Aligning Brand Identity with Public Expectation: The Critical Role of Design in Product Extension Success

Aligning Brand Identity with Public Expectation: The Critical Role of Design in Product Extension Success

Afrina Rauhah Abdul Jamil*, Muhammad Fauzan Abu Bakar

College of Creative Arts, Universiti Teknologi MARA Cawangan Sarawak

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8120123

Received: 29 November 2024; Accepted: 05 December 2024; Published: 06 January 2025

ABSTRACT

This study investigates the role of design development in shaping public acceptance of product extensions in Malaysia, a culturally diverse and economically dynamic nation. Product extensions, which leverage existing brand equity to introduce new offerings, depend heavily on consumer perception and acceptance. Design development serves as a critical element in bridging consumer expectations with brand strategies. By examining the interplay between design, brand image, and public acceptance, this study provides insights into how cultural, demographic, and psychological factors converge to influence purchase intentions. Employing a mixed-methods approach grounded in survey data analysed through Partial Least Squares Structural Equation Modelling (PLS-SEM), the research identifies significant relationships between design development, brand image, and consumer behaviour. Findings reveal that culturally resonant design not only enhances public acceptance but also serves as a mediator between product innovation and consumer loyalty. These results underscore the importance of tailoring design strategies to align with the unique preferences of Malaysian consumers, offering actionable recommendations for practitioners and policymakers alike.

Keywords: Design Development; Product Extension; Brand Image; Public Acceptance; Consumer Behaviour.

INTRODUCTION

Product extensions are a cornerstone of modern marketing strategies, enabling companies to introduce new products under an established brand name. The rationale behind such strategies lies in the ability to leverage existing consumer trust and brand equity to mitigate the risks associated with new product launches[1]. In Malaysia, the importance of product extensions is magnified by the nation’s diverse consumer base, which reflects a complex interplay of cultural, economic, and social factors. The dynamic nature of the Malaysian market, characterized by rapid urbanization and a growing middle class, offers both opportunities and challenges for businesses seeking to expand their offerings [2].

The central focus of this study is to explore the role of design development in driving the success of product extensions within this context. Design elements such as aesthetics, functionality, and symbolic value are pivotal in shaping consumer perceptions. These elements not only influence initial acceptance but also play a long-term role in fostering brand loyalty and repeat purchases[3]. Despite the critical role of design, existing literature has predominantly focused on Western markets, leaving a significant gap in understanding how design strategies should be tailored for culturally diverse markets like Malaysia. This research addresses this gap by examining how design development affects public acceptance of product extensions, with a specific focus on the mediating role of brand image[4].

Public acceptance of product extensions is not a straightforward phenomenon; it is influenced by a multitude of factors ranging from consumer attitudes and purchase intentions to demographic variables such as age, employment status, and income. In Malaysia, where consumer behavior is deeply influenced by cultural norms, religious practices, and socioeconomic conditions, understanding these dynamics is essential for businesses aiming to achieve sustainable growth[5]. By integrating insights from theoretical frameworks and empirical evidence, this study aims to provide a comprehensive understanding of the factors that drive public acceptance of product extensions in Malaysia.

LITERATURE REVIEW

The concept of product extension involves introducing new products or services under an existing brand umbrella. This strategy is widely recognized for its ability to capitalize on the equity of a parent brand, thereby reducing the perceived risk associated with new offerings[6], [7]. Framework emphasizes the importance of brand image in determining the success of product extensions. According to her theory, consumers’ perceptions of the parent brand significantly influence their attitudes toward the extension. When the new product aligns with the core values and characteristics of the parent brand, it is more likely to be accepted by the target audience.

In the context of Malaysia, the concept of public acceptance is particularly nuanced. Researcher describes public acceptance as a multifaceted construct that encompasses cognitive, emotional, and behavioural dimensions. It includes not only the initial purchase decision but also the long-term engagement and loyalty that consumers exhibit toward a product. For product extensions, public acceptance is often mediated by the extent to which the new offering resonates with the cultural and social expectations of the target audience[8].

