Brand extension and purchase intention of Jordanian banks’ clients
-
DOIhttp://dx.doi.org/10.21511/im.18(2).2022.06
-
Article InfoVolume 18 2022, Issue #2, pp. 60-71
- Cited by
- 900 Views
-
346 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Product/service extension is crucial for product/service development strategies; therefore, the study aims to investigate the impact of brand extension on consumers’ purchase intentions. Data were collected by questionnaire from 221 clients of Jordanian banks. SPSS 25 supported with AMOS has been used for structural equation modeling (SEM) to test the relationship and hypothesis. The study revealed that the eight brand extension sub-variables (companion product extension, brand prestige extension, brand distinction extension, component brand extension, leveraging a lifestyle, product form extension, company expertise extension, and customer franchise extension) are co-related. In general, the brand extension affects the consumers’ purchase intention, whereas companion product extension, brand prestige extension, brand distinction extension, component brand extension, and leveraging a lifestyle extension significantly affect consumer’s purchase intention. On the contrary, product form extension, company expertise extension, and customer franchise extension do not significantly affect consumers’ purchase decisions. In conclusion, a larger number of customers in future research as well as a similar research in different countries and a specific brand case study are recommended.
- Keywords
-
JEL Classification (Paper profile tab)M31, M39
-
References58
-
Tables5
-
Figures2
-
- Figure 1. Confirmatory factor analysis for testing the first-order model
- Figure 2. Confirmatory factor analysis for testing the causal model
-
- Table 1. Demographic characteristics
- Table 2. Descriptive statistics, Pearson correlations, and reliability coefficients
- Table 3. Rotated component matrix (Component F1)
- Table 4. Goodness-of-fit indices for first- and second-order factor models
- Table 5. AVE, CR, and MSV for brand extension sub-constructs
-
- Aaker, D. A., & Keller, K. L. (1990). Consumer Evaluations of Brand Extensions. Journal of Marketing, 54(1), 27-41.
- Abid, M. B., Hassan, S., Rasool, I., Ghias, W., & Ul Hadi, N. (2020). Impacts of Perceived Fit and Self-Brand Connection on Consumer Purchase Intention Towards a Newly Introduced Smartphone in Pakistan (Product Line Extension). International Transaction Journal of Engineering Management & Applied Sciences & Technologies, 11(1), 1-13.
- Ahn, J., Park, J. K., & Hyun, H. (2018). Luxury product to service brand extension and brand equity transfer. Journal of Retailing and Consumer Services, 42, 22-28.
- Albrecht, C. M., Backhaus, C., Gurzki, H., & Woisetschläger, D. M. (2013). Drivers of brand extension success: What really matters for luxury brands. Psychology and Marketing, 30(8), 647-659.
- Anwar, A., Gulzar, A., Sohail, F. Bin, & Akram, S. N. (2015). Impact of Brand Image, Trust and Affect on Consumer Brand Extension Attitude: the Mediating Role of Brand Loyalty. International Journal of Economics and Management Sciences, 1(5), 73-79.
- Armstrong, R., Hall, B. J., Doyle, J., & Waters, E. (2011). ‘Scoping the scope’ of a cochrane review. Journal of Public Health, 33(1), 147-150.
- Boush, D. M., & Lokan, B. (2011). A process-tracing study of brand extension evaluation 28.1. Journal of Marketing Research, 28(1), 16-28.
- Cerny, B. A., & Kaiser, H. F. (1977). A study of a measure of sampling adequacy for factor-analytic correlation matrices. Multivariate Behavioral Research, 12(1), 43-47.
- Chang, K. C., Hsu, C. L., Chen, M. C., & Kuo, N. T. (2019). How a branded website creates customer purchase intentions. Total Quality Management and Business Excellence, 30(3-4), 422-446.
- Childs, M., Jin, B., & Tullar, W. L. (2018). Vertical versus horizontal line extensions: a comparison of dilution effects. Journal of Product and Brand Management, 27(6), 670-683.
- Choi, S. B., Min, H., & Joo, H. Y. (2018). Examining the inter-relationship among competitive market environments, green supply chain practices, and firm performance. International Journal of Logistics Management, 29(3), 1025-1048.
- Crespo, Á. H., & del Bosque, I. R. (2008). The effect of innovativeness on the adoption of B2C e-commerce: A model based on the Theory of Planned Behaviour. Computers in Human Behavior, 24(6), 2830-2847.
