An investigation of consumer evaluation of brand extensions

Abstract

Abstract This paper deals with the effects of perceived quality, perceived fit and perceived difficulty, and interaction between perceived quality and fit on consumer evaluations of brand extension. We used multi‐item scales to measure these constructs. Data were analysed via structural equation models. Results show that both perceived quality and perceived fit have direct positive effects on consumer evaluation of extensions. We find support for the chance of transferring the positive values of a brand to an extension is greater when consumers see the extension as a good fit with the original brand and the original brand is considered as of high quality.