Companies may own brands, but they live in the hearts and minds of its consumers and potential consumers. A brand occupies space in the perception of the consumer and is what results from the totality of what the consumer takes into consideration before making a purchase decision (Pickton and Broderick, 2001). A brand is a person's gut feeling about a product, service or company (Neumeier, 2003). Companies capitalize on the brand name to enter into new product categories or launch a new feature in the existing categories. The present study is an attempt to study the strategies, types and attitude towards brand extensions. Also, the factors affecting attitude towards brand extensions are discussed. Perceived fit between the parent brand and brand extension acts as a moderator in the relationship between parent brand equity and attitude towards brand extension. Also, perceived fit mediates the relationship between brand image and attitude towards brand extension. Perceived parent brand quality was found to be positively associated with attitude towards brand extension. Consumers' innovativeness, product class knowledge and perceived risks assumed were found to moderate the relationship between perceived fit and attitude towards brand extension.