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Asia Pacific Journal of Marketing and Logistics

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The influence of core-brand attitude and consumer perception on purchase intention
towards extended product
Shwu-Ing Wu Chen-Lien Lo

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Shwu-Ing Wu Chen-Lien Lo, (2009),"The influence of core-brand attitude and consumer perception on
purchase intention towards extended product", Asia Pacific Journal of Marketing and Logistics, Vol. 21 Iss 1
pp. 174 - 194
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APJML
21,1

174
Received December 2007
Revised June 2008
Accepted June 2008

The influence of core-brand
attitude and consumer perception
on purchase intention towards
extended product
Shwu-Ing Wu
Department of Business Administration,
National Chin-Yi University of Technology, Taiping, Taiwan, and

Chen-Lien Lo
National Tsao-Tun Commercial and Industrial Vocational Senior High School,
Tsao-Tun Town, Taiwan
Abstract
Purpose – This study aims to determine and discuss relevant factors and relationship models
affecting consumers’ purchase intention towards the extended product, PC for Microsoft. The results
are to serve as a reference for managers when implementing brand extension strategies.
Design/methodology/approach – The two major factors, ‘‘core-brand attitude’’ and ‘‘consumer
perception fit’’, have been included in studying their influence on consumer purchase intention
towards extended products. Of the questionnaire surveys distributed to PC users in Taiwan, 667 valid
samples were returned. Structural equation modeling (SEM) was used to establish the relationship
model.
Findings – The results indicate that consumers in Taiwan show a relatively high purchase intention
towards virtually extended products, Microsoft PC. The relational structure shows that brand
awareness has a significant influence on core-brand image (parent-brand image), thus indirectly
affecting core-brand attitude and causing impacts on consumer purchase intention towards extended
products. On the other hand, consumer perception fit has greater influence than core-brand attitude,
denoting that both the brand association and product connection have a remarkable influence on
consumer purchase intention towards extended products.
Originality/value – The study proposes an effective structural model and notes significant
influence factors for consumers’ purchase intention towards extended products.
Keywords Brand extensions, Brand awareness, Consumer behaviour, Purchasing, Taiwan
Paper type Research paper

Asia Pacific Journal of Marketing
and Logistics
Vol. 21 No. 1, 2009
pp. 174-194
# Emerald Group Publishing Limited
1355-5855
DOI 10.1108/13555850910926317

1. Introduction
Creating a new product and promoting the product brand requires a significant
amount of capital. In order to reduce the failure rate for new products, more firms are
now adopting brand extensions. With original well-known branded products
introduced in new markets, original brands can be extended to far-reaching categories
available. Costs and risks can be reduced as long as there is successful new product
marketing (Barone et al., 2000).
Although firms have broadly adopted brand extensions strategies, brand
extensions can have disadvantages including the sales cannibalization of original
products, thus narrowing the profit margin of parent brands (Reddy et al., 1994). As a
result, numerous researchers have appraised brand extensions performance in both
their earlier researches on product consumption (e.g. Aaker and Keller, 1990; Kirmani
et al., 1999) and recent studies on brand extensions in the service industry (e.g. Ruyter
and Wetzls, 2000) or line extensions (e.g. Munthree et al., 2006).

past studies on brand strength indicate that it can be both subjectively and objectively defined. and distribution (Reddy et al. Thirdly. many researchers have proposed that brand awareness and brand preference are the main constituents of core-brand image (e. and forms the basis for consumer behavior towards that brand. 2001) as follows. Literature Review 2. Morrin. The objectives of this research are stated as follows: First. 1995. measurement indicators. 2004).. Kardes and Kalynaram. 1992). Interactions amongst influential factors and the strength of those factors have been observed. Martinez and Chernatony. the relationship structure model is used to confirm the important influential factors and interactions that take place. The influence of core-brand image. and structural relation models can be established. Smith and Park. The statistical software applications (SPSS and AMOS) are adopted to conduct analysis and examine structural relation model efficiency. Alpert and Kamins. Faircloth et al. 1989. a general finding is that of brand strength. this study has included an integrated relational model to determine measurement indicators for those factors influential to consumers’ purchase intention towards extended products. 1994). Moreover. by conducting tests on virtual brand extensions.. 1993.1. Secondly. Bhat and Reddy. 1994). Barone et al. Wilkie (1986) and Keller (1993) indicated that a consumer’s attitude towards a core-brand referred to the consumer’s overall evaluation of that core-brand. Aaker and Keller. 2001).1 Core-brand attitude. This research therefore aims at integrating the relevant multi-factors affecting consumers’ purchase intention towards extended products.. 2000. Ghen and Liu. by creating a compiled literature review. The objective indicators including market share. advertising and promotional costs. Within the scope of brand extensions. 1999. Tauber (1981) and Reddy et al. 2004. 1994. 2000. There are numerous studies indicating that the accumulation of brand image and use experience is key determinant of attitude towards core-brand attitude (Carpenter and Nakamoto. brand strength instead refers to consumers’ overall assessment of the brand or call brand image. Influence of core-brand attitude 175 . including brand awareness and brand preference (Aaker and Keller. In this research. factors from the consumer perspective have been included – these factors can be divided into two major categories. 1990. Our literature review has been collated to help create an integrated model of consumers’ purchase intention towards extended products in multiple dimensions. and are therefore viewed as superior in the eyes of consumers (who are also better able to recognize extended products). (1994) noted that leading brands in the market generally have greater brand publicity and market share. a critical factor during the brand extensions process (Broniarczyk and Alba. 2. 1992.1 Factors affecting consumers’ purchase intention on extended products Many scholars have engaged in studies related to the success of brand extensions.g. Reddy et al. It also serves as reference for firms that are planning to adopt brand extensions strategies. Microsoft has been used to exemplify virtual brand extensions implementations. 1990.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) While there have been numerous studies on a ‘‘brand extensions strategy’’. Flaherty and Pappas. This indicates that core-brand attitude can be influenced by core-brand image and use experience of core-brand that are as follows. Under a subjective definition.. in addition. The first of which is core-brand attitude (Aaker and Keller. In this case.. the feasibility model can be examined. channel stronghold. To sum up. 1990. 2. few deal with a multi-dimensional survey. and the second is consumer perception fit (Rangaswamy et al. the influential factors of consumers’ purchase intention towards extended products.

