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ISSN : 1598-7248 (Print)
ISSN : 2234-6473 (Online)
Industrial Engineering & Management Systems Vol.16 No.4 pp.437-441
DOI : https://doi.org/10.7232/iems.2017.16.4.437

The Impact of Brand Extension on Brand Image

Maryam Qom, Nasser Azad*
Management Faculty, Islamic Azad University, Soth Tehran Branch, Tehran, Iran
Corresponding Author, Nasser.azad.12@gmail.com
20170717 20170805 20170815

ABSTRACT

The purpose of this research is to analyze the relationship between variables affecting on the development of the brand and the effects of this development on brand image, explaining how impact of the variables related to the brand image and evaluation of the effect of each of these variables that eventually leads to final brand image. This research is based on a descriptive-survey research which among 200 customers of WiMAX Irancell Company that has been implemented. In order to provide the effective components, the researcher-made questionnaire tool and in order to determine the reliability of questionnaire, the expert system tool and in order to determine the validity of questionnaire, Cronbach’s alpha was used. By applying the factorial analysis, 5 factors were identified as the main factors affecting on the brand image. The obtained results of the research hypothesis test indicated the confirmation of seven first hypothesis and rejection of eighth hypothesis.


초록


    1.INTRODUCTION

    The brand is a strategic requirement that the organizations can help in order to create more value for customers and also to create a sustainable competitive advantage (Keller, 1993; Grohmann, 2009). This issue during recent decades, has caused that the scholars and activists in the field of services have paid great attention to the brand issue; surprisingly, all types of organizations and individual have tendency to be managed as a brand (Kapferer, 2008). Also, many of the active companies in the field of communications are looking for opportunities of brand development in order to achieve greater advantage of their current brand (Keller, 2001). Thus, in order to accomplish this issue and best responsiveness to environmental changes, they are stopped the production and supply some of products and are applied the necessary reform in them.

    In addition, with regard to identify the needs and demands of consumers in different markets, and in order to meet these needs and continue up to long-term trade and increase the economic prosperity in the company, they are acted to develop new products. Since that the development and production of new products and successful commercialization in the market with an improved product, will be cause to shorten the life curve of the products and move towards of mass production to customization (Müge Arslan and Korkut Altuna, 2010). Despite the several years, the organizations’ competitive advantage have been latent in the production process, today the capability in new product development, is considered as one of advantageous capabilities. So that many of the world first-class manufacturers with the assignment of the making and focus on design management and product development and services, move forward to the competition in the global arena.

    The mentioned discussions indicate this fact that the brand image is one of the most critical variables towards of the product development and can easily be influenced by the developed product and then the product development issue is considered as an important issue in order to preserve and survival and growth of the service’ company and is intended as a source of growth and innovation (Woodcock et al., 2000; Sansone and Colamatteo, 2015).

    With regard to the importance of topic, this research in fact has paid to discover the factors affecting on the final brand image and the relationships between variables. In the following, some of the external and internal studies related to the research have been implied. Martinez and Polo (2008) in their researches that have conducted about the impact of brand development strategies on the brand image, found that the consumer image based on parent brand and as well as the perceived proporation between parent brand and brand development, will have a positive impact on the consumer image towards of the developed brand.

    Ranjbarian and Mohammadzadeh (2005) in a study entitled of the consumer’s innovativeness and acceptance of the developed brand was performed, he reached to this conclusion that the consumer’s innovativeness in fact makes encourage the consumer towards to purchase the different and new products. He also showed that there is a positive relationship between the consumer’s innovativeness and acceptance of new brand and the developed brand and this relationship with new brands, is stronger.

    Ranjbaran and Mohammadzadeh (2005) have studied the impact of the three categories of counterbalance variables including market feature, the generalized product feature and the brand characteristics regarding to the brand extension and new product market share in the food industry of Tehran city.

    Their research results showed that the brand extension has not led to increase the market share of new products in the food industry of Tehran city; but the new product proportion with previous products of the company, has moderated the amount of these effects.

