Reciprocal transfer of brand associations between service parent brands and upward line extensions

2016 ◽  
Vol 26 (2) ◽  
pp. 222-243 ◽  
Author(s):  
Jean Boisvert
Keyword(s):  
Survey Methodology ◽  
Brand Associations ◽  
Service Line ◽  
Content Type ◽  
Line Extensions ◽  
Line Extension ◽  
Parent Brand ◽  
Reciprocal Transfer ◽  
Brand Information ◽  
Over Time

Purpose – The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched horizontal and upward service line extensions affect transfer and reciprocal transfer of brand associations. Design/methodology/approach – A field study using a survey methodology based on a 2×2 experimental random design was conducted with a sample representative of the target population of an established bank in Eastern Canada. Two levels of parent brand accessibility (high/low) and two levels of line extension (upward/horizontal) were tested. Pretests were conducted, and the analysis of results was done using a three-point-in-time confirmatory factorial analysis for each cell. Findings – The findings indicate that for a newly launched horizontal service line extension, when accessibility of an established parent brand is high, information transfer and reciprocal transfer of brand associations is strong and complete. When accessibility is low, transfer is strong but incomplete, leading to partial dilution of the parent brand. In the case of a newly launched upward service line extension, for both high- and low-accessibility contexts, only key diagnostic parent brand associations transfer to the extension. Reciprocal transfer is strong, leading to a significant dilution of the parent brand. Research limitations/implications – Other kinds of extensions (e.g. downward, distant), other types of services, and consumer goods could be tested to observe the extent to which transfer works. Practical implications – This study provides key findings to managers who are responsible for launching newly created service line extensions (horizontal and upward). When evaluating a new vertical service line extension, consumers actively process the available information at hand (e.g. print advertising, point-of-purchase materials), but key diagnostic associations of the parent brand tend to persist over time. Thus, marketers must be careful when using or not using parent brand information during launch, though an upward service line extension is likely to dilute the parent brand’s equity, either positively or negatively. Originality/value – This paper brings new insights to the service branding literature with respect to the dynamics of transfer of brand associations between service line extensions (horizontal and upward) and their parent brands. Drawing on the accessibility-diagnosticity framework, it closes an important theoretical knowledge gap regarding the persistence over time of accessible vs diagnostic parent brand information in the mechanisms of transfer of brand associations to and from different types of service extensions.

Vertical versus horizontal line extensions: a comparison of dilution effects

2018 ◽  
Vol 27 (6) ◽  
pp. 670-683 ◽  
Author(s):  
Michelle Childs ◽  
Byoungho Jin ◽  
William L. Tullar
Keyword(s):  
Horizontal Line ◽  
Perceived Fit ◽  
Growth Strategies ◽  
Content Type ◽  
Line Extensions ◽  
Line Extension ◽  
Parent Brand ◽  
Brand Dilution ◽  
Brand Concept ◽  
Dilution Effects

Purpose Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution. Design/methodology/approach This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis. Findings Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions. Originality/value This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

To Extend or Not to Extend: Success Determinants of Line Extensions

1994 ◽  
Vol 31 (2) ◽  
pp. 243-262 ◽  
Author(s):  
Srinivas K. Reddy ◽  
Susan L Holak ◽  
Subodh Bhat
Keyword(s):  
Firm Characteristics ◽  
Line Extensions ◽  
Early Entry ◽  
Line Extension ◽  
Parent Brand ◽  
Extension Activity ◽  
Entry Timing ◽  
Symbolic Value ◽  
Using Data

The authors study the determinants of line extension success using data on 75 line extensions of 34 cigarette brands over a 20-year period to investigate the relative effects of brand, extension, and firm characteristics on the incremental market share of brand line extensions. The econometric model also captures the extent of cannibalization of parent brand sales that may have occurred due to the line extension's introduction. The authors also explore the role of a brand's symbolic value as a factor in line extension success. Results indicate that parent brand strength and its symbolic value, early entry timing, a firm's size, and distinctive marketing competencies, as well as the advertising support allocated to line extensions, contribute positively to the success of line extensions. Their findings suggest that, in this industry, cannibalization effects of line extension activity may have been limited and line extensions into earlier subcategories actually may have helped the parent brand. Even with cannibalization, the incremental sales generated by the extension seem to be reason enough to make a line extension strategy viable.

