Dissertation: Brand Extensions for Low Fit Brands (Adidas, Toyota)

This dissertation investigates the factors that contribute to the success of brand extensions, particularly in low-fit scenarios, using Adidas and Toyota as case studies. The research explores the motivations behind brand extensions, the challenges faced, and the role of David Aaker's brand equity model. The study examines how factors such as curiosity, innovativeness, sustainability, and marketing influence the success of extensions like Adidas's and Toyota's ventures into product categories such as bathing gels, energy drinks, and furniture. The research employs a quantitative approach, analyzing data to determine the impact of various factors on consumer perception, purchase intention, and brand loyalty. The findings reject the null hypotheses for both brands, suggesting that specific factors significantly influence successful brand extensions, even when the fit between the parent brand and the extension is low. The dissertation also provides theoretical and managerial implications, along with limitations and suggestions for future research, contributing to the understanding of brand extension strategies in a competitive market.

Running head: DISSERTATION
Investigating What Factors Could Play a Facilitating Role in Brand Extensions in Case of Low
Fit: Adidas and Toyota
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgment
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to investigate the factors that could play a facilitating role in brand
extensions for low fits for popular and well known brands, Adidas and Toyota. Brand extensions
are a popular strategy for using the value of the brand when they intend to launch new products
and services. For low fits, the name of an established brand acts as a catalyst. The demand of the
low fit products and services increases among the customers because it is associated with a
popular and well established brand. The ultimate purpose of brand extension is to develop a
reputation for the brand that involves investing considerable amount of money for building the
brand. Under such circumstances, it is advisable for the brands to follow the brand equity model
that makes it easy to introduce the new product.
David Aaker’s brand equity model is reviewed because the model helps in understanding the
significance of brand extensions for low fits. The motivation behind conducting this research is
both economic and academic and the motivation behind this research is its contribution towards
the economy of the business. Though brand extensions are significant for low fits, it has
encountered failure miserably at times. This is because the products or services under the brand
extension fails to bring enough meaningful value to the customers and just being associated with
a well-established and popular brand does not make any sense to them. As the customers are
unable to make any sense out of it, loss of reliability occurs.
From the data analysis, it can be said that for both Adidas and Toyota brand extension by
launching products such as bathing gel, energy drinks and furniture is influenced by the four
independent variables, curiosity, innovativeness, sustainability and marketing those are further
influenced by sub factors such as quality, purchase intention, perception, reliability, loyalty,

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substitute, complimentary, proximity, substitute and skills transfer. The correlation matrix
obtained for both the brands indicate that nine and eleven factors influence successful brand
extensions for Adidas and Toyota respectively that supports the results derived for the p-value
obtained for the regression analysis, that is, .000. Hence, the null hypotheses are rejected and
alternate hypotheses are accepted for both Adidas and Toyota brand.

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Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.0 Overview...........................................................................................................................8
1.1 Research motivation..............................................................................................................9
1.2 Problem statement...............................................................................................................10
1.2.1 Research question.........................................................................................................10
1.2.2 Sub questions................................................................................................................11
1.3 Contribution.........................................................................................................................11
1.4 Approach..............................................................................................................................11
1.5 Summary..............................................................................................................................13
Chapter 2: Literature review..........................................................................................................14
2.0 Overview..............................................................................................................................14
2.1 Theoretical framework.........................................................................................................14
2.2 Concept of brand extensions................................................................................................15
2.3 Factors affecting brand extensions......................................................................................16
2.3.1 Parent brand characteristics..........................................................................................17
2.3.2 Curiosity.......................................................................................................................17
2.3.3 Innovativeness from parent brand................................................................................18
2.3.4 Brand extension’s product category characteristics.....................................................19

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2.4 Brand extension strategies...................................................................................................20
2.4.1 Product form extension.................................................................................................20
2.4.2 Companion product extension......................................................................................20
2.4.3 Extension of customer franchise...................................................................................20
2.4.4 Extension of company expertise...................................................................................21
2.4.5 Extension of brand distinction......................................................................................21
2.4.6 Extension of brand image or prestige...........................................................................21
2.4.7 Component extension...................................................................................................21
2.5 David Aaker’s brand equity model......................................................................................22
2.6 Practical implications of Aaker’s brand equity model in brand extensions........................25
2.7 Benefits of brand extensions for low fits.............................................................................26
2.8 Challenges in successful brand extensions for low fits.......................................................26
2.9 Impact of brand extensions for low fits...............................................................................27
2.10 Summary............................................................................................................................28
Chapter 3: Research Design...........................................................................................................29
3.0 Introduction..........................................................................................................................29
3.1 Research Outline..................................................................................................................29
3.2 Research Methods................................................................................................................29
3.2.1 Research Philosophy.....................................................................................................29
3.2.2 Justification for selecting positivism philosophy.........................................................30

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3.2.3 Research Approach.......................................................................................................30
3.2.4 Justification for selecting deductive approach..............................................................31
3.2.5 Research Design...........................................................................................................31
3.2.6 Justification for selecting deductive research design....................................................32
3.3 Sample Choice.................................................................................................................32
3.3.1 Justification for selecting random probability sampling technique..............................33
3.4 Research Execution.............................................................................................................33
3.4.1 Research strategy..........................................................................................................33
3.4.2 Justification for selecting survey research strategy......................................................34
3.5 Data collection technique................................................................................................34
3.5.1 Justification of selecting primary data collection technique.........................................35
3.6 Data analysis technique.......................................................................................................35
3.6.1 Justification for selecting quantitative data analysis technique....................................36
3.7 Ethical consideration...........................................................................................................36
3.8 Summary..............................................................................................................................36
Chapter 4: Data analysis:...............................................................................................................37
4.0 Overview..............................................................................................................................37
4.1 Adidas..................................................................................................................................38
4.1.1 Descriptive analysis......................................................................................................38
4.1.2 Inferential analysis........................................................................................................39

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4.2 Toyota..................................................................................................................................42
4.2.1 Descriptive analysis......................................................................................................42
4.2.2 Inferential analysis........................................................................................................43
4.3 Summary..............................................................................................................................46
Chapter 5: Discussions..................................................................................................................47
Chapter 6: Conclusion and recommendations...............................................................................49
6.0 Conclusion...........................................................................................................................49
6.1 Theoretical implications of the study..................................................................................50
6.2 Managerial implications of the study..................................................................................50
6.3 Limitations and suggestions for further research.................................................................51
References......................................................................................................................................53
Appendices....................................................................................................................................62
Appendix 1.................................................................................................................................62
Adidas survey questionnaire..................................................................................................62
Appendix 2.................................................................................................................................69
Toyota survey questionnaire..................................................................................................69

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Chapter 1: Introduction
1.0 Overview
Brand extensions are a popular strategy for using the value of the brand that indicates long
term investment in terms of product quality and promotions when the company intends to launch
new services and products. The mindset of the customers are subjected to continuous change
because once their present needs are fulfilled, they tend to develop new needs and desires.
Hence, brands needs to adapt themselves accordingly by innovating and introducing new
products and services so that they are in continuous demand among the customers with their
products and services. As mentioned by Chun et al. (2015), with suitable brand extension
strategies the acceptance of new products and services are easy. This is because the likelihood of
gaining distribution and trail is maximized among the target customers. For low fits, the name of
an established brand acts as a catalyst. The demand of the low fit products and services increases
among the customers because it is associated with a popular and well established brand. Hence,
the customers show greater willingness and interest to try the new product or services.
Additionally, brand extensions for low fits increase the efficiency the promotional expenditure as
well (Dall’Olmo, Pina & Bravo, 2015).
The ultimate purpose of a brand extension strategy is to capitalize on the brand equity
that has been built by investing a considerable amount of money in the brand. Under such
circumstances, it is advisable for the brands to follow the brand extension model that makes it
easy to introduce a new product in a new (more or less related) category. The brand equity model
by David Aaker states that the model cannot be used successfully for categories that lack fit that
means minimized relevance between the original product category and the extension product

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category. Successful implementation of brand equity model is based on three dimensions of fit
that includes substitutability, transfer of skills and complimentarity. The current research is based
on two well-known and popular brands, Adidas and Toyota those are famous for sportswear and
transport vehicles respectively. The research assumes if these two brands, successful in their own
sector, extend to products like bathing gel, furniture and energy drinks, which factors could play
a significant role to make the brand extensions successful.
1.1 Research motivation
The motivation behind conducting this research is both economic and academic. The
business sectors or industries have been subjected to fierce and intense competition in the past
years due to the rise of similar types of business organizations and firms. For the businesses and
brands to survive, competitive advantage is necessary that comes with increased profits, sales
and customer satisfaction. The motivation behind this research is its contribution towards the
economy of the business (Yuan et al., 2016). Using the name of an already established brand or
trademark on new products and services for increasing sales amplifies the sales of the brand
manifolds. It can be said that there are different types of extensions that fails to meet the
credentials of David Aaker’s brand equity model as it lacks transfer of skills, sustainability and
complimentary. However, if the match exists the brand extension tends to succeed. So, the
research tends to investigate the reason of such instances.
Hence, as this research is conducted considering the low fits, the benefits of brand
extension is an economic motivation for selecting and proceeding with the research. Apart from
economic motivation, the research is conducted with the purpose of identifying the gaps in the
current knowledge by considering the changes in the industry. Normally, a brand wouldn’t
introduce on purpose, extensions that do not fit, So “low fit” in this sense should be Low fit in

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the Aaker and Keller (1990) dimensions. This research should investigate successful brand
extensions that do not fit according to Aaker and Keller, 1990.
1.2 Problem statement
Though brand extensions do exist for low fits, brand extensions has encountered failure
miserably at times. This is because the products or services under the brand extension fails to
bring enough meaningful value to the customers and just being associated with a well-
established and popular brand does not make any sense to them. As the customers are unable to
make any sense out of it, loss of reliability occurs. As a result, the existing image of the well
established brand is hampered or compromised that lead to severe consequences that becomes
difficult to overcome (Hill & Lee, 2015).
1.2.1 Research question
The main question of the present research is:
 What do some brand extensions succeed despite the fact that there is a low fit?
1.2.2 Sub questions
The sub questions of the research are:
 How customers of a certain brand evaluate its brand extension in the case where it has a
low fit with parent brand?
 What are the facilitators of brand extension in case of low fit?
 What factors would push customers even though it doesn't have any fit with parent
brand?
 What are the loopholes in brand extensions that make it challenging?