Barone et al. Herr et al. consumer perception fit refers to the perceived consistency and similarity between original products and extended products. Brand association is the core of brand equity. H2: Brand preference significantly and positively affects core-brand image. 1992. Nan. (1999) concluded that utilizing experience when evaluating a high-tech core-brand is helpful to enhancing core-brand attitude towards extended products. 1995). 1991. 1996. Therefore.1. 1992).3 Consumer perception fit. user setting. Thus. Faircloth et al. Perception fit is based on multiple linkages. 1990. They found that when products were categorized under product experience. functional benefits and social status. including use condition.. Consumer’s core-brand attitude will affect their intention to purchase extended products (Miller et al. Aeker and Keller. Boush and Loken. Therefore. 1992). Both forms are capable of influencing consumer perception fit as follows: The influence of brand association. we hypothesize the following: H4: The past use experience of a core-brand significantly and positively affects core-brand attitude.1. According to Tauber (1988). Extension capacity and association are rooted deep within each and every consumer. Alpert and Kamins. Brand extension is easy . the following hypotheses are proposed: H1: Brand awareness significantly and positively affects core-brand image. 1971. 1990.. consumers were inclined to utilize their experience of the core-brand during product quality evaluation on frequency. and this is probably the cause of product extension failure and damage (Aaker. H3: Core-brand image significantly and positively affects core-brand attitude. 2. Smith and Park (1992) stated that products can be divided into (a) product use experience and (b) product availability for visual evaluation.. Klink and Smith (2001) divided perception fit into two forms: that of brand association between original brands and extended products (Broniarczyk and Alba. Smith and Park. 2000). 2. 1991). 1990.2 The relationship between core-brand attitude and purchase intention. and helps consumers process and remember relevant information and create perception fit toward extended product (Aaker.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21. 2001. Jun et al. 2006). Consumer perception fit is the similarity and characteristic overlap between core-brands and extended categories (Aaker and Keller.1 176 Smith and Park. actual purchase behavior and satisfaction after use.. 2004). core-brand attitude is closely related to consumers’ purchase intention (Ghen and Liu. Inconsistent behavior will not produce association transference. Base on these we hypothesize the following: H5: Core-brand attitude significantly and positively affects consumers’ purchase intention of extended products. 1991). Brand awareness and brand preference will affect the corebrand image and is positively related to core-brand attitude (Kardes and Kalyanaram. The influence of use experience of core-brand. Aaker and Keller (1990) stated that brand association is available for any given brand. 1994). and product connection between original brands and extended brands (Aaker and Keller. Flahery and Papps (2000) believe that attitude towards a core-brand is the critical factor in determining this purchase intention toward extended product.

