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Research Journal of Humanities and Social Sciences.

10(3): July- September, 2019

ISSN 0975-6795 (Print) Available online at


2321-5828 (Online) www.anvpublication.org
DOI: 10.5958/2321-5828.2019.00122.0
Research Journal of
Vol. 10| Issue-03|
July- September 2019 Humanities and Social Sciences
Home page www.rjhssonline.com

RESEARCH ARTICLE

A Study on Perception of Brand Extension by FMCG Consumer in


Ahmedabad
Kalpesh Prajapati1, Dr. Viral Bhatt2
1
Research Scholar, Indus University, Ahmedabad
2
Director, SAL Institute of Management, Ahmedabad
*Corresponding Author Email: viral.bhatt@sal.edu.in

ABSTRACT:
The cost of introducing an entirely new brand is often very high, accompanied by the risk of the failure of new
brands in a crowded market. These factors encourage companies to use brand extensions, particularly in the
FMCG segment, to leverage the brand capital of the parent Brand. This research study examines in detail the
perception and behaviour of the consumers of Ahmedabad in the direction of brand enhancements in the FMCG
Segment. The study also seeks to identify the factors influencing consumers to accept brand enhancements in the
FMCG Segment. The hypotheses developed for this empirical study were tested statistically with the help of
SPSS version 16. Factors such as the perceived similarity and the fit between the parent brand and its extended
brand, the reputation of the mother brand and its impact on the extended brand, the nature of the Ahmedabad
consumers-whether they perceive the perceived risk of new brands Or not, have been critically investigated in
the research Study. The study is based on a primary survey covering all 141 stations under the Ahmedabad
Municipal Corporation in order to maintain the overall visibility, perception and acceptance of brand
enhancements in the FMCG Segment.

KEYWORDS: Brand enhancement, brand loyalty, brand value, extended brand, FMCG (pinoys consumer
goods), Ahmedabad consumer, mother brand, perceived Risk.

INTRODUCTION: Brand concept is defined as the image that a consumer


The strategy of brand expansion is a very widespread thinks when exposed to a particular brand, chung, anna,
mechanism in brand Management. This strategy is used and margo, 2001 [2]. The brand expansion encompasses
extensively in the field of FMCG (fast moving consumer the use and application of the established core brand
goods). The history of brand expansion can be traced name on new products in order to preserve the equity of
back to the 1960s. gamble, 1967 [1] in his study, the the original brand and also to capture new and
application of the brand expansion strategy was unexplored market Segments. Dr. Edward Tauber,
mentioned in the 1960s. The concept of brand expansion 1988[3], who has produced the term brand extension, has
began to become popular in the 1980s. been looking at brand expansion as "a key to the
successful expansion of a brand" as a strategic tool, not
just as a new product. "given the difficulty of bringing a
new brand to market with rising costs and increasing
competition, the popularity of brand extensions is
Understandable. Some of the applications and features of
Received on 31.10.2018 Modified on 24.12.2018 brand extensions Include:
Accepted on 18.01.2019 ©AandV Publications All right reserved (i) Supply a new product with a competitive advantage.
Res. J. Humanities and Social Sciences. 2019; 10(3):747-753.
DOI: 10.5958/2321-5828.2019.00122.0 (ii) To enable greater efficiency through brand-wide
advertising and promotions, which makes it
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019

Inexpensive. there is untapped market potential in rural areas.


