The Impact of Horizontal Brand Extension towards Brand Equity of Trans Corp

Abstract

Brand extension has becoming one of marketing strategies in order to boost the equity of the parent companies themselves. However, not all brand extensions can make a positive impact. Some of brand extension can cause negative impact such as dilution with the  original brand. Trans Corp is one of companies that adopt brand extension such as horizontal brand extension called Trans Studio. The purpose of this research is to evaluate the impact of similarity, reputation, perceived risk, and consumer’s innovativeness, which represent as factors of brand extension towards brand equity of Trans Corp either simultaneously and individually. The research method in this research is using simple random sampling by gathering 189 qualified questionnaires from people in Jakarta who have knowledge about Trans Studio and Trans Corp where the result shows that there is positive impact as simultaneously. Meanwhile, similarity, reputation, consumer’s innovativeness have positive impact as partly however, perceived risk doesn't have significant impact as partly.
 
Keywords: Brand extension, Brand equity, Quantitative research