A Study on Perception of Brand Extension by FMCG Consumer in Ahmedabad

The cost of introducing an entirely new brand is often very high, accompanied by the risk of the failure of new brands in a crowded market. These factors encourage companies to use brand extensions, particularly in the FMCG segment, to leverage the brand capital of the parent Brand. This research study examines in detail the perception and behaviour of the consumers of Ahmedabad in the direction of brand enhancements in the FMCG Segment. The study also seeks to identify the factors influencing consumers to accept brand enhancements in the FMCG Segment. The hypotheses developed for this empirical study were tested statistically with the help of SPSS version 16. Factors such as the perceived similarity and the fit between the parent brand and its extended brand, the reputation of the mother brand and its impact on the extended brand, the nature of the Ahmedabad consumers-whether they perceive the perceived risk of new brands Or not, have been critically investigated in the research Study. The study is based on a primary survey covering all 141 stations under the Ahmedabad Municipal Corporation in order to maintain the overall visibility, perception and acceptance of brand enhancements in the FMCG Segment.