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 What the suitable recommendations for overcoming the brand extension challenges in
case of low fit and improving its condition?
1.3 Contribution
Undertaking the research is beneficial because this will help in understanding the
significant role played by brand extensions for low fits. Hence, it can be determined whether low
fits can gather suitable benefits of increasing sales and gaining competitive advantage by
attaching them with an well-established and popular brand or whether it affects the popular brand
name negatively.
1.4 Approach
Five major chapters comprise the overall structure of the current chapter that includes
introduction, literature review, research methodology, data analysis and discussions and
conclusion and recommendations. Each of the chapters needs to be developed consecutively in
order to reach the goal of the research.
Introduction
This is the first chapter of the research that sheds light on the topic by sharing and
overview and relevant background information. This helps in identifying the problem that is to
be investigated followed by formulating the aim, objectives and questions of the research.
Additionally, the motivation and purpose of conducting the research is also highlighted that
indicates the social contribution of undertaking the research.
Literature review

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This is the second chapter that reviews past literatures and studies conducted in similar
fields. Reviewing similar studies of the past allows considering their findings along with
comparing and contrasting information from different studies thereby, developing the current
study. As a result, the quality and enriched theoretical perspective is developed suitably in
respect to the research.
Research methodology
As the name of the chapter indicates, the chapter talks about the different methodological
tools such as philosophies, approaches, designs, strategies, sampling techniques, data collection
and analysis techniques followed by rationalizing the specific ones selected for this study.
Data analysis and discussions
This section deals with analyzing the data using specific methods so that the ultimate
purpose of the research is served. The data analyzed is present using either descriptive analysis
or inferential analysis or both.
Discussions
In this chapter, the findings from the previous chapter are discussed in details by referring
to the information and data from the past researches. The findings of the current research are
compared and contrasted with previous work of same field.
Conclusion and recommendations
This is the last chapter of the research where the overall information is summarized and
presented in brief followed by making suitable recommendations for improving the identified
issue or problem thereby, making a contribution for the future researches.

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1.5 Summary
Hence, in this chapter, it can be summarized that relevant and adequate information about
brand extensions that helps in identifying the problem that is to be investigated in the
consecutive chapters. With the information provided in the chapter, the purpose and motivation
conducting the study is mentioned thereby, indicating the significant contribution the research
has in store in the field. From the information, it can be known that brand extensions are
necessary for brands to boost their sales and several brands perform extensions to keep them in
demand. However, challenges are there that make extensions for low fit brands difficult because
the factors facilitating the extensions fails to give desired outputs at times.

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Chapter 2: Literature review
2.0 Overview
The literature review is developed with the purpose of shedding light on the main
variables of the research topic. In this section, past researches and studies are reviewed and
relevant information is collected for developing the chapter for the current dissertation. In
accordance with the research topic, past researches and studies are looked to gather information
about brand extensions and the significant role played by it for low fit. In doing so, David
Aaker’s brand equity model is reviewed because the model helps in understanding the
significance of brand extensions for low fits. Moreover, the findings of past researches are
critically analyzed with the purpose of developing better in-sight.
2.1 Concept of brand extensions
The ultimate idea of brand extension is to use the name of the already existing name of
the brand or trademark on new products thereby, maximizing the sales. It is a marketing strategy
used by business organizations to save them from financial risk of launching a new product with
a new name. Using the name of a brand that is successfully established, results in greater
awareness and likeliness among the customers to try out the new product without much effort put
in by the organizations in promoting and advertising it (Lee, Monroe & Rosa, 2015).
As mentioned by Romeo and Dodds (2015), the whole idea of brand extension highlights
building a reputation by investing adequate amount of money followed by using the brand for
introducing new product in the market. Hence, the business organization or the firm needs to use
the brand equity that has already been built for introducing a new product in the market.
However, as argued by Lane and Fastoso (2016), the brand equity build for the parent brand

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cannot be used if there is no fit. Hence, for using the brand equity successfully, the original brand
needs to address the presence of three fit dimensions those are complimentary, transfer of skills
and substitutability. Moreover, the way customers perceive the brand influences the introduction
of new products and services as a part of brand extensions (Parker et al., 2018).
2.2 David Aaker’s brand equity model
David Aaker’s brand equity model is widely studied for understanding the concept of
branding and brand extensions and the significant role played by them for the firms or
organizations. According to this model, the parent brand can facilitate successful extension by
ensuring brand associations to the extended brands. Moreover, the model also states that brand
extensions help the parent brand to gather positive feedback as well as strengthen the position by
supporting the core associations (Tanveer & Lodhi, 2016). However, the idea of the model is
argued because the brand name fails to help at times thereby, damaging the name of the brand
and giving rise to undesirable attribute associations (Bashir, Ayub & Jalees, 2017).
Aaker’s brand equity model comprises of five components that includes brand loyalty,
brand awareness, perceived quality, brand associations and other proprietary assets. Brand equity
is defined as the set of assets of the brand as well as the liabilities (Kucherov & Samokish, 2016).

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Figure 1: Aaker’s brand equity model
(Source: Kucherov & Samokish, 2016)
Brand loyalty: This component of the equity model highlights the extent customers are loyal to
a brand. Having a customer base that is loyal to the brand offers several advantages to the brand
as well as the brand extensions. As mentioned by Brunello (2018), brand loyalty ensures reduced
marketing costs because the name of the parent brand promotes the newly launched products.
However, as argued by Seehanam, Akkaranggoon and Ungpannsattawung (2018), apart from
reduced cost, brand loyalty represents a stable source of revenue for the brand. Additionally,
brand loyalty attracts new customers and gives time to the brand for responding it to competitive
threats.

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Brand awareness: Brand awareness in the brand equity model indicates the extent to which the
brand is known among the public. Brand awareness is measured by familiarity and liking of the
customers, commitment towards the brand and the brand taken into account during the
purchasing process (Ahirrao & Patil, 2017). Increased brand awareness ensures that the brand is
more preferred than the alternatives present in the market. This increased awareness makes brand
extensions successful as the customers go for the new products without giving second thoughts
(Joshi & Yadav, 2016).
Perceived quality: This attribute of equity model indicates the extent to which a brand is
believed to offer quality products to the customers. Hence, the quality of the product becomes
the reason of purchase for the customers. Moreover, superior quality indicates better position
than the competitors and influences the buying decisions of the brand extension products (Kaur,
2016).
Brand associations: According to Aaker’s brand equity model, associations are triggered to the
extent that it can be differentiated from the competitors thereby, influencing the buying decisions
of the extended products. Hence, greater the extent higher is the total equity of the brand. This is
because more associations indicate greater opportunity to add brand associations (Bravo et al.,
2017).
Other proprietary assets: This includes other attributes related with brand extensions such as
intellectual property rights, relation with trade partners and patents that influences successful
brand extensions (Schmitz & Villaseñor-Román, 2018).

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2.3 Practical implications of Aaker’s brand equity model in brand extensions
From Aaker’s (1990) model, it can be inferred that strong interrelationships need to be
established among the attributes of the brand equity model. Brand loyalty can be improved
thereby, strengthening the reasons of purchasing the products if the last four dimensions of brand
equity can maintained successfully. As a result, the satisfaction of the customers is affected
positively (Kucherov & Samokish, 2016). Hence, brand loyalty is a significant dimension of
brand equity and is also affected by the model. This, in turn, influences the perceived quality of
the brand that could also be influenced by the awareness of the brand. However, on the contrary,
the brand equity model fails to leave an impact on the customers because the brand name does
not help brand extensions always (Dissanayake & Amarasuriya, 2015).
With successful implementation of brand equity model of Aaker, customers are able to
interpret process and store and retrieve large set of information about the brands and products.
On the other hand, brand equity model affects the confidence of the customers in terms of
purchasing decision because the customers get more comfortable with the brand. However, as
argued by Cho, Fiore and Russel (2015), if the previous experience of the customers is not well
with the brand, the brand equity model fails to leave an impact. Finally, the perceived quality and
the brand associations ensure value to the customer by improving the customer satisfaction level.
Marketers and business organizations can use brand equity model because this can help
in improving the effectiveness and efficiency of the marketing programs. The different
dimensions such as brand associations, brand awareness and perceived quality together
strengthens the loyalty of the brand by providing reasons to the customers to buy the products
and enhance their level of satisfaction (Keller, 2016). However, on the contrary, brand equity

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provides successful platforms for brand extensions and results in improved perceptions of prodct
performance (Benedek, 2017).
2.4 Benefits of brand extensions for low fits
Having a strong brand name is a asset for the company and the responsible individuals
need to know how to exploit it and protect it when needed. As commented by Goedertier et al.
(2015), brand extension is significant for the brands because the image of the brand increases. As
the brand offers new products and services, it grabs the attention of the customers. The
customers believe that the brand is able to fulfill their diversified needs thereby, developing
customer satisfaction. However, as argued by Samuelsen, Olsen and Keller (2015), the image of
the brand is compromised if the extended products and services are unable to meet the
expectations of the customers.
As mentioned by Gürhan-Canli, Hayran and Sarial-Abi (2016), brand extensions are
beneficial for the brands because it increases the market coverage with the launch of new
products. The customers associated with the parent brand tend to consider the extended products
once it is launched. Additionally, the brands are able to launch new products under the name of
the parent brand that minimizes the financial risk of failure if unsuccessful (Johnson, Tian &
Lee, 2016).
2.5 Brand extension strategies
As known, the brand extension strategy profits from leveraging a present brand for
promoting a new product but in a different category. Keeping in mind the vastness of the
business organizations and the competition, the different types of brand extensions are explained
below.