Design development is another critical factor that influences the success of product extensions. The process of design involves creating products that are not only functional but also visually appealing and culturally relevant. Researcher highlights the importance of categorization and image transfer processes in this regard. Categorization involves how consumers classify new products based on their previous experiences with the parent brand. Image transfer, on the other hand, refers to the ability of a new product to inherit the positive attributes associated with the parent brand. These processes are particularly significant in Malaysia, where consumers are highly attuned to visual and symbolic cues that align with their cultural identities[9].

Brand image plays a pivotal role in mediating the relationship between design development and public acceptance. A strong brand image fosters trust, emotional connection, and loyalty, all of which are essential for the success of product extensions. Keller (1993) and Aaker (1997) have extensively documented the role of brand image in consumer decision-making, emphasizing its ability to mitigate the perceived risks associated with new products. In Malaysia, where consumer trust is often influenced by local cultural and religious values, a positive brand image can serve as a powerful driver of public acceptance[10].

Demographic factors such as age, employment status, and income levels also play a significant role in shaping consumer attitudes toward product extensions. Younger consumers, for example, are often more open to innovative and unconventional designs, while older demographics may prioritize reliability and tradition. Similarly, income levels influence perceptions of affordability and value, which are critical considerations in a price-sensitive market like Malaysia[11].

Theoretical Framework

Fig. 1 Proposed Theoretical Framework

The theoretical foundation of this study is built on the frameworks proposed by Catherine Viot (2011) and Ricardo Jimenez (2015). Viot’s model emphasizes the interplay between brand image, product extensions, and consumer attitudes, suggesting that a strong parent brand can significantly enhance the acceptance of new products. Her theory underscores the importance of aligning product extensions with the core values and characteristics of the parent brand to maximize consumer trust and loyalty.

Jimenez’s insights complement Viot’s framework by focusing on the psychological mechanisms of design transfer. According to Jimenez, consumers evaluate product extensions based on both functional and symbolic attributes. These evaluations are influenced by the extent to which the new product aligns with the visual and emotional identity of the parent brand. Jimenez’s theory is particularly relevant in the Malaysian context, where cultural and aesthetic considerations play a significant role in consumer decision-making.

The integration of these frameworks provides a comprehensive lens through which to examine the relationship between design development, brand image, and public acceptance. It also forms the basis for the hypotheses tested in this study, which explore the direct and mediating effects of design elements on consumer behaviour.

RESERCH METHODOLOGY

This study employs an explanatory research design to investigate the causal relationships between design development, brand image, and public acceptance. A quantitative methods approach was adopted, using quantitative data collection with insights to provide a holistic understanding of the research problem. Data were collected through a structured survey distributed to 300 respondents across Malaysia. The survey included items measuring key variables such as design perception, brand image, and purchase intention, using a 7-point Likert scale. Respondents were selected using a combination of random purposive and snowball sampling techniques to ensure a diverse and representative sample. The collected data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), a robust statistical technique that allows for the simultaneous evaluation of multiple relationships between variables. To enhance the reliability and validity of the findings, the analysis incorporated advanced techniques such as bootstrapping and blindfolding.

FINDINGS

Reliability and Validity Analysis

Table I Reliability and Validity Test Result

The reliability and validity of the constructs were tested to ensure the robustness of the measurement model. Cronbach’s alpha and composite reliability (CR) values were calculated for each construct, with results exceeding the commonly accepted threshold of 0.7 for reliability. This indicates strong internal consistency among the items used to measure each construct. For example: Cronbach’s alpha values for key constructs like design development, brand image, and purchase intention ranged between 0.78 and 0.92, demonstrating a high level of reliability. Composite reliability scores were similarly high, ranging from 0.85 to 0.95, confirming the reliability of the constructs across the measurement scale.