    Esfahani et al. (2011) in their research have paid to examine the challenges of new product development in small and medium-sized enterprises. Their research results showed that the firms’ managers’ attitude in relation to the challenges affecting on the new product development has the gap in relation to the current situation and the ideal situation. While the challenges such as the incorrect estimate of the market, lack of sufficient attention to research and development, lack of proper distribution channels and lack of proper advertising regarding to the provided new products has been raised as problematic challenges.

    Murphy et al. (2011) also in a study entitled the impact of the consumers’ modernism based on styles of purchase decision-making, found that the modernism of a consumer is associated with the purchase decision-making style sensitive to brand, modernism and in looking for his. her entertainment style and it is not associated with purchase decision-making style, habit-oriented and loyalty to brand and also it is not related to the unplanned and inaccurate purchase decision-making.

    2.RESEARCH METHODOLOGY

    The present research in terms of objective is applied and in terms of strategy and research method is in terms of survey and in terms of target is explanatory. The statistical population of this research was not belong to the category of age, social, education and certain income and only it was included the WiMAX customers of Irancell company which about 200 people were selected as simple random sampling. In order to gather information was applied of library studies and also the researcher-made questionnaire tool of 5 Likert-spectrum. In order to determine and confirm the validity of the questionnaire tool, the formulated questionnaire by the researcher, was involved in the hands of experts and by surveying of them who have familiar with both the case-study industry and the research subject, the final decision-making criteria were extracted. In order to calculate its reliability, the Cronbach’s alpha coefficient was used which the obtained value has approved the reliability of the questionnaire (Table 1 and Table 2). The data analysis obtained from the approved items in terms of validity and reliability by applying of factorial analysis and using SPSS software were conducted, and by using of partial least squares method, the data SmartPLS hypothesis were evaluated. Then, the 8 hypothesis (The initial brand image on the attitude of development, the initial brand image on the appropriate classification, the initial brand image on the brand proportion, the appropriate classification on the attitude of development, the appropriate image on the attitude of development, the initial brand image on the final brand image, the development attitude on the final brand image and the appropriate classification on the development attitude have positive impact in terms of the consumer innovation) which in this study were tested.

    3.RESULTS

    3.1.The Questionnaire Respondents’ Demographic Information

    Gender

    51 percent of respondents are male and 49 percent are fe male.

    Age:

    According to Figure 1, 60 percent of respondents are having the age of 20 to 30 years, 36 percent of 31 to 40 years, 3 percent of 41 to 50 years and 1 percent of 50 years an d older.

    Education level:

    15 percent of respondents have degree of diploma, 11 percent of respondents have degree of associate degree, 29 percent of respondents have degree of bachelor, 44 percent of respondents have degree of master and1 percent of respondents have degree of Ph.D. (Figure 2).

    3.2.Factorial Analysis

    In order to determine and measure the factors affecting on the brand image, the factorial analysis was used. By using of factorial analysis over the 17 variables (Table 3) brand image, 5 factors (1. Initial brand image, 2. Development attitude, 3. Appropriate classification, 4. Appropriate image and 5. Consumer’s innovation) were identified as the main factors (Table 4 and Figure 3).

    3.3.Hypothesis Test

    In order to approve a hypothesis at the level of 95%, the least t- statistical is equal to 1.96, which in all hypothesis except the eighth hypothesis, the obtained t-value is greater than this value. Therefore, all of the hypothesis except the eighth hypotheses were approved.Table 5

    4.DISCUSSION

    The obtained results of this study have been provided a more comprehensive understanding of brand development process which without estimate the success amount of a brand, can be achieve the unrealistic results. The findings of this study, both in terms of theoretical and in terms of managerial perspective have the great importance which in the following have been implied to some of them.

    4.1.The Impact of Initial Brand on the Brand Development

    The obtained results indicate that the initial brand image is affected on the formation of brand development thinking. This means that competition and the formation of initial brand image plays an active role in the process of brand development thinking. However, an state which raises from the competition in mind, is subconscious, so the initial brand image subconsciously is affected on these assessment. (Kandi et al., 2016). Researches also in relation to the role of attitude towards of a brand and severity of this attitude, showed that the attitude on the formation of the customers’ mental classification and brand selection is affected.

