Study On The Impact Of Evaluation Of Brand Extension On Brand Equity

In such a highly competitive market, corporations have to provide various products and services to satisfy consumers'ever changing needs. And it will take much cost to put new products in the market by new brand name. So lots of enterprises adopt brand extension strategy. Brand extension is a strategy which a corporation employs the current brand to enter a new product category. It can substantially reduce new-product introduction risk and cost. However, brand extension is a two blade sword. If consumers receive brand extension, it will help new products, but if consumers don't conceive brand extension, it not only can't make the new product into the target market, but also dilute the brand equity. Evaluation of brand extension will have an effect on the brand equity.Systematic research on brand extension was initiated by Aaker and Keller's(1990) study "consumer evaluation of brand extension", which indicate the beginning of empirical study in western world. Comparing to the western research, the disquisition in our country is lack of empirical study. This paper will study the impact of evaluation of brand extension on the brand equity by empirical method.This paper takes the undergraduate as the study object, and takes the foreign brand mobile phone and the domestic brand mobile phone as the study product. In order to make the study convenient, this paper adopts brand extension fit to classify brand extension strategy, and study the impact of evaluation of brand extension on brand equity in the different brand extension fit. The results indicate the influence of evaluation of brand extension on brand equity is different, and the influence of evaluation of foreign brand extension on brand equity is different from the influence of evaluation of domestic brand extension on brand equity.