A Study On The Relationship Between Service Brand Extension And Brand Equity

The term―brand‖came from America. In the early20th century,"brand" has been moreapplied to sales. Since1930s,"brand" has began been widely used in academia, media andmarketing.In recent years, with the more incentive market competition and rising advertisingcosts, the introduction of new products has been under lots of risk. Between1970and1980,when companies introducing new products, there is only20%got success. The30%-35%failure was due to not being accepted by consumers and the high cost of initial marketintroduction. In Western countries, brand extension has been a generic way to introduce newproducts. According to statistics, between1977and1984,in Western countries, there isapproximately40%between every120-175new brands being imported to supermarketachieved through brand extension. Thus, the brand extension has been a general trend.As you can see, in the field of physical product, Haier company constantly develop newproducts, Toyota company constantly develop a series of cars in different price, and so on. Inlate1970s, Tuber systematically presented the theoretical issues of the brand extension firstly.In the next eras, scholars have done a lot of research around the brand extension and Aakerand Keller made the greatest impact. However, you can find a lot of scholars have been doingresearch about the physical product brand extension. There is few researchs about servicebrands. With the development of society, the proportion of tertiary industry has accounted forlarger and larger. Service brands, such as hotels, are also engaged in extending and theyrequire theoretical guidance.This paper is Based on the service brand (budget hotel).it is divided into vertical brandextension and horizontal brand extension, and respectively takes fit and distance as theindependent variable, selecting service brand equity dimensions On the basis of previousscholars research as the dependent variable, then, make customer satisfaction and customervalue as the moderator. On this basis, take the literature review, questionnaire survey tocollect useful data, and use SPSS16.0software for statistical analysis to examine therelationship between various dimensions of service brand extension and brand equity,verifying the correctness and rationality of the model, and put forward reasonable brandextension suggestions for the similar service brands.