    4.2.The Impact of the Approporiate Image of the Brand Name on the Brand Development

    The findings of this study showed that even for the brands with higher proportion of product category also can not ignore the effect of the initial brand on product development thinking. So, the marketers must be attention to compete among brands on the product category with a new brand. As well as, when the firms want to introduce a new brand to market, should be attention towards of a something more than the new brand proportion to a maternal brand and to develop a strategy of their brand development based on the initial image which there is a brand in the market competition. But Barclay et al. (2006) have done a research with this assumption that the proportion has a key role in estimating the success of a brand development and surprisingly found that the proportion has not any role in the increase of the market share for the studied brands development. The lack of proportion effect in their research can also be caused by the presence of the initial brand among the affected components that has been ignored.

    4.3.The Impact of the Appropriate Classification on the Brand Development

    The impact of the appropriate classification on the brand development in this research has approved. One of the most important findings of this research is that the developments which creates with agreement and customer satisfaction in relation to the product, can to make a successful image of the brand. If the product development have a little proportion, despite the desire to develop, makes to create a negative attitude on behalf of the customer towards of the brand. Bush and his colleagues for the first time have investigated the brand extention and the proportion role between the product and classification. Their initial results showed that if the brand extension is similar to maternal brand, then a generalized approach towards of maternal brand is done better than brand extension.

    4.4.The Impact of the Initial Brand Image on the appropriate Classification in Brand Development Thinking

    The obtained results of the prediction test confirms the hypothesis of the impact of the initial brand image on the appropriate classification. So during to introduce new brands, it is important to consider that our customers are the educated people who have the mentality of its product regarding the appropriate classification and in fact the proportion in our classification is in line with these customers and helping to brand development thinking.

    5.Conclusion

    The obtained coefficients show that the image proportion, the appropriate classification and initial brand image, are considered as the determinant factors in the brand development. On the other hand, the end perception of the customer regarding to the brand is as a result of the attitude to the brand development of new product and initial brand image.

    In addition, the findings demonstrate the effective role of the customer’s innovation on the brand development thinking.

    In these results, the variety-seeking consumers when they investigate the product development, in fact have no attention towards of the proportation of product classification. This is a state that for the other customers who give less importance to diversity, does not happen.

    The research findings have important implications for companies that have accompanied the brand development on their agenda. Despite the many recommendation which are offered in the field of the development over a brand and risks derived from it to the companies, but most of them are tried to develop its brand in every time which a new product are introduced to the market.

    One of the reasons which is placed behind these manner, is related to the wrong belief that a successful brand development, by considering the market acceptance can not be dangerous for organizations that already have been in the competition market. As a result, an important recommendation for these organizations is that they do not rely only to the market successful indicators and only in a place can to develop its brand that there is a high proportation among the products.

    The findings show that the most important aspect of the brand development is its affiliation with the developed final brand image, despite the positive correlation relationship, new product or service, does not need to be in the same classes. But the company should to have this power that the nature of the brand transfers from one market to another market. The first users of a product which are likely those of the users that are advocate of the innovation, thus this proporation will be evaluate the nature of the organization.

    In any case, the companies that are seeking to achieve a mature market, should not forget the classification proportation, considering that the consumers usually have lower innovation than the leading market, since that the appropriate classification of risk level is to be reduced. One of the independent variables which have the greatest impact on the final brand image, is the initial brand image that causes the other factors are also influenced.

    Figure

    IEMS-16-437_F1.gif

    The frequency diagram of respondents in terms of age.

    IEMS-16-437_F2.gif

    The frequency diagram of respondents in terms of education level.

    IEMS-16-437_F3.gif

    The discovered relationships between variables, derived from the exploratory factorial analysis by SmartPLS software.

    Table

    Case processing summary

    Reliability statistics

    Varibles cronbach’s alpha coefficient

    The imported variables in the factorial analysis

    Results of hypothesis

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