(iii) Strengthening consumer awareness of newly According to IBEF Report 2013 [12], The segmental
introduced BRANDS. dissolution of the market share of the FMCG sector in
(iv) Familiarity with the brand and therefore offers a less India is as Follows: Food and beverage 53%, Body Care
risky way to a new product category and 20%, Tobacco 15%, Household Care 10% and lighting
attractiveness on the Market. 2%.
(v) Support in the definition of a newly established
brand in the minds of consumers, which in future An enormous demand for existing products encourages
will help the Expansions. more FMCG players to expand their existing brand and
(vi) The possibility of redefining and revitalizing also expand their product portfolio. In order to increase
declining BRANDS. their market share and maintain long-term growth, to
(vii) The separation of a mark from a product at the end avoid the risk of a new brand failure and to achieve cost
of its life cycle. efficiency, most FMCG companies are going for the
brand expansion strategy. The existing reputation of the
The discipline of brand expansion is discussed by many parent brand contributes to the fact that expansions gain
authors, such as Aaker, 1991 [4]; Kapferer, 2004 [5]; faster market share than new Launches.
Kim and Lavack, 1996 [6]; Nijssen, 1999 [7]; De
Chernatony, 2003 [8]; Grime and smith, 2002 [9]; Kotler In the FMCG segment we have seen how "dove" soap
and armstrong, 2006 [10], who in their studies analyze (the mother Brand) expands on pigeon shampoo, pigeon
the process of brand expansion with the strategy of brand conditioner, pigeon hair oil and pigeon moisturizer;
Expansion. When companies decide to move to new "Dettol" antiseptic (the mother Brand) extends to Dettol
product categories, they are faced with the choice of soap, Dettol tableware Spülgel; "pond's" Cream (nut
introducing a new brand or extending an existing brand. Brand) expands around the Pond's age-wonder cream;
The advantage of a brand expansion strategy is that, "Amul" Milk (the Mother's Brand) extends to butter, ice
given that the existing brand enjoys a certain level of cream, chocolate, milk white, curd, cheese, Pizza etc.
brand awareness, it is less expensive. It is likely that a
customer will prefer to try a new product from a well- In the survey report by nielsen, 2012, [13] It was pointed
known brand name as a new brand, as a study by out that brand lines are preferred by brand managers six
Swaminathan Et. al, 2001 [11]. times more than the introduction of a new brand. The
study conducted by Nielsen has also shown that
Indian FMCG Sector and Brand Extension Strategy: marketing practitioners prefer to expand their existing
With more than 1 billion inhabitants, India is one of the brands rather than Lanciern a brand new One. The three
largest economies in the world in terms of purchasing main advantages are the capital adequacy, the efficiency
power and increasing consumer spending, only in and the faster takeover by the customers (source: Nielsen
addition to CHINA. The FMCG sector is the fourth report). The Nielsen audit data also showed that the
largest sector in India with an estimated market size of contribution of brand stretching is growing significantly
around 2 Trillion. Over the last five years, the average and rapidly and up to 30% in 2011. The contribution to
growth in the FMCG sector has accelerated at a growth is 38% for the respective BRANDS. In addition,
combined rate of 17.3% per year in line with the IBEF the market analysis of Indian FMCG brands showed that
report 2013 [12]. The FMCG sector in India is the success of the expansion of the existing parent brand
characterised by a strong presence of global players, is five times higher. The existence of a brand expansion
competition between organised and unorganized sectors, strategy existed three decades ago, and it multiplies more
a good distribution network and low operating Costs. in the current economic scenario. As the brand
The country has relatively cheaper labour costs with expansion in the FMCG segment is more present,
sufficient raw material supply. Food and personal care research has been carried out to evaluate the outcome of
put together two-thirds of the Industry's turnover. such a strategy in the FMCG segment, especially in
Around 1.9% of total FDI inflows in the country in April relation to Ahmedabad.
2000 to September 2012 were in this Sector. With the
changing lifestyle and the increasing demand of Table 1 lists the key players operating in the FMCG
consumers, the Indian FMCG market is expected to $80 segment in India in the year 2017-18. The companies
billion US $ to 2026. The Indian FMCG sector is heavily that appear on this list come from the list of top 500
fragmented with many unorganized players and is companies according to the annual Economic Times of
volume driven with low profit margins. The growing India survey [14].
popularity of organised retailing is expected to drive the
growth of the FMCG sector in the Future. In addition,

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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019

Table 1 Major Players in FMCG Industry in India Year: 2017-18 (Rs. million)
Company Name Revenue Profit After Tax
ITC Limited 325,051.4 7,6080.7
Hindustan Unilever Limited 281,870.3 38,289.8
Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) 137,351.5 N.A.
Nestle India Limited 83,655.6 10,679.3
Godrej Consumer Products Limited 66,041.2 7,961.0
Dabur India Limited 62,707.0 7,634.2
Britannia Industries Limited 62,376.5 2,595.0
GlaxoSmithKline Consumer Health Care Limited 33,012.8 4,367.6
Emami Limited 17,547.8 3,247.4
Procter and Gamble Hygiene and Health Care Limited 17,537.4 2,032.2
(Source: The Economic Times of India Top 500 Companies in India and Company Annual Reports, 2018).

