Impact of Brand Extension on Consumer Perception

Brand extension refers to a strategy where a company uses an existing brand name to launch new products. This can positively influence consumer perception by leveraging the brand's established reputation, making customers more likely to trust and try the new offerings. However, if the new products don't meet expectations, it can harm the original brand's image. Overall, a well-executed brand extension can enhance consumer confidence and broaden the brand’s appeal, while a poorly executed one can confuse or alienate customers. Balancing innovation with brand consistency is key to maintaining positive perceptions.