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Compose a 500 words essay on Managing the Environment (MEWK3 DQ2). Needs to be plagiarism free!Download file to see previous pages... Brand extension is the introduction of a new host of products unde
Compose a 500 words essay on Managing the Environment (MEWK3 DQ2). Needs to be plagiarism free!
Download file to see previous pages...Brand extension is the introduction of a new host of products under some of a company's strongest brand names (Kotler &. Keller 2008, p. 280). Perhaps, one of the most effective defenses for brand extensions is to list success stories of such strategy. Let us take for example Apple, Inc. and Steve Jobs - they have successfully leveraged on one of their brands, the iPod which is now featuring a wide range of mobile entertainment products.
According to a study done by Ying, Jin and Yi, "the higher the consumers' degree of information exposure, the higher product knowledge and impulse purchasing behavior" (2008, p. 418). Brand extensions is one of the more effective ways of providing information exposures of the products to the consumers. Encouraging the consumer's impulse buying behavior is necessary in retailing: "Previous studies discovered that 39% of all department store purchases and 67% of all general store purchases are impulse purchases" (Ying, Jin &. Yi 2008, p. 419).
Moreover, Lei, de Ruyter and Wetzels found out that "a parent brand receives more positive evaluations after the introduction of a step-up extension than that of a step-down extension' (2008, p. 268). It seems here, then, that whether a brand extension is successful or not, it will still be beneficial to the parent brand.