Table 2: Summary of Important Literature


Author(s) / Journal /Source Major Observations
Tauber E.M. (1981) “Brand Franchise Extension: New Product Benefits To be successful in brand stretching, brand extension should be
from Existing Brand Names”; Business Horizon, vol.24. [15] considered as a strategic tool.
Aaker, David and Keller, K.L (1990) “Consumer Evaluation of Brand Success of Brand Extensions often depends upon certain
Extensions”; Journal of Marketing, vol.54 (January). [16] assumptions about consumer behaviour.
Park, C.W.; Milberg, S. and Lawson, R. (1991) “Evaluation of Brand Perceived similarity in the consumers mind helps in category
Extensions, The Role of Product Similarity and Brand Concept extension.
Consistency”; Journal of Consumer Research, (September) [17]
Boush, D.M. and Loken, B. (1991), “A Process-Tracing Study of Brand Brand Extension is the better way to achieve growth in the cost
Extension Evaluation”; Journal of Marketing Research, vol.28. [18] controlled world.
Thamaraiselvan, N. and Raja, J. (2008), “How do Consumers Evaluate How do consumers evaluate brand extensions in the Indian market
Brand Extensions - Research Findings from India”; Journal of Services - an empirical study.
Research, vol.8 , Issue 1. [19]
Loken, B. and John, R.D. (1993), “Diluting Brand Beliefs : Where Do Brand Failure of Brand Extensions will have negative effect on core
Extensions Have a Negative Impact?” Journal of Marketing, vol.57 brand and may result in dilution of parent brand's image.
(July).[20]
Franziska Volckner and Henrik Sattler (2006), “Drivers of Brand Extension The empirical analysis considered the direct relationship between
Success”, Journal of Marketing, vol.70 (April). [21] success factors and extension success.
Apostolopoulou, A. (2002), “Brand Extensions by U.S. Professional Sport The paper established six key factors for successful extension of
Teams; Motivations and Keys to Success”, Sports Marketing Quarterly, brand.
vol.11, No. 4. [22]
Pitta, A. and Katsanis, P.L. (1995), “Understanding Brand Equity for The paper brings out the difference between line and category
Successful Brand Extension”, Journal of Consumer Marketing vol.12. [23] extensions.
Chen, C.H. Chen, (2000), “Brand Dilution Effect of Extension Failure - AThe study conducted in Taiwan, established that the extended
Taiwan Study”, Journal of Product and Brand Management, vol. 9(4). [24] brand is perceived as cannibalizing the parent brand by eating into
the total sales of the parent brand.
Ries, A.L. and Trout, T. (1986), Positioning “The Battle For Your Mind” The book stated that even if the brand is used congruously, the success
(1st Ed), New York, McGraw Hill. [25] to extend a brand would be at the expense of the parent brand.

LITERATURE REVIEW: dramatically by 2020. Over 1 billion new customers


In the last three decades, a considerable amount of are expected to drive consumption patterns
literature has been developed. In this study, more than 70 Worldwide.
scientific articles, search books and research reports were • FMCG sector has a strong growth momentum in
mentioned. The review of the literature, which is partly India and Worldwide. In order to meet the growing
summarised in table 2, included the following areas: market demand for new products, FMCG companies
• Determining brand and its meaning. are relying on their mother brands to bring new
• Brand Enhancement: types, advantages, risks, products or variants to Market.
relationship to brand Value. • The literature survey shows that very few studies
• Brand retention and consumer perception of brand have been conducted on the FMCG sector and how
Expansion. consumers perceive brand extensions in this Sector.
• Study on brand expansion in the FMCG Segment. • No comprehensive study was carried out on the result
of brand expansion in the FMCG sector in the Indian
Research Gap: market, in particular in Ahmedabad.
• FMCG segment in india, which is one of the largest
emerging economies with a billion inhabitants, is OBJECTIVES OF THE STUDY:
also one of the world's largest economies in terms of With regard to the above discussions, the objectives that
purchasing power with a middle-class population of are the focus of the study are the Following.
over 500 million. • The research study primarily examines the perception
• Worldwide, the middle class will expand and purchasing behaviour of Ahmedabad consumers

