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APJML
21,1
The influence of core-brand
attitude and consumer perception
on purchase intention towards
174 extended product
Received December 2007 Shwu-Ing Wu
Revised June 2008
Accepted June 2008
Department of Business Administration,
National Chin-Yi University of Technology, Taiping, Taiwan, and
Chen-Lien Lo
National Tsao-Tun Commercial and Industrial Vocational Senior High School,
Tsao-Tun Town, Taiwan
Abstract
Purpose – This study aims to determine and discuss relevant factors and relationship models
affecting consumers’ purchase intention towards the extended product, PC for Microsoft. The results
are to serve as a reference for managers when implementing brand extension strategies.
Design/methodology/approach – The two major factors, ‘‘core-brand attitude’’ and ‘‘consumer
perception fit’’, have been included in studying their influence on consumer purchase intention
towards extended products. Of the questionnaire surveys distributed to PC users in Taiwan, 667 valid
samples were returned. Structural equation modeling (SEM) was used to establish the relationship
model.
Findings – The results indicate that consumers in Taiwan show a relatively high purchase intention
towards virtually extended products, Microsoft PC. The relational structure shows that brand
awareness has a significant influence on core-brand image (parent-brand image), thus indirectly
affecting core-brand attitude and causing impacts on consumer purchase intention towards extended
products. On the other hand, consumer perception fit has greater influence than core-brand attitude,
denoting that both the brand association and product connection have a remarkable influence on
consumer purchase intention towards extended products.
Originality/value – The study proposes an effective structural model and notes significant
influence factors for consumers’ purchase intention towards extended products.
Keywords Brand extensions, Brand awareness, Consumer behaviour, Purchasing, Taiwan
Paper type Research paper

Asia Pacific Journal of Marketing
and Logistics
Vol. 21 No. 1, 2009
pp. 174-194
# Emerald Group Publishing Limited
1355-5855
DOI 10.1108/13555850910926317
1. Introduction
Creating a new product and promoting the product brand requires a significant
amount of capital. In order to reduce the failure rate for new products, more firms are
now adopting brand extensions. With original well-known branded products
introduced in new markets, original brands can be extended to far-reaching categories
available. Costs and risks can be reduced as long as there is successful new product
marketing (Barone et al., 2000).
Although firms have broadly adopted brand extensions strategies, brand
extensions can have disadvantages including the sales cannibalization of original
products, thus narrowing the profit margin of parent brands (Reddy et al., 1994). As a
result, numerous researchers have appraised brand extensions performance in both
their earlier researches on product consumption (e.g. Aaker and Keller, 1990; Kirmani
et al., 1999) and recent studies on brand extensions in the service industry (e.g. Ruyter
and Wetzls, 2000) or line extensions (e.g. Munthree et al., 2006).
 While there have been numerous studies on a ‘‘brand extensions strategy’’, few deal Influence of
with a multi-dimensional survey. This research therefore aims at integrating the
relevant multi-factors affecting consumers’ purchase intention towards extended
core-brand
products. Our literature review has been collated to help create an integrated model attitude
of consumers’ purchase intention towards extended products in multiple dimensions.
In this case, Microsoft has been used to exemplify virtual brand extensions
implementations. Interactions amongst influential factors and the strength of those
factors have been observed; in addition, this study has included an integrated
175
relational model to determine measurement indicators for those factors influential to
consumers’ purchase intention towards extended products. It also serves as reference
for firms that are planning to adopt brand extensions strategies.
The objectives of this research are stated as follows:
First, by creating a compiled literature review, the influential factors of consumers’
purchase intention towards extended products, measurement indicators, and
structural relation models can be established. Secondly, by conducting tests on virtual
brand extensions, the feasibility model can be examined. The statistical software
applications (SPSS and AMOS) are adopted to conduct analysis and examine
structural relation model efficiency. Thirdly, the relationship structure model is used to
confirm the important influential factors and interactions that take place.

