scholarly journals Involvement of bilateral insula in brand extension evaluation: an fMRI study

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Taeyang Yang ◽  
Ji-Hyun Kim ◽  
Junsuk Kim ◽  
Sung-Phil Kim

AbstractThe present study aims to investigate functional involvement of brain areas in consumers’ evaluation of brand extension that refers to the use of well-established brand for launching new offerings. During functional magnetic resonance imaging (fMRI) scanning, participants viewed a beverage brand name followed by an extension goods name selected from the beverage or household appliance categories. They responded acceptability to given brand extension. Both acceptability responses and reaction time revealed a noticeable pattern that participants responded to acceptable stimuli more carefully. General linear model (GLM) analyses revealed the involvement of insular activity in brand extension evaluation. Especially, insular activity was lateralized according to valence. Furthermore, its activity could explain behavioral response in parametric modulation model. According to these results, we speculate that insula activity is relevant to emotional processing. Finally, we divided neural activities during brand extension into separated clusters using a hierarchical clustering-based connectivity analysis. Excluding two of them related to sensorimotor functions for behavioral responses, the remaining cluster, including bilateral insula, was likely to reflect brand extension assessment. Hence, we speculate that consumers’ brand extension evaluation may involve emotional processes, shown as insular activity.

2016 ◽  
Vol 628 ◽  
pp. 30-34 ◽  
Author(s):  
Agnieszka Fudali-Czyż ◽  
Marta Ratomska ◽  
Andrzej Cudo ◽  
Piotr Francuz ◽  
Natalia Kopiś ◽  
...  

2017 ◽  
Vol 51 (5/6) ◽  
pp. 850-868
Author(s):  
Radu Dimitriu ◽  
Luk Warlop ◽  
Bendik Meling Samuelsen

Purpose The purpose of this paper is to show that high similarity between a parent brand and an extension category can have a detrimental effect on how a brand extension is perceived to perform on specific attributes. This happens because similarity influences the perceived positioning of a brand extension: lower similarity extensions can be perceived as “specialized” products, whereas high similarity extensions are perceived as “all-in-one” products not performing exceptionally well on any specific attribute. Design/methodology/approach The authors test the hypothesized effect through three experimental studies. The authors manipulate similarity both within subjects (Study 1a) and between subjects (Study 1b and Study 2). Further, the authors test the effect for specific attributes that are physical/concrete in nature (Study 1a and Study 1b) as well as attributes that are abstract/imagery-related in nature (Study 2). Findings High compared to low similarity improves perceptions of overall performance (i.e. performance across all attributes). But as expected, the authors also find that a high similarity brand extension is perceived to perform worse on the attribute on which a low similarity brand extension specializes, even when the parent brands of the extensions possess that attribute to the same extent. This perception of attribute performance carries on to influence brand extension purchase likelihood. Practical implications The degree of brand extension similarity has consequences for how brand extensions are perceived to be positioned in the marketplace. Although high similarity extensions receive positive evaluations, they might not be suitable when a company is trying to instil a perception of exceptional performance on a specific attribute. Originality/value The authors demonstrate a consequential exception to the marketing wisdom that brands should extend to similar categories. Although the degree of brand extension similarity has been repeatedly shown to have a positive effect on brand extension evaluation, the authors document a case when its effect is actually detrimental. This study’s focus on the dependent variable of perceived performance on specific attributes is novel in the brand extension literature.


2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Yasir Ali Soomro ◽  

Purpose: This paper investigates how brand extension strategy can be used successfully by the companies while launching close brand extensions in the market. What are the antecedents (Mediating variables) of successful brand extension? Methodology: One independent variable consumer perceived brand concept was used with the dependent variable “Successful brand extension evaluation” with two mediating variables. Real life close brand extension as stimuli was used in this study. Self developed questionnaire was filled by 462 respondents by simple random sampling technique. Findings: Three hypotheses were tested with multi-mediation test by Preacher and Hayes. All three were accepted with most significant being Parent Brand Conviction and Brand loyalty jointly mediate the relationship between Consumer Perceived Brand Concept and Successful Brand Extension Evaluation for close extension.


Author(s):  
Zain-Ul Abideen ◽  
Abdul Latif

<span>This study examines consumer attitude and empirically test the factors that differentiate between successful and unsuccessful brand extensions, on the basis of parent brand attributes and characteristics, in reference to variables such as brand similarity, brand reputation, multiple brand extension, parent brand characteristics and brand concept consistency using actual extensions of two brands i.e. Olpers Cream (extension of Olpers Milk) and Lipton tea bag (extension of Lipton tea). A sample of 430 consumers of Bahawalpur District (Pakistan) was selected for the survey. Stratified proportionate sampling (in proportion to the population of each Union Council) was used for drawing these samples. The study suggests a more prominent role of parent brand attributes and characteristics than brand extension that had been acknowledged in the literature. Further, the study documents the importance of an extensions fit with the parent brands image while at the same time suggesting that similarity between the brand extension and its core brand has positive effect on extension evaluation. It also shows that as perceived appropriateness between the extension and the core brand decreases, attitude toward the core brand on brand-extension evaluation decreases.</span>


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