consumers tend to transfer recognition from original brand to extended products. Consumer perception fit is the critical factor determining purchase intention of extended products (Tauber. To sum up.g. The influence of product connection. 2005). Echambadi et al. and ‘‘Purchase Intention’’ (Aaker and Keller 1990. informing them of the costs and benefits of products. 2003. 1987. Rangaswamy et al. 2004.. Boush et al. core-brand and extended product consumer perception fit is vital. Consumer purchase intention towards extended products will therefore also be higher (Barone et al. the subjective attitude is largely adopted by some scholars in ‘‘Quality Awareness’’ (Aaker. certain ‘‘clues’’ of perception fit that aid determination of quality (especially of a core-brand) are essential (Bottomley and Doyle. Broniarczyk and Alba. 2. 1992).. (1993) stated that in order to trigger purchase intention of extended products.. Hansen and Hem. Therefore. When brand association is not related to a product there is greater room of consumer perception fit for brand extensions (Aaker. 1990). 1996. 1990. 1990. Bhat and Reddy (2001) determined that when consumer perception fit is high. 1992). (1991) and Rangaswamy et al. It is well established that the similarity between extended products and core-brand products under a consumer subjective attitude is the most important factor in determining whether extended products are accepted or not. 1988). Extended fit will also affect the categorization of already established brands. 2006). we therefore hypothesize the following based on the above: H6: H7: Brand association significantly and positively affects consumer perception fit. Thus. 2004). consumers tend to be positively affected by their attitude towards the extended brand. Czellar (2003) reviewed studies performed from 1978 to 2001 on consumer attitude towards brand extensions. 2001. Brand connection significantly and positively affects consumer perception fit. ‘‘Like or Dislike’’ (Park et al. however. A greater level of connection directly implies the higher possibility of core-brand rights being transferred. He proposed that when consumers assumed both extended products and original brand products have suitable fit extensions.2 Consumers’ purchase intention on extended products Focusing on the evaluation of brand extensions effects. Advertising is constantly communicated to consumers. the following hypotheses are proposed: H8: Consumer perception fit significantly and positively affects consumer purchase intention towards extended products. 2.4 The relationship between consumer perception fit and purchase intention. Park et al. Morrin (1999) also indicated that when consumer percept there are fit association between extended products and original brand products. Bottomley and Holden. 1991. Influence of core-brand attitude 177 ..Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) for a brand with strong association (Yeung and Wyer.. 1994).1. Keller and Aaker 1992. Aaker and Keller. due to time and space limitations the consumers are often unable to fully evaluate this information. If product connection comes with the same product attributes for extended categories and core-brands. Keller and Aaker. a greater purchase intention for those extended products is realized. Several studies also reported that the higher the perceived similarity between the brand extensions and the parent brand the higher the intention to purchase the extensions (e. 2000). 1993. Keller and Sood. higher perception fit will result (Keller and Aaker.

Our research aims to determine whether consumers are willing to buy extended products (even at higher prices).1 178 Dawar and Anderson. To conclude. 1994). The research perspectives and literature reviews related to brand extensions are shown in Table I. 1992. 3.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21. 2003). if software suppliers can provide PC extended products and make good use of their brand publicity. For this reason. Product items in Microsoft are chosen for extension. the study structure and significant variables are shown in Figure 1. Furthermore. Core-brand attitude is influenced by core-brand image and use experience. Figure 1 indicates that the major perspectives determining consumer purchase intention towards extended products are two: core-brand attitude and consumer perception fit. Czellar. and recommend those products to their friends (even at these higher prices). The study subjects included PC users who were familiar with MS. in our research.1 Framework The above literature demonstrates the impact of core-brand attitude and consumer perception fit on brand extensions. Reddy et al. such as: core-brand attitude. Other scholars have adopted objective information to evaluate brand extensions effects. ‘‘Profit Margin. whilst core-brand image is influenced by brand awareness and brand preference. 1992). 1995). and product extension for the same consumer group was extended. In accordance with our literature review. 1995) etc. We have therefore included PC as an extended product. Study method There are a number of ways to perform brand extensions. ‘‘The Survival Rate of Extended Products’’ (Sullivan. and customer loyalty to increase the success rate of extended products and reduce marketing costs (Lane and Jacobson. The items above are used to measure consumer purchase intention towards extended products. Before official execution of this study. Stock Price’’ (Lane and Jacobson. core-brand image. The extended product was then defined as a PC. Because the PC has become an imperative kit in our daily lives. 3. core-brand use experience consumer perception fit. and have used brand-superpower Microsoft as our case example. brand extension strategies include core-brand equities such as established brand publicity. etc. 1994. Since this research was conducted to implement virtual testing on brand extensions and consumer purchase intention towards extended products. for example in ‘‘Market Share’’ (Smith and Park. we have adopted the aforesaid research perspectives for our study of Microsoft as example in virtual brand extension research. The efficiency of the structural model proposed in this study will be examined. we have first adopted 10 MS (Microsoft) operation system (OS) users as our focus group so that suitable products can be selected for extension. we employ a specific definition of extended products in order to enable more solid extension testing. the success of brand extension depends on several factors. . customer preference. the second perspective (consumer perception fit) is influenced by brand association and product connection. they have a greater potential for capturing the market. In this study. the subjective consumer view has been adopted to evaluate acceptance of extended products. Thus. Brand extensions were then implemented virtually to examine the effects of the measuring indicators and the relational model..

