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.

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.

Comparing consumer evaluations of services-to-services brand extensions with services-to-goods

2017 ◽  
Vol 35 (7) ◽  
pp. 877-891
Author(s):  
Jayasankar Ramanathan ◽  
Sanal Kumar Velayudhan
Keyword(s):  
Structural Equation ◽  
Negative Impact ◽  
Survey Design ◽  
Brand Extension ◽  
Favorable Attitude ◽  
Equation Modeling ◽  
Unique Contribution ◽  
Content Type ◽  
Parent Brand ◽  
Service Brand

Purpose The purpose of this paper is to examine the influences of parent brand characteristics and brand-extension fit on attitude towards the extension in the context of services-to-goods (SG) brand extension compared with services-to-services (SS) brand extension. Design/methodology/approach A survey design was used to collect data from 626 individual respondents. The respondents were selected using probability sampling from two cities in India. The data were analyzed using structural equation modeling (SEM). Findings The study indicated that context (SS or SG) moderated the influence of factors on attitude toward brand extension. A favorable attitude towards the parent brand had a greater positive influence on SS brand extension compared with SG brand extension. Quality variance among service types under the parent brand had a higher negative impact on attitude towards SG brand extension than on attitude towards SS brand extension. Practical implications Managers may prefer extending a service brand to another service rather than a good when consumers have a favorable attitude towards the brand. Furthermore, when the perceived quality of service types under a service brand varies substantially, extension of the brand to a good requires greater concern than extension to a service. Originality/value The unique contribution of this study is the examination of the moderating influence of the characteristics of an offering (SS vis-à-vis SG) on the link between brand extension attitude and its influencing factors.

Enhancing participation through organizational drivers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Ruiz-Pérez ◽  
Álvaro Lleó ◽  
Elisabeth Viles ◽  
Daniel Jurburg
Keyword(s):  
Job Satisfaction ◽  
Social Influence ◽  
Self Efficacy ◽  
Employee Participation ◽  
Research Literature ◽  
Structural Equations ◽  
Content Type ◽  
Individual Outcomes ◽  
Managerial Implications ◽  
Using Data

PurposeThis paper unifies previous research literature on employee participation in continuous improvement (CI) activities through the development and validation of a conceptual model. The purpose of this model is to illustrate how organizational drivers foster organizational and individual enablers which, in turn, strengthen employee participation in CI. The article also discusses the results and managerial implications.Design/methodology/approachFirstly, the article introduces the main variables affecting employee participation in CI, looking at the different possible relationships proposed in existing literature. In accordance with the Kaye and Anderson (1999) framework, these variables are categorized into organizational drivers, organizational and individual enablers and individual outcomes. Based on these categories, a model was put forward and empirically validated using data collected from three Spanish companies (n = 483) and using partial least squares structural equations modelling (PLS–SEM).FindingsA model was put forward, proposing PIRK systems (power, information, rewards, knowledge) as the main organizational driver of employee participation in CI activities. PIRK impacts positively on social influence (organizational enabler), self-efficacy and job satisfaction (individual enablers). These enablers, together with employee intention of participating, help determine employee participation in CI activities.Practical implicationsOrganizations with CI programmes should develop systems based on employee empowerment, information, rewards and knowledge in order to foster their self-efficacy and seek out a culture where social influence may help to improve job satisfaction. By suitably managing these organizational drivers, managers can help to further develop certain organizational and individual enablers responsible for fostering employee participation in CI activities.Originality/valueBy unifying different behavioural and CI-related frameworks, this paper carries out an in-depth study into the process of fostering employee participation as the key aspect in helping organizations sustain CI programmes. This paper shows the importance of managing PIRK organizational drivers as levers in the process of developing certain organizational and individual enablers, which are responsible for enhancing employee participation in CI.

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.

