Cult brand extension influence on brand equityand customer loyalty

This article focuses on the brand extension in Cult Brands and study the drivers for Brand extension strategy, recognize elements that facilitate higher brand equity through brand extension and Measures the influence of the brand extension strategy on brand equity. The research is conducted considering the effect of Brand Extension as independent variable depending on three attributes Brand Familiarity, Brand Similarity and Perceived Fit, on Brand Equity as dependent variable measured using three factors which are perceived quality, Brand Loyalty, and Brand Association, and customer loyalty and their relationship. A questionnaire for 450 respondents to examine the influence of brand extension strategy on brand equity, testing hypothesis by applying both Pearson Correlation between brand extension strategy, brand equity and Multiple Regression analysis to find the effect of independent variable (brand extension), on dependent variable (brand equity). Study shows that positive correlation exists between brand extension and brand equity of the Cult Brands. Multiple Regression depicts that Brand Familiarity and Brand Similarity are not positively related with Brand Equity whereas Brand status had positive effect on Brand Equity. Key learning from premium customers regarding how Cult Brand extension influence on Brand Equity can be measured.