. 1992. From research results. 2004 Tauber. the use experience of core-brand products is helpful to enhance core-brands and purchase intention on extended products Researches indicate when extended products and original products come with fit extension.. . 1999. etc Researchers adopt subjective definition to measure core-brand strength and the said subjective definition means consumers’ overall evaluation on a given brand including consumers’ brand preference and brand awareness. Aaker and Keller 1990. consumers shall transfer the brand awareness of original brands onto extended products. 1988. Broniarczyk and Alba. 2004 Smith and Park. Smith and Park. Namely. 1993. 1981. the situation shall cause higher purchase intention. 2006 Core-brand strengthbrand image Use experience Consumer perception fit Core-brand strength Scholar and Year Research dimension Core-brand strength is the important factor within the process to determine brand extension. 2001.. we find brand image and consumers’ purchase intention on extended products are positively correlated From researches. 2000. 1994. Rangaswamy et al. Jun et al. Boush and Loken. 1990. 1991. Park et al. Namely. 2001. 1992.. Barone.Miller et al. Researchers measure the degrees by means of objective indicators such as market share.. Miniard and Romeo. Martinez and Chernatony. 1991. Morrin. Flaherty and Pappas. channel strongholds distribution. 1971. 1992. Bhat and Reddy. collectively known as brand image.. they find when extended products are the experienced products. 1999 Ghen and Liu. 1990. the product values only depending on actual use experience. Keller and Aaker. 1991. Thus. 2000. Nan. Echambadi et al. advertisement and promotion expenditures. perception fit is the critical factor for consumers’ purchase intention on extended products (continued ) The brand attitude is the important factor of consumers’ purchase intention on extended products Research result Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) Influence of core-brand attitude 179 Reference review Table I.. Faircloth et al. Martinez and Chernatony. when product category fit is rated at high levels. 2004. Aaker. Reddy et al. Aaker and Keller. 1994 Core-brand attitude Aaker and Keller. 2006 Tauber.

1992. Czellar. 2003 Consumer perception fit. 1990. Yeung and Wyer. it causes no influence on extended products. etc Aaker and Keller. Aaker and Keller. profit or profit adding rate..Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) Research result Research centers indicate consumers’ perception fit can be divided into two categories. 2000. 1991. Smith and Park. Barone et al. 1994. it is available for farther extension Researches indicate original brands and extended products are correlated to a certain degree.. This situation proves the correlation between core brands and extended products in consumers’ subjective ideas is the important factor to cause consumers’ purchase intention on extended products The appraisal for brand extension effect can be divided into two aspects. The other means the connection between core-brands and extended products under consumers’ subjective ideas Researches indicate brand have innumerable associations featured with extension capabilities. 1992. Czellar. 1994. brand extension shall come with larger space. Thus. Broniarczyk and Alba. Also.. 1994. 1994. life style and excellent techniques. If no correlation arisen. Park et al. 2003 Aaker and Keller.brand association and product connection Brand association Product connection Brand extension effect Table I. 1990. extended product survival percentage. it means the sufficiently high fit will cause purchase intention on extended products. 1996.1 . Aaker. Klink and Smith. 1990. Whenever brand association is not correlated to products. etc. Lane and Jacobson. 1995. Most scholars adopt the subjective attitude of consumers to measure the brand extension effect such as quality sense. 1992. Broniarczyk and Alba. whenever the association is correlated to personification. there are some other scholars adopt the objective information to make appraisal for extension effect such as market share. 1991. Rangswamy et al. stock prices. Sullivan. Dawar and Anderson. 1992. 1990 Smith and Parker. 1992. Herr et al. One means the brand association between core brands and extended products. namely objective and subjective. Scholar and Year 180 Research dimension APJML 21. 2001. Aaker. dislike or like and purchase intention. Aaker and Keller. 2005 Aaker and Keller..

2008). 1994).. That means other than collecting theories and reviewing relevant literature. which included both literature search (Table I) and focus group were used to generate the initial item pool. Elliott and Boshoff. we generated the initial items of questionnaire. The 64 usable questionnaires received comfortably exceed the minimum guideline for the use of multivariate statistical procedures to analysis the data. we have adopted Microsoft for our virtual brand extensions. 1998.0. items were developed through an inductive process of literature review. In this step.6 that evidence of internal consistency of scales (Wortzel. every factor’s variables ultimately falls under the one factor and the factor loading for each variable is above 0. Consumer purchase intention towards extended products has been adapted to measure the brand extensions effect. which evidence of convergent validity of every factor scale (Grace. According to Flynn and Pearcy (2001) and Grace (2005).. Regarding factor analysis. 2007). The results of . 3. the pilot test was then performed and the other 64 PC users were collected. Conceptual framework As for brand extensions effect measurement. Results show that reliability of Cronbach for every factor is above 0. and the eigenvalues for all factors are above 1. 2005). In order to enhance the reliability and validity of the scales.6. which greater than five times of independent variables (Hair et al. In addition. The questionnaire’s content validity was assessed (Horton et al. we also used the focus group method with ten PC users who frequently use MS OS to aid in our questionnaire design. 1979. focus group and pre-test. After the pre-test.2 Questionnaire design A qualitative approach. Nunnally and Bernstein. Reliability and validity analysis were then conducted using SPSS 10. we then used the initial questionnaires to interview 20 PC users for pre-test and have modified and omitted some statements.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) Influence of core-brand attitude 181 Figure 1. the Cronbach value was used to examine reliability and factor analysis was used to examine the convergent validity of the questionnaires.

