The Effect of Brand Extension Strategy on Brand Image to Customers

Abstract

The purpose of the study is to investigate the effect of brand extension strategy upon brand image to LG customers. Home appliances and mobile phone are considered as original product and extended product respectively. The research model includes five variable; initial brand image, perceived fit, perceived quality, consumers’ attitude and final brand image. Random sampling method was used and A total 376 questionnaires were circulated, and the response rate was 100 %. The results show that initial image of the brand has positive, significant impact on consumers’ attitude towards brand extension as well as final image of brand.