- Dani, A. (2012). The Impact of Brands on Consumer Purchase Intentions. Asian Journal of Business Management, 4(2), 105-110.
- Delvecchio, D. (2000). Moving beyond fit: The role of brand portfolio characteristics in consumer evaluations of brand reliability. Journal of Product & Brand Management, 9(7), 457-471.
- Engle, J., Blackwell, R., & Miniard, P. (1995). Customer behaviour. Fort Worth: Dryden Press.
- Eri, Y., Aminul Islam, M., & Ku Daud, K. A. (2011). Factors that Influence Customers’ Buying Intention on Shopping Online. International Journal of Marketing Studies, 3(1), 128-139.
- Esch, F. R., Langner, T. L., Schmitt, B. H., & Geus, P. (2006). Are brands forever? How brand knowledge and relationships affect current and future purchases. Journal of Product & Brand Management, 15(2), 98-105.
- Goh, Y. S., Chattaraman, V., & Forsythe, S. (2014). Product Design in Brand Extensions : The Impact of Brand and Category Fit on Attitudes and Purchase Intentions via Affective and Cognitive Routes. International Journal of Cultural and Creative Industries, 1(2), 36-51.
- Guo, Y., Zhu, Y., Barnes, S. J., Bao, Y., Li, X., & Le-Nguyen, K. (2018). Understanding cross-product purchase intention in an IT brand extension context. Psychology and Marketing, 35(6), 392-411.
- Hagtvedt, H., & Patrick, V. M. (2009). The broad embrace of luxury: Hedonic potential as a driver of brand extendibility. Journal of Consumer Psychology, 19(4), 608-618.
- Haines, G. H., Howard, J. A., & Sheth, J. N. (1970). The Theory of Buyer Behavior. Journal of the American Statistical Association, 65(331), 1406-1407.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. Pearson.
- Kapferer, J. N., & Michaut, A. (2015). Luxury and sustainability: a common future? The match depends on how consumers define luxury. Luxury Research Journal, 1(1), 3-17.
- Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15(2-3), 139-155.
- Keller, K. L. (2010). Brand equity management in a multichannel, multimedia retail environment. Journal of Interactive Marketing, 24(2), 58-70.
- Kim, Y.-J. (2020). The Influence of Color on Brand Extension: Mediation Role of Processing Style. Japanese Psychological Research, 62(4), 268-278.
- Koththagoda, K. C., & Herath, H. M. R. P. (2018). Factors influencing online purchasing intention: The mediation role of consumer attitude. Journal of Marketing and Consumer Research, 42(2003), 66-74.
- Kushwaha, T. (2012). Brand Extension: A Strategy for Competitive Advantage. Marketing, V, 18-18-27.
- Latiff, Z. A. A., Ruslee, N. A., & Ayob, M. A. (2016). Factors Influencing Consumer Purchasing Intention based on Food Labels. International Business and Management, 13(1), 41-45.
- Lee, Y. J., & Dubinsky, A. J. (2017). Consumers’ desire to interact with a salesperson during e-shopping: development of a scale. International Journal of Retail and Distribution Management, 45(1), 20-39.
- Le-hoang, P. V., Nguyen, B. Q., Luu, D. X., & Ho, V. T. (2019). Factors Affecting Online Buying Intention: The Case Of Tiki.vn. Pacific Business Review International, 12(4), 45-57.
- Ling, K. C., Chai, L. T., & Piew, T. H. (2010). The Effects of Shopping Orientations, Online Trust and Prior Online Purchase Experience toward Customers’ Online Purchase Intention. International Business Research, 3(3).
- Luarn, P., & Lin, H. H. (2005). Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior, 21(6), 873-891.
- Martínez, E., Montaner, T., & Pina, J. M. (2009). Brand extension feedback: The role of advertising. Journal of Business Research, 62(3), 305-313.
- Midgley, D. F., & Dowling, G. R. (1978). Innovativeness: The Concept and Its Measurement. Journal of Consumer Research, 4(4), 229-242.
- Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A Study of Factors Affecting on Customers Purchase Intention Case Study: the Agencies of Bono Brand Tile in Tehran. Journal of Multidisciplinary Engineering Science and Technology (JMEST), 2(1), 267-273.
