DISSERTATION REPORT ON AN ANALYSIS ON CONSUMER PERCEPTION TOWARDS

BRAND EXTENSION

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER IN BUSINESS ADMINISTRATION

SUBMITED BY SAVIRAL CHOUDHARY (MBA M&S-IV)

UNDER THE GUIDANCE OF Ms PARUL VERMA

(Lecturer ABS)

AMITY UNIVERSITY RAJASTHAN

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PREFACE

The Dissertation work is an excellent opportunity to give theoretical knowledge a practical shape .This research is done to know the consumer perception towards Brand Extensions .The research was conducted in the month of April 2013. The researcher used a well structured Questionnaire to collect the secondary data and books, research paper were used to collect primary data to be used in preparation of report.

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ACKNOWLEDGEMENT

I dedicate this page to all those who have silently or actively left indelible mark on my project report, so that they may give credits which richly deserve. Talent and capabilities are of course necessary but opportunities and right guidance is two very important backups without which any person cannot climb the ladder for success. Proper guidance and direction is required in order to achieve goal and making optimum of each and every opportunity. It is my great privilege to have dissertation in such a good area. I am thankful from the core of my heart and express my feeling of gratitude and acknowledgement to my project guide Ms Parul Verma(Lecturer ABS) whose constant support and faith in me always motivated me and their knowledge and brilliance has pulled me out of doldrums in this project. I would also like to express my gratitude to Major Gen BN Kaul (Pro VC) and Mr Ashish Kumar (Deputy Director ABS) whose enormous assistance helped me in completion of this project.

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DECLARATION

I hereby declare that this project report An Analysis on consumer perception towards Brand Extension in partial fulfillment of the requirement of Master in Business Administration(MBA) at Amity University, Rajasthan which is carried out during my research project in 4th semester (session: 2011-2013) is based on primary and secondary data collected by me under the guidance of Ms Parul Verma and is true to the best of my knowledge.

SAVIRAL CHOUDHARY MBA (M&S) IV SEM

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CERTIFICATE BY FACULTY GUIDE

This to certify that SAVIRAL CHOUDHARY (A20001911045) a student of Master Of Business Administration (MBA-M&S) , class of 2013, Amity Business School, Amity University Rajasthan has done the Dissertation Project under my guidance for the project Title An Analysis on consumer perception towards Brand Extension

This project report is prepared in partial fulfillment of Master of Business Administration (MBA) to be awarded by Amity Business School, Amity University Rajasthan.

SAVIRAL CHOUDHARY

Ms PARUL VERMA Faculty (ABS)

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EXECUTIVE SUMMARY

Brand plays an important role of creating identification and differentiation within products. Brand extension means use of established brand name in product categories. This dissertation analyzes consumer perception towards an extension. In this study respondents are asked questions and the questions were based on some parameters. A exploratory study is conducted with help of a Questionnaire on 110 respondents to know their general views regarding how they evaluate any Brand extension. This project also measures the purchase willingness towards target extension by asking consumer their likelihood of purchase of extension if they find it in stores. This project also measures respondents willingness to give preference towards extension when they are exposed to scenario where they have two or more options.

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TABLE OF CONTENTS

1) Introduction to Study. 2) Literature Review.. 3) Research Methodology. 4) Introduction of Brand Extension... 5) Data Analysis and Interpretation... 6) Finding and Conclusion 7) Bibliography.. 8) Annexure...

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CHAPTER I: INTRODUCTION TO STUDY

