Drivers of successful luxury fashion brand extensions: cases of complement and transfer extensions

2018 ◽  
Vol 22 (4) ◽  
pp. 476-493 ◽  
Author(s):  
Irem Eren-Erdogmus ◽  
Ilker Akgun ◽  
Esin Arda
Keyword(s):  
Brand Extension ◽  
Consumer Involvement ◽  
Brand Extensions ◽  
Necessary Condition ◽  
Perceived Fit ◽  
Holistic Model ◽  
Content Type ◽  
Luxury Brand ◽  
Fashion Brand ◽  
Parent Brand

PurposeIn recent years, brand extension has become a popular and fundamental strategy of most luxury brands. The purpose of this paper is to clarify the factors that affect the success of luxury brand extensions by incorporating luxury brand value perceptions, parent brand attitude, fit perceptions and consumers’ product category involvement and innovativeness in a holistic model. The model is tested for two hypothetical luxury brand extensions types: complement and transfer.Design/methodology/approachThis study employs a fuzzy-set qualitative comparative analysis (fsQCA) technique to identify the variables that combine to produce a positive or a negative attitude towards luxury brand extensions. The research was conducted on 555 young women professionals (254 for brand extension Type 1 – complement (umbrella); and 301 for brand extension type – transfer (seating furniture), respectively).FindingsThe results show that perceived fit between the parent brand and extension is a necessary condition for a positive evaluation of both extension types. Other than perceived fit, hedonic and symbolic values and consumer involvement are proven to be necessary antecedent conditions for the evaluation of transfer extensions. This study also proposes several configurations for forming a positive attitude towards each brand extension type and makes implications for luxury managers and further research.Originality/valueThe results of the research are significant in several ways. First, this study adds to the extant literature by exploring a somehow neglected subject: luxury fashion brand extensions. The study tests a more holistic model than those of previous studies on luxury brand extensions and utilises two different extension contexts adapted from Aaker and Keller (1990). Second, this study is the first to apply fsQCA to identify the factors of luxury brand extension evaluations. fsQCA is highly applicable to large-scale data without the loss of detail or the potential for complexity.

Direct and Moderating Influence of Perceived Fit, Risk and Parent Brand Trust on Brand Extension Success of a Personal Care Brand in India

2018 ◽  
Vol 19 (6) ◽  
pp. 1681-1692 ◽  
Author(s):  
Vibhuti Tripathi ◽  
Pooja Rastogi ◽  
Suresh Kumar
Keyword(s):  
Brand Extension ◽  
Brand Extensions ◽  
Brand Trust ◽  
Substantial Influence ◽  
Perceived Fit ◽  
Personal Care ◽  
Product Categories ◽  
Parent Brand ◽  
Marketing Area

The shifting market dynamics and harsh rivalry of the worldwide economy have augmented the role of brands to an incomparable level. Brand extension has emerged as a popular strategy in the marketing area. While it brings brands closer to success, it is also imperative and important to understand how consumers evaluate and presume similar or dissimilar extensions and what is the substantial influence of risk and subsistence of parent brand on extension success? Identifying and analysing such relationships could be helpful and important for personal care brands in India to gain an edge over competitors. Data were collected from 500 consumers who were proverbial with the brand extensions of Dettol in similar or dissimilar product categories. Regression analysis showed that though perceived fit and risk directly influence the success of brand extension, nevertheless on incorporating parent brand conviction as a moderator the relationships between perceived fit and brand extension success and risk and brand extension success are strengthened. Limitations and future scope have also been mentioned.

