The Model of Effective Factors on Brand Extension Attitude in the Hotel Industry

Building and successfully managing strong brands is considered to be one of the key drivers of success in the hotel industry. One of the most important branding strategies is brand extension. Brand-extension strategies enhance success chances of new products. The present work analyzes the effective factors on brand extension attitude. For this purpose, seven hypotheses were designed on the basis of above mentioned model. Statistical population was customers of the Parsian hotels (five and four star) in Tehran. We used questionnaire for collecting the raw data. According to the respective formulas, the sample size was 242 and researcher distributed 300 questionnaires. The sample was selected from customers of Parsian 4 and 5 star hotels in Tehran. After collecting of data, research hypotheses were analyzed using structural equation modeling (SEM) method. According to this, the researcher suggests that before implementing of brand extension, companies must pay most attention to customer ’ s perceptions and images from parent brand.

Brand Extensions, Brand Image, Brand Equity, Consumer Behavior