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2.5.1 Product form extension
Product form brand extension is defined as the strategy when the existing product is
launched in a different form. Hence, it is also termed as product line extension because the
existing product is launched but in a new form and category (Batselier & Wong, 2018). For
instance, Amul milk extended to Amul condensed milk.
2.5.2 Companion product extension
Recently, brand extension in terms of companion is gaining popularity. Brand are opting
for companion product extension so that customers do not have to look for the complimentary
product in some other brand (Zhou, Romero & Qin, 2016). For example, Colgate dental cream
implemented companion extension and launched Colgate tooth brush. As a result, customers
using the dental cream can use tooth brush of the same brand.
2.5.3 Extension of customer franchise
This type of brand extension strategy is used for meeting the needs of a specific group of
customers. In this case, the entire range of product is extended and a range of products are
launched so that the diversified needs of the customers are fulfilled (Yalcinkaya & Aktekin,
2015). An example of this type of extension is Johnson and Johnson that takes care of the diverse
needs of the babies.
2.5.4 Extension of company expertise
This type of brand extensions highlights extending different product category
introduction under a specific or common name. This is because common expertise pool helps in
such introductions successfully (Tomášková, 2018). Hero Honda is an example of such brand

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extensions as the company offers cars, scooters, bikes and lawn movers under the same brand
name.
2.5.5 Extension of brand distinction
There are brands that offer unique advantages and benefits to the customers and the
customers can relate to the uniqueness of the brand strongly. Hence, the brands go backwards for
launching different products those are needed for highlighting the uniqueness (Magnoni, 2016).
Marico industries are an example of brand distinction extension that intends to launch new
products under this name.
2.5.6 Extension of brand image or prestige
This type of brand extension indicates introducing new products into unrelated product
categories. In this case, the popular name of the brand is used for hosting and launching the new
products of different category and the successful name of the brand acts as promotion (Allman et
al., 2016). An example of this kind of brand extension is Tata that have extended from software
to salt to even cars.
2.5.7 Component extension
This type of extension is practiced when a brand develops a close association with a
combination of taste and is received well in the market ad survives long due to the distinctive
taste. Hence, brands can capitalize this taste and launch similar products (Ahn, Park & Hyun,
2018). An example of this brand extension is Nescafe that have wide range of products such as
coffee, biscuits and milk supplements.

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Brand extensions for low fits
Marketing
Curiosity
Innovativeness
Sustainability
H1
H2
H3
H4
2.6 Theoretical framework
Figure 2: Conceptual framework
(Source: Created by the Author)
Variables Type of variable Justification
Brand equity Independent variable Brand equity is defined as
premium value of a product
with a significant quality and
name that adds value to the
brand.
Fits Moderate variable Fits are defined as the brand
relationships that are

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transferred from parent brand
to extended brands.
Buying intention Dependent variable This is said to be the
willingness of the customers
to own or possess something
Perceived risk of brand
extension
Moderate variable This is defined as the
uncertainty that exists among
the customers about the brand
extension products
Table 1: Key variables
2.7 Factors affecting brand extensions
From the past researches, it can be seen that successful brand extensions are influenced
by different factors such as parent brand characteristics, brand extension marketing context,
relationship between parent brand and the brand extensions and brand extension’s product
category characteristics (De Ruyter & Wetzels, 2015). Brand extensions make it easy for
introducing new products and services as the customers are already aware of the parent brand.
Hence, promoting and advertising the new product in the market is not needed, as the brand
name itself works as an advertisement.
2.7.1 Parent brand characteristics
As the term indicates, brand extension is the further distribution of parent brand by
launching new products and services in similar markets or different markets. This can be
archived successfully by making suitable marketing efforts. As mentioned by Ferguson, Lau and

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Phau (2016), the marketing experiences of the brands influence the behavior of the customers
towards a brand. The marketing strategy undertaken by the brands can highlight the
characteristics of the brand that can give rise to positive impact. As a result, the customers
perceive the quality of the products of the brands according to the marketing context. The
existing level of satisfaction and loyalty influences successful brand extensions. If the customers
are happy and satisfied with the characteristics of the parent brand, the newly launched product is
also appreciated and acknowledged by the customers. Hence, the characteristics of the parent
brand influences successful brand extensions. However, as argued by Yuan et al. (2016), despite
of successful marketing strategies, the brand extensions are unsuccessful because the newly
launched product fails to leave an impact. This is because the target audiences fail to relate the
company, their existing products and the newly launched product from the marketing strategy
used that leaves a long term negative impact on the company.
Hypothesis 1:
H0: Proximity does not affect brand extensions for low fits
H1: Proximity does affect brand extensions for low fits
2.7.2 Curiosity
Curiosity makes the target audiences excited for the next thing their preferred and
favorite brand is going to give them. As mentioned by Kim, Stepchenkova and Yilmaz (2019),
developing curiosity is one of strategies that brands can use to keep their target audiences
engaged and glued towards them. This is because the target audiences will expect to have
something new or unique that would fulfill their needs if the brand is successful in building
curiosity and expectation. However, as argued by Shah (2015), if the brands keep the target

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audience curious for prolonged period, negative consequences are to be witnessed. The target
audiences might lose the excitement of getting something new from their preferred brand and
look for the alternatives in the brand to fulfill their needs and desires. Under such circumstances,
the brands fail to keep the customers attracted and when the new product is launched, it fails to
leave an impact on the target audiences.
Hypothesis 2:
H0: Curiosity does not affect brand extensions for low fits
H1: Curiosity does affect brand extensions for low fits
2.7.3 Innovativeness from parent brand
The parent brand and the brand extensions need to be related with each other in order to
make brand extensions successful. According to Moon and Sprott (2016), the customers of a
specific brand have certain expectations from a brand and the new product developed must be
developed in such a way that both can be related. Hence, the success of the brand extensions is
based on the relationship between the parent brand and the brand extension. Ensuring successful
relationship provide opportunities for the customers to relate with the newly launched products.
Hence, loss of reliability does not occur and the customers accept the brand extensions with open
arms. However, as argued by Chen et al. (2017), innovativeness in the newly launched product is
also acceptable when it comes to brand extensions. A brand operating in a particular sector for
years can launch a product that belongs to a different sector altogether. There prevails a risk on
how the target audiences might take it but at times such brand extensions are highly appreciated
by the audiences.
Hypothesis 3:

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H0: Innovativeness of extension does not affect brand extensions for low fits
H1: Innovativeness of extension does affect brand extensions for low fits
2.7.4 Brand extension’s product category characteristics
Product is the core of idea behind brand extensions that brands performs in order to keep
the customers engaged, revive their position and increasing sales by offering something new to
the customers. As mentioned by Ramanathan and Velayudhun (2015), if the product category
characteristics are to be considered, successful brand extension is encountered when the
perceived risk is at the minimal. This minimizes the rate of failure of brand extensions. However,
as argued by Liu, Hu and Xu (2017), the brand extension must highlight consumer
innovativeness because the innovations help in attracting the customers and creating an urge
within the customers thereby, influencing their buying decisions.
Hypothesis 4:
H0: Product sustainability does not affect brand extensions for low fits
H1: Product sustainability does affect brand extensions for low fits
2.8 Benefits of brand extensions for low fits
Having a strong brand name is a asset for the company and the responsible individuals
need to know how to exploit it and protect it when needed. As commented by Goedertier et al.
(2015), brand extension is significant for the brands because the image of the brand increases. As
the brand offers new products and services, it grabs the attention of the customers. The
customers believe that the brand is able to fulfill their diversified needs thereby, developing
customer satisfaction. However, as argued by Samuelsen, Olsen and Keller (2015), the image of

27DISSERTATION
the brand is compromised if the extended products and services are unable to meet the
expectations of the customers.
As mentioned by Gürhan-Canli, Hayran and Sarial-Abi (2016), brand extensions are
beneficial for the brands because it increases the market coverage with the launch of new
products. The customers associated with the parent brand tend to consider the extended products
once it is launched. Additionally, the brands are able to launch new products under the name of
the parent brand that minimizes the financial risk of failure if unsuccessful (Johnson, Tian &
Lee, 2016).
2.9 Challenges in successful brand extensions for low fits
With the benefits comes the challenge of brand extensions those cannot be ignored. One
of the prominent challenges of brand extensions is identifying the right market for extension. As
mentioned by Swaminathan (2016), brand extension conducted in unrelated markets results in
loss of reliability. This is because the new products do not make any sense in the market and
feels that the name of the brand is exaggerated. Hence, it is advisable for the brands to research
properly before indulging themselves into brand extensions. However, as criticized by Richard
and Cleveland (2016), brand extension to an unrelated market is highly appreciated and accepted
by the customers with open arm but the success rate is minimal. Loss of reliability due to the
extended hampers the image of the parent brand because for the customers, even a single
negative experience is enough to give to negative thoughts. As a result, the brand loyalty and
customer satisfaction is negatively affected that compromises with the competitive advantage
(Stumpf & Baum, 2016).