Perceived fit and deal framing: the moderating effect of perceived fit on sales promotions in line and brand extensions

2014 ◽  
Vol 23 (4/5) ◽  
pp. 295-303 ◽  
Author(s):  
Feng Shen
Keyword(s):  
Brand Extension ◽  
Future Research ◽  
Perceived Fit ◽  
Sales Promotions ◽  
Experimental Conditions ◽  
Content Type ◽  
Perceived Performance ◽  
Line Extension ◽  
Performance Risk ◽  
Parent Brand

Purpose – The purpose of this study is to examine how perceived fit between a line/brand extension and its parent brand moderates the evaluation of two economically identical promotions, i.e. buy one get one free (BOGOF) and 50 per cent off. A travel-sized painkiller is the product in this study. Design/methodology/approach – A 2 (perceived fit: high or low) × 2 (promotion type: BOGOF or 50 per cent off) between-subjects design is used in this study. Participants, who are college students, are randomly assigned to the four experimental conditions. Findings – The results indicate that parent brand attitude is more closely associated with line-extension attitude than with brand-extension attitude, line extension leads to lower perceived performance risk and higher stockpiling tendency than brand extension and BOGOF is preferred over 50 per cent off for line extension but 50 per cent off is preferred over BOGOF for brand extension. Research limitations/implications – For a low-price, non-conspicuous and stock-up product category such as painkillers, marketers should consider using BOGOF to promote a line extension and 50 per cent off to promote a brand extension. It is important to explore in future research as to how the findings can be applied to other product categories, other promotion types, other packages and non-student consumers. Originality/value – This study is the first that examines how perceived fit of a line/brand extension moderates the evaluation of economically identical promotions. It integrates the literature of line/brand extension, perceived performance risk and prospect theory to advance the research on sales promotions for new products.

Parent brand quality, service intensity and consumers’ usage consideration of service-to-service brand extensions

2017 ◽  
Vol 26 (7) ◽  
pp. 690-703 ◽  
Author(s):  
Kelley A. O’Reilly ◽  
Alhassan G. Mumuni ◽  
Stephen J. Newell ◽  
Branden J. Addicott
Keyword(s):  
Brand Extension ◽  
Brand Extensions ◽  
Service Intensity ◽  
Content Type ◽  
Brand Evaluations ◽  
Service Category ◽  
Parent Brand ◽  
Service Brand ◽  
Managerial Implications ◽  
Using Data

Purpose This study aims to examine the relative impact of three drivers affecting consumers’ usage consideration for a brand extension into a service category using data from actual consumers of a national oil change retailer contemplating various service brand extensions. Design/methodology/approach Data for the study were collected in two separate surveys using structured self-administered questionnaires. Three drivers were measured for their effect on consumers’ usage consideration for service brand extensions (dependent variable), namely, parent brand evaluation, extension fit and degree of service intensity of the extension. Findings The results indicate that parent brand evaluations are the strongest drivers of brand extension usage consideration, regardless of the extension fit or the degree of service intensity of the extension. In addition, the findings suggest that the closer the fit to the parent brand, the more likely the extension will be considered. In contrast, consumers are less likely to consider using an extension as the level of service intensity increases. Originality/value This study’s use of actual customers of the brand, for real service brand extensions provides a higher degree of external validity than previous work in this area, and it yields a deeper understanding of the criteria used by consumers when evaluating service brand extensions. The study also provides managerial implications that are of practical value to academics and practitioners alike.

In search of fit or authenticity? A product-type consumer decision in celebrity brand extensions

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María Lucila Osorio ◽  
Edgar Centeno ◽  
Jesús Cambra-Fierro ◽  
Ernesto del Castillo
Keyword(s):  
Predictive Power ◽  
Brand Extension ◽  
Ordinary Least Squares ◽  
Product Type ◽  
Brand Extensions ◽  
Transfer Model ◽  
Perceived Fit ◽  
Content Type ◽  
Extension Model ◽  
Functional Extension

Purpose Celebrity-branded products constitute a brand extension growing phenomenon. Authenticity may explain why some of these offerings are successful despite low perceived fit, a traditional measure for brand extension acceptance. The purpose of this paper is to propose and test a framework based on the meaning transfer model that depicts the effects of brand extension authenticity, brand extension fit and idol attachment on the valuation of such offerings. An exploration of both functional and hedonic extensions is provided to control for product-type variables. Design/methodology/approach Scenario-based survey data from a general population (n = 646) was collected and analyzed with ordinary least squares regressions. Findings Brand extension authenticity is a significant antecedent of brand extension success in both product types, and brand extension fit is the most relevant antecedent only in functional extensions. Idol attachment exerts less influence than fit and authenticity in the functional extension. However, its relevance considerably improves in the hedonic extension. Originality/value A better understanding of consumers’ responses to celebrity brand extensions is essential to the branding literature. To the best of the authors’ knowledge, this study is the first to consider brand extension authenticity as a predictor of celebrity brand extension success and advances our knowledge of consumer behavior in relation to celebrities as brands and their products as brand extensions. The conceptual and empirical relevance of brand extension authenticity is demonstrated, highlighting its predictive power when compared with brand extension fit and idol attachment in a celebrity brand extension model, and a boundary condition related to product typology is uncovered.

