The Study Of The Factors Influencing The Brand Extension Of Hotels

Today, the competition between companies are not only about the goods, but also the brands. Many companies choose brand extension to become their strategy to capture the market. There have been so many achievements in the field of goods, but few in the field of service. As the service business is playing a more and more important role in the economy of the world, it is worth researching which factors are influencing the evaluation of the extension strategy.We select three drivers, they are "perceived service quality of the parent brand, the perceived fit and parent brand’s conviction". In contrast with previous studies, the dominant success driver is parent brand quality and parent brand environment rather than the perceived fit between the parent brand and the extension. Moreover, all three dimensions of parent brand quality constitute distinct drivers that should be considered when managers assess the chances of service brand extension success, with outcome quality and environment having the strongest impact on service brand extension success.Furthermore, we test the moderation effects of the fit and parent brand conviction. The conclusions are showed as follows:(1) The positive effect of the parent brand’s environment on the perceived environment quality of the extension increases as the level of hotel brand conviction increases.(2) The positive effect of the parent brand’s outcome quality on the perceived outcome quality of the extension increases as the level of hotel brand conviction increases.(3) The positive effect of the parent brand’s interaction on the perceived interaction quality of the extension increases as the level of the perceived fit increases.