A survey on the impacts of brand extension strategy on consumers’ attitude for new products development

Abstract

Marketing planning has been one of the most important components of production planning. A good marketing strategy can increase sales of products, which leads to higher profitability. The proposed study of this paper investigates how consumer's mental capability reacts when a new product is introduced along with a well known brand. The proposed study of this paper selects 196 people who choose 12 various products. Dependent variable is consumer perception towards new product development. Independent variables include customers consider newly offered product as replacement or supplement one. They surveyed people are also asked whether they think the new technological characteristics can incorporate older ones' or not. Finally, participants are asked about their perception on product. Correlation ratio between technology transfer capabilities and perception towards the new product is calculated as 0.454, which is much more than other variables and P-value is significant when the level of significance is one percent. The other observation is that there is a positive and meaningful relationship between potential for product substitution and perception towards the new product, which has been calculated as 0.227.

Keywords

• Brand extension
• Consumers’ attitude
• Brand associations
• Perceived quality
• Fitness