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Consumer Evaluation of Brand Extension in Beverage Industry of Bangladesh


Ashik Abdullah

Brand extension signifies the transmitting process of built-in value of a familiar brand to a new product. This study aims at implementing this process in beverage products of Bangladesh. Four independent variables; parent brand reputation, perceived risk, category similarity and consumer Innovativeness have been used to establish the relationship with the dependent variable ‘consumer evaluation of brand extension’. A personal survey method has been implied using seven-point modified Likert scale to measure responses of the sample set which has been determined though convenience sampling technique. A set of hypotheses has been developed and tested through multiple linear regression analysis. The findings showed that consumer evaluation is influenced most significantly by the consumer innovativeness, second significant element is perceived similarity, then perceived risk and the least one is parent brand reputation. However, for respective brand the relative significance of the elements has varied. Keywords- consumer perception, parent brand reputation, brand extension, consumer innovativeness, perceived risk, category similarity