2. Literature Review
2.1 Factors affecting consumers’ purchase intention on extended products
Many scholars have engaged in studies related to the success of brand extensions. In
this research, factors from the consumer perspective have been included – these factors
can be divided into two major categories. The first of which is core-brand attitude
(Aaker and Keller, 1990; Flaherty and Pappas, 2000; Faircloth et al., 2001), and the
second is consumer perception fit (Rangaswamy et al., 1993; Morrin, 1999; Barone et al.,
2000; Bhat and Reddy, 2001) as follows.
2.1.1 Core-brand attitude. Wilkie (1986) and Keller (1993) indicated that a
consumer’s attitude towards a core-brand referred to the consumer’s overall evaluation
of that core-brand, and forms the basis for consumer behavior towards that brand.
There are numerous studies indicating that the accumulation of brand image and use
experience is key determinant of attitude towards core-brand attitude (Carpenter and
Nakamoto, 1989; Kardes and Kalynaram, 1992; Alpert and Kamins, 1995; Martinez and
Chernatony, 2004; Ghen and Liu, 2004). This indicates that core-brand attitude can be
influenced by core-brand image and use experience of core-brand that are as follows.
The influence of core-brand image. Within the scope of brand extensions, a general
finding is that of brand strength, a critical factor during the brand extensions process
(Broniarczyk and Alba, 1994; Reddy et al., 1994). Moreover, past studies on brand strength
indicate that it can be both subjectively and objectively defined. The objective indicators
including market share, advertising and promotional costs, channel stronghold,
and distribution (Reddy et al., 1994). Under a subjective definition, brand strength instead
refers to consumers’ overall assessment of the brand or call brand image, including brand
awareness and brand preference (Aaker and Keller, 1990; Smith and Park, 1992). Tauber
(1981) and Reddy et al. (1994) noted that leading brands in the market generally have
greater brand publicity and market share, and are therefore viewed as superior in the eyes
of consumers (who are also better able to recognize extended products).
To sum up, many researchers have proposed that brand awareness and brand
preference are the main constituents of core-brand image (e.g. Aaker and Keller, 1990;
APJML Smith and Park, 1992). Brand awareness and brand preference will affect the core-
21,1 brand image and is positively related to core-brand attitude (Kardes and Kalyanaram,
1992; Alpert and Kamins, 1995). Therefore, the following hypotheses are proposed:
H1: Brand awareness significantly and positively affects core-brand image.
H2: Brand preference significantly and positively affects core-brand image.
176 H3: Core-brand image significantly and positively affects core-brand attitude.
The influence of use experience of core-brand. Smith and Park (1992) stated that
products can be divided into (a) product use experience and (b) product availability for
visual evaluation. They found that when products were categorized under product
experience, consumers were inclined to utilize their experience of the core-brand during
product quality evaluation on frequency, actual purchase behavior and satisfaction
after use.
Jun et al. (1999) concluded that utilizing experience when evaluating a high-tech
core-brand is helpful to enhancing core-brand attitude towards extended products.
Therefore, we hypothesize the following:
H4: The past use experience of a core-brand significantly and positively affects
core-brand attitude.

2.1.2 The relationship between core-brand attitude and purchase intention. Consumer’s
core-brand attitude will affect their intention to purchase extended products (Miller et
al., 1971; Aeker and Keller, 1990; Faircloth et al., 2001; Nan, 2006). Flahery and Papps
(2000) believe that attitude towards a core-brand is the critical factor in determining
this purchase intention toward extended product. Thus, core-brand attitude is closely
related to consumers’ purchase intention (Ghen and Liu, 2004). Base on these we
hypothesize the following:
H5: Core-brand attitude significantly and positively affects consumers’ purchase
intention of extended products.
2.1.3 Consumer perception fit. Consumer perception fit is the similarity and
characteristic overlap between core-brands and extended categories (Aaker and Keller,
1990; Boush and Loken, 1991; Barone et al., 2000). According to Tauber (1988),
consumer perception fit refers to the perceived consistency and similarity between
original products and extended products.
Perception fit is based on multiple linkages, including use condition, user setting,
functional benefits and social status. Inconsistent behavior will not produce association
transference, and this is probably the cause of product extension failure and damage
(Aaker, 1991). Klink and Smith (2001) divided perception fit into two forms: that of
brand association between original brands and extended products (Broniarczyk and
Alba, 1994), and product connection between original brands and extended brands
(Aaker and Keller, 1990; Herr et al., 1996; Smith and Park, 1992). Both forms are capable
of influencing consumer perception fit as follows:
The influence of brand association. Brand association is the core of brand equity,
and helps consumers process and remember relevant information and create
perception fit toward extended product (Aaker, 1991). Aaker and Keller (1990) stated
that brand association is available for any given brand. Extension capacity and
association are rooted deep within each and every consumer. Brand extension is easy
for a brand with strong association (Yeung and Wyer, 2005). When brand association is Influence of
not related to a product there is greater room of consumer perception fit for brand
extensions (Aaker, 1990).
core-brand
The influence of product connection. If product connection comes with the same attitude
product attributes for extended categories and core-brands, higher perception fit will
result (Keller and Aaker, 1992). A greater level of connection directly implies the higher
possibility of core-brand rights being transferred. Consumer purchase intention
towards extended products will therefore also be higher (Barone et al., 2000). 177
To sum up, we therefore hypothesize the following based on the above:
H6: Brand association significantly and positively affects consumer perception
fit.
H7: Brand connection significantly and positively affects consumer perception
fit.

