Credence and personal factors as a direct cause of brand extension evaluation

Does perceived fit matter?

Research output: Contribution to journalArticle

Abstract

This study sets out to examine the effects of brand credence (i.e., brand credibility and country of origin), personal factors (i.e., consumer innovativeness and value consciousness) and perceived fit on consumers' evaluation of brand extensions. Additionally, this study takes into consideration the moderating role of perceived fit. A personnel-administered questionnaire was designed using established scales and the data was collected via mall intercepts. Confirmatory factor analysis is used for model validity and hierarchical regression analysis was used to test the proposed hypotheses, with a sample of 421 shoppers in Malaysia. The results show that country of origin, brand credibility, consumer innovativeness and perceived fit have a positive effect on brand extension evaluation, whereas perceived fit does not moderate the relationship between credence factors and brand extension evaluation. The empirical findings of this study hold important implications for practitioners. Specifically, marketers should focus on developing a positive country of origin image and brand credibility to increase the chance of brand extension success. Personality traits of the target market such as consumer innovativeness and consumers‘ perceived fit between the extended and the parent brand should also be considered as these will have a bearing on brand extension evaluation success.

Original languageEnglish
Pages (from-to)1-19
Number of pages19
JournalMalaysian Journal of Consumer and Family Economics
Volume21
Publication statusPublished - 1 Jan 2018

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Factors
Perceived fit
Brand extensions
Evaluation
Country of origin
Consumer innovativeness
Brand credibility
Consumer evaluation
Regression analysis
Consumer value
Marketers
Consciousness
Mall
Confirmatory factor analysis
Personnel
Target markets
Malaysia
Questionnaire
Personality traits
Hierarchical regression

Keywords

  • Brand credibility
  • Brand extension evaluation
  • Consumer innovativeness
  • Country of origin
  • Perceived fit
  • Value consciousness

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

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title = "Credence and personal factors as a direct cause of brand extension evaluation: Does perceived fit matter?",
abstract = "This study sets out to examine the effects of brand credence (i.e., brand credibility and country of origin), personal factors (i.e., consumer innovativeness and value consciousness) and perceived fit on consumers' evaluation of brand extensions. Additionally, this study takes into consideration the moderating role of perceived fit. A personnel-administered questionnaire was designed using established scales and the data was collected via mall intercepts. Confirmatory factor analysis is used for model validity and hierarchical regression analysis was used to test the proposed hypotheses, with a sample of 421 shoppers in Malaysia. The results show that country of origin, brand credibility, consumer innovativeness and perceived fit have a positive effect on brand extension evaluation, whereas perceived fit does not moderate the relationship between credence factors and brand extension evaluation. The empirical findings of this study hold important implications for practitioners. Specifically, marketers should focus on developing a positive country of origin image and brand credibility to increase the chance of brand extension success. Personality traits of the target market such as consumer innovativeness and consumers‘ perceived fit between the extended and the parent brand should also be considered as these will have a bearing on brand extension evaluation success.",
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