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Dettol - Consumer Evaluation For Brand Extension

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Dettol - Consumer Evaluation For Brand Extension

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Rohit
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A00229

November 9, 2007

Revised on November 02, 2020

Dettol: Marketing Research for Understanding


Consumer Evaluations of Brand Extensions

It was December 28, 2006, and Arpita Srivastava, a Ph.D. aspirant working as a researcher at Indian
Institute of Management, Ahmedabad (IIMA), was trying to interpret the results of her study. She had
conducted an empirical study on brand extension to understand how consumers evaluated different
extensions of Dettol. Prior to conducting the study, she had done a detailed analysis of the current
performance of Dettol’s various brand extensions. She was wondering how best to interpret the results
and had some concerns about their validity. Voicing her thoughts aloud, she said, “I am not sure if the
research design was appropriate. The sample size and sample selection are critical aspects in any
research. I cannot ignore the impact of these factors on my research findings.”

Brand Extensions of Dettol

Dettol had successfully created a unique space for itself in consumers’ minds since its launch in the
1930s. As a brand, it enjoyed a high level of customer loyalty and trust. With the objective of achieving
rapid growth, Reckitt Benckiser India Limited (RBIL) introduced several brand extensions. Instead of
launching entirely new brands, RBIL wanted to exploit Dettol’s brand equity. While the company
successfully extended the Dettol brand into the soap and liquid hand wash categories, a number of other
extensions such as Dettol Talc, Dettol Shaving Cream and Dettol Mouthwash failed to make a mark in
the market place.1

Research Objectives

Before initiating the study, Srivastava had discussions with industry experts and marketing researchers,
which helped her clearly identify her research objectives. These were:

1. To find out what beliefs consumers have about the parent brand Dettol, and which of these beliefs
they relate with Dettol’s different brand extensions.
2. To understand how these beliefs influence consumer evaluations of Dettol’s brand extensions.

Written by Professor Anand Kumar Jaiswal, Indian Institute of Management, Ahmedabad, and Professor
Arpita Srivastava, XLRI, Jamshedpur. This case is prepared based on an empirical study conducted by the authors.
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion. Cases are
not designed to present illustrations of either correct or incorrect handling of administrative problems.
Copyright © 2007 by the Indian Institute of Management, Ahmedabad.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860
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3. To investigate how consumers’ perceptions about the fit between the product class of the parent
brand and the extensions affect their evaluations of Dettol’s different brand extensions.
4. To examine what role factors such as the perceived overall quality of the Dettol brand play in
consumer assessments of Dettol’s brand extensions.

Research Design

After reviewing the existing marketing literature and talking to experts, Srivastava decided to use Aaker
and Keller’s model to study the behaviour of Indian consumers towards Dettol’s brand extensions. Aaker
and Keller’s study (1990) was considered to be the first scholarly work on consumer attitudes towards
brand extensions.2 The favourable or unfavourable attitude of the consumer towards a brand extension
determined the success of the brand extension. The importance of Aaker and Keller’s study can be
gauged from the fact that it was widely replicated in several countries and published in a number of
marketing journals.3

Aaker and Keller’s study was based on the premise that the consumer’s attitude toward an extension
depended on the overall quality of the parent/ mother brand, the fit between the parent brand and the
extension, and the degree of difficulty in designing and making a product in the extension category. The
fit between the parent brand and the extension was conceptualised on three dimensions:
complementarity, substitutability and transfer of skill. Further, they hypothesised that the overall quality
of the parent brand would interact with various fit variables and affect the consumer’s attitude towards
the extension. Interaction between quality and fit essentially meant that the effect of fit would be
greater at a higher quality level than it would be at a lower quality level. Complementarity and
substitutability denoted the degree to which extensions could complement and substitute the parent
brand in any usage situation. For example, brands of butter and edible oil could substitute each other in
certain consumption situations. On the other hand, brands of butter and bread could be termed
complementary. Transfer of skill indicated the extent to which manufacturing capabilities and resources
in the product category of the parent brand would be useful for making extension products. The
mathematical formulation of the model and hypotheses are given in Exhibit 1.