2.1.4 The relationship between consumer perception fit and purchase intention. Czellar
(2003) reviewed studies performed from 1978 to 2001 on consumer attitude towards
brand extensions. He proposed that when consumers assumed both extended products
and original brand products have suitable fit extensions, consumers tend to be
positively affected by their attitude towards the extended brand. It is well established
that the similarity between extended products and core-brand products under a
consumer subjective attitude is the most important factor in determining whether
extended products are accepted or not. Several studies also reported that the higher the
perceived similarity between the brand extensions and the parent brand the higher the
intention to purchase the extensions (e.g., Boush et al. 1987; Aaker and Keller, 1990;
Keller and Sood, 2003, 2004; Hansen and Hem, 2004).
Park et al. (1991) and Rangaswamy et al. (1993) stated that in order to trigger
purchase intention of extended products, core-brand and extended product consumer
perception fit is vital. Consumer perception fit is the critical factor determining
purchase intention of extended products (Tauber, 1988). Advertising is constantly
communicated to consumers, informing them of the costs and benefits of products;
however, due to time and space limitations the consumers are often unable to fully
evaluate this information. Thus, certain ‘‘clues’’ of perception fit that aid determination
of quality (especially of a core-brand) are essential (Bottomley and Doyle, 1996;
Bottomley and Holden, 2001; Echambadi et al., 2006). Bhat and Reddy (2001)
determined that when consumer perception fit is high, consumers tend to transfer
recognition from original brand to extended products. Morrin (1999) also indicated that
when consumer percept there are fit association between extended products and
original brand products, a greater purchase intention for those extended products is
realized. Extended fit will also affect the categorization of already established brands.
Therefore, the following hypotheses are proposed:
H8: Consumer perception fit significantly and positively affects consumer
purchase intention towards extended products.

2.2 Consumers’ purchase intention on extended products

Focusing on the evaluation of brand extensions effects, the subjective attitude is largely
adopted by some scholars in ‘‘Quality Awareness’’ (Aaker, 1990; Keller and Aaker,
1992), ‘‘Like or Dislike’’ (Park et al., 1991; Broniarczyk and Alba, 1994), and ‘‘Purchase
Intention’’ (Aaker and Keller 1990; Keller and Aaker 1992; Rangaswamy et al., 1993;
APJML Dawar and Anderson, 1994; Czellar, 2003). Other scholars have adopted objective
information to evaluate brand extensions effects, for example in ‘‘Market Share’’ (Smith
21,1 and Park, 1992; Reddy et al., 1994), ‘‘The Survival Rate of Extended Products’’
(Sullivan, 1992), ‘‘Profit Margin, Stock Price’’ (Lane and Jacobson, 1995) etc.
Since this research was conducted to implement virtual testing on brand extensions
and consumer purchase intention towards extended products, the subjective consumer
view has been adopted to evaluate acceptance of extended products. Our research aims
178 to determine whether consumers are willing to buy extended products (even at higher
prices), and recommend those products to their friends (even at these higher prices).
The items above are used to measure consumer purchase intention towards extended
products.
The research perspectives and literature reviews related to brand extensions are
shown in Table I.
To conclude, brand extension strategies include core-brand equities such as
established brand publicity, customer preference, and customer loyalty to increase the
success rate of extended products and reduce marketing costs (Lane and Jacobson,
1995). In accordance with our literature review, the success of brand extension depends
on several factors, such as: core-brand attitude, core-brand image, core-brand use
experience consumer perception fit, etc. Thus, in our research, we have adopted the
aforesaid research perspectives for our study of Microsoft as example in virtual brand
extension research. The efficiency of the structural model proposed in this study will
be examined.

3. Study method
There are a number of ways to perform brand extensions. In this study, we employ a
specific definition of extended products in order to enable more solid extension testing.
Before official execution of this study, we have first adopted 10 MS (Microsoft)
operation system (OS) users as our focus group so that suitable products can be
selected for extension. Product items in Microsoft are chosen for extension, and
product extension for the same consumer group was extended. The extended product
was then defined as a PC. The study subjects included PC users who were familiar
with MS.
Because the PC has become an imperative kit in our daily lives, if software suppliers
can provide PC extended products and make good use of their brand publicity, they
have a greater potential for capturing the market. We have therefore included PC as an
extended product, and have used brand-superpower Microsoft as our case example.
Brand extensions were then implemented virtually to examine the effects of the
measuring indicators and the relational model.

3.1 Framework
The above literature demonstrates the impact of core-brand attitude and consumer
perception fit on brand extensions. For this reason, the study structure and significant
variables are shown in Figure 1.
Figure 1 indicates that the major perspectives determining consumer purchase
intention towards extended products are two: core-brand attitude and consumer
perception fit. Core-brand attitude is influenced by core-brand image and use
experience, whilst core-brand image is influenced by brand awareness and brand
preference. Furthermore, the second perspective (consumer perception fit) is influenced
by brand association and product connection.
Research dimension
Core-brand attitude
Core-brand strength
Core-brand strength-
brand image
Use experience
Consumer perception
fit
Table I.
Reference review
Scholar and Year
Miller et al., 1971; Aaker and Keller 1990; Flaherty
and Pappas, 2000; Faircloth et al., 2001; Martinez and
Chernatony, 2004; Nan, 2006
Tauber, 1981; Reddy et al., 1994
Aaker and Keller, 1990; Keller and Aaker, 1992; Smith
and Park, 1992; Broniarczyk and Alba, 1994; Martinez
and Chernatony, 2004
Smith and Park, 1992; Jun et al., 1999 Ghen and Liu,
2004
Tauber, 1988; Aaker and Keller, 1990; Aaker, 1991;
Park et al., 1991; Boush and Loken, 1991;
Rangaswamy et al., 1993; Morrin, 1999; Barone,
Miniard and Romeo, 2000; Bhat and Reddy, 2001;
Echambadi et al., 2006
Research result
The brand attitude is the important factor of consumers’
purchase intention on extended products
Core-brand strength is the important factor within the process
to determine brand extension. Researchers measure the degrees
by means of objective indicators such as market share,
advertisement and promotion expenditures, channel strongholds
distribution, etc
Researchers adopt subjective definition to measure core-brand
strength and the said subjective definition means consumers’
overall evaluation on a given brand including consumers’ brand
preference and brand awareness, collectively known as brand
image. From research results, we find brand image and
consumers’ purchase intention on extended products are
positively correlated
From researches, they find when extended products are the
experienced products, the product values only depending on
actual use experience. Namely, the use experience of core-brand
products is helpful to enhance core-brands and purchase
intention on extended products
Researches indicate when extended products and original
products come with fit extension, the situation shall cause
higher purchase intention. Namely, when product category fit is
rated at high levels, consumers shall transfer the brand
awareness of original brands onto extended products. Thus,
perception fit is the critical factor for consumers’ purchase
intention on extended products
(continued )
core-brand
attitude
179
Influence of
 21,1

