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Abstract

Brand extension is an important cost effective marketing method to offer new products.However, Ordinary Lease Square regression with control variables has been applied for estimation of variable coefficients.In our study, consumer evaluation of brand extension in Pakistan is dependent on quality of the original brand, substitutability of the extension with the original brand in certain usage situation and helpfulness of people, facilities and skills used in developing, refining and making the original brand for constructing its extension.Furthermore, other independent variables including complementarity, difficulty and moderating role of quality of the original brand with fit attributes have been found as irrelevant for determining consumer evaluation of brand extension in Pakistan.We have found an expected significance outcomes on ideal point effect of substitutability at 15%.