Effect Of China Time-honored Brand’s Extension On Brand Image

China time-honored brands, which are valuable wealth of the Chinese nation, are market leaders in the past and occupy an important position in the market. But as time past, market environment takes earth-shaking changes. The growing competition among brands affects China time-honored brand severely. Owing to the lack of core competitiveness, a lot of China time-honored brands decline and the market share fall rapidly. Some brands even die out. In order to get rid of the serious crisis and activate China time-honored brands, many enterprises adopt the method of brand extension to launch new products. However, introduction of new products by brand extension can add new elements to the brand, which can affect the original brand image. Scholars haven’t reached an agreement on the research conclusions of brand extension’s effect on brand image. Some scholars think that brand extension will strengthen the brand image when the degree of perceived fit between the extension and the parent brand is high; some scholars think that brand extension has a negative impact on brand image, no matter whether the perceived fit between the extension and the parent brand is high or low; some scholars believe that the brand extension does not affect the brand image.On the basis of literature analysis, this paper studies China time-honored brands and constructs the model of the China time-honored brands’extension on brand image. Through a series of pre-test, the Quanjude and Bian yi fang are chosen as parent brands. Four different virtual extension products are selected, which are moon cake, hamburger, tea and coffee. For the two time-honored brands, moon cake is a kind of brand extension with high perceived cultural fit and high perceived product fit; hamburger is a kind of brand extension with low perceived culture fit and high perceived product fit; tea is a kind of brand extension with high perceived cultural fit and low perceived product fit; coffee is a kind of brand extension with low perceived culture fit and low perceived product fit. From the perspective of consumer involvement, questionnaires of high involvement and low involvement are designed. Through the large sample survey, by means of structural equation model the model of the China time-honored brands’extension on brand imaged is tested. The main conclusions are as follows:Firstly, the dilution effect of China time-honored brands’extension on brand image depends on the degree of consumer involvement. The dilution effect occurs when the degree of consumer involvement is high. When the degree of consumer involvement is low, some brand extensions (for example, Quanjude moon cake and Bian yi moon cake) can not dilute brand image, but also improve the brand image.Secondly, the study verifies the existence of the factor of perceived cultural fit between the extension and the parent brand in the process of China time-honored brands’extension. In the process of brand extension, perceived cultural fit between the extension and the parent brand has positive effect on consumer’s brand extension attitude regardless of the degree of consumer involvement, namely, the higher the perceived cultural fit, the more positive consumer’s brand extension attitude.Thirdly, the study shows that the dimensions of China time-honored brands’ image are unique. In addition to the dimensions of functional image, affective image and prestige image, there is a dimension of inheritance image. Inheritance image, including the inheritance of culture, technology and spiritual, is rooted in the unique attributes of China time-honored brand. On the basis of empirical research, measurement scale of China time-honored brands’ image is developed. The scale has good reliability and validity, so it can be used as measuring tool of China time-honored brands’image.Fourthly, different from scholars’ research results, the effect of China time-honored brands’perceived quality on consumer’s brand extension attitude has not been verified in this study. The reason is that China time-honored brands are brands of high quality and they are symbol of quality, therefore, consumers pay close attention to the factors such as perceived fit etc.The effect of perceived quality is without consideration.Fifthly, the study confirms that in the process of China time-honored brands’ extension, the degree of consumer involvement and consumer innovativeness play moderating effect to the perceived fit’s effect on extension attitude. The effect of perceived fit on extension attitude depends on the degree of consumer involvement. The effect of perceived fit between the extension and the parent brand on extension attitude is stronger/weaker when the degree of consumer involvement is high/low. The effect of perceived fit between the extension and the parent brand on extension attitude is weaker/stronger when consumer innovativeness is high/low.Sixthly, the study finds out that in the process of China time-honored brands’ extension, the effect of brand familiarity on consumer’s brand extension attitude depends on the degree of consumer involvement. Brand familiarity can significantly and positively influence on consumer’s brand extension attitude when the degree of consumer involvement is Low. There is no significant effect, when the degree of consumer involvement is high.The innovation points and academic contributions of this study are as follows:Firstly, through literature analysis, it is found that there is no empirical study on the effect of China time-honored brands’ extension on brand image. Therefore, China time-honored brand is taken as the research object of this study and the concept of "cultural fit" is introduced to the study. The theory model of the effect of China time-honored brands’ extension on brand image is established, which can enrich brand management theory.Secondly, there has not been a relatively complete concept about the description of the brand image and the structure about brand image has not been translated into a single uniform system. Considering the characteristics of China time-honored brand, this paper constructs the evaluation system and develops measurement scale of China time-honored brand image through empirical study. The study supplies effective measuring tool for academic research.Thirdly, the variable of "consumer involvement" is introduced to the model of the effect of China time-honored brands’ extension on brand image. Through empirical research, the paper confirms that in the process of China time-honored brands’extension, consumer involvement plays very important moderating effect. The effect of China time-honored brands’extension on brand image depends on the degree of consumer involvement.