180

Table I.
APJML

Research dimension Scholar and Year Research result

Consumer perception Aaker and Keller, 1990 Smith and Parker, 1992; Research centers indicate consumers’ perception fit can be
fit- brand association Broniarczyk and Alba, 1994; Herr et al., 1996; Klink divided into two categories. One means the brand association
and product connection and Smith, 2001; between core brands and extended products. The other means
the connection between core-brands and extended products
under consumers’ subjective ideas
Brand association Aaker and Keller, 1990; Aaker, 1990; Aaker, 1991; Researches indicate brand have innumerable associations
Yeung and Wyer, 2005 featured with extension capabilities. Whenever brand association
is not correlated to products, brand extension shall come with
larger space. Thus, whenever the association is correlated to
personification, life style and excellent techniques, it is available
for farther extension
Product connection Aaker and Keller, 1992; Barone et al., 2000; Czellar, Researches indicate original brands and extended products are
2003 correlated to a certain degree, it means the sufficiently high fit
will cause purchase intention on extended products. If no
correlation arisen, it causes no influence on extended products.
This situation proves the correlation between core brands and
extended products in consumers’ subjective ideas is the
important factor to cause consumers’ purchase intention on
extended products
Brand extension effect Aaker and Keller, 1990; Park et al., 1991; Aaker and The appraisal for brand extension effect can be divided into two
Keller, 1992; Sullivan, 1992; Smith and Park, 1992; aspects, namely objective and subjective. Most scholars adopt
Rangswamy et al., 1994; Broniarczyk and Alba, 1994; the subjective attitude of consumers to measure the brand
Dawar and Anderson, 1994; Lane and Jacobson, 1995; extension effect such as quality sense, dislike or like and
Czellar, 2003 purchase intention, etc. Also, there are some other scholars
adopt the objective information to make appraisal for extension
effect such as market share, extended product survival
percentage, profit or profit adding rate, stock prices, etc
 Influence of
core-brand
attitude

181

Figure 1.
Conceptual framework

As for brand extensions effect measurement, we have adopted Microsoft for our virtual
brand extensions. Consumer purchase intention towards extended products has been
adapted to measure the brand extensions effect.

3.2 Questionnaire design

A qualitative approach, which included both literature search (Table I) and focus group
were used to generate the initial item pool. That means other than collecting theories
and reviewing relevant literature, we also used the focus group method with ten PC
users who frequently use MS OS to aid in our questionnaire design. In this step, we
generated the initial items of questionnaire.
In order to enhance the reliability and validity of the scales, we then used the initial
questionnaires to interview 20 PC users for pre-test and have modified and omitted
some statements. After the pre-test, the pilot test was then performed and the other 64
PC users were collected. Reliability and validity analysis were then conducted using
SPSS 10.0. According to Flynn and Pearcy (2001) and Grace (2005), the Cronbach 
value was used to examine reliability and factor analysis was used to examine the
convergent validity of the questionnaires. The 64 usable questionnaires received
comfortably exceed the minimum guideline for the use of multivariate statistical
procedures to analysis the data, which greater than five times of independent variables
(Hair et al., 1998; Elliott and Boshoff, 2007). Results show that reliability of Cronbach 
for every factor is above 0.6 that evidence of internal consistency of scales (Wortzel,
1979; Nunnally and Bernstein, 1994). Regarding factor analysis, every factor’s
variables ultimately falls under the one factor and the factor loading for each variable
is above 0.6, and the eigenvalues for all factors are above 1, which evidence of
convergent validity of every factor scale (Grace, 2005). In addition, items were
developed through an inductive process of literature review, focus group and pre-test.
The questionnaire’s content validity was assessed (Horton et al., 2008). The results of
APJML pilot test lead to the conclusion that the questionnaire is reliable and valid. Thus, the
formal questionnaire was created. In the formal questionnaire, only the demography
21,1 variable used normal scale, the rest scales of nine factors were in seven-point Likert
Scale. The scales range from totally disagree: 1 to totally agree: 7 (Table II).

