The research presented in the paper addresses the issue of key drivers of brand extension success in an Indian perspective. Many previous research papers have found that the fit between parent brand and the extended product is the most important determinant of brand extension success. However, an in-depth analysis of the various aspects of fit between the parent brand and the brand extension hasn't been done so far. This research paper aims to find the effects of select determinants that Indian customers consider while evaluating a brand extension. The brands taken into consideration for this study were Cadbury, Coca Cola, and Kellogg's. Four hypothetical brand extensions were decided for each brand, such that the extensions were a mix of related, unrelated, low risk and high risk extensions. The purpose of the study was to examine and empirically test how consumers evaluate brand extensions in reference to: Similarity between parent brand and extension, Perception of risk of extension category, and Parent brand reputation.
It was concluded through regression analysis that “Similarity between the parent brand and brand extension” makes the strongest unique contribution in predicting overall evaluation of the brand extension.
Brand Extension, Key Drivers, Similarity, Perception of Risk, Parent Brand Reputation