To establish convergent validity, the average variance extracted (AVE) values for each construct were calculated. AVE measures the amount of variance captured by the construct compared to the variance due to measurement error. Constructs with AVE values above the threshold of 0.5 were deemed to have adequate convergent validity. In this study, AVE values ranged from 0.65 to 0.84, indicating that a significant portion of the variance in the indicators was explained by the underlying latent variables. Discriminant validity was also assessed using the Fornell-Larcker criterion, which compares the square root of each construct’s AVE to its correlations with other constructs. All constructs met this criterion, confirming that each construct was distinct from others in the model. These results provide confidence in the robustness of the measurement model, ensuring that the constructs used in the analysis accurately represent the underlying theoretical concepts.

Application of the PLS-SEM Algorithm

Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the relationships between variables in the study. This method was selected for its ability to handle complex models with multiple latent variables and its suitability for exploratory research.

Structural Model Assessment

Table 2 Path Coefficient Result

The structural model was assessed for path coefficients, R² values, and effect sizes (f²). Path coefficients quantify the strength and direction of the relationships between variables, with significance determined through bootstrapping. The results revealed several significant relationships:

Design Development → Brand Image (β = 0.45, p < 0.01): This path coefficient indicates a strong positive relationship, affirming that well-executed design development enhances brand image.

Brand Image → Purchase Intention (β = 0.52, p < 0.01): This finding highlights the pivotal role of brand image as a mediator that drives consumer willingness to purchase product extensions.

Design Development → Purchase Intention (β = 0.34, p < 0.05): While weaker than the mediated path through brand image, this direct relationship remains significant, underscoring the importance of aesthetic and functional design elements.

R² values, which indicate the proportion of variance explained by the independent variables, were calculated for key endogenous constructs:

Table Path Coefficient (R²) Result

Brand Image: R² = 0.52, meaning 52% of the variance in brand image is explained by design development and parent brand characteristics.

Purchase Intention: R² = 0.68, indicating that 68% of the variance in purchase intention is accounted for by design development and brand image.

Effect sizes (f²) were calculated to assess the relative importance of predictors in the model. Results indicated medium to large effect sizes for the relationships between design development, brand image, and purchase intention, confirming the practical significance of these variables in driving public acceptance. The model’s predictive relevance was evaluated using Stone-Geisser’s Q² value through a blindfolding procedure. All Q² values were positive, confirming the model’s predictive validity. Additionally, the goodness-of-fit indices suggested an adequate fit between the theoretical model and the observed data.

Results Based on Demographics

The demographic analysis provided critical insights into how age, employment status, and income levels moderated the relationships between design development, brand image, and public acceptance. These findings are crucial for tailoring marketing and design strategies to specific consumer segments in Malaysia.

Age

Table 4 Demographic Implication (Age) Result

The analysis revealed distinct differences in preferences based on age groups. Younger consumers (ages 18–34) displayed a stronger preference for innovative and visually striking designs. They were more influenced by contemporary trends and global design standards, likely due to increased exposure to international media and digital platforms. This group showed the highest purchase intentions for product extensions that emphasized novelty and modernity. In contrast, older consumers (ages 35 and above) prioritized functionality and cultural appropriateness. They responded more positively to product designs that reflected traditional values and practical utility. For instance, product extensions that incorporated cultural motifs or eco-friendly materials resonated strongly with this demographic.

Employment Status

Table 5 Demographic Implication (Employment) Result

Employment status also emerged as a significant factor in shaping public acceptance. Employed respondents demonstrated higher levels of brand loyalty and purchase intention, particularly for product extensions associated with trusted parent brands. This group valued designs that combined aesthetic appeal with practical functionality, reflecting their dual focus on work-life balance and aspirational consumption. Students and unemployed respondents, on the other hand, exhibited greater price sensitivity. Their acceptance of product extensions was heavily influenced by perceived affordability and value, underscoring the importance of cost-effective design strategies for these segments.