Ethics in social media marketing

2019 ◽  
Vol 71 (2) ◽  
pp. 195-216 ◽  
Author(s):  
Wen-Chin Tsao ◽  
Tz-Chi Mau
Keyword(s):  
Purchase Intention ◽  
Online Community ◽  
Positive Influence ◽  
Online Marketing ◽  
Analysis Of Covariance ◽  
Product Reviews ◽  
Content Type ◽  
Quasi Experimental ◽  
Managerial Implications ◽  
Using Data

Purpose Consumer-generated online product reviews (OPRs) have become a crucial source of information for consumers; however, OPRs are increasingly being incentivized. The purpose of this paper is to find a method of sponsorship and disclosure that could be considered ethically sound. Design/methodology/approach This study adopted a quasi-experimental approach to clarifying how the method of sponsorship impacts reader perceptions of OPRs in terms of helpfulness, credibility and purchase intention. Two experiments were performed on an online platform using data from 480 participants. Hypotheses were tested using analysis of covariance. Findings Meaning under the premise that sponsorship information is disclosed and not withheld from the readers, Study 1 revealed that experiential sponsorship is the best sponsorship. Study 2 revealed that featuring reviewers with greater influence in the online community increases the positive influence of disclosing experiential sponsorship on OPR persuasiveness. Originality/value The findings in this study provide rational incentives for firms to disclose sponsorship information, i.e. demonstrate high ethical standards in marketing. This was shown to create a win-win-win situation for consumers, firms and reviewers. Managerial implications for online marketing managers are also discussed.

Send-for-review decisions, brand equity, and pricing

2016 ◽  
Vol 50 (1/2) ◽  
pp. 145-165 ◽  
Author(s):  
Chun Qiu ◽  
Peter Popkowski Leszczyc
Keyword(s):  
Brand Equity ◽  
Voluntary Disclosure ◽  
Brand Names ◽  
Third Party ◽  
Digital Cameras ◽  
Content Type ◽  
Brand Quality ◽  
Managerial Implications ◽  
Using Data ◽  
The Impact

Purpose – The purpose of this paper is to study firms’ decisions of voluntary disclosure of high product quality by sending their products to intermediaries for review, and how the nature of the reviews subsequently substitutes the brand names in terms of affecting the price of the product. Design/methodology/approach – Using data on camcorders and point & shoot digital cameras collected from multiple intermediary sources, this paper empirically tests the relationships among brand equity, send for review decisions, the nature of reviews and pricing, controlling for endogeneity. Findings – This paper finds that firms are likely to send their high-quality products to the intermediaries for review, but such likelihood varies across different brands. Relatively weak brands are more likely to send their products for review than relatively strong brands. By doing so, weak brands receive two benefits: first, intermediary reviews help eliminate price differentials between weak brands and strong brands. The more positive is the review, the higher is the price. When intermediary reviews are not obtained, some strong brands effectively charge a price premium over weak brands. Second, intermediary reviews subsequently attract more consumer word of mouth (WOM). The more positive is the review, the more consumer WOM is attracted. Researchlimitations/implications – One limitation is that this paper does not account for the influence of intra-brand competition. The second limitation is related to the assumption that intermediary reviews are accurate. Practicalimplications – This paper offers managerial implications to brand managers concerning send-for-review and pricing decisions. It proposes how managers leverage third-party endorsement in launching a new product. Originality/value – This paper is one of the few papers empirically studying the interaction of two communication approaches: disclosure and brand signaling. It modifies the commonly assumed relationships among brand, quality and price by demonstrating the substitute effect of intermediary reviews and brand names on price. This paper is also the first research that empirically examines the impact of firms’ “send-for-review” decisions on generating consumer WOM. Managerially, this paper substantiates Godes et al.’s (2005) framework on how firms should manage social interactions upon the release of new products.

Does eWOM matter to brand extension?

