ABSTRACT
Two popular strategies utilized by firms in introducing new products are brand and product line extension strategies. These two strategies expand market demand by leveraging the brand equity already inherent in the existing or original brand. While resource-rich firms can choose to use both strategies, many firms must choose one or the other. This study identifies the factors contributing to the success of either strategy aside from “fit” and “perceived image (including quality level)”. Seven hypotheses were developed. These will be tested in a future strategy.
Keywords
New product introduction strategies, branding, line extensions, brand equity