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in relation to products introduced by brand The questionnaire from the Consumer's point of view
enhancements in the FMCG segment and to find out consisted of 30 questions, of which 13 questions relate to
how Ahmedabad's consumers perceive the brand biographical or demographic aspects. The balance 17
Expansion of the FMCG Segment. questions are technical questions that use the Likert 5-
• To determine whether demographic factors have an point scale and Dichotorone Scales. The questions are
impact on the evaluation of the brand extension by formulated in such a way that the research objectives are
the Ahmedabad consumers in the FMCG Segment. Addressed.
Also to determine whether consumers in Ahmedabad
are risk-taker when it comes to buying advanced Sample selection, survey and data collection:
FMCG Products. Determination of sample size:
• Identify the factors that affect consumers in order to As the brand expansion survey in the FMCG segment
accept brand extensions in FMCG Products. was conducted in Ahmedabad, the geographical
boundary was considered according to the city limits of
RESEARCH METHODOLOGY: Ahmedabad, as determined by the stations under the
The research methodology adopted for the Ahmedabad Municipal Corporation (kmc). The area
implementation of this research study includes both under KMC consists of 141 stations grouped under 15
exploratory and empirical Work. The exploratory study Districts.
is based on the findings of books on this subject, written According to the census data report, 2011 [26], which
by various authors, articles published in magazines, was issued by the Indian government, the Ministry of
magazines, magazines, newspapers and web Materials. interior, the population of Ahmedabad is in 2011 at
The study has also taken up figures and facts from 4,496,694 numbers, The male and female population
government sources and annual reports from FMCG 2,356,766 and 2,139,928 Numbers. In order to make the
Companies. A theoretical framework was developed for sample as representative as possible, the survey was
the research Study. The empirical part is based on the conducted in such a way that respondents from all 141
questionnaires created and distributed among stations were involved. first, information was collected
Consumers. from KMC and some district offices to identify the
Development of questionnaires: stations and the location/area below each Station. The
The questionnaire was developed to serve the purpose questionnaires were managed by the respondents of the
and objectives of the STUDY. The questionnaire for Stations. 15 questionnaires for each station were
consumers was divided into two sections-demographic distributed, and the number of valid responses varied
data and technical data (I.E. subject-related data). Since between 6 (at Least) and 13 (maximum) per station used
brand and brand enhancement aspects are related to the for the purpose of this study. The eastern part of
perceptions, emotions and associations of consumers, the Ahmedabad covers the smallest number of stations. The
demographic factors for this study are Important. The random sample was used in the Survey. The final usable
technical questions in the Ahmedabad Consumer survey sample size for the research work analysis included 1041
questionnaire are largely structured, with multiple choice valid respondents covering all 141 stations in
questions, some of which have been framed by the use of Ahmedabad.
Likert-5-point scale, wherever necessary.
In this research study, the sample size is 1041, which is
Reliability and internal consistency of the much higher than the required sample size of 384 at 95%
questionnaire: confidence level, with 5% error rate and 50% reaction
The Consumer survey questionnaire was evaluated by Distribution. Even at 99% confidence level with 5%
testing reliability and internal consistency using SPSS. error rate, the sample size would have been 663, which is
Cronbach's Alpha is used as a measure of internal well within the research stitch size of 1041. This larger
consistency, i.e. all elements within the instrument sample size of 1041 has resulted in all 141 stations being
measure the Same. The closer the alpha value is to 1.00, covered to make the sample as representative as
the greater the internal consistency of objects in the Possible. As stimuli, the present study has taken into
instruments to be valued. account eleven well-known brands that have extended to
various products.
The formula for determining Alpha uses the number of
elements in the scale (k) and the average correlation Data Analysis and Interpretations of Research
between the pairs of objects. The Cronbach's Alpha for Findings:
the questionnaire worked out at 0.832, which is very The demographics and the technical analysis of the
close to 1. therefore, the questionnaire is reliable and survey have given the necessary inputs to understand the
internally consistent. perception and evaluation of brand expansion strategies
in the FMCG segment by the Ahmedabad Consumers.
The primary aim of the research is to examine the
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019

perception and purchasing behaviour patterns of the those of other Variables.


