Baraa Al-Badawi

Product/service extension is crucial for product/service development strategies; therefore, the study aims to investigate the impact of brand extension on consumers’ purchase intentions. Data were collected by questionnaire from 221 clients of Jordanian banks. SPSS 25 supported with AMOS has been used for structural equation modeling (SEM) to test the relationship and hypothesis. The study revealed that the eight brand extension sub-variables (companion product extension, brand prestige extension, brand distinction extension, component brand extension, leveraging a lifestyle, product form extension, company expertise extension, and customer franchise extension) are co-related. In general, the brand extension affects the consumers’ purchase intention, whereas companion product extension, brand prestige extension, brand distinction extension, component brand extension, and leveraging a lifestyle extension significantly affect consumer’s purchase intention. On the contrary, product form extension, company expertise extension, and customer franchise extension do not significantly affect consumers’ purchase decisions. In conclusion, a larger number of customers in future research as well as a similar research in different countries and a specific brand case study are recommended.