IDEAS home Printed from https://ideas.repec.org/a/sae/busper/v6y2018i2p113-128.html
   My bibliography  Save this article

An Integrated SEM Neural Network Approach to Study Effectiveness of Brand Extension in Indian FMCG Industry

Author

Listed:
  • Richa Joshi
  • Rajan Yadav

Abstract

Brand extension as a strategy is used by corporates for increasing profits. It is an approach for new product development. Brand extensions have already been studied in the past few years, however, till now extensions have not been evaluated with the help of structural equation modeling (SEM) and neural networks (NNs) integrated approach. The NNs help to analyze nonlinear influence in data without prior knowledge of such influences. The SEM helps to validate framework proposed in the study and the significant variables gathered through SEM are used as an input for NNs. The major advantage of such kind of hybrid technique is to understand the causal relationships in the variables, followed by the prediction of factors which influence brand extension. The study is based on the recent brand extension done by brand Frooti in the form of Frooti Fizz (an aerated fruit drink). It is a cross-sectional study with the sample size of 281 respondents from Delhi/NCR region. The results of the study are useful for a comprehensive understanding of factors affecting brand extension and also to identify the relative importance of each of them through the use of NN Technique.

Suggested Citation

  • Richa Joshi & Rajan Yadav, 2018. "An Integrated SEM Neural Network Approach to Study Effectiveness of Brand Extension in Indian FMCG Industry," Business Perspectives and Research, , vol. 6(2), pages 113-128, July.
  • Handle: RePEc:sae:busper:v:6:y:2018:i:2:p:113-128
    DOI: 10.1177/2278533718764502
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2278533718764502
    Download Restriction: no

