Facing the diversified demand of the consumer market and fierce chasing from the competitors, in order to keep the lasting vigor and sustainable development, more and more companies decide not to confine their scope in original area, but put their scope in a broader market. Launching a new type product is an attracting growth strategy for a company, with the help of the original market status and stable market share, brand extension strategy could help company reduce marketing cost, economize the resources, reduce the launching risk of new product, get rapid recognition from consumers, strengthen the parent brand’s position.There’re a lot companies from different industries successfully extends their operating scope to other different areas by using brand extension strategy. However, the brand extension strategy is not suitable for all the companies, once the extension does not get the consumer’s recognition, it will lead to brand dilution and severe loss for parent brand. So it becomes significantly important to make clear what factors can influence the consumers’extension evaluations.In the paper, we choose the super market in the service industry as the study object. By reading a lot domestic and foreign literature, we make a new hypothetical model about how the consumers evaluate extension product based on the A&K model. The model has four influencing factors, including perceived quality of parent brand, perceived similarity, brand loyalty, and innovativeness. The aim is to study the four factors’ effect on Carrefour’s two different directions’ brand extension evaluation. We use the SPSS statistics17.0to make the correlation analysis and regression analysis about the collected data and draw some conclusions:All the four factors have significantly positive correlation with brand extension evaluation. Among these factors, the effect of perceived similarity on extension evaluation is more important.At last we provide some suggestions about developing brand extension strategy. Before launching the brand extension strategy, the companies should be established in current situation and think whether they have the competence to carry through the brand extension and effectively use the influencing factors to make the extension well.