Customer perception on brand extension in banking industry case of ASLA commercial bank (ACB)'s international banking
Abstract
There are five main findings in this research: customers accept brand extension of ACB
to international banking; customers do not totally accept ACB brand extension to international banking; international banking service of ACB needs more exertion to make customers switch brand; when ACB extents to international banking, it is still perceived as a retail bank; there is no risk for ACB to have brand extension in international banking.
These finding fit eight out of ten elements basing on theory of “Drivers of brand extension success” on literature review. They are: quality of parent brand, history of previous brand extension, parent brand conviction, parent brand experience, retailer acceptance, fit between parent brand and extended product, and perceive risk. Two drivers that are not fit: marketing support and consumer innovativeness.
In sum, customers accept brand extension of ACB to international banking. ACB
should convince customers more by its comfortable service. Finally, marketing department has tried its best to compete with other banks.