3.3 Data collection

The data collection period of the formal questionnaire is two months. Questionnaire
182 surveys are distributed to PC users above 16 years of age, throughout Taiwan by
convenience sampling. A total of 754 questionnaire copies were sent out and 667 valid
samples were returned. Incomplete and irrational ones were eliminated. The return
rate is 88.5 per cent.
Amongst the 667 questionnaire copies collected, there are 395 female respondents
(59.2 per cent) and 272 male respondents (40.8 per cent). The largest age group is that of
26–30, in which 211 respondents were categorized (31.6 per cent). The second largest
age group is that of 31–35, in which 164 respondents were categorized (24.6 per cent)
and the third largest was the age group 21–25, in which 119 respondents were
classified (17.8 per cent). In terms of educational attainment, most respondents hold a
bachelor degree, in which 315 respondents were categorized (47.2 per cent). The second
largest group of respondents graduated from senior high school and vocational senior
high school; 188 respondents fall under this educational attainment category (28.2 per
cent). There are 150 respondents with a master’s degree (22.5 per cent). Most
respondents work in the service industry (216 people, equaling 32.4 per cent). The
second largest occupation-related group is comprised of students, with 119
respondents (17.8 per cent). There are 107 public servants in total (16.0 per cent). In
terms of marital status, there are 431 unmarried respondents (64.6 per cent) and 236
married respondents (35.4 per cent). In terms of income for the past year, most
respondents (38.1 per cent) fall under the income category of between NT$40,001 and
NT$60,000 per month. The second largest income-related group is comprised of 164
respondents (24.6 per cent) who receive between NT$ 20,001 and NT$ 40,000 per
month. There are also 127 (19.0 per cent) respondents who received an income of
<NT$20,000 per month.

Factor dimension Measuring scale Reference resource

Brand awareness 7 items/7-point scales Aaker and Keller (1990); Smith and Park (1992)
Brand preference 7 items/7-point scales Aaker and Keller (1990); Smith and Park (1992)
Core-brand image 7 items/7-point scales Aaker and Keller (1990); Keller and Aaker (1992)
Use experience 7 items/7-point scales Smith et al. (1992)
Core-brand 7 items/7-point scales Miller et al. (1971); Aaker and Keller (1990);
attitude Flaherty and Pappas (2000)
Brand association 7 items/7-point scales Park et al. (1991)
Product connection 7 items/7-point scales Barone et al. (2000); Czellar (2003)
Consumer 7 items/7-point scales Rangaswamy et al. (1993); Barone et al. (2000)
perception fit
Purchase intention 7 items/7-point scales Aaker and Keller (1990); Czellar (2003)
Demography Gender, age, academic Revised from the questionnaires of Taiwan
variable background, occupation, Broadband Usage Survey, issued in
Table II. marital status and January (2005)
Questionnaire dimension income, totally six
and measuring scale item scales
4. Results Influence of
4.1 Reliability and validity analysis
After the research survey, focus was placed on formal questionnaire reliability and
core-brand
validity analysis. According to Flynn and Pearcy (2001) and Grace (2005), used the attitude
Cronbach  reliability coefficient, factor analysis and correlation analysis, the scale
reliability and validity were evaluated.
Nunnally and Bernstein (1994) recommend a minimum coefficient alpha result of
0.60. Based on findings in Table III, the reliability  value for every factor is rated 183
above 0.7 and therefore, all scales of every factor show internal consistency. In addition,
based on the results after factor analysis and item-total correlation coefficient
computation, all variables under each factor can lead to one factor. The factor loading
for every item within every factor is rated above 0.6. The accumulated percentage of
variance for every factor is above 60 per cent. Also, all the item-total correlation
coefficients are above 0.6. Convergent validity therefore holds true for the
questionnaires (Grace, 2005).

4.2 Effects of brand extensions

In this research, the mean value of every measuring indicator was used to determine
general feedbacks of respondents. The results show that each factor and measuring
indicator is >5 on average (details are as shown in Table III). The dimensional mean
value for consumers’ purchase intention on extended products is 5.4764. This indicates
that consumers show extremely high level of purchase intention towards extended
products.
In example, most consumers perceive Microsoft positively. Table III shows that
in terms of brand awareness (average is 5.4740), consumers acknowledge it as the
leader in its market and they approve of its high-brand publicity, excellent profit
capabilities, good quality, predominant innovation and professional capabilities. With
regard to brand preference (average is 5.3383); consumers generally view Microsoft as
a brand worthy of trust and popularity. Microsoft products are therefore naturally
good buys.
As the study subjects of this research are PC users, our results show that the
respondents use Microsoft products frequently and some also buy Microsoft products.
The respondents are generally satisfied after their use of Microsoft software, and it is
quite easy for consumers to associate with Microsoft and PC (average is 5.5767). In
addition, many of the people feel similarly about Microsoft and PC. They feel it is
proper for Microsoft to promote PC products as consumers are given an alternative
choice to purchase Microsoft OS simultaneously. Finally, when it comes to consumers’
purchase intention towards extended products (average is 5.4764), most show great
interest in purchasing Microsoft PC (even at higher prices).

