European Journal of Biomedical and Pharmaceutical Sciences

IMPACT OF PARENT BRAND ON BRAND EXTENSION BY FIRM

*Dr. B. Lakshmi and Kritika Aggarwal

ABSTRACT

A Brand is something recognised by its logo, image, mark or a potential sentence that can be recognised, which the customer associates it with. It reflects the perceived quality, the status associated with the brand in the society and its uniqueness. In the current competitive era, where every brand is trying to sustain in the long run, Brand Extension comes out to be a solution that helps the organisation save a lot as promoting becomes easier and less expensive. But how does the customer perceive the brand extension is majorly affected by the parent brand‟s image in the minds of the customer. Generally, if the customer trusts the parent brand, they tend to buy the brand extension also. This research paper examines how various factors may affect the customer‟s perception of the brand extension.

Keywords: Parent brand, Brand extension, Perceived brand image, Vertical brand extension, Horizontal brand extension.