28DISSERTATION
2.10 Impact of brand extensions for low fits
Brand extensions are a compulsion for the organizations and firms considering the
intense competition across different business sectors. The customers must be given something
new according to their changing needs in order to be in demand and sustain the position.
According to Walsh and Williams (2017), brand extensions make launching or introducing new
products easy and smooth. As the customers are already aware of the brand and have satisfied
past experience, they try out the new product without much marketing and advertising effort
from the parents brands. Moreover, this is a strategy used by the brands for increasing the sales
because new products tend to attract customers and influence them to give it a try. However, as
criticized by Baek and King (2015), the sales are affected negatively if the brand extension fails
to mark an impact. Such a situation might arise because the newly launched product fails to meet
the expectations of the customers as the standard set by the parent brand is much higher. Brand
successful is also beneficial because this might provide an opportunity for the brands to revive
from their current position thereby, strengthen their market position subsequently (Sinapuelas,
Wang & Bohlmann 2015).
2.11 Summary
Hence, from the information above, it can be summarized that brand extensions are
needed and significant for low fits. With successful brand extensions, the brands are saved from
the financial risks of entering new markets and launching new products completely. It can also
be inferred that brand is an extremely priceless asset of the company and is not a mere term, sign
or symbol. Successful branding facilitates loyalty that results in higher profits for the company
thereby, ensuring revenue maximization and competitive advantage. The successful image of the

29DISSERTATION
parent brand makes it easy for them to introduce new products as their subsidy and the existing
image of the brand acts as an influencer for the customers.

30DISSERTATION
Chapter 3: Research Design
3.0 Introduction
The following chapter would be discussing about the various kind tools, which are used
by researcher for conducting the research and completing it successfully. The chapter have
defined each of the segments needed for creating the research design, hence, highlighting all the
necessary principle characteristics. The researcher also explains the necessary reasons for
selecting all particular methods that have been used for conducting research. The researcher also
explains the ethical consideration that has been required for successfully completing the research
and provides validation to the result of the research as well.
3.1 Research Outline
The following research is conducted for investigating and understanding the various kind
of factors involved in facilitating the role of brand extension in case of low fit. The use of brand
extension is considered to be a popular strategy which is used by popular brands and
organization for launching a new products and services in the market. The brand needs to adapt a
primary approach for being the competition in the market and providing service to the customers
according to their increase and change in demands. The research mainly focuses on the extension
of brand strategy which could be developed for providing new services and products to the
customers for accepting in an easy way.

31DISSERTATION
3.2 Research Methods
3.2.1 Research Philosophy
The research philosophy is defined as the method of data collection for the conducting
and completing the research and providing validity to the research results (Padilla-Díaz, 2015).
The researcher could use three types of research philosophy, namely – realism, positivism and
interpretivism. The positivism philosophy is classified as completely structured philosophy
which could be used for large size sample of participants. The particular philosophy also
provides the opportunity to the researcher implying the research approach in scientific manner
for analyzing the data and ensuring the accuracy and validity of the results. The philosophy of
interpretivism is used when the sample size in small and confined (Kennedy, 2017). Realism
philosophy is made with the application of both interpretivism and positivism philosophy.
3.2.2 Justification for selecting positivism
Positivism philosophy is defined as the philosophical theory that states and believes the
positive knowledge of the naturally occurring phenomenon and the relations and properties
associated with it. The theory of positivist approach would be ideal for the research, thus the
researcher has selected it and used it to complete the research. The use of positivist approach in
the research is applicable due to its focus on collecting quantitative data in a larger sample size.
However, it is more appropriate for the research as the researcher would be investigating brand
strategy to be used for implementing the brand extension for analyzing the issues with low fit.
The philosophy would also be helpful for the researcher for understanding the behavior and point
of view of the consumers regarding the new products and services they would be receiving from
the end of brand. Therefore, positivism philosophy has provided the researcher the opportunity
for anticipating the consumer point of view and address the objective of research as well.

32DISSERTATION
3.2.3 Research Approach
The use of the appropriate research approach helps researchers to validate the hypotheses
formulated in the research (Marshall, Coleman & Reason, 2017). There are two types of research
approach that could be used by researchers, inductive and deductive approach. The inductive
research approach aims for the evolution of new theories and concepts which is followed by the
researchers for developing new concepts and for obtaining thorough observation of the data
collected for the research. With the development of new theories and concept along with
inductive research approach, it is mainly based upon the collected data and helps the researcher
for fulfilling the research aim and objective (Teherani et al., 2015). Other than that, deductive
approach provides an opportunity to he researcher for validating the hypothesis formulated in the
research with the help of both literature review and data collected for the research.
3.2.4 Justification for selecting deductive approach
The deductive approach has been ideal for using in the research. The approach have been
ideally set with the research due to its application for validating the hypothesis which have been
formulated in the research for analyzing the market for implementing brand extension for
providing new services and products to the customers. The research was provided with the
opportunity of formulating the hypothesis with the help of both the literature review and the
collected data from the participants.
3.2.5 Research Design
The use of proper research design allows the researcher for answering the research
questions accurately; hence develop the research objectives and aims. The research design are
mainly divided into three types – descriptive, explanatory and exploratory research design. The
exploratory research design allows the researcher for exploring new concepts and theories which

33DISSERTATION
are relevant to the research questions formulated in the research (Meyers, Gamst & Guarino,
2016). Explanatory research design helps the researcher in explaining the various factors which
are present in the research relevant to the information of the research and supporting the
particular presence. The use of descriptive research design uses both the concepts of explanatory
and exploratory research design. Hence, it allows the research for formulating new ideas and also
provides explanation to the presence of all the phenomenon of the research work.
3.2.6 Justification for selecting deductive research design
The use of descriptive research design has been helpful for completing the research. The
application of the research design has allowed the researcher for providing thorough insights
regarding the research and hence, it would be allowing the researcher for providing valid and
well-defined ideas for working in the research. With the help of deductive research design, the
researcher was able to point out the valid points for formulating the strategy for making the
brand extension for implementing in the application of introducing new products and services for
the consumers for the organizations’ end. Hence, the researcher was able to develop a deeper
understanding of the research aims and objectives and implement in the research as well.
3.3 Sample Choice
There are various kinds of sampling techniques, which are widely used by various
researchers for selecting the current participating in the research and collect the relevant data
from them to complete those (Senck et al., 2015). Out of them, two are most widely used,
namely – random probability sampling technique and non-probability sampling technique. The
random probability sampling technique is considered to be providing the ability to the researcher
for collection of relevant data from a larger portion of the population. Hence, it is likely that the
selected portion of the population would have the equal chance for being selected for

34DISSERTATION
participating in the research and collect data. In case the of non-probability sampling technique,
the researcher has the opportunity of selecting the participants in an individual manner by
monitoring the suitability of the participants by analyzing the topic of the research, aim and
object of the research respectfully (de Bekker-Grob et al., 2015). The quality of the research
work is enhanced in terms of using the non-probability sampling technique. Both the
organizations select customers randomly as participants for conducting the survey. Adidas has
considered for selecting 65 customers as participants, whereas Toyota have considered for
selecting 56 participants for sharing their view on brand extensions for low fits. The respondents
were selected from the customer base of Adidas and Toyota and know their opinion if the
companies extended their products in categories those is new and not much relevant.
3.3.1 Justification for selecting random probability sampling technique
The random probability sampling technique has been used in research as it has proven to
be ideal for the research. In the research, the researcher decided to select 70 participants out of
the huge population. Therefore, would be helpful for understanding the need of the customers
towards the brand extension and the demand new product and services from the organization’s
end. The use of random probability sampling technique has provided an opportunity to the
researcher for considering that part of population that would likely to be affected by the brand
extension. Furthermore, the researcher would be providing equal amount of chance to all the
participants for sharing their point of view towards brand extension and help in implementing
their perspective and analyze the impact of the consumers towards new services and products.

35DISSERTATION
3.4 Research Execution
3.4.1 Research strategy
The most widely used research strategy for conducting research are survey, interview,
action research and case study. In terms of using case study research strategy, the researcher
would be referring to the existing literatures in respect to the current topic of the research, hence
supporting the arguments of the data and the information collected for research work (Saleh et
al., 2015). The case study research strategy is used by many researchers for completing their
research, as it provides the opportunity for referring and using the pre-existing secondary data, in
turn enhancing the quality of work. Action research strategy is used for providing the
opportunity for the researcher in terms of the identifying and finding the issues in the research.
The survey research strategy provides the opportunity to the researcher for gathering data from
the entire or selected amount of population (Molotch, 2017). The use of survey research allows
the researcher for gathering primary data direct from the participants, without be8ing involved
with any second party.
3.4.2 Justification for selecting survey research strategy
The research strategy of survey is used in the research for completing the research. The
use of survey strategy is ideal as it have allowed the researcher for collecting data from the
potential customers who would be effected from the execution of brand extension and
implementing new services and products. The researcher have been able to investigate the impact
of brand extension upon the selected part of the population accordingly to the suitability of the
research objective and aims. As a result, the survey research strategy was able to provide the
desired results to the researcher for implementing in the research and help them in drafting the
final results of the research.

36DISSERTATION
3.5 Data collection technique
The two types of data collection technique, primary and secondary data collection
technique is used by collection data for competing the research work. The primary data
collection method is used for collecting data directly from the participants taking part in the
survey of the research (Townsend, 2016). However, in the secondary data collection technique,
secondary data sources are used mostly for collecting the data. Sources like books, journals,
official website from government and organizations and previous research works are considered
for collecting the data. The technique used in the primary data collection is divided into parts,
namely – quantitative and qualitative collection technique (Eschbach et al., 2016). The primary
quantitative technique of data collection uses larger amount of sample without considering the
quantity of the source, and the qualitative data collection data collection technique is focused on
data collection based on quality rather than quantity.
3.5.1 Justification of selecting primary data collection technique
The researcher has used the primary data collection technique in completing the research.
With the help of primary data collection technique, the researcher have used quantitative data
collection technique, as it would be allowing the researcher for collecting the data directly from
the participants. The quantitative primary data collection technique has allowed the researcher
for analyzing that particular portion of the population which are effected by the brand extension.
It have also provided the opportunity for the researcher for not hampering the quality of the
research work as with the help for primary quantitative data collection technique, the researcher
gathered quality data for competing the research. The use of objective related question has also
helped the researcher for fulfilling the aim and objective of the research, hence providing quality
work for the research.

