Formation of consideration set and consumer decision-making process under brand extension signal

This research aims to understand consumers’ decision-making process under brand extension strategy which might work as signals in the marketplace. The proposed model utilises a consideration set theory working as the core element of the decision-making process in providing a better understanding of the impact of brand-related activities. More specifically, the proposed model combines perceived quality and perceived risk simultaneously to generate inclusion probability of consideration sets by utilising a Bayesian manner utility maximum model with dynamic structure.