academic background.001 and NT$60. Thus. in which 211 respondents were categorized (31. in which 315 respondents were categorized (47. 3. with 119 respondents (17. only the demography variable used normal scale. Amongst the 667 questionnaire copies collected. Smith and Park (1992) Aaker and Keller (1990). (2000) items/7-point items/7-point items/7-point items/7-point items/7-point scales scales scales scales scales 7 items/7-point scales 7 items/7-point scales 7 items/7-point scales 7 items/7-point scales Gender. In the formal questionnaire. (1993).6 per cent).6 per cent) who receive between NT$ 20. Smith and Park (1992) Aaker and Keller (1990). Flaherty and Pappas (2000) Park et al. Barone et al. issued in January (2005) .0 per cent) respondents who received an income of <NT$20. The return rate is 88. In terms of marital status. 188 respondents fall under this educational attainment category (28.2 per cent).2 per cent).4 per cent).000 per month. occupation. A total of 754 questionnaire copies were sent out and 667 valid samples were returned. The second largest group of respondents graduated from senior high school and vocational senior high school.3 Data collection The data collection period of the formal questionnaire is two months.5 per cent. Factor dimension Measuring scale Reference resource Brand awareness Brand preference Core-brand image Use experience Core-brand attitude Brand association Product connection Consumer perception fit Purchase intention Demography variable 7 7 7 7 7 Aaker and Keller (1990).1 182 Table II.6 per cent) and the third largest was the age group 21–25. most respondents (38. (2000). Keller and Aaker (1992) Smith et al. there are 395 female respondents (59. totally six item scales Aaker and Keller (1990). the rest scales of nine factors were in seven-point Likert Scale. most respondents hold a bachelor degree. throughout Taiwan by convenience sampling. (1991) Barone et al. there are 431 unmarried respondents (64.6 per cent) and 236 married respondents (35.2 per cent) and 272 male respondents (40.000 per month. marital status and income. Questionnaire dimension and measuring scale pilot test lead to the conclusion that the questionnaire is reliable and valid. Incomplete and irrational ones were eliminated. the formal questionnaire was created. There are 150 respondents with a master’s degree (22.8 per cent). Most respondents work in the service industry (216 people. age. There are 107 public servants in total (16.8 per cent). (1971). in which 119 respondents were classified (17. equaling 32. In terms of educational attainment. The second largest age group is that of 31–35. Czellar (2003) Revised from the questionnaires of Taiwan Broadband Usage Survey.000 per month. Aaker and Keller (1990). (1992) Miller et al. In terms of income for the past year.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21. in which 164 respondents were categorized (24.8 per cent).0 per cent). The scales range from totally disagree: 1 to totally agree: 7 (Table II). The largest age group is that of 26–30.001 and NT$ 40. Questionnaire surveys are distributed to PC users above 16 years of age. Czellar (2003) Rangaswamy et al. The second largest occupation-related group is comprised of students. There are also 127 (19.4 per cent).1 per cent) fall under the income category of between NT$40. The second largest income-related group is comprised of 164 respondents (24.5 per cent).