37DISSERTATION
3.6 Data analysis technique
The data collection techniques are divided into two types – quantitative and qualitative
data analysis technique (Li et al., 2016). The qualitative data analysis technique is used for
focusing on the quality of the data rather than analysis it based on the quantity of the data. It also
makes the researcher depicted the data by analyzing the transcript. However, in term of
quantitative data analysis, the technique mostly emphasizes on the quantity of data upon the
quality of the data. The data collected can be analyzed based on numeric values by represented
them in charts, normal and pie and graphs (Bansal, Sharma & Goel, 2017). The researcher have
also considered the possibility of using descriptive analysis, which includes the use of normality,
mean and standard deviation, factor analysis, correlation matrix and regression.
3.6.1 Justification for selecting quantitative data analysis technique
In the research, quantitative data analysis technique is used for completing the research.
This has helped the researcher for focusing of the quantity of data, and omitting the quality of
data collected. With the help of quantitative data collection technique, the researcher was able to
collected more amount of data from more participants that were anticipated by the execution of
brand extension and implantation of new products and services. As a result, the researcher was
able to collected 70 point of views among the participants.
3.7 Ethical consideration
It is considered that the researcher is abided for considering the ethics of data collection
in order to complete the research. The data confidentiality is one of the most important ethical
considerations which the researcher has to consider and protect (Hemming, 2019).
Confidentiality of the data is of the utmost significance of the ethical consideration, as the
researcher is bound to keep the information protected from others; hence their consent is

38DISSERTATION
important, which is also an ethical consideration. The researcher cannot force any participants in
the data collection process; hence consent of the participants is important.
3.8 Summary
Henceforth, it can be concluded that the researcher have been able to make certain
assumptions regarding the literature and have been able to highlight aspects of the research
methodology tools that can be used for carrying out and completing the research successfully. In
essence to that, the researcher has also been able to rationalize the selection of some particular
aspects of the research method which has been used for conducting the research. It can also be
included that necessary justification has been provided by the researcher in order to achieve the
research aim and objectives, and also fulfilling the research objectives appropriately. Thus, the
researcher have been able to understand the extension of brand in case of low fit, which is
regulated by the joint venture of Adidas and Toyota for producing products like showering gel,
and furniture.

39DISSERTATION
Chapter 4: Data analysis:
4.0 Overview
In this data analysis chapter, the responses collected from the customers of two popular
and well-known brands, Adidas and Toyota are subjected to desired and relevant tests for
understanding the factors those play a significant role in brand extensions for low fits. Adidas is
a well-known brand that excels in selling sports products and Toyota is a well-known brand that
excels the in car sector. Both the companies are leading in their respective sectors and the factors
affecting the brand extension of these two companies for launching bathing gel, furniture and
energy drink are to be analyzed from the consumer perspectives.

40DISSERTATION
4.1 Adidas
4.1.1 Descriptive analysis
Figure 3: Demographic characteristics of Adidas customers
From the above pie charts, it can be inferred that majority, that is 75% of the customers
those took part in the survey for brand extensions for low fits for Adidas belongs to age group
21-34 years followed by 18% of the customers belonging to age group 35-44 years and the rest
belonged to age groups under 21, 45-44 and 65+ years belonging to both male and female gender
specifications. Considering the brand recognition and awareness of Adidas, 56% of the
customers had positive purchase intentions whereas 9% scored negative in this aspect followed

41DISSERTATION
by 32% are not sure about their purchase intentions from Adidas. Around 65% and 28% of the
customers are aware of the brand Adidas whereas the remaining customers are not sure about it.
4.1.2 Inferential analysis
Normality test
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Sustainability .167 64 .000 .911 64 .000
Proximity .236 64 .000 .868 64 .000
Brand_extensio
n .158 64 .000 .924 64 .001
Curiosity .174 64 .000 .898 64 .000
Innovativeness .274 64 .000 .867 64 .000
a. Lilliefors Significance Correction
Table 2: Tests of normality
The table above indicates the normality test results of the factors sustainability, making,
curiosity and innovativeness with the dependent variable brand extension of low fit products
such as bathing gel, curiosity and energy drink for Adidas Company. According to the Shapiro-
Wilk test, data is said to be normal if the value obtained in greater than 0.05. However, from the
above table, it can be said that the data distributed are not normal, as the values obtained are less
0.05. The probable reasons for having non-normal distribution of data are presence of large
sample size, presence of skewers and presence of mixed distributions.
Correlation matrix
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings

42DISSERTATION
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 27.631 50.237 50.237 27.631 50.237 50.237
2 5.353 9.733 59.971 5.353 9.733 59.971
3 2.873 5.223 65.193 2.873 5.223 65.193
4 2.564 4.661 69.855 2.564 4.661 69.855
5 1.838 3.341 73.196 1.838 3.341 73.196
6 1.670 3.036 76.232 1.670 3.036 76.232
7 1.281 2.328 78.560 1.281 2.328 78.560
8 1.182 2.149 80.709 1.182 2.149 80.709
9 1.061 1.930 82.639 1.061 1.930 82.639
10 .950 1.727 84.366
11 .891 1.619 85.985
12 .780 1.418 87.403
13 .667 1.213 88.617
14 .626 1.138 89.755
15 .508 .924 90.678
Table 3: Factor analysis
The above table indicates the factor analysis results for Adidas when the company is
aiming towards extending by launching products such as bathing gel, furniture and energy drink.
From the above table, it can be said nine factors play an important role in determining successful
brand extensions for low fit products. This can be said so because the values obtained are
ranging within 0 to +1 indicating positive association among each of the sub factors affecting the
main factors, marketing, curiosity, innovativeness and sustainability. The sub factors influencing
the main factors are quality, purchase intention, perception, reliability, loyalty, substitute,
complimentary, proximity, substitute and skills transfer. The sub factors are grouped under the
four main factors, marketing, innovativeness, sustainability and curiosity and under dependent
variable, brand extension.
ANOVA

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ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 54.427 6 9.071 14.580 .000
Within Groups 35.463 57 .622
Total 89.890 63
Table 4: ANOVA table
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 62.142 4 15.536 33.033 .000
Within Groups 27.748 59 .470
Total 89.890 63
Table 5: ANOVA table
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 54.427 6 9.071 14.580 .000
Within Groups 35.463 57 .622
Total 89.890 63
Table 6: ANOVA table
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 57.878 8 7.235 12.430 .000
Within Groups 32.011 55 .582

44DISSERTATION
Total 89.890 63
Table 7: ANOVA table
The above ANOVA tables has been derived by subjecting the dependent variable, brand
extension and the independent variables, innovativeness, marketing, sustainability and curiosity
to the test. The above ANOVA tables highlight the f-value for the respective variables and the
significant value obtained is .000 thereby, indicating significant difference between the low fit
factors and brand extensions.
Regression analysis
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .892a .796 .782 .55717
a. Predictors: (Constant), Curiosity, Proximity,
Sustainability, Innovativeness
Table 8: Regression analysis
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression 71.574 4 17.893 57.638 .000b
Residual 18.316 59 .310
Total 89.890 63
a. Dependent Variable: Brand_extension
b. Predictors: (Constant), Curiosity, Proximity, Sustainability, Innovativeness
Table 9: Regression analysis
The above tables present the p-value obtained from the regression analysis. For
conducting the regression analysis, the independent variables, marketing, curiosity, sustainability
and innovativeness and the dependent variable, brand extensions for low fit products of Adidas,

45DISSERTATION
bathing gel, furniture and energy drinks. The p-value derived from the regression analysis is .000
that indicates that significant difference between the independent variables with the dependent
variable. Hence, it can be inferred that factors like marketing, sustainability, curiosity and
innovativeness have an impact on successful brand extensions for low fits.
4.2 Toyota
4.2.1 Descriptive analysis
Figure 4: Demographic characteristics of Toyota customers
From the above pie charts, it can be inferred that majority, that is 82% of the customers
those took part in the survey for brand extensions for low fits for Adidas belongs to age group

46DISSERTATION
21-34 years followed by 10% of the customers belonging to age group 35-44 years and the rest
belonged to age groups 45-44, 55-64 and 65+ years belonging to both male and female gender
specifications. Considering the brand recognition and awareness of Toyota, 62% of the
customers had positive purchase intentions whereas 6% scored negative in this aspect followed
by 28% are not sure about their purchase intentions from Toyota. Around 54% and 28% of the
customers are aware about the brand Adidas whereas the remaining customers are not sure about
it.
4.2.2 Inferential analysis
Normality test
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Brand_extensio
n .120 49 .073 .942 49 .018
Curiosity .174 49 .001 .913 49 .001
Innovativeness .194 49 .000 .902 49 .001
Sustainability .195 49 .000 .933 49 .008
Proximity .209 49 .000 .907 49 .001
a. Lilliefors Significance Correction
Table 10: Normality matrix
The table above indicates the normality test results of the factors sustainability, making,
curiosity and innovativeness with the dependent variable brand extension of low fit products
such as bathing gel, curiosity and energy drink for Toyota Company. According to the Shapiro-
Wilk test, data is said to be normal if the value obtained in greater than 0.05. However, from the
above table, it can be said that the data distributed are not normal, as the values obtained are less
0.05. The probable reasons for having non-normal distribution of data are presence of large
sample size, presence of skewers and presence of mixed distributions.