2017 ◽  
Vol 11 (3) ◽  
pp. 232-245 ◽  
Author(s):  
Xin Liu ◽  
Jing Hu ◽  
Bing Xu
Keyword(s):  
Brand Extension ◽  
Critical Issue ◽  
Public University ◽  
Brand Extensions ◽  
Differential Impact ◽  
Content Type ◽  
Message Type ◽  
Marketing Resources ◽  
Different Types ◽  
The Impact

Purpose The purpose of this study is to find out how electronic word of mouth (eWOM) may affect evaluations of products with different brand images. In particular, the study explores differential eWOM impacts across several brand types and extension categories. Design/methodology/approach An experiment with 2 (brand image: prestige/function) × 2 (category similarity: low/high) × 2 (eWOM message type: positive/negative) between-subjects design was used to examine the impacts of eWOM on different types of brand extensions. A total of 268 subjects from a public university in the Southwest participated in the study. Analysis of Variance (ANOVA) was used in analyzing the data. Findings The findings highlight the differential impact of eWOM on brand extension evaluations with different brand images. First, eWOM is more effective in influencing evaluations of functional brand extensions than prestige brand extensions. Second, whereas negative eWOM does equally bad on both high- and low-similarity brand extensions, positive eWOM is more effective in improving evaluations of high-similarity extensions than low-similarity extensions. Originality/value This study is the first to examine the impact of eWOM on products with different brand images. This is a critical issue for brand managers who allocate limited marketing resources to monitoring and managing vast amounts of eWOM activities. The findings provide important guidance for managing social media marketing communications.

Reciprocal Spillover Effects: A Strategic Benefit of Brand Extensions

2003 ◽  
Vol 67 (1) ◽  
pp. 4-13 ◽  
Author(s):  
Subramanian Balachander ◽  
Sanjoy Ghose
Keyword(s):  
Panel Data ◽  
Brand Choice ◽  
Brand Extension ◽  
Spillover Effects ◽  
Product Line ◽  
Brand Extensions ◽  
Parent Brand ◽  
Product Line Management ◽  
Scanner Panel Data ◽  
Scanner Panel

A commonly advanced rationale for the proliferation of brand extensions is companies’ motivation to leverage the equity in established brands, thereby developing profitable products relatively easily. A more interesting strategic argument for brand extensions that has been advanced is that extensions would favorably affect the image of the parent brand and thereby influence its choice. In this research, the authors investigate the existence of such reciprocal spillover effects emanating from the advertising of a brand extension. The authors use scanner panel data and study spillover effects of advertising on brand choice. They develop implications for brand and product line management.

scholarly journals Brand Extensions: A Qualitative Meta-Analysis Of 20 Years Of Marketing Research

2011 ◽  
Vol 2 (11) ◽  
Author(s):  
Elise Prosser ◽  
Melissa St. James
Keyword(s):  
Meta Analysis ◽  
Marketing Research ◽  
Brand Extension ◽  
New Product ◽  
Brand Extensions ◽  
Brand Names ◽  
The Past ◽  
New Product Introductions ◽  
Parent Brand ◽  
Brand Dilution

Brand extensions, or new product introductions under an existing brand name, have become increasingly popular over the past 20 years. Marketers tout brand extensions as enjoying higher market share and profitability than launching new brand names that require exorbitant advertising expenditures (Smith & Park 1992). According to some estimates, brand extensions account for more than 90% of new product introductions in some categories (Volckner & Sattler 2002). However, one study found that 27% of line extensions failed (Reddy, et al 1994). Furthermore, excessively stretching the brand to various products may risk brand dilution. A brand extension failure is seen as harming the parent brand. The authors provide a qualitative meta-analysis that summarizes sixty-three articles comprising the brand extension research over the past twenty years (1981-2000). They suggest three propositions that represent three major conclusions reached by the studies and present evidence of support for each.

scholarly journals Do Brand Extensions Affect Consumer Attitude: An Empirical Experience-With Reference To Pakistani Consumers

2011 ◽  
Vol 27 (2) ◽  
Author(s):  
Zain-Ul Abideen ◽  
Abdul Latif
Keyword(s):  
Brand Extension ◽  
Brand Extensions ◽  
Consumer Attitude ◽  
The Core ◽  
Brand Reputation ◽  
Parent Brand ◽  
Brand Attributes ◽  
Brand Extension Evaluation ◽  
Core Brand ◽  
Extension Evaluation

<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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