In addition. This indicates that consumers show extremely high level of purchase intention towards extended products. consumers generally view Microsoft as a brand worthy of trust and popularity. The factor loading for every item within every factor is rated above 0. most show great interest in purchasing Microsoft PC (even at higher prices). The respondents are generally satisfied after their use of Microsoft software. all scales of every factor show internal consistency. the scale reliability and validity were evaluated. root mean square error of approximation (RMSEA).6. Convergent validity therefore holds true for the questionnaires (Grace. used the Cronbach reliability coefficient. The dimensional mean value for consumers’ purchase intention on extended products is 5. that have also been adopted to examine the structural model fit developed in this research. goodness of fit index (GFI). the reliability value for every factor is rated above 0. and it is quite easy for consumers to associate with Microsoft and PC (average is 5. factor analysis and correlation analysis. With respect to model fit analysis. They feel it is proper for Microsoft to promote PC products as consumers are given an alternative choice to purchase Microsoft OS simultaneously.4764. our results show that the respondents use Microsoft products frequently and some also buy Microsoft products. The results show that each factor and measuring indicator is >5 on average (details are as shown in Table III). In example. Influence of core-brand attitude 183 . Microsoft products are therefore naturally good buys.4740). Finally. Also. a linear model has been constructed to examine the interactions and cause and effect relationships between variables within the model.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) 4. the mean value of every measuring indicator was used to determine general feedbacks of respondents. Nunnally and Bernstein (1994) recommend a minimum coefficient alpha result of 0. With regard to brand preference (average is 5. The accumulated percentage of variance for every factor is above 60 per cent. predominant innovation and professional capabilities. excellent profit capabilities. According to Flynn and Pearcy (2001) and Grace (2005).60. good quality. when it comes to consumers’ purchase intention towards extended products (average is 5. adjust goodness of fit index (AGFI).6.5767). Bagozzi and Yi (1988) and Joreskog and Sorbom (1989) proposed such indicators as Chi-square value. many of the people feel similarly about Microsoft and PC. The model fit analysis is as shown in Table IV. all variables under each factor can lead to one factor.4764). As the study subjects of this research are PC users. consumers acknowledge it as the leader in its market and they approve of its high-brand publicity. Results 4.3 Overall model fit In this research. based on the results after factor analysis and item-total correlation coefficient computation. 4. most consumers perceive Microsoft positively.1 Reliability and validity analysis After the research survey. all the item-total correlation coefficients are above 0. 4. 2005). focus was placed on formal questionnaire reliability and validity analysis.7 and therefore. normed fit index (NFI) and comparative fit index (CFI). Based on findings in Table III.2 Effects of brand extensions In this research. In addition.3383). root mean square residual (RMR). Table III shows that in terms of brand awareness (average is 5.

883 81.4918) expert zing capabilities (5.8437 0.4018) MP3: Microsoft is a wise product option (5.1229) ME3: Microsoft software products are satisfying after use (5.3058) MP2: Microsoft is a reliable products (5.0975) MK2: Microsoft has high quality (5.9260 0.6159 0.852 0.8030 0.9431 (continued ) 0.761 1.961 0.832 0.3073) MBA1: MBA2: MBA3: MBA4: MBA5: MBA6: MBA7: Item (average) 0.1874) MK3: Microsoft has excellent function (5.4474) Brand association (5.6631 0.3448) innovation capabilities (5.6312) excellent product quality (5.625 0.842 0.924 0.7922 0.7406 0.912 0.836 92.8722 0.5487) large business scale (5.0015) MK1: Microsoft is reputed (5.2039) ME1: Microsoft software products are frequently used (5.878 0.7738 0.7756 4.482 64.8171 0.4858) high brand visibility among markets (5.663 2.5767) Core-brand attitude (5.875 0.3808) MK5: I prefer Microsoft (5.700 0.6921 0.7897 0.030 83.804 0.4543) MC1: The same impression on PC and Microsoft (5.3383) Brand awareness (5.9548 0.8034 0.864 1.835 0.928 2.9350 0.6357 0.8077 0.396 5.9567 0.667 0.848 0.900 0.5157) MK4: I like Microsoft (5.1 .912 0.2309) MP1: Microsoft is widely popular (5.937 0.961 0.2399) ME2: Microsoft software products used to be purchased before (5.8021 0. Reliability and validity analysis Product connection (5.4153) MA1: Microsoft let me directly associate to PC (5.9552 0.Table III.2924) Use experience (5.8862 0.763 0.6282) MA2: Microsoft let me indirectly associate to PC (5.3613) excellent profit earning capabilities (5.8977 0.1214) Core-brand image (5.854 .267 79.9625 Item-to-total Factor Cumulative correlations loading Eigenvalue proportion % Cronbach 184 Factor dimension (average) Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21.4740) Microsoft’s Microsoft’s Microsoft’s Microsoft’s Microsoft’s Microsoft’s Microsoft’s leading place among markets (5.7240 0.147 95.6631 0.1719) Brand preference (5.092 2.9129 0.943 0.9763 0.882 0.720 81.708 0.5862) MA3: PC let me directly associate to Microsoft (5.

902 0.9124 0.859 0.9145 0.4438) MK7: Microsoft OS and Microsoft PC can connection completely (5.2714) Purchase intention (5.4764) MI1: Will purchase at the same prices (5.5667) MI3: Will purchase even at higher prices (5.3576 ) MK6: Microsoft suit to develop PC (5.3553) Factor dimension (average) 0.932 0.4228) MC4: Suitable for Microsoft to promote PC products (5.8754 0.7373 0.873 0.737 0.3688) MI4: Will recommend friends to purchase even at higher prices (5.647 0.899 0.4618) Item (average) Consumer perception fit (5.7373 0.8444 0.4573) MC3: The similar natures on PC and Microsoft (5.8996 0. .932 0.946 Item-to-total Factor Cumulative correlations loading Eigenvalue proportion % Cronbach Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) Influence of core-brand attitude 185 Table III.6850 0.9251 86.6975 0.278 1.9081 3.861 81.MC2: Equivalent concepts on PC and Microsoft (5.624 0.4798) MC5: Purchase the combination with Microsoft PC products and Microsoft OS software (5.8622 0.906 0.6147) MI2: Will recommend friends to purchase (5.897 0.