4.3 Overall model fit

In this research, a linear model has been constructed to examine the interactions and
cause and effect relationships between variables within the model. With respect to
model fit analysis, Bagozzi and Yi (1988) and Joreskog and Sorbom (1989) proposed
such indicators as Chi-square value, goodness of fit index (GFI), adjust goodness of fit
index (AGFI), root mean square residual (RMR), root mean square error of
approximation (RMSEA), normed fit index (NFI) and comparative fit index (CFI), that
have also been adopted to examine the structural model fit developed in this research.
The model fit analysis is as shown in Table IV.
 21,1

184

analysis
Table III.
APJML

Reliability and validity

Factor dimension Item-to-total Factor Cumulative
(average) Item (average) correlations loading Eigenvalue proportion % Cronbach 

Brand awareness
(5.4740) MBA1: Microsoft’s leading place among markets (5.4858) 0.7406 0.804 5.720 81.708 0.9625
MBA2: Microsoft’s high brand visibility among markets (5.3613) 0.6159 0.700
MBA3: Microsoft’s excellent profit earning capabilities (5.5487) 0.7897 0.842
MBA4: Microsoft’s large business scale (5.6312) 0.8077 0.854
MBA5: Microsoft’s excellent product quality (5.3448) 0.7738 .832
MBA6: Microsoft’s innovation capabilities (5.4918) 0.8034 0.852
MBA7: Microsoft’s expert zing capabilities (5.4543) 0.7756 0.835
Brand preference
(5.3383) MP1: Microsoft is widely popular (5.3058) 0.6357 0.667 2.396 79.883 0.8722
MP2: Microsoft is a reliable products (5.4018) 0.8437 0.882
MP3: Microsoft is a wise product option (5.3073) 0.8021 0.848
Core-brand
image (5.1719) MK1: Microsoft is reputed (5.0975) 0.8171 0.875 1.928 64.267 0.8977
MK2: Microsoft has high quality (5.1874) 0.7240 0.878
MK3: Microsoft has excellent function (5.2309) 0.6921 0.625
Use experience
(5.1214) ME1: Microsoft software products are frequently used (5.2399) 0.9548 0.961 2.864 95.482 0.9763
ME2: Microsoft software products used to be purchased 0.9552 0.961
before (5.1229)
ME3: Microsoft software products are satisfying after use (5.0015) 0.9350 0.943
Core-brand
attitude (5.2924) MK4: I like Microsoft (5.3808) 0.6631 0.912 1.663 83.147 0.7922
MK5: I prefer Microsoft (5.2039) 0.6631 0.912
Brand association
(5.5767) MA1: Microsoft let me directly associate to PC (5.6282) 0.9260 0.937 2.761 92.030 0.9567
MA2: Microsoft let me indirectly associate to PC (5.5862) 0.8862 0.900
MA3: PC let me directly associate to Microsoft (5.5157) 0.9129 0.924
Product connection
(5.4474) MC1: The same impression on PC and Microsoft (5.4153) 0.8030 0.763 4.092 81.836 0.9431
(continued )
Factor dimension Item-to-total Factor Cumulative
(average) Item (average) correlations loading Eigenvalue proportion % Cronbach 

MC2: Equivalent concepts on PC and Microsoft (5.4573) 0.6975 0.624

MC3: The similar natures on PC and Microsoft (5.4228) 0.9124 0.902
MC4: Suitable for Microsoft to promote PC products (5.4798) 0.9081 0.897
MC5: Purchase the combination with Microsoft PC products
and Microsoft OS software (5.4618) 0.9145 0.906
Consumer perception
fit (5.3576 ) MK6: Microsoft suit to develop PC (5.4438) 0.7373 0.932 1.737 86.861 0.8444
MK7: Microsoft OS and Microsoft PC can connection
completely (5.2714) 0.7373 0.932
Purchase intention
(5.4764) MI1: Will purchase at the same prices (5.6147) 0.8754 0.873 3.278 81.946 0.9251
MI2: Will recommend friends to purchase (5.5667) 0.8996 0.899
MI3: Will purchase even at higher prices (5.3688) 0.8622 0.859
MI4: Will recommend friends to purchase even at higher
prices (5.3553) 0.6850 0.647

Table III.
core-brand
attitude

185
Influence of
APJML Based on Table IV, despite the significance of Chi-square test, 2/df of below 3
21,1 represents the existence of fit between model and data (Carmines and Mclver, 1981).
The rest of the indicators such as GFI, NFI and CFI are all above 0.9 (Bentler, 1982,
1990; Danes, 1984; Joreskog and Sorbom, 1984). Although the AGFI, is rated below 0.9,
0.894 is in close proximity to 0.9 and therefore, the overall model fit still exists. The
RMR is 0.034; a small RMR value means a better fit as a RMR below 0.05 is usually
adopted. The RMSEA is below 0.055, and so the standard value of below 0.1 is met
186 (Joreskog and Sorbom, 1984; Bagozzi et al., 1989). Moreover, for measuring variables of
each factor, results show that each measuring indicator is positively related to its latent
factors. All indicators in the factors prove to be efficient. In short, this research has an
excellent model fit.

