From smartphones to electric cars: a multidimensional analysis of Xiaomi’s brand extension and consumer perceptions

This study investigates consumer perceptions of Xiaomi’s brand extension from electronics to automobiles, focusing on the SU7 electric car. Guided by signaling theory, it explores how brand trust, perceived quality, and user satisfaction influence purchase intention. A cross-sectional survey of 200 Chinese consumers and deep learning analysis of 12,843 social media comments were conducted. BERT was used for sentiment analysis, LDA for topic modeling, and co-occurrence analysis to uncover potential purchase intentions. Regression results showed brand trust and satisfaction with Xiaomi’s phones were the strongest predictors of purchase intention (R2 = 0.868, p < 0.01), while innovation played a secondary role. Sentiment analysis revealed generally positive attitudes toward value for money, technology, and brand loyalty, with some concerns about quality control. This study extends signaling theory by demonstrating how brand equity can transfer to high-involvement products and offers strategic insights for tech firms expanding into trust-sensitive industries.