Income Levels

Table 6 Demographic Implication (Income) Result

Income levels were a key determinant of consumer expectations and perceptions of value. High-income respondents displayed a preference for premium designs that emphasized luxury and exclusivity. They associated high-quality design with status and sophistication, making them more inclined to purchase product extensions that enhanced their social identity. Middle-income respondents, who form the largest segment of the Malaysian consumer base, prioritized a balance between quality and affordability. They were more receptive to product extensions that offered practical benefits without compromising on design appeal. This group was particularly influenced by the perceived trustworthiness of the parent brand and the congruence of the design with their lifestyle needs. Low-income respondents were more likely to evaluate product extensions based on basic functionality and price. For this group, design development played a secondary role, with public acceptance driven primarily by affordability and perceived utility.

Synthesis of Findings

The findings demonstrate the multifaceted impact of design development on public acceptance, mediated by brand image and moderated by demographic factors. They highlight the importance of tailoring design strategies to the cultural and economic context of Malaysia, where consumer preferences are shaped by a complex interplay of traditional values and modern aspirations. By employing rigorous reliability and validity testing, the study ensures that these findings are robust and generalizable. The application of PLS-SEM provides a nuanced understanding of the relationships between variables, offering actionable insights for businesses aiming to enhance public acceptance of product extensions. These findings underscore the need for a segmented approach to design development, recognizing the diverse preferences of different consumer groups. They also highlight the strategic importance of brand image as a mediator that amplifies the impact of design on purchase intentions.

DISCUSSIONS

The findings of this research underscore the pivotal role of design development in influencing public acceptance of product extensions within the Malaysian market. This discussion critically evaluates these findings in light of the theoretical frameworks, empirical data, and the broader sociocultural and economic context of Malaysia.

The Role of Design Development

Design development emerged as a significant predictor of public acceptance, directly impacting brand image and, indirectly, purchase intention. This confirms the theoretical premise proposed by Jimenez (2015), which highlights the psychological mechanisms of categorization and image transfer in design. In the Malaysian context, where consumers are particularly attuned to cultural and aesthetic cues, design acts as a primary interface between the brand and its audience. For instance, brands that incorporate traditional Malay motifs or Islamic design principles in their product extensions are likely to resonate more deeply with local consumers. This finding also aligns with the concept of “design ethnocentrism,” where consumers favor designs that reflect their cultural identity.

A deeper exploration of the path coefficients revealed that the relationship between design development and brand image (β = 0.45, p < 0.01) is robust. This suggests that aesthetic and functional elements of design are not merely supplementary but central to consumer perceptions of brand quality and relevance. The finding also highlights the strategic importance of aligning design with brand identity, as inconsistencies can lead to consumer dissonance and reduced trust.

Mediating Role of Brand Image

Brand image was found to mediate the relationship between design development and purchase intention. This confirms earlier studies by Keller (1993) and Aaker (1997), which emphasize the centrality of brand image in consumer decision-making. However, the Malaysian findings add a critical dimension to this understanding by showing that brand image operates not just as a mediator but as a cultural filter. In Malaysia, where religious values and ethnic diversity influence consumer behavior, brand image is more than a functional construct; it embodies trust, emotional resonance, and social alignment.

The strength of this mediation effect (β = 0.52, p < 0.01) underscores the importance of designing products that not only meet functional expectations but also enhance the perceived integrity and values of the parent brand. For instance, product extensions that fail to align with the ethical and environmental values of Malaysian consumers—values that are increasingly prominent in purchasing decisions—risk eroding brand equity.

Public Acceptance and Demographic Influences

Demographic analysis revealed significant moderating effects of age, employment status, and income on public acceptance. Younger consumers, particularly those in urban areas, demonstrated a strong preference for innovative and visually striking designs. This finding is consistent with global trends, where younger demographics are often more experimental and open to novel experiences. In the Malaysian context, this preference may also be influenced by increasing exposure to global design trends through social media and international brands.

