Brand Extensions: Factors Influencing Consumer Decision Making

Abstract

Brand extension is a widely used concept in a field of marketing by using a successful brand nameto launch a new or modified product in a new category. Brand extension strategies are broadlyaccepted because of belief that was made and communicated powerful brand positioning; enhanceknowledge and quality association and increase likelihood of trial by reducing new product risk forconsumers A review of the literature on brand extensions is offered, focusing on the conditions thatinfluence consumers' decision making. Several perspectives are discussed including, reputation,innovativeness, brand trust, brand association, brand strength, parent brand characteristics, fit andsimilarity, brand concept consistency, categorization theory, use of cues in evaluation, sequentialbrand extensions, and mode of evaluation.