| Brand extension is an important strategy for enterprises during the process ofdeveloping new products, and also one effective way to improve brand equity. Brandextension can bring the enterprises benefits and adventures at the same time. Manysurveys need to be done before implementing brand extension strategy. Especiallyvertical brand extension, it refers to the position change of the brands, so enterprisesneed to be more cautious.Based on the customers’ perspective, this paper addresses the effects of vertical brandextension on brand equity. And price is considered as a moderate variable, whichmeans that how much the brand equity will be effected by the vertical brandextension is different based on different price strategy. During the demonstrationprocess, reliability, validity and factor analysis are done first, then compare the meanof brand equity before and after brand extension. Moreover, T test has been done toconfirm the change of brand equity.The result shows that not all up-forward extension are positive for brand equity. Allthe down-forward extension are negative for brand equity. Among up-forwardextension, When the extent price increases is higher than the quality improves, thepositive effects for brand equity will be maximize. Among down-forward extension,when the extent price decreases is lower than the quality decreases, the negativeeffects for brand equity will be minimize.There are six chapters in this paper. In chapter one, the background and significanceof the research are discussed. In chapter two, it’s the literature review of someimportant concepts, such as brand extension and brand equity. Chapter three is aboutresearch design. Chapter is about data analysis. In chapter five, the hypothesis arediscussed. In chapter six, the results of the research are listed. |