- MNayak, K., Bhatt, V., & Nagvadia, J. (2021). Measuring Impact of Factors Influencing To Consumer Buying Intention With Respect To Online. Iternational Journal of Management (IJM), 12, 230-242.
- Morwitz, V. (2014). Consumers’ purchase intentions and their behavior. Foundations and Trends in Marketing, 7(3), 181-230.
- Olavarrieta, S., Torres, E., Vásquez-Parraga, A., & Barra, C. (2009). Derived versus full name brand extensions. Journal of Business Research, 62(9), 899-905.
- Park, C. W., Milberg, S., & Lawson, R. (1991). Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency. Journal of Consumer Research, 18(2), 185-193.
- Park, J., & Cheon, H. (2019). The role of attitude toward the parent brand, brand extension evaluation, and social proof message in Consumer’s attitude toward brand extension and purchase intention of IT products. ACM International Conference Proceeding Series, 79-82.
- Parker, J. R., Lehmann, D. R., Keller, K. L., & Schleicher, M. G. (2018). Building a multi-category brand: when should distant brand extensions be introduced? Journal of the Academy of Marketing Science, 46(2), 300-316.
- Peter, S. I., & Ragel, V. R. (2018). Factors Affecting Purchase and Recommendation Willingness Towards Brand Extension. The IUP Journal of Brand Management, 15, 49-68.
- Pham, V. T., Xuan, V. T., Trang, N. M., Hang, P. M. T., & Nguyen, N. T. (2021). Factors Affecting Young Consumers’ Intention to Purchase Upcycled Fashion Products – A Case Study in Vietnam. Journal La Bisecoman, 2(4), 40-54.
- Punyatoya, P. (2013). Consumer Evaluation of Brand Extension for Global and Local Brands: The Moderating Role of Product Similarity. Journal of International Consumer Marketing, 25(3), 198-215.
- Sadasivan, K., Rajakumar, C. S., & Rajinikanth, R. (2011). Role of involvement and loyalty in predicting buyer’ s purchase intention towards private apparel brand extensions. International Journal of Innovation, Management and Technology, 2(6), 519-524.
- Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why we buy what we buy: A theory of consumption values. Journal of Business Research, 22(2), 159-170.
- Sanfilippo, M., & Solberg, C. A. (2017). Final Master Thesis Country-of-origin and brand reputation effects on brand equity (Master’s Thesis). BI Norwegian Business School.
- Soomro, Y. A. (2016). Consumer Perceived Brand Concept & Close Brand Extension: a Multi-Mediation Model Analysis. IBT Journal of Business Studies, 12(1), 347-359.
- Steenkamp, J. E. M., Hofstede, F., & Wedel, M. (1995). A Cross-National Investigation into the Individual and National Cultural Antecedents of Consumer. Journal of Marketing, 63, 55-69.
- Tauber, E. M. (1981). Brand franchise extension: New product benefits from existing Brand Names. Business Horizons, 24(2), 36-41.
- Thompson, A. M., Witte, J. C., Hudson, R. D., Guo, H., Herman, J. R., & Fujiwara, M. (2001). Tropical tropospheric ozone and biomass burning. Science, 291(5511), 2128-2132.
- Ula Ananta Fauzi, R. (2021). Does Trust Mediation Benefits And Risk Consumer Perceptions Increase E-Commerce Buying Intention. Asian Journal of Management Entrepreneurship and Social Science, 1(1), 24-40.
- Vigneron, F., & Johnson, L. W. (1999). A Review and a Conceptual Framework of Prestige Discriminant Analysis. Academy of Marketing Science Review, 1(1), 1-5.
- Wang, C., Wu, L., Lin, C., & Chen, R. (2017). Purchase intention toward the extension and parent brand: the role of brand commitment. Journal of Economics and Management, 13(1), 83-103.
- Yaqubi, A. Y., & Karaduman, I. (2019). The Impact of Content Marketing on Consumers’ Purchase Intention for Home Appliances: A Study in Afghanistan. International Journal of Business and Management Invention (IJBMI), 8(02), 38-47.
- Zaichkowsky, J. L. (2019). Strategies for distinctive brands. Journal of Brand Management, 17(8), 548-560.
- Zhu, D. H., Wang, Y. W., & Chang, Y. P. (2018). The influence of online cross-recommendation on consumers’ instant cross-buying intention: The moderating role of decision-making difficulty. Internet Research, 28(3), 604-622.