055. In short.964 0.05 is usually adopted. The model fit analysis Figure 2.894 is in close proximity to 0..000 0. results show that each measuring indicator is positively related to its latent factors. is rated below 0.9 and therefore.055 . The structure model analysis Fit measure Coefficient Chi-square Chi-square/df p-value RMR GFI AGFI NFI IFI CFI RMSEA 779.9 (Bentler. 1990. NFI and CFI are all above 0.9. 4. and so the standard value of below 0. 1984.997 0.699) and thus hypothesis H1 is Table IV. Danes. 1981).976 0.034 0. 1982. the overall model fit still exists. a small RMR value means a better fit as a RMR below 0.1 186 Based on Table IV. Although the AGFI. Moreover. 1984).034. Joreskog and Sorbom. 1984. 1989). Bagozzi et al. The RMSEA is below 0. for measuring variables of each factor.916 0.4 Hypothesis verification From Figure 2.1 is met (Joreskog and Sorbom. 2/df of below 3 represents the existence of fit between model and data (Carmines and Mclver. 0. despite the significance of Chi-square test.894 0.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21. we can infer that the relationship between factors and their respective influence strengths are: (1) The relationship between brand awareness and core-brand image is mutual and positively influential (coefficient: 0.976 0. this research has an excellent model fit. The RMR is 0. The rest of the indicators such as GFI. All indicators in the factors prove to be efficient.285 2.

The result was same with research by Broniarczyk and Alba (1994). The Results conform to the deductive reasoning of Reddy et al. (3) The results show the core-brand image has a strong and positive influence on core-brand attitude (coefficient: 0. The higher the consumers’ perception fit of the core-brand and extended products. perception fit and purchase intention towards extended products are significantly and positively related (coefficient: 0. Therefore. (1994).923). the higher the consumers’ perception fit of the core-brand and extended products. hypothesis H2 is well established. hypothesis H5 is well established and our results conform to the deductive reasoning of Flaherty and Pappas (2000). Hypothesis H6 is therefore well established and our results were same with the research of Aaker and Keller (1990). (2000). (6) The relationship between brand association and consumer perception fit is significantly and positively related (coefficient: 0. the stronger a consumer’s awareness of the core-brand.856). The better the core-brand use experience of consumers. hypothesis H4 is also established and these conform to the research results of Smith and Park (1992). That showed the higher a consumers brand preference. Therefore. (2) Regarding model analysis. Thus. the higher the purchase intention towards extended products. (8) Regarding relational model analysis. hypothesis H3 is supported. 4. the stronger the corebrand attitude. The easier it is for consumers to associate the core-brand with an extended product. Bhat and Reddy (2001) and Morrin (1999). (5) The core-brand attitude and purchase intention towards extended products are positively and significantly related (coefficient: 0.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) supported. consumer perception fit has Influence of core-brand attitude 187 . which conform to Broniarczyk and Alba (1994) and Reddy et al. Thus.200). (4) We have found that consumer use experience have positively and mutually influence on core-brand attitude (coefficient: 0. (7) The relationship between product connection and consume perception fit is significantly and positively related (coefficient: 0. Of these. Hypothesis H8 is well established and our results conform to the deductive reasoning of Tauber (1988). the higher the consumers’ perception fit that conform to the studies of Keller and Aaker (1992) and Barone et al. Thus. (1994). the more positively the consumer will view the core-brand image. consumers’ purchase intention towards extended products is affected by core-brand attitude and consumer perception fit. Therefore. Hypothesis H7 is well established.333). the stronger will be their core brand attitude. The stronger a consumer’s core-brand attitude.628). the greater the consumers’ purchase intention towards extended products. it is inferred that brand preference significantly and positively affects core-brand image (coefficient: 0.5 Discussions In a nutshell. This result showed that the higher product connection between the core brand and extended products. the better the core-brand image is for the consumer.775). the better the brand image for consumers.117).

