Research Design for Brand Extension: Methodology and Analysis

This report details the research design employed to investigate brand extension strategies, particularly focusing on low-fit scenarios. The study outlines the research philosophy, justifying the selection of positivism and a deductive approach for validating hypotheses. It describes the use of a descriptive research design and a survey research strategy for data collection from a sample of customers. The report justifies the choice of random probability sampling and quantitative data analysis techniques, emphasizing the collection of primary data. Ethical considerations are also addressed, ensuring the integrity of the research process. The research aims to understand consumer behavior regarding new products and services introduced through brand extensions, providing a comprehensive overview of the methodologies and rationale behind the research design.

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.
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
The theory of positivism philosophy would be ideal for the research, thus the researcher has
selected it and used it to complete the research. The use of positivism in the research is applicable due
to its property to 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.
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 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
In the current study, the organization used random sampling technique to select the customers as
participants for conducting the survey. Adidas has considered for selecting 65 customers as
participants, whereas Toyota have considered for selecting 56 participants for commenting against the
joint venture and launching of products like showering gel and furniture.
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.
3.4 Research Execution
3.4.1 Research strategy
The most widely used research strategy for conducting research are survey, interviews, 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 being 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 affected from the execution of brand extension and implementing new
services and products. The researcher has 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.

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 affected 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.
3.6 Data analysis technique
The data collection technique are divided into two type – 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 has 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; which is also an ethical delicacy. 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 has 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.
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 in the 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.
4.1.1 Descriptive analysis

From the results, a majority of the participants; 291 (78.9%) are aged between 21-34 years
followed by 57 (15.4%) who are aged between 35-44 years.
age
Frequency Percent Valid Percent Cumulative
Percent
Valid
21-34 291 78.9 78.9 78.9
35-44 57 15.4 15.4 94.3
45-54 12 3.3 3.3 97.6
55-64 3 .8 .8 98.4
65+ 3 .8 .8 99.2
Under 21 3 .8 .8 100.0
Total 369 100.0 100.0
In addition, most of the participants are males as accounted by 180 (48.8%) while females
counterparts only accounts for 168 (45.5%).
sex
Frequency Percent Valid Percent Cumulative
Percent
Valid
Female 168 45.5 45.5 45.5
Male 180 48.8 48.8 94.3
NA 21 5.7 5.7 100.0
Total 369 100.0 100.0
For the purchase intentions of the customers, majority; 219 (59.3%) confirmed their purchase
intentions while 36 (9.8%) were on the contrary. However, 108 (29.3%) are not sure with their
purchase intentions.
purch int
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 219 59.3 59.3 59.3
No 36 9.8 9.8 69.1
Maybe 108 29.3 29.3 98.4
NA 6 1.6 1.6 100.0
Total 369 100.0 100.0

Moreover, the results indicate that 236 (64%) and 100 (27.1%) of the customers are aware of the
brand Toyota and Adidas whereas the remaining customers are not sure about the brands.
Awareness
Frequency Percent Valid Percent Cumulative
Percent
Valid
Might or might not/Neither
agree nor disagree 24 6.5 6.5 6.5
Definitely yes/Strongly agree 236 64.0 64.0 70.5
Probably yes/Somewhat
agree 100 27.1 27.1 97.6
Probably not/Somewhat
disagree 3 .8 .8 98.4
NA 6 1.6 1.6 100.0
Total 369 100.0 100.0
Descriptives
Statistic Std. Error
Curiusty_1
Mean 2.84 .069
95% Confidence Interval for
Mean
Lower Bound 2.70
Upper Bound 2.97
5% Trimmed Mean 2.82
Median 3.00
Variance 1.734
Std. Deviation 1.317
Minimum 1
Maximum 5
Range 4
Interquartile Range 2
Skewness .044 .127
Kurtosis -1.112 .253
Innov Mean 2.60 .047
95% Confidence Interval for
Mean
Lower Bound 2.51
Upper Bound 2.69
5% Trimmed Mean 2.56
Median 3.00

Variance .827
Std. Deviation .910
Minimum 1
Maximum 5
Range 4
Interquartile Range 1
Skewness .741 .127
Kurtosis 1.161 .253
Sustainbt_1
Mean 2.56 .069
95% Confidence Interval for
Mean
Lower Bound 2.43
Upper Bound 2.70
5% Trimmed Mean 2.51
Median 3.00
Variance 1.747
Std. Deviation 1.322
Minimum 1
Maximum 5
Range 4
Interquartile Range 2
Skewness .400 .127
Kurtosis -.865 .253
Brand_extension
Mean 2.39 .042
95% Confidence Interval for
Mean
Lower Bound 2.31
Upper Bound 2.47
5% Trimmed Mean 2.37
Median 2.00
Variance .663
Std. Deviation .814
Minimum 1
Maximum 6
Range 5
Interquartile Range 1
Skewness .814 .127
Kurtosis 3.079 .253
Marketting Mean 2.24 .044
95% Confidence Interval for
Mean
Lower Bound 2.16
Upper Bound 2.33
5% Trimmed Mean 2.22
Median 2.00

Variance .723
Std. Deviation .850
Minimum 1
Maximum 6
Range 5
Interquartile Range 1
Skewness .711 .127
Kurtosis 2.300 .253
4.1.2 Inferential analysis
Normality test
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Curiusty_1 .151 369 .000 .900 369 .000
Innov .249 369 .000 .825 369 .000
Sustainbt_1 .174 369 .000 .874 369 .000
Brand_extension .237 369 .000 .796 369 .000
Marketting .231 369 .000 .823 369 .000
a. Lilliefors Significance Correction
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
Total % of Variance Cumulative % Total % of Variance Cumulative %

1 7.852 65.434 65.434 7.852 65.434 65.434
2 1.089 9.076 74.510 1.089 9.076 74.510
3 .732 6.101 80.611
4 .492 4.097 84.708
5 .446 3.714 88.422
6 .372 3.099 91.521
7 .331 2.762 94.283
8 .263 2.195 96.478
9 .228 1.903 98.381
10 .176 1.470 99.852
11 .018 .148 100.000
12 -3.351E-017 -2.792E-016 100.000
Extraction Method: Principal Component Analysis.
The above table indicates the factor analysis results for Both the Adidas and 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 two 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, and purchase intention. The sub factors are grouped under the four main factors,
marketing, innovativeness, sustainability and curiosity and under dependent variable, brand extension.
Regression analysis
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .592a .351 .344 .659
a. Predictors: (Constant), Marketting, Curiusty_1, Sustainbt_1, Innov
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 85.562 4 21.390 49.204 .000b
Residual 158.243 364 .435
Total 243.805 368
a. Dependent Variable: Brand_extension

b. Predictors: (Constant), Marketting, Curiusty_1, Sustainbt_1, Innov
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .726 .151 4.799 .000
Curiusty_1 .083 .027 .134 3.112 .002
Innov .013 .039 .014 .323 .747
Sustainbt_1 .080 .027 .130 3.021 .003
Marketting .531 .041 .555 12.919 .000
a. Dependent Variable: Brand_extension
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 Both the Adidas
and 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. In addition, the coefficients
table show that a unit change in curiosity leads 0.083-unit change in branding.
4
Hypothesis Status
Hypothesis 1:
H0: Marketing does not affect brand extensions for low fits
H1: Marketing 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
Accepted
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
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 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.
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 Both the Adidas and Toyota 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) state 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 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.

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 into a 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 Both the Adidas and Toyota 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 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.