Brand plays a important role of creating identification and differentiation within products and services for customers. It means that brand is reference that consumers recognize and consider in their purchase decisions ; and it also provides a medium for marketers to target and engage with their customers. By increasing market competition and fragmentation of products, both academia and business professionals have drawn their attention to effectiveness of Brands . Many different aspects of branding have been investigated including brand extension. Brand extension provides opportunity for sustainable growth by catching consumer value through famous Brand names . The main advantage of the Brand extension are it reduces the cost of communication, reduce the cost of Brand name introduction and enhance the probability of success; and disadvantages of the extension are it may change the beliefs and the parent brand and reduce the sales of the other produce for same and brand which ultimately cause the loss of equity . Hence it inevitable to understand the success factors involved in making brand extension successful. Brand extension that is use of established brand names to launch new product represent one of the most frequently used branding strategies. Extending brand both within and beyond the original product category is deemed to be profitable. Nevertheless, the success of brand extensions is uncertain. Failure rates of brand extensions in many FMCG product categories are approximately 80 %. Therefore, potential determinants of brand extension success have emerged as an important
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focus of research inquiry to provide insights that may help managers reduce the failure rates of brand extensions. Launching new products can be an attractive growth strategy, however this is not without risks. Some estimate that 30-35% of all new products fail while others are even more pessimistic, citing that only two out of ten new launches succeed. Due to factors such as high advertising costs and the increasing competition for shelf space, it has become more difficult to succeed with new products. An increasingly popular approach to reducing risk when launching new products is to follow a brand extension strategy. Given the importance of brand extensions, a better understanding of this topic is needed. Researchers have predominately investigated brand extensions amongst tangible goods. By contrast few have investigated the service sectors a surprising finding given the significant economic importance of services. Many brand extension studies have used laboratory experiments with students and fictitious brands. The external validity of these studies has been questioned and criticisms leveled against generalisability. This study will explain that how customer perceive Brand extension when they are under different circumstances. By knowing the consumer evaluations of brand extensions will help the companys to design their marketing strategies.

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CHAPTER II: LITERATURE REVIEW

BRAND EXTENSION
Brand extension is a large network of sub-brands built by a company. Sub brands allow a company to enter new product categories, new consumer markets and new situational uses for brands. Companies consider brand extension as a costeffective, low risk way to introduce new products or services in response to a new consumer need or a different demographic. Brand extensions affect recall and recognition because they take on the parent brands name. They influence the consumers attitude towards the brand extension in three steps: recognition, sub typification (establishing imagery based on the parent brand) , and the transfer of associations and attitudes.

BRAND EXTENSION STRATEGY

There are two major types of brand extension strategy; horizontal and vertical ( Aaker and Keller, 1990; Chung, Anne & Margo, 2001; Laser et al., 1995; Rangaswamy et al. 1993). Horizontal Extension Strategy Horizontal brand extensions involve applying the existing brand name to a new product to be introduced in the market. This newly extended product can either be in a similar product class or as a product category which is entirely new to the firm( Chung et al.,2001). For example, Ivory soap introduced Ivory detergent as its
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newly extended brand. Here Ivory detergent is a new product class from its original brand. Ivory soap (Chung et al.,2001) .Aaker and Keller (1990) further suggested that based on the difference in focus; there are two additional types of horizontal brand extensions: line extension and franchise extension. Line extension strategy employs a current parent brand name to enter a new market segment in the same product class such as Diet Coke and Diet Pepsi are specifically targeted towards health conscious consumers. Franchise extension strategy uses a current parent brand name to enter a new market with a different product category that is relatively new to the company. For example, Caterpillar, one of the worlds leading manufacturers of construction and mining equipment launching its clothing lines is an ideal for the franchise extension (Pitta & Katsanis, 1995). Vertical Extension Strategy A vertical brand extension involves using the existing brand name to the same product category to be introduced in the market, at a different price/quality continuum ( Aaker & Keller, 1990). For example, Riders by Lee is an extension of the product Lee Brand , which concentrates on apparel or clothing for both and men and women. Researchers state that vertical extensions provide the management an opportunity to leverage the core brands equity more quickly (Pitta & Katsanis, 1995). Vertical brand extension strategy has been a common practice among various industries, such as automobiles like Acura, Lexus and Infiniti are also good examples of such extensions. However previous researches have suggested that a vertical brand extension strategy might create negative impact on the core brand and its evaluation if the extended product was not perceived appropriately by consumers (Dacin & Smith, 1994; John,1993; Ries & Tout, 1986).

