Reserach On Influence Of The Brand Txtension Of Time-honored Pharmaceutical Brands On Brand Loyalty

Being Chinese culture treasures,time-honored brands show ethnic cultural features.They played an essential part in the market,however,with the advancing of the era,customers see them as an synonym of "out of fashion".To revive those brands,many enterprises choose brand extension—a double edged sword that can make those enterprises succeed or fail.This research select those time-honored pharmaceutical brands with traditional culture essence as objects of the study.Moreover,based on previous studies,influence model of the time-honored pharmaceutical brands extension on brand loyalty is built and an intermediary variable(brand image)and a moderating variable(consumer innovativeness)are introduced.Through pre-tests,two time-honored pharmaceutical brands are chosen as parent brands—Yunnan Baiyao and Tongrentang.By the method of situational simulation,we simulate four virtual extension products that are very different from parent brands in compatibility—physiotherapy instrument,medicinal liquor,condiment and health protection medicine.There will be positive analysis to see whether the theoretical model and hypothesis are true or not.First,use independent sample T to see if the brand image and brand loyalty change before and after the extension.The results show that brand extension will reduce customers' brand loyalty.Compared with those brand extension with high compatibility,brand extension have a greater impact on those brand extension with low compatibility,so is the brand image.Second,use regression analysis to verify several issues:the relation among variables,the positive influence of parent brand's perceived quality on perceived value,organization image and brand loyalty,but less on brand personality;the positive influence of compatibility on perceived value,brand personality,organization image and brand loyalty;the perceived quality and organization image both have a positive impact on brand loyalty,but brand personality does not.In addition,the mediating effect of brand image and the negative effects of consumers innovativeness,that is to say:when consumers innovativeness is high,brand loyalty is less affected by brand extension,and vice versa.Finally,we fit the whole model through structural equation model and further verify the hypothesis.This dissertation discuss the influence of time-honored pharmaceutical brands‘extension on brand loyalty through empirical analysis,taking pharmaceuticals industry as an example.Also,this dissertation enriches theoretical researches of brand extension and gives some theoretical guidance for the brand development of the time-honored pharmaceutical brands:try to avoid products with low compatibility when conducting brand extension;lay stress on the inheritance of cultural connotation and self-refinement of those time-honored brands to build a good brand image;apply creative marketing approaches and pay attention to the product marketing for innovative consumers.