Method

Srivastava’s choice of study method was a qualitative study and a quantitative survey. In the qualitative
study, respondents provided open-ended associations for the parent brand and the extensions. For the
quantitative survey, Srivastava used a seven-point scale to measure variables such as overall quality,
likelihood of purchase, three fit dimensions (substitute, complement and transfer), and perceived
difficulty in making the product.

Questionnaire and Stimuli Selection

The questionnaire was constructed using scales from studies by Aaker and Keller (1990) and Bottomley
and Doyle (1996)4 (see Exhibit 2). Six extensions of Dettol were included in the research: Dettol Adhesive
Bandage, Dettol Sunscreen Lotion, Dettol Anti-Dandruff Shampoo, Dettol Glycerine Soap, Dettol
Moisturising Cream and Dettol Floor Cleaner. Though three of six extensions, i.e., adhesive bandage,
glycerine soap and floor cleaner, had been introduced in the

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860
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market, they had failed and hence were not visible on retailers’ shelves. Consumer awareness of these
extensions was zero. To verify this point, Srivastava interviewed 20 individuals and asked them about
these extensions. All of the interviewees viewed them as hypothetical extensions that had not been
introduced in the market. She decided to include Dettol’s bandage and floor cleaner extensions as they
gelled conceptually with the parent brand’s image of germ protection. She also took care to include two
other brands in addition to Dettol in her research design. This was done primarily to reduce the
possibility of bias in her study. She selected Rayban and Colgate and included one extension of each
brand. The two control brands were selected on the premise that both were very popular in the Indian
market and had strong associations (Rayban with sunglasses and Colgate with toothpaste). Both were
also perceived as high-quality brands. The two extensions were not seen as illogical and moreover
showed heterogeneity on three fit measures. Rayban was extended to wallets and Colgate to chewing
gum. Thus, she had eight extensions (1×1) + (1 ×1) + (1 ×6) in the study.

Sample Selection

Srivastava was faced with the option of selecting her study sample based on age, location or
socioeconomic class or some combination of the three. Due to time constraints, she decided to limit the
survey to students of IIMA. The respondents were in the age group of 21 to 26 years and came from
different parts of the country. She collected 52 responses to the questionnaire. Two responses were
removed from the analysis as they were incomplete. Eighty percent of the respondents were male and
20% were female.

Data Analysis

For the qualitative study, the open-ended associations were categorised by two blind coders who were
not aware of the objectives of the study. Based on their judgment of similarity, the coders grouped
associations into broad categories. Open-ended associations and average overall quality ratings for the
parent brands are given in Exhibit 3. Open-ended associations for the extensions of the control brands
and Dettol are given in Exhibits 4 and 5. Average ratings of the eight brand extensions of Dettol, Rayban
and Colgate are summarised in Exhibit 6.

Srivastava used multiple regressions to analyse the survey data. Attitude toward the brand extension
(measured as the average of the perceived overall quality rating of the brand extension and the
likelihood of purchase score) was taken as the dependent variable in the regression model. The
perceived overall quality of the parent brand; substitutability, complementarity and transferability;
interaction terms and degree of difficulty in manufacturing the extension product class were the
independent variables. Srivastava had faced the problem of multicollinearity in the analysis since there
was a very high correlation among the independent variables. With the help of experts, she removed
this problem using the residual centering method.1 The result of the regression analysis is shown in
Exhibit 7.

1 The residual centering method is used to address the problem of multicollinearity in regression analysis. It is a two- stage
regression method. In stage 1, each interaction term is a dependent variable while its constituent elements are independent
variables.

QUALITY * FIT=  + 1 QUALITY+ 2 FIT.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
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The Task Ahead

With the results of the qualitative and quantitative analysis in hand, Srivastava began the process of
interpreting them and making inferences. She realised that the results were along the expected lines.
However, there were a few surprises as well. The findings showed that Dettol Adhesive Bandage and
Dettol Floor Cleaner had the highest attitude ratings despite the fact that both extensions had failed
miserably in the market. How was this possible? she wondered.

She was also unsure about whether she had selected the correct research design and methodology and
the appropriate research questions. She had concerns about the sample size. She also recognised that
business school students could not be true representatives of the population. She felt that to be truly
representative, her sample should have been more diverse, perhaps with homemakers included in it.
She was uncertain how these factors might have affected the findings.