4.4 Hypothesis verification

From Figure 2, we can infer that the relationship between factors and their respective
influence strengths are:
(1) The relationship between brand awareness and core-brand image is mutual
and positively influential (coefficient: 0.699) and thus hypothesis H1 is

Fit measure Coefficient

Chi-square 779.285
Chi-square/df 2.997
p-value 0.000
RMR 0.034
GFI 0.916
AGFI 0.894
NFI 0.964
IFI 0.976
Table IV. CFI 0.976
The model fit analysis RMSEA 0.055

Figure 2.
The structure model
analysis
 supported. The Results conform to the deductive reasoning of Reddy et al. Influence of
(1994). Therefore, the stronger a consumer’s awareness of the core-brand, the core-brand
better the core-brand image is for the consumer.
attitude
(2) Regarding model analysis, it is inferred that brand preference significantly and
positively affects core-brand image (coefficient: 0.200). Thus, hypothesis H2 is
well established. The result was same with research by Broniarczyk and Alba
(1994). That showed the higher a consumers brand preference, the more 187
positively the consumer will view the core-brand image.
(3) The results show the core-brand image has a strong and positive influence on
core-brand attitude (coefficient: 0.775). Thus, hypothesis H3 is supported,
which conform to Broniarczyk and Alba (1994) and Reddy et al. (1994).
Therefore, the better the brand image for consumers, the stronger the core-
brand attitude.
(4) We have found that consumer use experience have positively and mutually
influence on core-brand attitude (coefficient: 0.117). Therefore, hypothesis H4 is
also established and these conform to the research results of Smith and Park
(1992). The better the core-brand use experience of consumers, the stronger will
be their core brand attitude.
(5) The core-brand attitude and purchase intention towards extended products are
positively and significantly related (coefficient: 0.856). Thus, hypothesis H5 is
well established and our results conform to the deductive reasoning of Flaherty
and Pappas (2000). The stronger a consumer’s core-brand attitude, the higher
the purchase intention towards extended products.
(6) The relationship between brand association and consumer perception fit is
significantly and positively related (coefficient: 0.333). Hypothesis H6 is therefore
well established and our results were same with the research of Aaker and Keller
(1990). The easier it is for consumers to associate the core-brand with an extended
product, the higher the consumers’ perception fit of the core-brand and extended
products.
(7) The relationship between product connection and consume perception fit is
significantly and positively related (coefficient: 0.628). Hypothesis H7 is well
established. This result showed that the higher product connection between
the core brand and extended products, the higher the consumers’ perception
fit that conform to the studies of Keller and Aaker (1992) and Barone et al.
(2000).
(8) Regarding relational model analysis, perception fit and purchase intention
towards extended products are significantly and positively related (coefficient:
0.923). Hypothesis H8 is well established and our results conform to the
deductive reasoning of Tauber (1988), Bhat and Reddy (2001) and Morrin
(1999). The higher the consumers’ perception fit of the core-brand and extended
products, the greater the consumers’ purchase intention towards extended
products.

4.5 Discussions
In a nutshell, consumers’ purchase intention towards extended products is affected by
core-brand attitude and consumer perception fit. Of these, consumer perception fit has
APJML the greatest effect, with a coefficient of 0.923. Our research also shows that a higher
21,1 consumer perception fit will increase the consumer’s purchase intention towards
extended products, and that brand association and product connection influences
consumer perception fit. Of brand association and product connection, it is product
connection that has the greatest effect on consumer perception fit (with a coefficient of
0.628), with the coefficient indicating that the higher the connection between extended
188 products and the core-brand, the higher the consumer perception fit. The purchase
intention towards extended products is also enhanced.
Of interest, both brand image and use experience demonstrate a remarkable
influence on core-brand attitude. The greater influence exerted occurs when the brand
image coefficient is 0.775. However, in this research, we have adopted virtually
extended products to exemplify. Consumers are unable to adopt use experience of
Microsoft OS and then deduce possible acceptance levels of virtually extended product
for the PC unless brand image results are evaluated. In turn, brand image is influenced
by brand awareness and brand preference. There is also a high level of influence
produced by brand awareness (with coefficient of 0.699). Based on this scenario, we
may infer that since Microsoft is a world famous brand with its own brand advantages,
it also has high-brand awareness. Also, due to the prevalence of Microsoft OS among
PC users, there is little choice but to opt for Microsoft. This is precisely why brand
images are generally formed by brand awareness.
In summary, this study indicates that the major perspectives determining consumer
purchase intention towards extended products are the first consumer perception fit
and core-brand attitude secondly. The first perspective, consumer perception fit is
influenced by brand association and product connection, especially product
connection. Furthermore, the second perspective, core brand attitude is influenced
by core brand image and use experience, especially core-brand image. Whilst core-
brand image is influenced by brand awareness and brand preference, especially brand
awareness. Therefore, the two major paths that influence purchase intention toward
extended product are: (1) from brand awareness to core-brand, to core-brand attitude
then to purchase intention and (2) from product connection to consumer perceptional fit
then to purchase intention.