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It is observable that the brand owners must realize that brands are one of the most precious assets and need to be managed with care and deliberation when deciding to extend brand . There are many indicators from the consumer perspective, which the company might investigate in order to track its external environments reaction toward their brand executions. Such study would help the company to make sure that the indispensable values and qualities of the brand are clearly understood and communicated to its final consumers. In an rising competitive environment the brand marketers are looking for ways to expand the their portfolios and at the same time decrease the cost of the new products introduced as well as diminish the risk of new product failure. One of the most popular ways to achieve this is to put a new product created in another category under the name of existing brand. This is called brand extension (Fox et al., 2001). According to Keller and Sanjay (2003), the advantage of a strong brand is the fact that it makes it easier for consumers to accept a brand extension. Due to the fact that brand extension diminishes the risk regarding consumers and decreases the cost with marketing and promotion, It has become the most frequent product strategy over the last two decades. Still, brand extension can be a double-edged sword (Keller and Sanjay, 2003,p.12) Accoding to Murphy (1990), the key factor in brand extension is to understand the main values that the brand stands for and to develop a well structured plan of action for brand equity. In the evaluation of service brand extensions perceived similarity is a crucial factor. This finding concurs with the hypothesis that any brand which is extended into similar categories should receive high consumer evaluations ( see, eg, Aaker
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and Keller 1990).Secondly the likelihood of successful brand extension is influenced by parent brand. Building a favourable reputation for a parent brand is an important contributor to the success of brand extension. Also the perceptions of the risk associated with new product categories is an important factor influencing brand extension judgements for durable goods and services. Extension Similarity: Park et al. (1991), stated that similarity is a function of both or either of brand concept consistency and brand breadth; where concept consistency is continuation of general brand image and brand breadth refers to closeness of extended product category with existing product range. According to Huifang Mao and Krishnan (2006) consumers favors those extension when product category similarity is high. Perceived similarity influences consumers to shift their beliefs and experiences from original brand to new extension, so eventually consider the new product credible ( Boush 1997 ; Build et al. 2009; Batra et al. 2010). However negative feedback can also be received if perceived similarity is low, because consumers perceive that extended product belongs to other category which parent brand does not have. Assumption in the use of brand extension is that strong brands offer greater leverage for extension than weaker brands (Aaker 1990;Aaker and Keller 1990) . Consumer predispositions towards brand implicitly defines brand strength (Marketing Science Institute 1988). Established brand tend to be used as quality cues (Bellizzi and Martin 1982; jacoby, olson and Haddock1973; Wernerfelt 1988).

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Fit and similarity Many authors suggested that an effective brand extension must be perceived as a fit with the original brand (Aaker and Keller 1990; University of Minnesto Consumer Behabior Seminar 1987; Tauber 1988) Tauber (1988) defines Fit as the extent to which a consumer accepts the new product as a logical and expected extension of the brand. A poor fit between the original brand and the extension may diminish the appeal of the new product. Aaker and Keller (1990) studied three aspects of fit: (1) complementarity, defined as the extent to which two products can be utilized in common usage situations or can together satisfy some need ( eg, glf clubs and golf balls); (2) substitutability, or the extent to which the two products can replace the other in satisfying the same need( i.e, potato chips and pretzels); (3) transferability, defined as the extent to which manufacturers expertise in one category transfers to the extension product . This expertise includes production facilities, employees and the skillsof the firm. Aaker and Keller (1990) found that neither complementarity nor substitutability had significant main effects in rating the brand extensions. Rather the complementarity and substitutability measures interacted with the perceived quality of the original brand to predict brand extension evaluation. Transferability had a direct impact on the evaluation of brand extensions. Categorization and brand extensions: Using the concept of categorization theory a number of studies have examined consumer evaluations of brand extensions ( Bousch and Loken 1991; Farquhar, Herr and Fazio 1990; Hartman, Price and Duncan 1990; Kardes and Allen 1991). A category contains all the information for a class of objects considered to be equivalent. People tend to organize things by classifying them into different
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categories. Attributes and characteristics are common in objects within a category (Mervis and Rosch 1981). If an object has more associations with other category members, the more likely it is to be perceived as a prototypical of that category (Rosch and Mervis 1973; Smith and Medin 1981). Individuals perceive members of a category to vary in the degree to which they are typical of category. In the context of brand extension, the degree to which the extension can be categorized with the original product may influence acceptance by the consumer. Bousch and Loken(1991) used categorization theory to explain consumer evaluations of brand extensions. In this study they examine the effect of brand category breadth and brand extension typicality on extension evaluations. When a brand name is associated with a diverse number of products in different product categories, it is considered a broad category. In contrast , a brand name associated with one or a few products , would be considered a narrow category. In a similar study, Kardes and Allen (1991) investigated the role of perceived variability in consumer inference by manipulating brand name and new product concept information. The result of this study indicates that the umbrella category does not automatically provide more leverage than a niche brand. Kardes and Allen (1991) state that when a parent brand name is stretched too far, additional extension may have negative impact on judgements about the parent brand. The authors attribute their results to consumer tends to make conservative judgements. Sequential Brand Extensions : Potential negative effects on the Brand The effectiveness of Brand may diminish if number of extensions associated with it increases (Aaker 1990; Kesler 1987; Ogiba 1988; Tauber 1985, 1988) The underlying concern seems to be that the identity or meaning of the Brand will become blurred in the minds of consumers as the number of products associated
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with that brand increases. Aaker (1990) offers some cautions about negative results that can occur from poorly conceived brand extensions. Consequences mentioned include undesirable associations to the parent brand , weakening of existing associations and a tarnished quality image. Romeo(1991) warned that there is danger inherent in creating brand extensions within the same product category . If the extension is the target of negative information , both the family brand and the extension may be negatively impacted. Contrary to this perspective, Park, Jawrski and MacInnis (1986) offer a convincing argument that the systematic extension of a brand can strengthen its status in the minds of consumers. A normative framework called brand concept management was proposed by Park, Jaworski and MacInnis (1986). The framework consists of a sequential process of selecting, introducing, elaborating and fortifying the brand concept. Park et al. recommend strategies for maintaining the brand image, varying according to whether the brand concept is functional , symbolic or experimental. Skills Both Aaker and Keller (1990) and Sunde and Brodie (1993) findings suggested that extension shall be positively evaluated if the consumers believes that the parent brand has the skill required to make new product in new category. So it means that even if the product category is new for original brand, extension may be favorably evaluated if the consumers have confidence that original brand has skills to do so. It means that consumer have positive attitude towards if they perceive high similarity in technology/skills. Similarly, Youl Jun et al. (1999) suggested that consumers attitude towards brand extension was found positive when technology same or similar.