In the second stage, the residual terms obtained from stage 1 substitute the corresponding original interaction terms and the full
effect regression analysis is done.

ATTITUDE = o + 1 QUALITY + 2 FIT + 3 QUALITY * FIT (Residual).

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
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Exhibit 1: Regression Model and Hypotheses

The following model proposed by Aaker and Keller (1990) was tested in the study.

Aext = β0 + β1QUALITY + β2TRANSFER + β3COMPLEMENT + β4SUBSTITUTE


+ Β5QUALITY*TRANSFER + β6QUALITY*COMPLEMENT +
β7QUALITY*SUBSTITUTE + β8DIFFICULT

Here Aext is Attitude toward extension.

Based upon the above model, four hypotheses were formulated:

1. Perceived overall quality of the parent brand has a positive impact on consumers' attitudes toward the
extension.
2. The effect of the parent brand’s perceived overall quality on consumers' attitudes toward the
extension is increased when there is high fit between two product classes. When there is low fit, the
effect of the parent brand’s perceived overall quality is decreased.
3. The fit between the product classes of the parent brand and the extension has a direct positive effect
on consumers' attitudes toward the extension.
4. The perceived difficulty of manufacturing the product class of the extension has a positive effect on
consumers' attitudes toward the extension.

Source: Aaker and Keller (1990)

Exhibit 2: Questionnaire Used in Study

Questionnaire Items Scale


1. The perceived overall quality of the brand 1 = inferior, 7 = superior
extension
2. The likelihood of trying the extension 1 = extremely unlikely, 7 = extremely
likely
3. The perceived overall quality of the parent brand 1 = inferior. 7 = superior
4. The usefulness of the manufacturing skills and I = extremely unhelpful, 7 = extremely
resources in the original product for developing, helpful
refining and making the new product
5. The complementarity of the original and extension 1 = extremely unlikely, 7 = extremely
products in use likely
6. The substitutability of the original and extension 1 = extremely unlikely, 7 = extremely
products in use likely
7. The difficulty in manufacturing and designing the 1 = extremely easy. 7 = extremely
extension product difficult
9. Open-ended Associations:
Please take roughly 30 seconds to write down the associations or thoughts that came to your
mind when you considered the idea of purchasing each brand name product or extension

Source: Bottomley and Doyle (1996).

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
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Exhibit 3: Coded Brand Associations for Parent Brands

Rayban Sunglasses (6.15) Dettol Antiseptic Liquid (6.31)


Expensive 12 Doctors’ recommendation 5
High quality 8 Reliable/safe 10
Stylish/ fashionable 20 Fight germs 10
Trendy 1 Good quality 2
UV protection 1 Hygienic 9
Waste of money 1 Accessibility 1

Colgate Toothpaste (5.33)


Cavity fighter 6
Whitens teeth 8
Keeps breath fresh longer 1
Tastes good 1
Traditional 21
Good quality 1
Pepsodent is better 1
Notes:
Numbers in brackets are average overall quality ratings.
Brand associations and quality ratings are based on data from 50 respondents.

Exhibit 4: Coded Brand Associations for Extensions of Control Brands

Rayban Wallets (3.60) Colgate Chewing Gum (4.31)


Expensive 15 Prevents cavity 8
High quality 5 Good for teeth 11
Stylish/fashionable 9 Tastes like toothpaste 2
Sporty 4 Fresh breath 12
Not relevant 2 Won't harm teeth 1
Unwanted product 2 Good taste 2

Notes:
Numbers in brackets are extension attitude ratings.
Brand associations and attitude ratings are based on data from 50 respondents.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860
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Exhibit 5: Coded Brand Associations for Extensions of Dettol

Dettol Adhesive Bandage (5.70) Dettol Glycerine Soap (4.05)

Germ fighter 11 Skin pampering 3


Good association 4 Anti-germ 5
Hygienic 8 Good quality 1
Sincere product 1 Bad smell 4
Safety 3 Not matching 3
Quality 1 Does not click 4
First aid 1
Not relevant to mother brand 1