5. Conclusion and suggestions

In this research, virtually extended Microsoft product – PC were exemplified in our
experiment. The factors influencing purchase intention towards extended products,
measurement indicators, and relational structure model for purchase intention on
extended products are established. The results serve as a reference for marketers when
implementing brand extension strategies. Furthermore, a scale to measure brand
extension effects and its influence factors have been developed over a multi-stage scale
development process, which has provided substantial evidence of the brand extension
scale’s reliability, validity and generalizability. As such, the relational structure model
and its scale have the potential to make a considerable contribution in both theoretical
and practical term. It may offer to be a valuable method for academicians and
marketers in the future.
With our research based on extended Microsoft products, we determined that
factors such as brand awareness, brand preference, use experience, brand association,
brand connection, core-brand attitude and consumer perception fit directly or indirectly
affect consumer purchase intention towards extended products.
 Many of the influential factors of brand image originated from consumer brand Influence of
awareness. The brand awareness of well-known brands has a much greater influence
on brand image than brand preference does.
core-brand
The use experience of the core-brand has a less prominent influence on purchase attitude
intention when compared to core-brand image. This is most likely due to users
adopting Microsoft OS when they first use a PC. Being the first to enter the market and
having a leading core-brand are important influential factors for successful brand
extensions.
189
Although the core product of Microsoft is Microsoft OS, and this product comes
with more varied characteristics when compared to virtually extended products
aforementioned in this research, it still falls under supplementary characteristics
proposed by scholars (Aaker and Keller, 1990). OSs and PCs are supplementary
products combined for usage, and thus there is a clear mental association between
Microsoft and the PC. This scenario probably creates a high perception fit, making it
easier for consumers to accept Microsoft PC. Concurrently, consumers’ purchase
intention is triggered.
This research indicates that if there is a Microsoft PC in the marketplace, a large
number of consumers will exhibit a high purchase intention even at higher prices.
Based on these findings, we deem virtually extended products as quite suitable for
Microsoft, especially for operating system software and PC products that both
contribute to meeting overall consumer demand. These results are applicable for
Microsoft and other known brands as a supplementary reference during extended
product selection.

6. Managerial implications
According to our research results, if Microsoft wants to extend it’s product to PC, the
first should focus on consumer’s brand awareness, because it can enhance core-brand
image and then increased consumer’s purchase intention. On the other hand, the
connection between core product and extended product was key influence factor which
can direct consumer perceptional fit and then enhance purchase intention toward
extended product.
Based on findings in this research, respondents generally show high-brand
awareness towards Microsoft, an awareness probably generated by Microsoft’s
position as an advantageous brand. Tauber (1981) and Reddy et al. (1994) stated that an
advantageous brand can aids firms to ensure consumer recognition and gain
acceptance of new products. This is especially so for the same consumer group in the
markets of extended and core products like Microsoft. Because the closer the extended
product is to its core market, the more positive will be its acceptance by consumers,
which will translate into a better image evaluation (Martinez et al., 2008).
Aaker (1991) proposed that after brand extensions have been carried out by
firms, efficient advertising is applicable for both original products and extended
products. When extended products (such as PC) and original products (Microsoft
OS) are supplementary, brand extensions can probably hold larger market share and
higher advertisement efficiency than other brands. The positive ad significantly
increases both the accessibility and the perceived appropriateness of the brand
attributes, and will influences consumer’s overall attitude toward a brand extension
(Lee, 1995). Thus efficient advertisement is a success factor of marketing strategies
to enhance brand attitude toward extended products then increases consumer’s
purchase intention.
APJML A possible reason for consumer acceptance of Microsoft PC is its close relation to
21,1 Microsoft OS. In terms of technology and resource transfer theories concerning the
PC and OS, these products fall into the ‘‘far-extension’’ category and possess a
supplementary correlation. According to Aaker et al. (1992) and Barone et al. (2000), when
extended products and original products are ‘‘far-extensions’’ in terms of extension
categories, then the combined use of both products may be deemed necessary. In this case
of Microsoft, consumers are still rated as having a high perception fit and tend to show
190 high acceptance levels toward virtually extended products. Despite consumers’ more
favorable responses toward ‘‘near-extension’’, results show that once brand association
reaches a certain level, consumers will have higher perception fit and consumers are
likely to shift from core-brands to extended products. Therefore, this virtual extension
serves as an important guideline during marketing strategy development.

7. Limitations and further research

Although the relational structure of measuring indicators and the affected dimensions
of product extension can be found accordingly, our research was conducted for a strong
brand only (Microsoft) and thus the usefulness of our model for firms and extended
products may be hindered.
Researchers may extend the scope of extended products or brands for future
experimentations. The influential effects under the variables or scenarios can
be studied, which may make the model more useful and general. In further, the future
research can use both far-extension and near-extension for example, then compare the
effect of brand extensions between these two extension strategies.
The testing methods for virtual extension provided by this research are for the
reference of firms when setting up brand extensions strategies. However, there are several
other marketing factors may influence on the success of brand extensions, such as
professional areas, markets, competition from other extended brands, emphasis and efforts
made by firms, etc. The above mentioned factors will probably determine the success or
not of brand extension strategies, which can be the research variables for future research.

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Corresponding author
Shwu-Ing Wu can be contacted at: wusi@ncut.edu.tw

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