Leveraging on the parent brand image to build brand extensions: a consumer's perspective on the Clover Tropika brand in emerging economic areas
Date
2019
Authors
Madlala, Phethokuhle
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Abstract
The world is changing at a rapid pace and consumer demands are constantly evolving. Innovation is key for brands that aim to stay relevant in todays’ markets. The brand extension strategy is a key marketing tactic to achieve innovation and it has therefore become crucial to understand how marketers can leverage on the parent brand image to build brand extensions. The primary objective of the study was to investigate how brand extensions can leverage on the parent brand image in order to achieve a positive brand extension perception. This was investigated in accordance with specific brand building constructs. The study focused on a consumers’ perspective of the Clover Tropika brand within emerging economic areas. Various literature relating to the parent brand image, brand extensions, as well as the relationship between the two were explored. Literature shows that newly innovated products have a high failure rate should and in an event where they are successful, it is as a result of a brand extension created from an existing brand, where congruency between the two exists. The research was based on a quantitative approach which adopted convenience sampling at Mall intercepts. A total sample of 238 consumers responded to a self-administered questionnaire at Southgate and Maponya Mall which are located in the south west of Johannesburg. All respondents were above the age of 18 and consented to participate in the research by willingly placing their completed questionnaires in the box provided on the day.
The data techniques used included Structural Equation Modelling (SEM) which had a core focus on Confirmatory Factor Analysis (CFA) which assisted in confirming the relationships proposed in the conceptual model. SEM also focused on path modelling to determine the causal relations. Nine out of the ten hypotheses proposed had a significant level of p<0.001 proving support for the proposed hypotheses. The research found that there is a significant relationship between brand awareness and brand attitudes, as this hypothesis had the highest path coefficient score. After the research was conducted. it was noted that high recall and recognition of the parent brand, accompanied by favorable attitudes, are key factors in leveraging on the parent brand image to build brand extensions. Moreover, brand extensions need to have high perceived fit in order to leverage extensively on the parent brand image.
Description
A dissertation submitted to the faculty of Commerce, law and Management, at the University of the Witwatersrand, Johannesburg, in fulfillment of the requirements of the Masters’ in Commerce degree in the School of Economic and Business Science - Marketing
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Citation
Madlala, Phethokuhle (2019) Leveraging on the parent brand image to build brand extensions:a consumer's perspective on the Clover Tropika brand in emerging economic areas, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/29618>