Ahmedabad consumers in terms of product launches
through brand enhancements in the FMCG Segment. Hypothesis Testing: H1
Exploratory research provided valuable insights into To find out the joint frequency, cross Tabulations
consumer attitudes towards brand Expansion. On the analysen were carried out between the Variables. The
basis of the literature study, the following hypotheses common frequencies were analyzed by the chi-square
were established statistic (X2) to determine whether the variables are
statistically independent or whether the variables are
H1: Similarity and fit between the parent brand and Associated. Table 3, gives a summary of the Analysis.
extended brand are important for consumers'
evaluation of brand extension in FMCG segment. Interpretation of the findings:
H2: Reputation of the parent brand influences the from table 3 It was found that a large proportion of the
consumers to buy extended brand of FMCG respondents from Ahmedabad, who are loyal consumers,
product. regularly buy branded products and buy follow-up
H3: Ahmedabad consumers are low risk takers. brands of the mother's brands, feel similarity and fit.
Between parent brands and their extended brands are
In the present study, the Crosstabulation analysis was
very important. There is a strong association between the
taken into consideration, since the variables are
variables, 1, 2, 3, which is mentioned in table 3 above,
categorical in Nature. A crosstabulation is a common
Cramer's v is calculated as 0.592, 0.519 and 0.526. The
frequency distribution of cases based on two or more
calculated value of Pearson's chi-squared values for 1, 2,
categorical variables. The representation of a distribution
and 3 are 464.99, 380.62, 388.18 with a p-value of <
of cases according to their values on two or more
0.001 show that the result is significant and the variables
variables is referred to as emergency table analysis and
are not independent of each other.
is one of the most commonly used analytical methods in
the social Sciences. The joint frequency can be analyzed This applies irrespective of age, income, gender and
with the chi-square statistic (x2) to determine whether occupation, since in all cases the p-values < 0.001.
the variables are statistically independent or whether occupation/occupation has, however, close connection
they are associated. If a dependency exists between with the similarity between parent and extended brand.
variables, other indicators such as Cramer's v, phi, age, income and gender have a moderate relationship to
gamma, and so on can be used to describe the degree to the similarity Factor.
which the values of a variable are associated or vary with
Table 3 Summary of Analysis of Frequency Tables, Cross-Tabulations and Chi-Square Test for Independence of Attributes. Cramer's V
to measure Degree of Association.
Cross Tabulation Chi-Square df p- Cramer'
Value Value V
1. Do you think similarity between Parent Brand and Extended brand is important? * Do you 464.99 3 <0.001 0.592
always buy branded products?
2. Do you think similarity between Parent Brand and Extended brand is important? * Are 380.62 2 <0.001 0.519
you a loyal customer for the Branded products you buy?
3. Do you think similarity between Parent Brand and Extended brand is important? * Do you 388.18 1 <0.001 0.526
purchase follow up (extended) brands?
4. Do you think similarity between Parent Brand and Extended Brand is important? * family 29.77 4 <0.001 0.138
Income
5. Do you think similarity between Parent Brand and Extended Brand is important? * Gender 41.22 1 <0.001 0.173
6. Do you think similarity between Parent Brand and Extended Brand is important? * Age 44.57 7 <0.001 0.182
7. Do you think similarity between Parent Brand and Extended Brand is important? * 200.46 5 <0.001 0.311
Profession / Occupation

Table 4 Similarity between 11 FMCG parent brands and their extended brand using Pearson's Chi-Square test
Parent Brand vs Extended Brand df Pearson's Chi-Square
Value Asymp. Sig (p-value)
Maggie Noodle vs. Maggie Sauce 3 346.504 <0.001
Lifebuoy Soap vs. Lifebuoy Hand Wash 5 61.845 <0.001
Dettol Antiseptic vs. Dettol Soap 4 247.061 <0.001
Pond's Cream vs. Pond's Powder 4 386.565 <0.001
Knorr Soup vs. Knorr Soupy Noodles 4 403.089 < 0.001
Dove Soap vs. Dove Shampoo 4 256.069 < 0.001
Lux Soap vs. Lux Body Gel 4 216.542 < 0.001
Vivel Soap vs. Vivel Ultrapro Shampoo 4 301.271 < 0.001
Keo-Karpin Hair Oil vs. Keo-Karpin Hair Vitalizer 4 312.244 < 0.001
Amul Milk vs. Amul Butter 4 342.581 < 0.001
Boroline Cream vs. Boroline Suthal 4 216.950 < 0.001