Conversely, older consumers exhibited a stronger preference for functionality and reliability, aligning with traditional values that prioritize practicality over aesthetics. This bifurcation in preferences suggests that brands need to adopt segmented design strategies, catering to the specific needs and aspirations of different age groups. For example, while younger consumers may respond positively to bold and unconventional designs, older demographics might favor products that emphasize durability and cultural appropriateness.

Income levels also played a crucial role in shaping perceptions of affordability and value. Middle-income consumers, who form the largest segment of the Malaysian market, were found to be particularly sensitive to the balance between price and quality. This finding reinforces the need for brands to position product extensions as cost-effective solutions that do not compromise on quality or design.

Cultural Resonance as a Success Factor

One of the most critical findings of this research is the importance of cultural resonance in design development. Malaysia’s multicultural landscape, comprising Malay, Chinese, Indian, and indigenous communities, creates a unique consumer environment where cultural symbols and narratives carry significant weight. Brands that incorporate these elements into their design are likely to foster stronger connections with their target audience. For instance, during festive seasons such as Hari Raya or Chinese New Year, product extensions that incorporate cultural symbols often enjoy higher acceptance rates.

The findings also suggest that cultural resonance extends beyond aesthetics to include ethical and environmental considerations. As Malaysian consumers become more environmentally conscious, product designs that incorporate sustainable materials and processes are likely to gain favor. This aligns with global trends but is uniquely amplified in Malaysia due to increasing government and societal emphasis on sustainability.

Critical Discussion and Implications

While the findings provide robust evidence for the importance of design development, several critical questions remain. One key issue is the potential trade-off between design innovation and brand consistency. While innovative designs can attract new consumer segments, they may also alienate existing customers who value the traditional attributes of the parent brand. This tension underscores the need for a balanced approach that prioritizes incremental innovation aligned with brand identity.

Another critical consideration is the scalability of culturally resonant designs. While these designs can drive public acceptance within specific demographic groups, they may not translate well to other regions or global markets. This raises questions about how multinational brands operating in Malaysia can balance local customization with global brand coherence.

The study’s reliance on cross-sectional data also limits its ability to capture the long-term impacts of design development on consumer behavior. Longitudinal studies would be valuable in exploring how consumer perceptions evolve over time and whether initial acceptance translates into sustained loyalty.

Despite these limitations, the findings offer actionable insights for practitioners and policymakers. For marketers, the study emphasizes the need for a consumer-centric approach to design that incorporates both cultural and demographic considerations. For policymakers, the findings highlight the importance of fostering an environment that supports innovation in design and branding, particularly for small and medium-sized enterprises (SMEs) looking to compete in a globalized market.

RECOMMENDATIONS

For Practitioners

Prioritize Consumer-Centric Design

Design development should be grounded in a deep understanding of consumer preferences, values, and cultural contexts. Businesses should invest in market research to identify the specific design elements that resonate with their target audience. For instance, integrating traditional motifs with modern aesthetics can appeal to both younger and older demographics, bridging generational preferences.

Leverage Brand Image as a Strategic Asset

Given the mediating role of brand image, practitioners must ensure that product extensions align with the parent brand’s core values and identity. Inconsistent design choices that deviate from the established brand image can erode trust and loyalty. Regular brand audits and consumer feedback loops can help maintain alignment between the parent brand and its extensions.

Adopt a Segmented Approach to Marketing and Design

The demographic variations identified in this study highlight the need for targeted marketing strategies. For younger consumers, brands should emphasize innovation, creativity, and digital engagement, leveraging platforms like social media to amplify their message. For older and more traditional demographics, the focus should be on practicality, durability, and cultural authenticity.

Incorporate Sustainability into Design Development

As Malaysian consumers become increasingly environmentally conscious, integrating sustainable practices into design development can enhance public acceptance. Businesses should consider using eco-friendly materials, reducing packaging waste, and communicating these efforts through transparent marketing campaigns.

