Understanding Consumer Perception of Brand Identity: How to Avoid Failure When Extending a Well Established Brand

Abstract Brand extensions allow companies to leverage the equity they have established into new product and market areas, reducing the costs and risks associated with the fearful task of launching a new brand in today's viscous markets. However, brand extension is a two-sided blade, and miscommunication between consumers and brand managers can easily lead to image confusion and, ultimately, failure. This paper investigates the importance of a clear understanding on consumer perception of a company's …

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