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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019

Table 4 shows how the consumers of Ahmedabad think the purchase of follow-up brand. All variables are not
that the aforementioned FMCG products are similar to independent of each other, P-value shows < 0.001. The
their parent brands. In most cases, you think that the variables are closely related because it was observed in
existence of similarities between parents and extended the value determined in Cramer's v.
brand products is calculated at P-value < 0.001 is
Important. If the 11 FMCG parent brands and their extended brands
cross the parent brand variable "reputation", which will
Therefore, Image similarity between Parent Brand and influence consumers to purchase the follow-up brand,
Extended Brand is very important and proved to be the following results will result (table 6)
significant (First Hypothesis).
Interpretation:
Hypothesis Testing: H2 The reputation of the mother brand has influenced the
A summary of the analysis of Cross-Tabulations and respondents to buy follow-up brand. Ten of the FMCG
Chi-square-test for the independence of attributes and products with the exception of pond's, as shown in Table
Cramer's v to measure the degree of association is given 6 above, show that the reputation of the mother brand
in table 5. It was found that in all 1, 2, 3, 4, 5 cases makes them to buy their extended products, P-value <
indicated below, RUF influenced the Brand's loyal 0.05 (except pond's, p-value < 0.095). This suggests that
consumers of Ahmedabad to buy mother Brand extended the reputation of the FMCG parent brands affects
Product. The consumers of Ahmedabad, who think consumers to buy their extended products. therefore, It
similarity and fit between parents and extended brands, can be concluded that "the call of the mother brand"
are important to buy also advanced products because of affects consumers to buy extended product (second
the reputation of the mother Brand. The reputation of the hypothesis).
mother brand is important for safety and security and for
Table 5
Cross Tabulation Chi-Square Value df p-value Cramer' V
1. Do you think reputation of the parent brand influences the decision to buy follow up 245.08 3 <0.001 0.374
brand? * Do you always buy branded products?
2. Do you think reputation of the parent brand influences the decision to buy follow up 347.38 2 <0.001 0.488
brand? * Are you a loyal customer for the Branded products you buy?
3. Do you think reputation of the parent brand influences the decision to buy follow up 273.33 1 <0.001 0.408
brand? * Do you think similarity between Parent Brand and Extended Brand is important?
4. Do you think reputation of the parent brand influences the decision to buy follow up 341.93 1 <0.001 0.482
brand? * Is it safety and security that drives you to buy known/ reputed brand?
5. Do you think reputation of the parent brand influences the decision to buy follow up 245.22 3 <0.001 0.374
brand? * Had the follow up brand being known differently than the mother brand then also
reputation of the parent brand influences you to buy that?

Table 6
Parent Brand and Extended Brand df Pearson's Chi-Square
Value p-value
Maggie Noodle vs. Maggie Sauce 4 25.664 0.004
Lifebuoy Soap vs. Lifebuoy Hand Wash 5 388.75 0.001
Dettol Antiseptic vs. Dettol Soap 4 24.322 0.006
Pond's Cream vs. Pond's Powder 4 17.974 0.095
Knorr Soup vs. Knorr Soupy Noodles 4 396.827 0.001
Dove Soap vs. Dove Shampoo 4 26.568 0.002
Lux Soap vs. Lux Body Gel 4 365.794 0.001
Vivel Soap vs. Vivel Ultrapro Shampoo 4 286.618 0.001
Keo-Karpin Hair Oil vs. Keo-Karpin Hair Vitalizer 4 50.832 0.001
Amul Milk vs. Amul Butter 4 256.429 0.001
Boroline Cream vs. Boroline Suthal 4 24.759 0.005

Hypothesis Testing: H3
Table 7
Cross Tabulation Chi-Square Value df p-Value Cramer' V
1. Is it safety and security that drives you to buy a known and reputed brand? * 249.9 3 <0.001 0.38
Do you always buy branded products?
2. Is it safety and security that drives you to buy a known and reputed brand? * 207.56 1 <0.001 0.307
Do you purchase follow up (extended) brands?
3. Is it safety and security that drives you to buy a known and reputed brand? * 341.92 1 <0.001 0.482
Do you think reputation of the parent brand influences the decision to buy follow
up brand?
4. Is it safety and security that drives you to buy known/ reputed brand? * When 211.98 2 <0.001 0.282
you see or hear of an extended brand of a parent brand do you always try it out?

