Study On The Effect Of Perception Fit On Brand Extension Evaluation

When companies need to launch a brand new product to develop new markets, brand power can not only introduce new products into the market quickly and known, but also greatly reduce the import costs.Researchers in marketing field focus on the influencing factors which affect the reactions on brand extension. The common finding is that the perceived fit plays an important on the extension evaluation. For a better understanding of the mechanism and other factors, marketing scholars began to explore the mediating role of cognitive psychology of consumers and other regulatory variables.The study is divided into three parts. One is to explore the mediating effect of perceived risk, and to proposes regulating effect of the competitive environment. The other is to explore whether the factor of origin-country has moderating between the perception of fit and brand extension evaluation.In the study, the experiment with scenario simulation is used. Study 1 uses two(perception fit: high or low) by two(competitive circumstance: competitive or noncompetitive) by two(brand: national and international) in the between-subjects design. Study 2 uses two(perception fit: high or low) by two(competition brand: national and international) in the between-subjects design. Data is collected by paper questionnaires or electric questionnaires, and is analyzed specifically with SPSS. The hypothesis of theoretical model if tested and verified with Cronbach a reliability analysis, factor analysis, ANOVA, MANOVA and regression analysis and then validity of the theory if explored.By the experiment data analysis, the conclusions are summarized. 1 Perceived risk is a partial mediator between perception fit and brand extension evaluation. 2 If there is no competitor, the higher is the perception fit, the lower perceived risk and the higer brand extension evaluation will be. If compared with someone, the perceived risk and evaluation will perform comtrarily. 3 If compared with local brand, the higher the perception fit is, the lower perceived risk and the higher brand extionsion evaluation will be. But if compared with international brand, the result will be different.