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Endorsing above arguments, Hem and Iversen (2009) suggested that it is essential to have high perceived similarity in at least those dimensions or product features which are most relevant or desired. That is new extension should have high similarity in those dimensions which are more critical for consumers perspective . Information Consumer required information in developing the perceived similarity between the parent brand and extension ( Bijmolt et al. 1998) . If the attributed information is added in stimuli through better communication, and with the frequent consumer exposure with extension the effect of similarity may increase (Klink and Smith 2001) . Also when there is low similarity, then elaborative communication strategy which focuses to address the concerns of consumers improves the favorability of the extension evaluation (Bridges et al. 2000)

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CHAPTER III: RESEARCH METHODOLOGY

Research methodology is used to give clear cut idea on what the researcher is carrying out his or her research. In order to plan in a right point of time and to advance the research work methodology makes the right platform for the researcher to mapping out the research work in relevance to make solid plans. Moreover methodology guides the researcher to involve and to be active in his or her particular field of enquiry. Most of the situations the aim of the research and the research topic wont be same at all time it varies from its objective and flow of the research but by adopting a suitable methodology this can be achieved. Right from selecting the topic and carrying out till recommendations research methodology drives the researcher in the right track. The entire research plan is based on the concept of right methodology. It details the procedure necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making.

RESEARCH OBJECTIVE
An evaluation of the overall Brand extensions in general Analyzing consumer perceptions towards Brand extensions To know the Factors contributing to success of Brand Extensions

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SIGNIFICANCE OF RESEARCH

Every research is conducted to fulfill some objectives and these objectives fulfill some purpose and are significance of further researches. This research will help organizations to generate profit and to increase there product portfolio by analyzing the factors behind Brand Extension success and this will also help them to understand the perception of consumers towards Brand Extension.

This study will also help companies to formulate there marketing strategies by understanding the Brand Extension in a better way,

RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing research project. It details the procedure necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide needed information needed for decision making. Types of Research Design There are following types of research design used in marketing research work 1) Exploratory research design 2) Conclusive research design 3) Descriptive research 4) Causal research 5) Cross sectional 6) Longitudinal
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7) Single cross sectional 8) Multiple cross sectional

A exploratory study was conducted for the research. Exploratory research is designed to provide a background, to familiarize and as the word implies just explore the general subject. A part of exploratory research is the investigation of relationships among variables without knowing why they are studied.

SAMPLING PROCEDURE
The term sampling indicates the selection of a part of a group or an aggregate with a view to obtaining information about the whole. This aggregate or the totality of all members is known as population although they need not be human beings. The selected part which is used to ascertain the characteristics of the population is called sample. While choosing a sample the population is assumed to be composed of individual units or members, some of which are included in the sample. The total number of members of the population and the member included in the sample are called population size and sample size respectively.

