Relationship of Brand Extension With Selected Aspects of Information Processing

Abstract

The specific objectives of this research effort are to ascertain the importance of a familiar brand name; to determine the major sources of information about brand extension; to find out the relationship of assessment of core brand, and evaluation of original brand with evaluation of brand extension. The role of exposure and over exposure is also examined vis-à-vis brand extension evaluation.

The relevant population for this study is youth i.e. those in the age of 15-24 years. Data was collected from 583 respondents selected with the help of multi-stage random sampling conducted on the population of educational institutions in a large urban area in North West India.

Even though information processing is a culture related phenomena the Indian youth are exhibiting behavior very similar to that described in foreign literature. Five out of the six hypotheses are accepted. Familiar brand name is an important cue for consumers. Just as advertising is an important source of information about brand extension. Brand extension evaluation is positively related with assessment of core brand, evaluation of original brand and exposure to brand extension. Price is an important cue for the Indian youth and over exposure does not negatively affect evaluation of brand extension.