FACTORS INFLUENCING CONSUMER DECISIONMAKING ON BRAND EXTENSION
FOR COSMETIC PRODUCTS AMONG THAI
CONSUMERS
Presented by
Voravut Charusomboon
Prin Laksitamas D.B.A.
Department of Doctoral Business Administration in
Marketing
Siam University
AGENDA
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Objective
Main ideas about Brand Extensions
Proposed Model
The model adapted from Voravut
The research Finding
Sumary
Reference
Objective
• To present the phenomenon of
brand extension and investigates
the correlation of consumer
perception on the parent brand
and
the
extended
brand
personalities.
Brand extension or brand stretching
is a marketing strategy in which a
company marketing a product with a
well-developed image uses the same
brand name in a various product
category.
Perception is a necessary
psychological
process
in
order to understand how
consumers recognition the
new products made through
brand extension.
During the last years, the ethnic cosmetic
trends and new consumption patterns make
a niche for many cosmetic manufacturers
and marketers to yield the market share
and set up its new or stronger position in
this segment. There are doubts that the
brand extension might affect the parent
brand and its extended brands in various
ways.
Main ideas about Brand
Extensions
Positive feeling
According to Keller (1998) and
Apostolopoulou (2002), brand
extensions help organizations by
increasing their strength, their
customer base and their longterm
viability.
• Kapferer (1997), one of the influential
researchers in branding, marks in his
context that although high cost are paid
for companies with brands, companies are
in fact purchasing certain places in the
minds of potential consumers. He adds
that awareness, image, trust and
reputation could promise future success
for the brand. So the value of a brand is
partly represented by its ability to build
such cash flows.
• According to Keller & Sanjay (2003 ), one
of the most significant advantages of a
strong trademark is the fact that it
creates it easier for consumers to accept
a brand extension. Due to the fact that
brand extension diminishes the risk
regarding consumers and reduces the cost
with marketing and promotion, it has
become the most frequent product tactics
over the last two decades.
Apostolopoulou (2002) found six keys to
successful brand extension:
• The strength of the parent brand
• The recognized fit between the parent
brand and the extended product
• The promotional support and positioning
of the extended brand
• The quality of the extension product
• The distribution tactics
• The management of the expansion
Main ideas about Brand
Extensions
Negative feeling
Chen & Chen (2000) from study performed
inTaiwan.
• The extended brand is perceived as
cannibalizing the parent brand by eating
into the total sales of the main brand.
• An extension can make consumer confusion
concerning the quality of the new created
products.
• Brand extension is seen as a lazy version of
a new brand.
• According to Murphy (1990, p.110), “to
improve new brands is extremely
expensive, highly risky and takes a long
time.” When he speaks about expenses,
Murphy (1990) does not only mean the cost
with making a new brand concept but also
the costs with advertising in order to
launch the new brand on the market as well
as to support it during its whole life cycle.
Model Proposed
External influence effects on customers’
decision-making.
Internal influence effects on customers’
decision-making.
Experiences
External
Influences
Culture
Social Status
Reference Groups
Marketing Activities
Internal
Influences
Expectation
Of
need
Perception
Desires
Perception
Personality
Emotions
Attitudes
Experiences
Decision-making
On brand extension
For cosmetic
products
The model
• Despite many researchers have
different perspectives relating brand
extension , the model is tracking for
cosmetic marketing relating
consumers’ making decision.
The Research Finding
Brand judging
Expectation
Perception and
Attitude
Brand Knowledge
Brand
Extensions
Cosmetic
Product
To achieve growth
Eroding
Promotion
offers
Shield
environment
Sumary
Sum marizing that six steps from
research finding will probe and
successfully produce brand
extension for cosmetic products.
REFERENCES
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Further information
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E-mail
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