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Types of Sampling There are mainly two types of sampling probability and Non-probability which are further divided into sub categories. 1) Probability sampling-In probability sampling method every element of the population has a known chance of being selected. In probability sampling method there is no chance of arbitrary or biased selection and therefore the laws of probability apply. Types of probability sampling These are the following types of probability sampling a) Simple Random Sampling b) Systematic Sampling c) Stratified Sampling d) Cluster Sampling

2) Non-Probability Sampling-These methods do not provide every item of population may known chance of being selected in the sample. The elements of sample are selected on the judgement of the researcher . Tpyes of Non- probability sampling There are following non-probability sampling in marketing research a) Convenience Sampling a) Judgement Sampling b) Quota Sampling c) Snowball Sampling
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In this research Random Sampling is used because the respondents were selected randomly and there was a equal probability of selecting respondents. Data Source: Data source was primary, which include customers. The customers were personally contacted by the researcher to collect the required data. Research Instrument: A schedule was used as the research instrument . In this schedule the researcher included close ended questions only. Sampling Plan: Sampling plan consisted of sampling unit, sample size.

Sampling Unit A Sampling unit may be a natural geographical unit such as a state, a district, a village, or a constructed unit. It may be a social entity such as a family or a school. It may be also be an individual. In this research customers from different places formed the sampling unit. Sampling size-A sample size simply indicate that how many respondents should be there in a sample. In this research sample size is of 110 customer. Contact Method- Once the sampling plan is determined the researcher has to decide how respondents should be contacted, Here a questionnaire was developed and the respondents were personally contacted by the researcher. Analyzing the Information: Data preparation includes the editing, coding, transcription and verification of Data. Each questionnaire or observation form is inspected, or edited and if necessary corrected. Number or letter codes are assigned to represent each
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response to each question in the questionnaire. The data from the questionnaire are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. The researcher tabulated the Data and then applied all statistical and graphical methods for presenting the same.

Data Presentation Technique

The entire project should be documented in a written report which addresses the specific research questions identified , describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. It is the last step in research process is to present the findings to relevant parties. The conclusion and recommendation on the basis of data collected is presented in a systematic manner.

SCOPE OF STUDY The study was conducted in the month of April 2013. This study analyses the consumer perception towards Brand extension. The study will help companies to understand that how consumer perceive an extension and what is there buying behavior for an extension. This will help marketers to formulate there marketing strategies and earn profit by introducing extensions. This is study will also be helpful for companies which are planning to launch some new products by providing them useful knowledge about extension and factors behind their success
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CHAPTER IV: INTRODUCTION OF BRAND EXTENSION

BRANDING
Every product or service has a brand, an identity that consumers recognize. According to American Marketing Association , a brand is defined as a name, term ,sign ,symbol or design, or a combination of them intended to identify the goods and services of one seller or a group of sellers and to differentiate them from those of competition. Branding is one of the most important assets accompany can have. When thinking of a brand in ontological manner, it is neither true nor false, nor is it absent or present. It is simple an entity that is unstable and experienced differently through the eyes of every consumer. Simply put the brand synthesizes knowledge, beliefs and emotions to reflect the essence of the product or service; they create subjective, intangible views of the brand believed to be true. The term branding did not gain prominence until the 1960s and 1970s, when the world experienced a financial crisis and increased competition in the publishing market place. The market intensified and brought the move towards humanization of commodities and the development of niche marketing. The human element of the product helps build trust between the brand and the consumer. Brands allow consumers to derive greater satisfaction from the product or service, and the lower the risk of choosing the wrong product by reducing anxiety and doubt. Powerful brands have longevity, perhaps immortality, when managed correctly. Ultimately, a brands purpose is to affect consumer behavior.

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ROLE OF BRANDS
Brands identify the source or maker of a product and allow consumers either individuals or organizations to assign responsibility for its performance to a particular manufacturer or distributor. Consumers may evaluate the identical product differently depending on how it is branded. Consumers learn about brands through past experiences with the product and its marketing program, finding out which brands satisfy their needs and which do not. Brands also perform valuable functions for firms. First, they simplify product handling or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. The brand name can be protected through registered trademarks; manufacturing processes can be protected through patents; and packaging can be protected through copyrights and proprietary designs. Brands signal a certain level of quality so that satisfied buyers can easily choose the product again. Brand loyalty provides predictability and security of demand for the firm, and it creates barriers to entry that make it difficult for other firms to enter the market. Loyalty can also translate into consumer willingness to pay higher price more than competing brands. To firms brand represent enormously valuable pieces of legal property that can influence consumer behavior, be bought and sold and provide the security of sustained future revenues to their owner. Companies have paid large earning multiplies for brands in merges or acquisitions, often justifying the price premium on the basis of extra profits to be extracted and sustained from the brands, as well as the tremendous difficulty and expense of creating similar brands from scratch.