47DISSERTATION
Factor analysis
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 22.904 41.643 41.643 22.904 41.643 41.643
2 4.655 8.465 50.107 4.655 8.465 50.107
3 3.361 6.112 56.219 3.361 6.112 56.219
4 2.899 5.271 61.490 2.899 5.271 61.490
5 2.773 5.043 66.533 2.773 5.043 66.533
6 2.154 3.916 70.449 2.154 3.916 70.449
7 1.796 3.266 73.715 1.796 3.266 73.715
8 1.510 2.745 76.460 1.510 2.745 76.460
9 1.414 2.571 79.031 1.414 2.571 79.031
10 1.374 2.498 81.529 1.374 2.498 81.529
11 1.073 1.951 83.480 1.073 1.951 83.480
12 .981 1.784 85.265
13 .932 1.695 86.960
14 .805 1.464 88.424
15 .738 1.343 89.767
Table 11: Factor analysis
The above table indicates the factor analysis results for Toyota when the company is
aiming towards extending by launching products such as bathing gel, furniture and energy drink.
From the above table, it can be said eleven factors play an important role in determining
successful brand extensions for low fit products. This can be said so because the values obtained
are ranging within 0 to +1 indicating positive association among each of the sub factors affecting
the main factors, marketing, curiosity, innovativeness and sustainability. The sub factors
influencing the main factors are quality, purchase intention, perception, reliability, loyalty,
substitute, complimentary, proximity, substitute and skills transfer. The sub factors are further

48DISSERTATION
grouped under the four main factors, marketing, innovativeness, sustainability and curiosity and
under dependent variable, brand extension.
ANOVA
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 32.294 4 8.073 10.903 .000
Within Groups 32.581 44 .740
Total 64.875 48
Table 12: ANOVA table
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 22.861 4 5.715 5.986 .001
Within Groups 42.014 44 .955
Total 64.875 48
Table 13: ANOVA table
ANOVA
Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 32.280 4 8.070 10.894 .000
Within Groups 32.595 44 .741
Total 64.875 48
Table 14: ANOVA table
ANOVA

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Brand_extension
Sum of
Squares
df Mean
Square
F Sig.
Between
Groups 33.591 7 4.799 6.289 .000
Within Groups 31.284 41 .763
Total 64.875 48
Table 15: ANOVA table
The above ANOVA tables has been derived by subjecting the dependent variable, brand
extension and the independent variables, innovativeness, marketing, sustainability and curiosity
to the test. The above ANOVA tables highlight the f-value for the respective variables and the
significant value obtained is .000 thereby, indicating significant difference between the low fit
factors and brand extensions.
Regression analysis
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .781a .610 .574 .75862
a. Predictors: (Constant), Curiosity, Proximity,
Innovativeness, Sustainability
Table 16: Regression analysis
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression 39.553 4 9.888 17.182 .000b
Residual 25.322 44 .576
Total 64.875 48
a. Dependent Variable: Brand_extension
b. Predictors: (Constant), Curiosity, Proximity, Innovativeness, Sustainability

50DISSERTATION
Table 17: Regression analysis
The above tables present the p-value obtained from the regression analysis. For
conducting the regression analysis, the independent variables, marketing, curiosity, sustainability
and innovativeness and the dependent variable, brand extensions for low fit products of Toyota,
bathing gel, furniture and energy drinks. The p-value derived from the regression analysis is .000
that indicates that significant difference between the independent variables with the dependent
variable. Hence, it can be inferred that factors like marketing, sustainability, curiosity and
innovativeness have an impact on successful brand extensions for low fits.
Hypothesis Status
Hypothesis 1:
H0: Proximity does not affect brand extensions for low fits
H1: Proximity does affect brand extensions for low fits
Rejected
Accepted
Hypothesis 2:
H0: Curiosity does not affect brand extensions for low fits
H1: Curiosity does affect brand extensions for low fits
Rejected
Accepted
Hypothesis 3:
H0: Innovativeness of extension does not affect brand extensions for low
fits
H1: Innovativeness of extension does affect brand extensions for low fits
Rejected
Accepted
Hypothesis 4:
H0: Product sustainability does not affect brand extensions for low fits
H1: Product sustainability does affect brand extensions for low fits
Rejected
Accepted
Table 18: Hypotheses table
Hence, as Adidas and Toyota tend to extend their brand to a completely new sector by
introducing products such as bathing gel, energy drink and furniture, the factors considered have

51DISSERTATION
a significant difference on successful brand extensions and the null hypotheses are rejected and
the alternate hypotheses are accepted for both the brands.
4.3 Summary
From the data analysis, it can be inferred that for both Adidas and Toyota brand extension
success by launching products such as bathing gel, energy drinks and furniture is influenced by
the four independent variables, curiosity, innovativeness, sustainability and marketing those are
further influenced by sub factors such as quality, purchase intention, perception, reliability,
loyalty, substitute, complimentary, proximity, substitute and skills transfer. The correlation
matrix obtained for both the brands indicate that nine and eleven factors influence successful
brand extensions for Adidas and Toyota respectively that supports the results derived for the p-
value obtained for the regression analysis, that is, .000. Hence, the null hypotheses are rejected
and alternate hypotheses are accepted for both Adidas and Toyota brand.

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Chapter 5: Discussions
The past researches and studies presented in the literature review chapter also supports
the role of the factors in influencing brand extensions suitably. Kim, Stepchenkova and Yilmaz
(2019), Moon and Sprott (2016), Ramanathan and Velayudhun (2015) and Ferguson, Lau and
Phau (2016) state in their studies the role played by the main factors, marketing, curiosity,
innovativeness and sustainability in successful brand extension for low fit products. The findings
in the past researches reveal that developing curiosity among the target audiences keep them
engaged and glued towards them. Moreover, brand extension provides opportunities for the
brand to bring in and offer some innovativeness to the target audiences.
However, such brand extensions also have some negative consequences on the newly
branched product. Chen et al. (2017), Liu, Hu and Xu (2017), Shah (2015) and Yuan et al.
(2016) presents a different view about successful brand extension. There are instances where the
target audiences react adversely to the newly launched product because they cannot relate with it.
For instance, considering the sector Adidas excels in, brand extensions by launching products
like bathing gel, energy drink and furniture can instigate negative responses, as the target
customers might fail to relate the past and present products.
The past researches and studies presented in the literature review chapter also support the
role of the factors in influencing brand extensions suitably. Gürhan-Canli, Hayran and Sarial-Abi
(2016), Goedertier et al. (2015), Walsh and Williams (2017) and Sinapuelas, Wang & Bohlmann
(2015) discuss in their studies the role played by the main factors, marketing, curiosity,
innovativeness and sustainability in successful brand extension for low fit products. Brand
extension for low fits in terms of Toyota is beneficial because the new products offered by the

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brand attracts and grabs the attention of the customers. This keeps the target audiences glued and
engaged towards the brand, Toyota, in this case. This offers several benefits to the brands in
terms of increased sales, profitability and competitive advantage.
However, such brand extensions also have some negative consequences on the newly
branched product. Samuelsen, Olsen and Keller (2015), Johnson, Tian & Lee, (2016), Richard
and Cleveland (2016) and Baek and King (2015) presents a different view about successful brand
extension. This is because brand extension conducted in unrelated markets results in loss of
reliability. This is because the new products do not make any sense in the market and feels that
the name of the brand is exaggerated. As Toyota being a popular motor company launching
products those are completely new and does not relate to the existing sector, negative
consequences can be witnessed.
Information by Dissanayake & Amarasuriya, (2015), Keller, (2016), Schmitz &
Villaseñor-Román, (2018), Bravo et al., (2017) and Kaur, (2016) mention the significance of
David Aaker’s brand equity model for successful brand extensions because this ensures
appropriate brand awareness, positive perceived quality and brand associations. The brand equity
model is applicable for both Adidas and Toyota considering the brand extensions they intend to
do.

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Chapter 6: Conclusion and recommendations
6.0 Conclusion
From the information provided in the above chapters, it can be concluded that the success
of brand extensions is indeed influenced by different factors. It is necessary for brands to offer
something new at regular intervals for the target audience because it keeps them excited and
encouraged about the brand and the new launches. Brand extensions are a strategy for the big
brands to launch new products and services without much effort because their existing reputation
works for them. However, there are instances when brands are willing to venture a into
completely new sector or industry. Challenges occur when such ventures of the brands tend to
fail because the customers do not perceive it rightfully. This is because the customers cannot
relate to the newly launched product and do not perceive the innovation in a positive manner.
This is where low fits arise because the brand extension is completely new to the customers and
they cannot relate with it thereby, imposing severe consequences on the brand in terms of sales,
productivity, profit and revenue.
Similar is the case of Adidas and Toyota, where the two well-known and established
companies in their respective sector are willing to extend their brand by launching products such
as bathing gel, furniture and energy drinks. These products are completely new and different for
both Adidas and Toyota because Adidas deals and excels in sportswear whereas Toyota deals
and excels in cars and motors. For these two companies to launch products such as bathing gel,
energy drink and furniture, it can be inferred as brand extensions for low fits. From analyzing the
customers’ responses of both Adidas and Toyota, nine and eleven factors are playing an
important role in determining successful brand extensions. Additionally, from the regression

55DISSERTATION
analysis, it can be said that the null hypotheses for both the brands are rejected as the p-value
obtained is .000 that is lower than 0.05 and the alternate hypotheses are accepted. Hence, factors
such as marketing, curiosity, innovativeness and sustainability influence brand extensions
successfully.
6.1 Theoretical implications of the study
From the theoretical information presented in the above sections, it can be said that brand
extensions are strategies undertaken by the brands to introduce new products and services to the
market. Brand extensions are preferred by the brands because it is a cheap way of introducing
new products in a new category, because they can use the brand equity built-up in the original
category that is parent brand. This helps in gaining competitive advantage by increasing sales
and productivity. However, on the other hand, things get difficult when brands try to launch
products in a completely new sector. This is said to be brand extensions for low fits because the
brands are said to venture into something that is completely new. David Aaker’s brand equity
model explains the role played by the parent brand in making successful brand extensions.
However, the influence of the parent brand is questioned when performing brand extensions that
impose negative impact on the parent brand and the extended brands. Such circumstances occur
because the target audiences do not take the newly launched product positively. This is because
the target audiences fail to relate with the new one and convincing them is often challenging.
Regardless of the positive and the negatives, brand extensions are still practiced by organizations
in order to survive the competitive business world.

