The Reinforcing Effect of Brand Extension on Parent Brand in Case of High Involvement Consumer Products

Abstract

This study was aimed at investigating the effects of brand extensions on parent brand. Data were collected from 370 University students and University lecturers at Dire Dawa University using self-administered questionnaires. Convenience sampling technique was found to be appropriate. Questions were prepared in a five point likert scale type. SPSS version 21 has been employed to perform various computations like reliability, correlation, and regression. The findings show that customers’ attitude towards the parent brand is reinforced by brand extensions. When customers have positive brand associations and strong brand loyalty, successful brand extensions strengthen the favorable relationship between the customers and the parent brand. Again, when customers have unfavorable brand association and distrust a parent brand, its incompetent brand extensions reinforce customers’ negative brand associations and disloyalty to the parent brand. The findings are supported by p value = 0.000 for 95% confidence level.

Keywords:brand, parent brand, brand equity, brand awareness, brand association, brand loyalty, brand extension