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SCOPE OF BRANDING
Branding is endowing products and services with the power of a brand. Its all about creating differences between products. Marketers need to teach consumers who the product is by giving a name and other brand elements to identify it as well as what the product does and why consumers should care. Branding creates mental structures that help consumers organize their knowledge about products and services in a way that clarifies their decision making and in the process, provides value to the firm. For branding strategies to be successful and brand value to be created, consumers must be convinced there are meaningful differences among brands in the product or service category. Brand differences are often related to attributes or benefits of the product itself. Marketers can apply branding virtually anywhere a consumer has a choice. It is possible to brand a physical good, a service, a store, a person, a place, an organization or an idea.

BRAND EXTENSION
Brand extension is the use of established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand help an organization to launch products in new categories more easily. For instance, Nikes brand core product is shoes. But it is now extended to sunglasses, soccer balls, basket balls and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of new business have values and
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aspirations synchronizing/matching those of the core business and if these values and aspirations are embodied in the brand. It is likely to be accepted by customers in the new business.

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CHAPTER V: DATA ANALYSIS AND INTERPRETATION

1) To know the perception of respondents towards the image of extension.

OPTION STRONGLY DISAGREE STRONGLY AGREE

RESPONSE 47 63

70 60 50 40 30 20 10 0 Strongly Disagree

63 47
responses

strongly agree

Interpretation:- Graph shows that 57.27 % of respondents have a positive image towards extension while 42.72 42.72% respondents says that extension does not carry a positive image.

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2) To know the level of likeness towards the extension.

OPTION STRONGLY DISASGREE STRONGLY AGREE

RESPONSE 39 71

responses

39 strongly disagree strongly agree 71

Interpretation:-Graph shows that 64.54% respondents agree that they like extensions while 35.45& respondents dislike extensions.

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3) To know how customers perceive the relationship between parent brand and extension.

OPTION STRONGLY DISAGREE STRONGLY AGREE

RESPONSE 42 68

responses
80 70 60 50 40 30 20 10 0 strongly disagree strongly agree 42 strongly disagree strongly agree 68

Interpretation:- The above Graph shows that 61.81% respondents agree that extensions are closer to parent Brand while 38.18 does not agree that there is closeness between parent brand and extension.

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4) To know that whether the customer would like to try extension. OPTION STRONGLY DISAGREE FAIR DISAGREE DISAGREE NEUTRAL AGREE FAIRLY AGREE STRONGLY AGREE RESPONSE 3 7 2 30 55 7 6

responses
60 50 40 30 20 10 0 strongly disagre fairly disagree disagree neutral agree fairly agree strongly agree

55

30
responses

Interpretation:- Graph shows that 61.81% of respondents would like to try extension, 27.27% of respondents are uncertain about trial and 10.90% respondents think not to go for trial.
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5) To know that whether respondents will buy a extension if they happened to see that extension in a store. OPTION STRONGLY DISAGREE FAIR DISAGREE DISAGREE NEUTRAL AGREE FAIR AGREE STRONGLY AGREE RESPONSE 2 7 8 43 36 9 5

responses
50 45 40 35 30 25 20 15 10 5 0 43 36

responses 7 2 strongly disagre fairly disagree disagree neutral agree fairly agree 8 9 5

strogly agree

Interpretation:- It shows that 45.45% of respondents will buy extension if they see it in store,39.09 respondents are uncertain that whether they will buy it or not and 15.45% will not buy the extension.

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6) To know that respondent will look for an extension in a store to purchase it. OPTION STONGLY DISAGREE FAIR DISAGREE DISAGREE NEUTRAL AGREE FAIR AGREE STRONGLY AGREE RESPONSE 8 11 6 35 38 9 3

response
40 35 30 25 20 15 10 5 0 strongly disagree fairly disagree disagree neutral agree fairly agree strongly agree 8 11 6 9 3 responses 35 38

Interpretation:-Graph shows that 45.45% of respondents will look for extension in a store to purchase it, 31.81% are uncertain and 22.72% of respondents will not look for extension.