    File URL: https://libkey.io/10.1177/2278533718764502?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Harleen Kaur & Ajay Pandit, 2015. "Modelling Consumer Evaluation of Brand Extensions: Empirical Evidence from India," Vision, , vol. 19(1), pages 37-48, March.
    2. Martínez, Eva & Montaner, Teresa & Pina, José M., 2009. "Brand extension feedback: The role of advertising," Journal of Business Research, Elsevier, vol. 62(3), pages 305-313, March.
    3. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. "Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, Oxford University Press, vol. 18(2), pages 185-193, September.
    4. Dens, Nathalie & De Pelsmacker, Patrick, 2010. "Attitudes toward the extension and parent brand in response to extension advertising," Journal of Business Research, Elsevier, vol. 63(11), pages 1237-1244, November.
    5. Franziska Völckner & Henrik Sattler & Gwen Kaufmann, 2008. "Image feedback effects of brand extensions: Evidence from a longitudinal field study," Marketing Letters, Springer, vol. 19(2), pages 109-124, June.
    6. Ahluwalia, Rohini & Gurhan-Canli, Zeynep, 2000. "The Effects of Extensions of the Family Brand Name: An Accessibility-Diagnosticity Perspective," Journal of Consumer Research, Oxford University Press, vol. 27(3), pages 371-381, December.
    7. Hirschman, Elizabeth C, 1980. "Innovativeness, Novelty Seeking, and Consumer Creativity," Journal of Consumer Research, Oxford University Press, vol. 7(3), pages 283-295, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prerna Garg & Anoop Pandey, 2023. "Decomposing the Effect of Brand Image in Influencing Information Adoption: The Case of Online Travel Agents," Business Perspectives and Research, , vol. 11(1), pages 11-27, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richa Joshi & Rajan Yadav, 2017. "Evaluating the Feedback Effects of Brand Extension on Parent Brand Equity: A Study on Indian FMCG Industry," Vision, , vol. 21(3), pages 305-313, September.
    2. Harleen Kaur & Ajay Pandit, 2015. "Modelling Consumer Evaluation of Brand Extensions: Empirical Evidence from India," Vision, , vol. 19(1), pages 37-48, March.
    3. Michel, Géraldine & Donthu, Naveen, 2014. "Why negative brand extension evaluations do not always negatively affect the brand: The role of central and peripheral brand associations," Journal of Business Research, Elsevier, vol. 67(12), pages 2611-2619.
    4. Ingrid Moons & Patrick De Pelsmacker, 2015. "Self-Brand Personality Differences and Attitudes towards Electric Cars," Sustainability, MDPI, vol. 7(9), pages 1-18, September.
    5. Dens, Nathalie & De Pelsmacker, Patrick, 2010. "Attitudes toward the extension and parent brand in response to extension advertising," Journal of Business Research, Elsevier, vol. 63(11), pages 1237-1244, November.
    6. Pina, José M. & Dall'Olmo Riley, Francesca & Lomax, Wendy, 2013. "Generalizing spillover effects of goods and service brand extensions: A meta-analysis approach," Journal of Business Research, Elsevier, vol. 66(9), pages 1411-1419.
    7. Chung-Yu Wang & Li-Wei Wu & Chen-Yu Lin & Ruei-Jie Chen, 2017. "Purchase Intention toward the Extension and Parent Brand: The Role of Brand Commitment," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(1), pages 83-103, February.
    8. Santos, Glauber Eduardo de Oliveira & Giraldi, Janaina de Moura Engracia, 2017. "Reciprocal effect of tourist destinations on the strength of national tourism brands," Tourism Management, Elsevier, vol. 61(C), pages 443-450.
    9. repec:dau:papers:123456789/2386 is not listed on IDEAS
    10. E. Bacchiega & M. Colucci & M. Magnani, 2019. "What goes around, comes around: Reciprocal effects and double-sided moral hazard in the choice of brand licensing," Working Papers wp1136, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Kim, Kyeongheui & Park, Jongwon, 2019. "Cultural influences on brand extension judgments: Opposing effects of thinking style and regulatory focus," International Journal of Research in Marketing, Elsevier, vol. 36(1), pages 137-150.
    12. Quamina, La Toya & Xue, Melanie Tao & Chawdhary, Rahul, 2023. "‘Co-branding as a masstige strategy for luxury brands: Desirable or not?," Journal of Business Research, Elsevier, vol. 158(C).
    13. Kronrod, Ann & Lowrey, Tina M., 2016. "Tastlé-Nestlé, Toogle-Google: The effects of similarity to familiar brand names in brand name innovation," Journal of Business Research, Elsevier, vol. 69(3), pages 1182-1189.
    14. Sara Caprioli & Christoph Fuchs & Bram Van den Bergh, 2023. "On Breaking Functional Fixedness: How the Aha! Moment Enhances Perceived Product Creativity and Product Appeal," Journal of Consumer Research, Oxford University Press, vol. 50(1), pages 48-69.
    15. Liliya Lozanova, 2016. "To Extend or Not to Extend: Advantages and Disadvantages of Brand Extension Strategy," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 500-514, December.
    16. Miniard, Paul W. & Alvarez, Cecilia M.O. & Mohammed, Shazad M., 2020. "Consumer acceptance of brand extensions: Is parental fit preeminent?," Journal of Business Research, Elsevier, vol. 118(C), pages 335-345.
    17. Martínez Salinas, Eva & Pina Pérez, José Miguel, 2009. "Modeling the brand extensions' influence on brand image," Journal of Business Research, Elsevier, vol. 62(1), pages 50-60, January.
    18. Prados Peña, M.ª Belén, 2022. "Efecto moderador del ajuste de la extensión y la implicación en la relación entre la actitud hacia una marca padre patrimonial y la lealtad de la extensión. Aplicación al conjunto monumental de la Alh," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    19. Colucci, Mariachiara & Montaguti, Elisa & Lago, Umberto, 2008. "Managing brand extension via licensing: An investigation into the high-end fashion industry," International Journal of Research in Marketing, Elsevier, vol. 25(2), pages 129-137.
    20. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    21. Xenia Raufeisen & Linda Wulf & Sören Köcher & Ulya Faupel & Hartmut H. Holzmüller, 2019. "Spillover effects in marketing: integrating core research domains," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 249-267, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:busper:v:6:y:2018:i:2:p:113-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.