The effect of brand extension strategy on consumer purchasing behaviors and an application on the CAT brand

Obtaining brand strategy is vital stage for a brand to be successful. Brand extension strategy is the most common use among brand strategies. Brand extension strategy has some benefits such as being less cost, more taking advantage of parent brand equity, reducing risk perception. But there must be done some analysis before appliying this strategy. Starting from collecting consumer knowledge about brand to evaluating potential extension candidates, it needs a management process. Because off the idea that emphasizes importance of parent brand's equity in brand extension, it is vital to create an adaption between parent brand and extension. Hence, consumers' positive perceptions can be transferred from parent brand to extension. This adaption can be supplied under different product categories between parent brand and extension. In this thesis, different catagory extensions of CAT parent brand and smart phone are analysed. At the end of the study, which factors are effective for consumers buying behaviors obtained. Suggestions for improving effective factors are made.