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6.2 Managerial implications of the study
Considering the challenges of brand extensions, the suitable recommendations those
Adidas and Toyota can undertake for launching products such as bathing gel, energy drinks and
furniture are listed below:
Uniqueness of the new product
As the brands, Toyota and Adidas are launching categories that are different from their
existing sector; the product in those new categories needs to be unique in their own way. The
uniqueness of the products must be highlighted and pointed out to the customers so that they can
relate to the new products appropriately.
Communicating the reasons to the target audiences
As known, both Adidas and Toyota are well known and popular in their respective
sectors and hence, the primary reason for launching products completely out of their expertise
must be communicated and justified with the target audiences. This will provide better
opportunity for the target audiences to relate with the newly launched product and influence
them positively.
6.3 Limitations and suggestions for further research
The current study has been developed based on the opinions of the existing customers of
Adidas and Toyota using survey method. As a result, opinions of the customers were collected in
large scale but the current study lacks an in-depth view of the customers about the extension of
the brands by launching products such as bathing gel, energy drinks and furniture. Hence, in the
future, research can be conducted by interviewing few customers of Adidas and Toyota and
known their in-depth view and opinion about brand extensions of Adidas and Toyota. The

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customers will also have better opportunities to express themselves about brand extensions of
low fit. The current study is based on number of sub factors clubbed under main variables those
are divided into independent and dependent variables. However, so many factors made it
challenging for performing factor analysis because the results and huge that made analysis
challenging and the ultimate purpose is left unattended. Hence, in the future, research can be
conducted by considering maximum five sub factors selected as the main variables that will
derive justified values for factor analyses.

58DISSERTATION
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Appendices
Appendix 1
Adidas survey questionnaire
Demographics
Please specify your age?
Please specify your gender?
Purchase intention
"A brand name influences your buying decision"
Awareness
I can identify Adidas products from others
Quality
I think Adidas have good quality products
I think the Adidas brand is reliable
I consider Adidas products trust worthy
Purchase int_1
I would buy the following products from Adidas, if they start to produce them – Furniture’s
I would buy the following products from Adidas, if they start to produce them - Energy drinks

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I would buy the following products from Adidas, if they start to produce them - Bathing gel
Perception_1
"I think if Adidas Company starts producing the following, they would be of good quality -
Furniture’s"
"I think if Adidas Company starts producing the following, they would be of good quality -
Energy drinks"
"I think if Adidas Company starts producing the following, they would be of good quality -
Bathing gel"
Reliability_1
"I assume that if Adidas Company offers the following products, they would be reliable -
Furniture’s"
"I assume that if Adidas Company offers the following products, they would be reliable - Energy
drinks"
"I assume that if Adidas Company offers the following products, they would be reliable -
Bathing gel"
Loyalty_1
"If I would find the following products from Adidas Company good, I would recommend them
to other people - Furniture’s"

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"If I would find the following products from Adidas Company good, I would recommend them
to other people - Energy drinks"
"If I would find the following products from Adidas Company good, I would recommend them
to other people - Bathing gel"
skil trans_1
"I think Adidas Company has the knowledge/skills to create the following products -
Furniture’s"
"I think Adidas Company have the knowledge/skills to create the following products - Energy
drinks"
"I think Adidas Company have the knowledge/skills to create the following products - Bathing
gel"
skil trans_ 1 A
I think Adidas can create the following products, since they are already able to produce Shoes,
Clothing and Accessories - Furniture’s
I think Adidas can create the following products, since they are already able to produce Shoes,
Clothing and Accessories - Energy drinks
I think Adidas can create the following products, since they are already able to produce Shoes,
Clothing and Accessories - Bathing gel
Substitute_1

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I can imagine using the following products as substitutes for a Shoes, Clothing and Accessories -
Furniture’s
I can imagine using the following products as substitutes for a Shoes, Clothing and Accessories -
Energy drinks
I can imagine using the following products as substitutes for a Shoes, Clothing and Accessories -
Bathing gel
Cmpl_1
"I can imagine using the following products together with Shoes, Clothing and Accessories at the
same moment - Furniture’s"
"I can imagine using the following products together with Shoes, Clothing and Accessories at the
same moment - Energy drinks"
"I can imagine using the following products together with Shoes, Clothing and Accessories at the
same moment - Bathing gel"
crsty_1
"I would buy the following products from Adidas brand because it seems surprising that the
company came up with the idea to produce them - Furniture’s"
"I would buy the following products from Adidas brand because it seems surprising that the
company came up with the idea to produce them - Energy drinks"
"I would buy the following products from Adidas brand because it seems surprising that the
company came up with the idea to produce them - Bathing gel"

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Crsty_1_A
"I would buy the following products from Adidas brand because of the desire to know more
about them - Furniture’s"
"I would buy the following products from Adidas brand because of the desire to know more
about them - Energy drinks"
"I would buy the following products from Adidas brand because of the desire to know more
about them - Bathing gel"
Crsty_1_B
"I think I would be inquisitive to buy the following products if they are produced by Adidas
Company - Furniture’s"
"I think I would be inquisitive to buy the following products if they are produced by Adidas
Company - Energy drinks"
"I think I would be inquisitive to buy the following products if they are produced by Adidas
Company - Bathing gel"
Inova
"I consider Adidas Company very creative"
inova_1
I consider the following products, if produced by Adidas, as being creative - Furniture’s
I consider the following products, if produced by Adidas, as being creative - Energy drinks

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I consider the following products, if produced by Adidas, as being creative - Bathing gel
Inova_1_A
"I can imagine buying the following products from Adidas brand because I consider the idea of
Adidas Company producing them as being inventive - Furniture"
"I can imagine buying the following products from Adidas brand because I consider the idea of
Adidas Company producing them as being inventive - Energy drinks"
"I can imagine buying the following products from Adidas brand because I consider the idea of
Adidas Company producing them as being inventive - Bathing gel"
prx_1
I would buy the following products from Adidas if they are easily accessible when I need them -
Furniture
I would buy the following products from Adidas if they are easily accessible when I need them -
Energy drinks
I would buy the following products from Adidas if they are easily accessible when I need them -
Bathing gel
Prx_1_A
"I would buy the following products from the closest shop, regardless of which brand -
Furniture"

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"I would buy the following products from the closest shop, regardless of which brand - Energy
drinks"
"I would buy the following products from the closest shop, regardless of which brand - Bathing
gel"
sust_1
I assume the following products if produced by Adidas would be sustainable/improve
environmental quality - Furnitures
I assume the following products if produced by Adidas would be sustainable/improve
environmental quality - Energy drinks
I assume the following products if produced by Adidas would be sustainable/improve
environmental quality - Bathing gel
Sust_1_A
The more I think the following products from Adidas brand are sustainable, the more hopefully I
would buy/recommend them - Furniture
The more I think the following products from Adidas brand are sustainable, the more hopefully I
would buy/recommend them - Energy drinks
The more I think the following products from Adidas brand are sustainable, the more hopefully I
would buy/recommend them - Bathing gel

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Appendix 2
Toyota survey questionnaire
Demographics
Please specify your age?
Please specify your gender?
Purchase intention
"A brand name influences your buying decision"
Awareness
I can identify Toyota products from others
Quality
I think Toyota has good quality products
I think the Toyota brand is reliable
I consider Toyota products trust worthy
Purch int_1
If I would need the following products, i would buy them from Toyota Company if Toyota starts
to produce them - Furniture

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If i would need the following products, i would buy them from Toyota Company if Toyota starts
to produce them - Energy drinks
If i would need the following products, i would buy them from Toyota Company if Toyota starts
to produce them - Bathing gel
Percpt_1
"I think if Toyota Company starts producing the following, they would be of good quality -
Furniture"
"I think if Toyota Company starts producing the following, they would be of good quality -
Energy drinks"
"I think if Toyota Company starts producing the following, they would be of good quality -
Bathing gel"
Reliabilt_1
"I assume that if Toyota Company offers the following products, they would be reliable -
Furniture"
"I assume that if Toyota Company offers the following products, they would be reliable - Energy
drinks"
"I assume that if Toyota Company offers the following products, they would be reliable -
Bathing gel"
Loyalty_1

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"If I would find the following products from Toyota Company good, I would recommend them
to other people - Furniture"
"If I would find the following products from Toyota Company good, I would recommend them
to other people - Energy drinks"
"If I would find the following products from Toyota Company good, I would recommend them
to other people - Bathing gel"
Skill Trans_1
"I think Toyota Company have the knowledge/skills to create the following products - Furniture"
"I think Toyota Company have the knowledge/skills to create the following products - Energy
drinks"
"I think Toyota Company have the knowledge/skills to create the following products - Bathing
gel"
skil trans_ 1 A
I think Toyota can create the following products, since they are able to produce Cars – Furniture
I think Toyota can create the following products, since they are able to produce Cars - Energy
drinks
I think Toyota can create the following products, since they are able to produce Cars - Bathing
gel
Subst_1
I can imagine using the following products as substitutes for Cars - Furniture

