A Horizontal Brand Extension Evaluation with the Moderating Role of Word-of-Mouth: Using Samsung Motors

Abstract

Brand extension has been divided into two main domains such as vertical and horizontal. Vertical extension is related to price and quality among the existing brand. On the other hand, a horizontal extension is considered a product line extension and product category extension. This study provides empirical evidence about the impact of horizontal specifically category extension on brand extensions using Samsung motor in the context of Pakistan consumers. For doing this, this study develops the conceptual model using brand-related factors such as brand credibility and individual-related factors such as consumer innovativeness, value consciousness, and consumer’s perceived fit to evaluate the impact of these factors on brand extension evaluation. Besides, I used word-of-mouth between brand extension evaluation and purchase intention. Data were collected online through google forms. Model validity is checked by confirmatory factor analysis. Hypotheses are tested by Structural equation modeling with a sample size of 296 from Pakistan consumers. Brand credibility, consumer innovativeness, and perceived fit are important factors for the success of brand extension evaluation. Thus, the marketers and managers should consider the factor while the development of the horizontal brand extension.