For Policymakers

Support Design Innovation through Policy Incentives

Policymakers should create an enabling environment for design innovation by offering tax incentives, grants, and training programs for businesses and designers. Special emphasis should be placed on supporting small and medium-sized enterprises (SMEs) that may lack the resources to invest in advanced design development.

Promote Cultural Preservation through Design

To preserve Malaysia’s rich cultural heritage, policymakers can collaborate with businesses to encourage the integration of traditional design elements into modern products. Initiatives such as design competitions, exhibitions, and partnerships with local artisans can foster innovation while promoting cultural identity.

Facilitate Sustainability in Product Development

Policymakers should establish guidelines and standards for sustainable design practices, encouraging businesses to adopt environmentally friendly methods. Public awareness campaigns can also educate consumers about the benefits of choosing sustainable products, creating a demand-driven incentive for businesses to innovate.

For Academics and Researchers

Expand Research on Cultural and Contextual Factors

Future studies should delve deeper into how specific cultural and contextual factors influence public acceptance of product extensions. Comparative studies across different regions in Malaysia or other ASEAN countries can provide broader insights into the role of design in diverse markets.

Explore Longitudinal Impacts of Design Development

While this study offers valuable cross-sectional insights, longitudinal research is needed to examine how consumer perceptions and behaviors evolve over time. This would provide a deeper understanding of the long-term impacts of design on brand loyalty and market success.

Investigate Digital and Technological Innovations in Design

As digital technologies like augmented reality (AR) and 3D printing transform the design landscape, future research should explore their implications for product extensions. Understanding how these technologies can enhance consumer engagement and acceptance will be critical for businesses aiming to stay competitive.

The findings of this study underscore the transformative potential of design development in driving public acceptance and shaping consumer behavior. By integrating cultural sensitivity, demographic awareness, and sustainability into their design strategies, businesses can not only enhance their market performance but also contribute to broader societal goals. For policymakers and researchers, the insights from this study provide a roadmap for fostering innovation and inclusivity in product development, ensuring that Malaysia’s diverse consumer base is both represented and empowered in the marketplace.

CONCLUSIONS

This study highlights the critical role of design development in driving the success of product extensions, particularly in a culturally diverse and economically dynamic market like Malaysia. By examining the relationships between design development, brand image, and purchase intention, the research offers a comprehensive understanding of the factors influencing public acceptance. The findings underscore that design is not merely a functional or aesthetic aspect of product development but a strategic tool that shapes consumer perceptions, attitudes, and behaviors.

The mediating role of brand image was particularly significant, illustrating how a strong, positive brand identity can amplify the impact of design on consumer decision-making. This finding aligns with established theories, such as those proposed by Keller (1993) and Aaker (1997), but extends their applicability to the unique cultural and demographic context of Malaysia. By demonstrating that design development explains a substantial proportion of the variance in brand image and purchase intention, the study reaffirms the importance of aligning product extensions with consumer expectations and brand identity.

The demographic analysis further reveals how age, employment status, and income levels moderate consumer preferences. Younger consumers are drawn to innovative and visually striking designs, reflecting their exposure to global trends and digital platforms. Older consumers, on the other hand, prioritize functionality and cultural alignment, emphasizing the importance of tradition and practicality. These insights highlight the need for segmented marketing strategies that cater to the specific needs and aspirations of different consumer groups.

Moreover, the findings emphasize the role of cultural resonance in driving public acceptance. In Malaysia’s multicultural landscape, design serves as a powerful medium for communicating values, identity, and trust. Product extensions that incorporate culturally relevant motifs or sustainable practices not only enhance public acceptance but also contribute to the broader goals of cultural preservation and environmental sustainability.

However, the study also raises critical questions about the balance between innovation and consistency. While innovative designs can attract new consumer segments, they may risk alienating loyal customers if they deviate too far from the parent brand’s established identity. This tension underscores the need for a nuanced approach to design development that balances creativity with strategic alignment.

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