The Decision-Making Model For Brand Extension And Empirical Test Based On Consumer Attitude

By reviewing the commercial history, the core competitiveness of the enterprises for existence and development is initially focused on manufacturing capabilities, and then rely on distributing resources effectively through capital market, and ultimately showing as the integration and operation capabilities of brand. After gone through price competition and product competition stage, the future market competition will be focused on the brand competition. More and more companies are beginning to realize their most valuable asset is the brand linked to products and services. Obviously, the enterprise with famous brand often have a higher premium, the more effective marketing effectiveness, and more opportunities for market expansion and stronger customer loyalty, and other advantages.As the nature of the capital, enterprises have inherent impulse to use all controllable resources to expand its business, brand equity included. And the most direct use of brand equity is brand extension. Actually, brand extension strategy can be great effective in reducing the cost of new product introduction and risk. However, with brand extension width and density gradually increase, the negative impact of brand extension started to become apparent as consumers cognition rigidity, the limitation of mother brand influence and low connection between brand and new product. Improper brand extension will not only make new product fail, but also affect core brand system, even shaken the foundation of the entire enterprises. It is because of the double-edged-sword influence of brand extension that the success or failures of brand extension cases are almost simultaneous increase; evaluation of brand extension opportunity gradually becomes the research focus. A very practical evaluation model of brand extension effect will undoubtedly provides valuable basis for the brand strategy decision-making and will have been great role in guiding to local brand built.For the research focus and needed of brand strategy decision-making, domestic and foreign scholars finished many fruitful research on brand extension evaluation, gave the definition of factors affect brand extension, and proposed the theoretical model framework, but, some problems are still exist such as lack of brand extension mechanism, select absolute indicators, systematic decision-making model research.By the study of existing literature and the research about internal mechanism of brand extension and the different roles of the elements of brand equity during brand extension process, this thesis will build the evaluation index system of brand extension evaluation and give the theoretical model to assess the brand extension value. On this basis, considering experts advice, this research will refine the main factors influent on brand extension and give weight to every factor by using principal component analysis and AHP to, finally finish the establishment of the decision-making model for brand extension with a view to make contribution to local brand management practice.