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I can imagine using the following products as substitutes for Cars - Energy drinks
I can imagine using the following products as substitutes for Cars - Bathing gel
Complemt_1
I can imagine using the following products together with a vehicle at the same moment -
Furniture
I can imagine using the following products together with a vehicle at the same moment - Energy
drinks
I can imagine using the following products together with a vehicle at the same moment - Bathing
gel
Curiusty_1
"If i would need the following products, i would buy them from Toyota brand because it seems
surprising that the company came up with the idea to produce them - Furniture"
"If i would need the following products, i would buy them from Toyota brand because it seems
surprising that the company came up with the idea to produce them - Energy drinks"
"If i would need the following products, i would buy them from Toyota brand because it seems
surprising that the company came up with the idea to produce them - Bathing gel"
Curiusty_1_A
"If i would need the following products, i would buy them from Toyota brand because of the
desire to know more about them - Furnitures"

78DISSERTATION
"If i would need the following products, i would buy them from Toyota brand because of the
desire to know more about them - Energy drinks"
"If i would need the following products, i would buy them from Toyota brand because of the
desire to know more about them - Bathing gel"
Curiusty_1_B
If i would need the following products, i think I would be inquisitive to buy them from Toyota
Company if they start producing them - Furniture
If i would need the following products, i think I would be inquisitive to buy them from Toyota
Company if they start producing them - Energy drinks
If i would need the following products, i think I would be inquisitive to buy them from Toyota
Company if they start producing them - Bathing gel
Innov
"I consider Toyota Company very creative"
Innov_1
I consider the following products, if produced by Toyota, as being creative - Furniture
I consider the following products, if produced by Toyota, as being creative - Energy drinks
I consider the following products, if produced by Toyota, as being creative - Bathing gel
Innov_1_A

79DISSERTATION
"I would buy the following products from Toyota brand because I consider the idea of Toyota
Company producing them as being inventive - Furniture"
"I would buy the following products from Toyota brand because I consider the idea of Toyota
Company producing them as being inventive - Energy drinks"
"I would buy the following products from Toyota brand because I consider the idea of Toyota
Company producing them as being inventive - Bathing gel"
Proxmt_1
I would buy the following products from Toyota if they are easily accessible when I need them -
Furniture
I would buy the following products from Toyota if they are easily accessible when I need them -
Energy drinks
I would buy the following products from Toyota if they are easily accessible when I need them -
Bathing gel
Proxmt_1_A
"I would buy the following products from the closest shop, regardless of which brand, if i would
need them - Furniture"
"I would buy the following products from the closest shop, regardless of which brand, if i would
need them - Energy drinks"
"I would buy the following products from the closest shop, regardless of which brand, if i would
need them - Bathing gel"

80DISSERTATION
Sustainbt_1
I assume the following products if produced by Toyota would be sustainable/improve
environmental quality - Furniture
I assume the following products if produced by Toyota would be sustainable/improve
environmental quality - Energy drinks
I assume the following products if produced by Toyota would be sustainable/improve
environmental quality - Bathing gel
Sustainbt_1_A
The more I think the following products from Toyota brand are sustainable, the more hopefully I
would buy/recommend them - Furniture
The more I think the following products from Toyota brand are sustainable, the more hopefully I
would buy/recommend them - Energy drinks
The more I think the following products from Toyota brand are sustainable, the more hopefully I
would buy/recommend them - Bathing gel

81DISSERTATION
Appendix 3
Factor analysis Adidas
Component Matrixa
Component
1 2 3 4 5 6 7 8 9
Quality .590 -.125 -.681 -.107 .240 .148
Quality .546 -.211 -.632 -.168 .267 .139
Quality .602 -.173 -.108 -.550 .265 -.137
Purchase
int_1 .654 .449 .189 -.150 .187
Purchase
int_2 .795 -.271 .274 .139 -.104 -.117
Purchase
int_3 .702 -.387 -.120 .277
Perception_1 .669 .562 .135 -.148 .142 .146
Perception_2 .749 -.230 .229 .198 -.126 -.132 .164 -.149
Perception_3 .753 -.398 -.121 .183 -.154 .165
Reliability_1 .649 .499 .173 -.131 .182 .108
Reliability_2 .655 -.299 .240 -.301 .251 -.198
Reliability_3 .716 -.434 -.143 .191 -.182
Loyalty_1 .714 .403 .164 .184 .100 -.135 .175
Loyalty_2 .706 -.358 .349 .118 .244 -.141 .153 .114
Loyalty_3 .761 -.274 .119 .221 .135
skil trans_1 .703 .504 .133 .183
skil trans_2 .716 -.394 .241 -.150 .128
skil trans_3 .738 -.227 -.444 .128 -.153
skil trans_1 .697 .556 .191 .139
skil trans_2 .742 -.304 .152 -.219 .289
skil trans_3 .761 -.159 -.380 .152 -.198
Substitute_1 .663 .490 -.248 .255 -.259
Substitute_2 .687 -.123 .169 -.233 .345 -.352
Substitute_3 .798 -.248 .125 -.169 -.147 .200 -.211
Cmpl_1 .730 .428 .140
Cmpl_2 .777 -.275 .275 -.142 -.127 -.182
Cmpl_3 .787 -.283 -.243
crsty_1 .753 .433 -.126 .307
crsty_2 .772 -.219 .167 -.295 .300
crsty_3 .821 -.350 -.177 .205 .120
crsty_1 .793 .365 -.247 .262 -.158
crsty_2 .719 -.372 .276 -.229 .290 -.147

82DISSERTATION
crsty_3 .775 -.193 -.275 -.252 .153 -.199
crsty_1 .784 .399 -.171 .197 -.107 -.131 -.221
crsty_2 .734 -.406 .280 .155 -.102 -.173 -.136
crsty_3 .824 -.193 -.214 .179 -.137 -.158
inova .664 -.219 -.330 .221 .257
inova_1 .641 .356 .135 .136 -.143 -.471 -.111
inova_2 .711 -.285 .220 -.212 .235 .151
inova_3 .712 -.127 -.304 .213 -.254 .106 .172 -.164
inova_1 .757 .374 -.200 -.101 .137
inova_2 .709 -.282 .230 -.139 -.154 .213 .242
inova_3 .842 -.164 -.101 -.141 .121 .102
prx_1 .728 .440 .132 .132 .130 -.150 -.102 -.159
prx_2 .727 -.401 .313 .172 -.176 .104
prx_3 .771 -.267 -.210 .145 .104 -.177 -.200 .165
prx_1 .357 .285 .399 .104 .179 .293 .500
prx_2 .379 -.322 .155 .466 .400 .197 .387 -.151 .189
prx_3 .308 -.284 -.277 .211 .470 .326 .341 -.197
sust_1 .650 .435 .183 -.125 -.133 .222
sust_2 .730 -.282 .341 .217 -.104 -.190 -.113 .145 .101
sust_3 .789 .305 -.136 -.264 -.153 .209
Sust_1 .672 .448 .167 .143 -.212 -.163
Sust_2 .684 -.197 .357 .193 -.121 -.322 .116 .145
Sust_3 .701 -.210 .245 -.436 .134
Extraction Method: Principal Component Analysis.
a. 9 components extracted.

83DISSERTATION
Appendix 4
Factor analysis Toyota
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 22.904 41.643 41.643 22.904 41.643 41.643
2 4.655 8.465 50.107 4.655 8.465 50.107
3 3.361 6.112 56.219 3.361 6.112 56.219
4 2.899 5.271 61.490 2.899 5.271 61.490
5 2.773 5.043 66.533 2.773 5.043 66.533
6 2.154 3.916 70.449 2.154 3.916 70.449
7 1.796 3.266 73.715 1.796 3.266 73.715
8 1.510 2.745 76.460 1.510 2.745 76.460
9 1.414 2.571 79.031 1.414 2.571 79.031
10 1.374 2.498 81.529 1.374 2.498 81.529
11 1.073 1.951 83.480 1.073 1.951 83.480
12 .981 1.784 85.265
13 .932 1.695 86.960
14 .805 1.464 88.424
15 .738 1.343 89.767
16 .621 1.129 90.896
17 .533 .970 91.865
18 .519 .943 92.809
19 .475 .863 93.672
20 .407 .741 94.413
21 .373 .679 95.092
22 .342 .622 95.714
23 .323 .588 96.302
24 .278 .505 96.807
25 .240 .436 97.243
26 .228 .415 97.658
27 .175 .318 97.976
28 .150 .273 98.249
29 .136 .248 98.496

84DISSERTATION
30 .122 .221 98.718
31 .107 .195 98.913
32 .095 .172 99.085
33 .084 .153 99.238
34 .072 .130 99.368
35 .063 .115 99.483
36 .058 .105 99.588
37 .052 .094 99.683
38 .040 .074 99.756
39 .035 .063 99.819
40 .028 .051 99.870
41 .023 .042 99.912
42 .018 .034 99.946
43 .015 .028 99.973
44 .009 .017 99.990
45 .003 .006 99.996
46 .001 .003 99.999
47 .001 .001 100.000
48 1.468E-015 2.669E-015 100.000
49 7.930E-016 1.442E-015 100.000
50 4.023E-016 7.314E-016 100.000
51 1.908E-016 3.470E-016 100.000
52 4.201E-017 7.638E-017 100.000
53 -1.825E-
016 -3.319E-016 100.000
54 -6.802E-
016 -1.237E-015 100.000
55 -1.029E-
015 -1.872E-015 100.000
Extraction Method: Principal Component Analysis.

85DISSERTATION