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7) To know the future purchase intention of respondents for extension. OPTION STRONGLY DISAGREE FAIR DISAGREE DISAGREE NEUTRAL AGREE FAIR AGREE STRONGLY AGREE RESPONSE 6 5 9 32 40 11 7

response
45 40 35 30 25 20 15 10 5 0 40 32

11

response 7

strongly disagree

fairly disagree

disagree

neutral

agree

fairly agree

strongly agree

Interpretation:- It shows that52.72% of respondents will purchase extension in future, 29.09% of respondents are uncertain and 18.18% of respondents will not buy extension in future.

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8) To know whether or not it make a sense to buy a particular extension from a brand instead of any other brand, even if they are same. OPTION STRONGLY DIAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE RESPONSE 5 16 35 43 11

response
50 45 40 35 30 25 20 15 10 5 0 43 35

16 11 5

response

strongly disagree

disagree

neutral

agree

strongly agree

Interpretation:-It shows that 49.09% respondents will buy the particular extension from brand instead of any other brand even if they are same, 31.81% of respondents are uncertain and 19.09 will buy extension from other brand if choices are available.

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9) To know whether or not respondents would like to buy particular extension from a brand, even if some other brands have similar features. OPTION STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE RESPONSE 6 38 45 13 8

responses
50 45 40 35 30 25 20 15 10 5 0 45 38

responses 13 6 8

strongly disagree

disagree

neutral

agree

strongly agree

Interpretation:-It It shows that 19.09 % of respondents will buy particular extension, 40.90 % are uncertain and 40 % of respondents will not buy if features are similar.

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10) To know whether or not respondents will buy a particular extension even if some same product is as good as that particular e extension. OPTION STRONGLY DISAGREE DISAGEE NEUTRAL AGREE STRONGLY AGREE RESPONSE 9 25 28 36 12

responses
40 35 30 25 20 15 10 5 0 strongly disagree disagree neutral agree strongly agree 9 12 25 28 36

responses

Interpretation:-It It shows that 43.63 % of respondents would buy that particular extension even if some other product is as good as that particular extension, 25.45% of respondents are uncertain while 30.90% of respondents would go for some other product.

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11) To know whether or not respondents would go for a extension from a particular brand for if another s same ame product is not different from that particular brand in anyway. OPTION STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE RESPONSE 7 28 39 25 11

responses
45 40 35 30 25 20 15 10 5 0 strongly disagree disagree neutral agree strongly agree 7 11 28 39

25 responses

Interpretation:-Graph Graph shows that 32.72% of respondents will buy the extension from a particular brand even if some another product is available which is not different from that particular brand, 35.45% are uncertain and 31.81% of respondents will buy another product if it is not different from that particular brand.
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12) To know that t about the risk in buying a extension.

OPTION STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

RESPONSE 19 27 37 18 9

responses
40 35 30 25 20 15 10 5 0 strongly disagree disagree neutral agree strongly agree 19 27 18 responses 9 37

Interpretation:- Graph shows that 24.54% respondents thinks that there is risk in buying a extension,33.63% are uncertain and 41.81 % of respondents thinks that there is no risk in buying an extension.

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13) To know that respondents buy a extension because parent brand has good image. OPTION STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE RESPONSE 8 11 35 42 14

responses
45 40 35 30 25 20 15 10 5 0 strongly disagree disagree neutral agree strongly agree 8 11 14 responses 35 42

Interpretation:- It shows that 50.90 50.90% of respondents buy a extension because parent brand has good image,31.81 % are uncertain and 17.27 % of respondents does not agree.

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14) To know that a particular extensi extension on insists the respondent to buy other extensions.

OPTION STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

RESPONSE 12 9 28 51 10

responses
60 50 40 30 20 10 0 strongly disagree disagree neutral agree strongly agree 12 28 responses 9 10 51

Interpretation:- It shows that 55.45 % of respondents agree that a particular extension generate eagerness in them to buy extensions, 25.45% are uncertain and 19.09 % does not feel like that.

