Credence and Personal Factors as a Direct Cause of Brand Extension Evaluation: Does Perceived Fit Matter?
Najeeb Ullah Shah, Nik Mohd Hazrul Nik Hashim
Graduate School of Business, Universiti Kebangsaan Malaysia
Nor Asiah Omar
Faculty of Economics and Management, Universiti Kebangsaan Malaysia
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.
Keywords: Country of origin, Brand credibility, Consumer innovativeness, Value consciousness, Perceived fit, Brand extension evaluation