Implicit Personality Theory in Evaluation of Brand Extensions

2000 ◽  
Vol 86 (3) ◽  
pp. 807-818 ◽  
Author(s):  
Karen E. Flaherty ◽  
James M. Pappas
Keyword(s):  
Brand Extension ◽  
Past Research ◽  
Brand Extensions ◽  
Personality Theory ◽  
Perceived Fit ◽  
Product Involvement ◽  
Complex Process ◽  
Parent Brand ◽  
Implicit Personality ◽  
Brand Information

Transference, the extent to which consumers transfer their opinions of a parent brand to a new extension, is critical to the success of any brand-extension strategy. Past research has shown that transference is a complex process that varies among persons depending upon an implicit personality theory, entity versus incremental. In a laboratory experiment analysis of ratings for 100 21-yr.-old undergraduates of attitude, perceived fit and risk, prior product involvement, and implicit personality theory (entity versus incremental) the influence of consumers' implicit personality theory on transference was considered within the brand-extension context. As expected, the amount of transference differed between those espousing entity and incremental theories. “Entity theorists” were much more likely to transfer feelings associated with the parent brand to the new extension than were “incremental theorists” who did not rely on prior brand information when forming evaluations of a new extension. This effect did not occur when perceived fit between the parent brand and the extension was high.

Online Brand Expansion towards the Offline Setting

2014 ◽  
pp. 69-89
Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina
Keyword(s):  
Brand Image ◽  
Brand Extension ◽  
Perceived Fit ◽  
Brand Alliances ◽  
Product Categories ◽  
Online Branding ◽  
Parent Brand ◽  
Emotional Dimensions ◽  
Online Brands ◽  
The Impact

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

Online Brand Expansion Towards the Offline Setting

2017 ◽  
pp. 383-405
Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina
Keyword(s):  
Brand Image ◽  
Brand Extension ◽  
Perceived Fit ◽  
Brand Alliances ◽  
Product Categories ◽  
Online Branding ◽  
Parent Brand ◽  
Emotional Dimensions ◽  
Online Brands ◽  
The Impact

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

Creating innovation that drives authenticity

2019 ◽  
Vol 30 (3) ◽  
pp. 369-391 ◽  
Author(s):  
Timothy Lee Keiningham ◽  
Zeya He ◽  
Bas Hillebrand ◽  
Jichul Jang ◽  
Courtney Suess ◽  
...  
Keyword(s):  
Conceptual Framework ◽  
Design Methodology ◽  
Positive Relationship ◽  
Brand Extensions ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Content Type ◽  
Parent Brand ◽  
Successful Innovation ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between innovation and authenticity by developing a conceptual framework that illuminates the key constructs. Design/methodology/approach The paper adopts a common perspective – the customer – for both innovation and authenticity. A conceptual framework identifying the roles of centrality and distinctiveness in the innovation–authenticity relationship is developed and justified based upon prior research regarding brand extensions and authenticity. Findings The innovation–authenticity relationship can be visualized and managed using two constructs: centrality and distinctiveness. Centrality is proposed to have a positive relationship, whereas distinctiveness is proposed to have a non-linear (inverted-U) relationship. Originality/value The paper contributes a new conceptualization of the innovation–authenticity–loyalty relationship. It applies C–D Mapping in a completely new way to provide managerially relevant visualization of customers’ perceptions of a new innovation vis-à-vis the parent brand to guide strategic decision making. The paper also suggests areas for further research to improve our understanding of successful innovation–authenticity alignment.

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