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CHAPTER VI: FINDING AND CONCLUSION

1) The finding shows that customers carry a positive image towards extension and will like to try an extension and purchase it in future. 2) Research also shows that one extension insists eagerness in customers to buy other extensions. 3) Majority of customers thinks that there is no risk in buying an extension. 4) Parent brand has a direct effect on extension and most of the customers think that it is good to buy an extension if parent brand has good image. 5) Customer will look out for a particular extension if they visit a store. 6) Parent Brand Image, Extension similarity are some of the factors which leads to success of an Extension. 7) Consumers think that there is less risk in buying Brand Extensions and consumers will take the risk to purchase that Extension 8) Brand Extension plays a significant role for companies to formulate there marketing strategies. 9) Brand Extension is a strategy adopted by most of the companies nowadays to increase there product portfolio and increase market share. 10) People will stick to the particular extension even if some other Brands have similar features 11) The Brand Extension reinforces the core product.
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CHAPTER VII: BIBLIOGRAPHY

1) Books
1.1) Marketing management by Philip Kotler 1.2) Notes on Marketing Research

2) Journal
2.1) Muhammad Annes-ur-Rehman,(2012), What makes Brand Extension successful:An empirical study of direct and indirect effect,European Journal of Business and Social Sciences,Vol.1. No.4,pp 76-97. 2.2) Dr Leif E.Hem,(2001), Factors influencing successful brand extensions 2.3) DA Pitta, (1995) Understanding Brand Equity for successful Brand Extension,Journal of Consumer Marketing Vol.12 No.4 1995. 2.4) Aaker, D.A. and Keller, k.L. (1990),Consumer evaluations of brand extensions, Journal of Marketing, Vol 54 No. 1.pp.27-41. 2.5) Barone, Michael J. Miniard, Paul W. and Romeo, Jean B. (2000). The influence of positive mood on Brand Extension Evaluations, Journal of Consumer Research, 26(March),pp.386-400 3) Websites 3.1) http://bear.warrington.ufl.edu/weitz/mar7786/Articles/Volckner%202006.pdf 3.2) http://www.sbaer.uca.edu/research/swma/1995/pdf/18.pdf

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CHAPTER VIII: ANNEXURE

QUESTIONNAIRE Dear Respondents This is a confidential survey for research purpose only .The research is on Brand extension which means use of established brand name in new product categories . In this questionnaire brand extension XYZ is a extension of established brand name ABC. Please give the answer best to your choice and Knowledge. I shall be grateful to you. Please tick mark the correct response.

1) Name 2) Gender a) Male 3) Age a) below 25 4) Occupation a) Student d) housewife b) professional e) government staff c) self employer f) other b) 25-35 c) 35-45 d) above 45 b) Female

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5) Monthly Income a) below 10000 b) 10000-20000 c) 20000-30000 d) above 30000

6) You have positive image towards extension XYZ?

Strongly disagree 7) You like extension XYZ from brand ABC?

Strongly agree

Strongly disagree 8) You perceive the extension XYZ closer to parent Brand ABC?

Strongly agree

Strongly disagree 9) You like to try extension XYZ from brand ABC?

Strongly agree

Strongly Disagree

fair disagree

disagree

neutral

agree

fairly agree

strongly agree

10) You will buy extension XYZ, if you happened to see it in store?

Strongly Disagree

fair disagree

disagree

neutral

agree

fairly agree

strongly agree

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11) Would you actively seek out for extension XYZ in store to purchase it?

Strongly Disagree

fair disagree

disagree

neutral

agree

fairly agree

strongly agree

12) Will you make another purchase for extension XYZ from brand ABC in future?

Strongly Disagree

fair disagree

disagree

neutral

agree

fairly agree

strongly agree

13) Does it make sense to you to buy extension XYZ from brand ABC, instead of any other brand even if they are same ?

Strongly disagree

disagree

neutral

agree

strongly agree

14) Would you like to buy extension XYZ from brand ABC even if some other brands have similar features?

Strongly disagree

disagree

neutral

agree

strongly agree

15) Would you like to buy extension XYZ even if some same product is as good as extension XYZ?

Strongly disagree

disagree

neutral

agree

strongly agree Page | 46

16) Will you invest money in buying extension XYZ from brand ABC if there is some product not different from ABC?

Strongly disagree

disagree

neutral

agree

strongly agree

17) There is risk in buying extension XYZ from brand ABC?

Strongly disagree

disagree

neutral

agree

strongly agree

18) You buy extension XYZ because Brand ABC has good image?

Strongly disagree

disagree

neutral

agree

strongly agree

19) Extension XYZ insists you to buy other extensions from another Brand?

Strongly disagree

disagree

neutral

agree

strongly agree

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