Dettol Sunscreen Lotion (3.17) Dettol Moisturising Cream (2.99)

Weird 1 Soft and healthy skin 1


Antiseptic 1 Antiseptic 1
Good quality 1 Mismatch 5
Does not click 6 Does not fit 4
Does not fit 4 Mildness 1
No matching 4 Medical value 1
Safe 2 Models 2
Good for skin 1
Reasonable pricing 1

Dettol Anti Dandruff Shampoo (3.81) Dettol Floor Cleaner (5.47)

Bad smell 4 Germ free 12


No matching 3 Good quality 2
High cleansing 2 Hygienic 3
Antiseptic 4 Cannot think of using it [Dettol 1
brand] on floor when I use it on
Safe 12
myself [for personal care]
Good for health 3
Medicated 1

Notes:
Numbers in brackets are the extension attitude ratings.
Brand associations and attitude ratings are based on data from 50 respondents.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860
8 of 9 A00229

Exhibit 6: Average Ratings of the Brand Extensions of Dettol

Attitude Quality Transfer Substitute Complement Difficult


Toward of
Extension Parent
Brand
1 Rayban Wallets 3.60 6.15 3.13 2.48 3.33 4.15
2 Colgate Chewing 4.31 5.33 4.65 3.33 4.19 3.27
Gum
3 Dettol Adhesive 5.70 6.31 5.15 4.15 4.83 3.21
Bandage
4 Dettol Sunscreen 3.17 6.31 2.92 2.63 2.65 4.98
Lotion
5 Dettol Anti Dandruff 3.81 6.31 3.44 2.71 3.21 4.35
Shampoo
6 Dettol Glycerine 4.05 6.31 4.26 3.48 3.57 3.65
Soap
7 Dettol Moisturising 2.99 6.31 2.92 2.57 2.81 4.28
Cream
8 Dettol Floor 5.47 6.31 5.21 3.23 4.58 3.02
Cleaner

Average 4.14 6.17 3.96 3.07 3.65 3.86


Standard Deviation 0.99 0.34 0.98 0.58 0.81 0.68

Exhibit 7: Regression Coefficients

Variables Beta Coefficients t values


Quality 0.12* 3.37
Transfer 0.50* 10.93
Complement 0.29* 6.58
Substitute 0.03 0.68
Quality * Transfer 0.08** 1.94
Quality * Complement -0.06 -1.61
Quality * Substitute 0.05 1.24
Difficult -0.02 -0.56

Adjusted R 2 .57
Sample size 383
*p < 0.01 **p < 0.10

Note: Effective sample size is less than 400 (50 respondents * 8 extensions)
since respondents have not provided ratings for some extensions.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860
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References
1
Jaiswal, A. K., Srivastava, A., & Kothari, D. (2007). Dettol: Managing brand extensions [Case Study].
Ahmedabad: Indian Institute of Management.
2
Aaker, D. A., & Keller, K. L. (1990). Consumer evaluations of brand extensions, Journal of Marketing,
54(January), 27-41.
3
Jaiswal, A. K., & Patro, S. K. (2003). Consumer evaluations of brand extensions: Evidence from India.
Journal of Academy of Business and Economics, 1(2), 170-178.
4
Bottomley, P. A., & Doyle, J. R. (1996). The formation of attitudes towards brand extensions: Testing
and generalising Aaker and Keller's model. International Journal of Research in Marketing, 13(4),
365-77.

Questions for Discussion

When Arpita Srivastava started her research study, she had set the following as her research
objectives:

• To find out what beliefs consumer have about the parent brand Dettol, and which of these
beliefs they relate with various brand extensions of Dettol.
• To understand how these beliefs influence consumer evaluations of Dettol’s brand
extensions.
• To investigate how consumers’ perceptions about the fit between the product class of the
parent brand and the extensions affect their evaluations of Dettol’s different brand
extensions.
• To examine what role factors such as the perceived overall quality of the Dettol brand play
in consumer assessments of its brand extensions.

This document is authorized for educator review use only by Bhuvanesh Kumar Sharma, Symbiosis Institute of Business Management (SIBM) until Sep 2021. Copying or posting is an
infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860

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