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Interpretation: on the value of a Brand Name”; The Free Press; New York.
5. Kapferer J.N. (2004): “The New Strategic Brand Management;
it can be seen from table 7 that the majority of
Creating and Sustaining Brand Equity Long Term”; Kogan Page
respondents buy well-known and reputable brands for Limited.
safety and Security. They do not experiment with the 6. Kim, Chung, K. and Lavack, Anne, M. (1996): “Vertical
new Products. They try out follow-up brands from the Extensions: Current Research and Managerial Implications”,
Journal of Product and Brand Management, Vol.56, pp 24-37.
renowned mother brands for safety and Security. The P
7. Nijssen, E.J. (1999): “Success Factors of Line Extensions of
value in all cases in the preceding table came to < 0.001, FMCG”; European Journal of Marketing, 33 (516),pp 450-469
indicating that the variables are not independent of each 8. Chernatony, L. de., Hem, L.E., and Iverson, N.M. (2003): “Factors
other. The v-values of Cramer also indicate that there is influencing successful brand extensions”. Journal of Marketing
Management, vol.19, pp 781-806.
a close relationship between the choice of a known brand
9. Grime I., Diamantopoulos A., and Smith G. (2002): “Consumer
to avoid perceived risks. therefore, the Ahmedabad Evaluations of Extensions and Their Effects on Core Brand”;
consumers are riskless, because they stick to well-known European Journal of Marketing, 36 (11/12), pp 1415-1438.
brands in order to avoid uncertainties in new brands and 10. Kotler, P.G., Amstrong, H.A., Swee, M.L (2006); “Principles of
Marketing- An Asian Perspective”, 11th Edition, Prentice Hall.
thus accept the third Hypothesis.
11. Swaminathan, Vanitha, Fox, Richard J., Reddy, Srinivas K.,
(2001): “The Impact of Brand Extension Introduction on Choice”,
CONCLUSIONS: Journal of Marketing, Vol. 65 Issue 4, p1-15.
The consumers of Ahmedabad are very strong brands 12. IBEF Report, 2013.
13. Nielsen's Survey Report, 2012.
and they stick to the brands they like and enjoy the Most. 14. The Economic Times of India, Top 500 Companies, 2013.
The retail offers and displays occasionally cause you to 15. Tauber, E.M. (1981): “Brand Franchise Extension; New Product
change to new brands, but usually you don't experiment Benefits From Existing Brand Names; Business Horizon, Vol.24,
much with the new BRANDS. But the consumers of pp-36-41.
16. Aaker, David, A, and Keller, K.L., (1990): “Consumer Evaluation
Ahmedabad usually do not experiment Much. That is of Brand Extensions”; Journal of Marketing; vol. 54 (January); pp
why the Ahmedabad consumers are Low-risk. This 27-41.
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Gender. however, try out the Brand's expanded FMCG Brand Extensions, the Role of Product Similarity and Brand
Concept Consistency”; Journal of Consumer Research,
product. The reputation of the mother brand also has a (September), pp-193.
positive effect on consumers ' minds. The stronger the 18. Boush, D.M. and Loken, B. (1991): “A Process- Tracing Study of
mother brand, which is easier for you to Expand. The Brand Extension Evaluation”, Journal of Marketing Research, Vol.
image similarity and the category match between the 28, pp-16-28.
19. Thamaraiselvan, N. and Raja, J. (2008),: “How do Consumers
parent brand and the extended brand is very important. Evaluate Brand Extensions -Research Findings from India”,
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Marketing, 57 (July), pp 71-84.
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• The study is limited to Ahmedabad only. The 23. Pitta, A and Katsanis P.L. (1995) : “Understanding Brand Equity
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24. Chen, C.H. Chen. (2000): “Brand Dilution Effect of Extension
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• Only 11 FMCG products were taken into account in Management, vol. 9(4), pp-243-254.
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Market. Mind” (1st Ed), New York, McGraw Hill.
26. The Census Report, Government of India, 2011.
• The study included 141 Stations. But the people who
come to Ahmedabad for jobs or other purposes, but
remain outside Ahmedabad, have been ignored.

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