775. This is precisely why brand images are generally formed by brand awareness. Therefore. 5. the second perspective. we have adopted virtually extended products to exemplify. The greater influence exerted occurs when the brand image coefficient is 0. it also has high-brand awareness. a scale to measure brand extension effects and its influence factors have been developed over a multi-stage scale development process. In summary. both brand image and use experience demonstrate a remarkable influence on core-brand attitude. the higher the consumer perception fit. the relational structure model and its scale have the potential to make a considerable contribution in both theoretical and practical term. and relational structure model for purchase intention on extended products are established. As such. It may offer to be a valuable method for academicians and marketers in the future. due to the prevalence of Microsoft OS among PC users. With our research based on extended Microsoft products.1 188 the greatest effect.699).Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) APJML 21. brand association. the two major paths that influence purchase intention toward extended product are: (1) from brand awareness to core-brand. we may infer that since Microsoft is a world famous brand with its own brand advantages. it is product connection that has the greatest effect on consumer perception fit (with a coefficient of 0. brand image is influenced by brand awareness and brand preference. measurement indicators. to core-brand attitude then to purchase intention and (2) from product connection to consumer perceptional fit then to purchase intention. Of brand association and product connection. brand preference. especially core-brand image. especially product connection. core-brand attitude and consumer perception fit directly or indirectly affect consumer purchase intention towards extended products. In turn. with a coefficient of 0. core brand attitude is influenced by core brand image and use experience. virtually extended Microsoft product – PC were exemplified in our experiment. in this research. The purchase intention towards extended products is also enhanced. Furthermore. However. Conclusion and suggestions In this research. this study indicates that the major perspectives determining consumer purchase intention towards extended products are the first consumer perception fit and core-brand attitude secondly. brand connection. validity and generalizability. there is little choice but to opt for Microsoft. Furthermore. Our research also shows that a higher consumer perception fit will increase the consumer’s purchase intention towards extended products. The factors influencing purchase intention towards extended products.923. The results serve as a reference for marketers when implementing brand extension strategies. . we determined that factors such as brand awareness. Of interest. especially brand awareness. consumer perception fit is influenced by brand association and product connection. and that brand association and product connection influences consumer perception fit. Whilst corebrand image is influenced by brand awareness and brand preference. Consumers are unable to adopt use experience of Microsoft OS and then deduce possible acceptance levels of virtually extended product for the PC unless brand image results are evaluated. Based on this scenario. Also. There is also a high level of influence produced by brand awareness (with coefficient of 0. with the coefficient indicating that the higher the connection between extended products and the core-brand. use experience. The first perspective. which has provided substantial evidence of the brand extension scale’s reliability.628).

.Downloaded by UNIVERSITY OF ENGINEERING & TECHNOLOGY LAHORE At 00:03 05 November 2015 (PT) Many of the influential factors of brand image originated from consumer brand awareness. 2008). This is especially so for the same consumer group in the markets of extended and core products like Microsoft. (1994) stated that an advantageous brand can aids firms to ensure consumer recognition and gain acceptance of new products. 1990). the connection between core product and extended product was key influence factor which can direct consumer perceptional fit and then enhance purchase intention toward extended product. an awareness probably generated by Microsoft’s position as an advantageous brand. The positive ad significantly increases both the accessibility and the perceived appropriateness of the brand attributes. and this product comes with more varied characteristics when compared to virtually extended products aforementioned in this research. OSs and PCs are supplementary products combined for usage. we deem virtually extended products as quite suitable for Microsoft. the first should focus on consumer’s brand awareness. making it easier for consumers to accept Microsoft PC. consumers’ purchase intention is triggered. and thus there is a clear mental association between Microsoft and the PC. Being the first to enter the market and having a leading core-brand are important influential factors for successful brand extensions. When extended products (such as PC) and original products (Microsoft OS) are supplementary. it still falls under supplementary characteristics proposed by scholars (Aaker and Keller. the more positive will be its acceptance by consumers. The brand awareness of well-known brands has a much greater influence on brand image than brand preference does. and will influences consumer’s overall attitude toward a brand extension (Lee. because it can enhance core-brand image and then increased consumer’s purchase intention. Managerial implications According to our research results. This research indicates that if there is a Microsoft PC in the marketplace. 1995). Thus efficient advertisement is a success factor of marketing strategies to enhance brand attitude toward extended products then increases consumer’s purchase intention. respondents generally show high-brand awareness towards Microsoft. Influence of core-brand attitude 189 . These results are applicable for Microsoft and other known brands as a supplementary reference during extended product selection. a large number of consumers will exhibit a high purchase intention even at higher prices. brand extensions can probably hold larger market share and higher advertisement efficiency than other brands. This scenario probably creates a high perception fit. Aaker (1991) proposed that after brand extensions have been carried out by firms. if Microsoft wants to extend it’s product to PC. The use experience of the core-brand has a less prominent influence on purchase intention when compared to core-brand image. Although the core product of Microsoft is Microsoft OS. 6. Based on findings in this research. On the other hand. Because the closer the extended product is to its core market. Concurrently. especially for operating system software and PC products that both contribute to meeting overall consumer demand. This is most likely due to users adopting Microsoft OS when they first use a PC. Based on these findings. which will translate into a better image evaluation (Martinez et al. efficient advertising is applicable for both original products and extended products. Tauber (1981) and Reddy et al.

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