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Horizontal Extension and Repeat Purchase of Gsm Companies in Rivers State

Patrick Nwuche PhD

Abstract

This paper examined horizontal line extension and repeat purchase of GSM companies in Rivers State. Descriptive research was adopted with the identification and understanding of the application of horizontal extension and customer repeat purchase. The secondary data was used to review relevant literature on this subject. The components of horizontal line extension as operationalized in this work: package sizes/style and; new colours, were use to ascertain their influence on repeat purchase. Horizontal extension occurs when an introduction is made as additional item(s) of the same product under the same brand i.e. flavour, package size/style, flavour, new colour, forms, added ingredients, etc, and keeping the price and quality consistent. Horizontal extension can influence the customer buying behaviour and evaluation. The study outlined three implications: The first being that it will encourage customers to buy more product associated with it, not only the new extension but also the parent brand. Secondly, the study will make useful contributions to companies in acquiring current and useful knowledge on the effect of horizontal extension in other to solve nutty problems. And finally, to researchers, it will serve as provision of linkage between theory and practice for intended future research. Key Words: Horizontal extension, cannibalization, repeat patronage, successful extension, horizontal extension.

Keywords

Horizontal extensioncannibalizationrepeat patronagesuccessful extensionhorizontal extension.

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