THE MEDIATING ROLE OF BRAND LOYALTY IN THE EFFECT OF BRAND IMAGE AND PRICE PERCEPTION ON ATTITUDE TO BRAND EXTENSION

The high number of brands in the market, the difficulty of finding an effective brand name, and the high cost of promoting a new brand lead brands to extend. The business that wants to enter a new market gives the name of its well-known brand to the new product it offers to avoid these difficulties. However, the brand extension strategy does not always yield positive results. In some cases, brand extension harms the parent brand. The aim of this study is to examine the mediating role of parent brand loyalty in the effect of parent brand's perceived price and parent brand image on attitude towards extension. For this purpose, data were collected from individuals living in Turkey through questionnaires (n=414). As a result of the analysis, it was concluded that parent brand price perception and parent brand image positively affected parent brand loyalty and attitude towards brand extension, and parent brand loyalty positively affected attitude towards brand extension. At the same time, parent brand loyalty has a mediating role in the relationship between parent brand price perception and parent brand image and attitude towards brand extension.