This study is to explore when the corporation implements brand extension strategy,there will be possibly a policy failure.
In particularly with functional products to consumers,
not only to considerate the original brand awareness
and its main product’s quality impression,
but to estimate the feature of the extension product and the demand of itself, and then weaken the positive impact by perceived fit.
Therefore this study takes the PC brand corporations release smart phone products as an example to study practicably the relationship of the perceived fit, perceived quality and product involvement.
To understand the situation of the product involvement whether produces moderation between the perceived and perceived quality,
as well as the reason why a PC brand corporation getting poor market performance after launching a smartphone product.
750 structured questionnaires were distributed to the students of Chinese Culture University and the members of Mobile01 forum through convenience sampling method. 270 completed and valid questionnaires were returned.
The results show that the perceived fit was positively related to perceived quality; However, product involvement was negatively related to perceived quality. Furthermore, when perceived fit as independent variables while using product involvement as the moderating variables,
which produced negative moderation between the perceived fit and perceived quality.
According to the result and practical management of this research could advise fur-ther research.
