Brand extension and purchase intention of Jordanian banks’ clients

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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.

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    • Figure 1. Confirmatory factor analysis for testing the first-order model
    • Figure 2. Confirmatory factor analysis for testing the causal model
    • Table 1. Demographic characteristics
    • Table 2. Descriptive statistics, Pearson correlations, and reliability coefficients
    • Table 3. Rotated component matrix (Component F1)
    • Table 4. Goodness-of-fit indices for first- and second-order factor models
    • Table 5. AVE, CR, and MSV for brand extension sub-constructs
    • Data curation
      Abdel-Aziz Ahmad Sharabati, Shafig Al-Haddad, Mahfuz Judeh, Baraa Al-Badawi
    • Funding acquisition
      Abdel-Aziz Ahmad Sharabati, Shafig Al-Haddad, Baraa Al-Badawi
    • Methodology
      Abdel-Aziz Ahmad Sharabati, Shafig Al-Haddad
    • Project administration
      Abdel-Aziz Ahmad Sharabati, Shafig Al-Haddad, Mahfuz Judeh
    • Supervision
      Abdel-Aziz Ahmad Sharabati, Mahfuz Judeh
    • Writing – original draft
      Abdel-Aziz Ahmad Sharabati, Mahfuz Judeh
    • Conceptualization
      Shafig Al-Haddad, Baraa Al-Badawi
    • Formal Analysis
      Shafig Al-Haddad
    • Writing – review & editing
      Shafig Al-Haddad
    • Investigation
      Mahfuz Judeh, Baraa Al-Badawi
    • Software
      Mahfuz Judeh, Baraa Al-Badawi