scholarly journals The effect of product line endpoint prices on vertical extensions

2018 ◽  
Vol 52 (3/4) ◽  
pp. 575-595 ◽  
Author(s):  
Nicolas Gonçalves Pontes
Keyword(s):  
Perceived Risk ◽  
Product Line ◽  
Vertical Line ◽  
Range Effect ◽  
Product Lines ◽  
Content Type ◽  
Line Extensions ◽  
Parent Brand ◽  
Price Range ◽  
Range Theory

Purpose Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand to its extensions. Drawing on the range theory exemplar models of categorization, this paper aims to show the effects of parent brand endpoint prices on consumer judgments of vertical line extensions. Design/methodology/approach Three experiments have been conducted. Experiment 1 tests the hypothesis that consumers rely on the parent brand price range when making judgments of an upscale extension. Experiment 2 tests the hypothesis that the effect of price range on extension evaluation is mediated by perceived risks for upscale extensions but not downscale extensions. The final experiment shows a boundary condition to the product line range effect on upscale extensions. Findings This research shows that upscale extensions are judged more favorably in the context of a wide versus a narrow product line even when the highest endpoints in both product lines are equally close to the extension and that this effect is mediated by perceived consistency and perceived risk. The range effect disappears, however, when consumers have a broad focus in which attention shifts to category endpoint prices, making parent brand prices less diagnostic of upscale extension judgments. Practical implications Managers may display a wider range of products and/or reduce prices of low-end models to expand product line price width. In consequence, low-end products become more competitive in terms of price and at the same time improve favorability ratings of the new upscale product. Originality/value Vertical line extensions and product line pricing are important topics to both academics and practitioners. Nonetheless, this is the first research to demonstrate how product line price width can influence consumer perceptions of vertical line extensions.

How consumers’ use of brand vs attribute information evolves over time

2014 ◽  
Vol 31 (4) ◽  
pp. 290-300 ◽  
Author(s):  
Randle D. Raggio ◽  
Robert P. Leone ◽  
William C. Black
Keyword(s):  
Surface Cleaning ◽  
Specific Information ◽  
Cross Sectional ◽  
Consumer Evaluations ◽  
Content Type ◽  
The Usa ◽  
Systematic Evolution ◽  
Brand Effects ◽  
Brand Information ◽  
Over Time

Purpose – Prior research has identified that brands have a differential impact on consumer evaluations across various brand benefits. This paper investigates whether these effects are stable over time, or evolve in a consistent way. Design/methodology/approach – Consumer evaluations of brand benefits into overall brand and detailed attribute-specific sources through a standard confirmatory factor analysis approach have been decomposed. Two unique datasets have been analyzed; the first contains cross-sectional data from Kodak across four different consumer goods categories, and the other is a longitudinal dataset from the USA and Canada in the surface-cleaning category, covering seven brands over five years (2007-2011). Findings – A systematic evolution in brand effects has been demonstrated: a general trend is that over time and with experience, consumers rely more heavily on overall brand information to develop their evaluations. However, early in a brand’s life, or later when circumstances compel consumers to actively consider the attributes, ingredients or features of a brand, consumers may rely more heavily on, detailed attribute-specific information to evaluate brand benefits. Research limitations/implications – The systematic evolution in consumers’ use of information from attribute to brand is hypothesized in this paper and is found to occur contrary to the speculation of Dillon et al. (2001) regarding the direction of such an evolution. Further, our results indicate the sensitivity of our approach to detect changes in consumers’ use of the two sources that should be expected, given the various exogenous factors. Practical implications – Brand managers can use the results from our procedure to alter their messages to more strongly emphasize either overall brand information or detailed attribute-specific information, depending on the consumer segment or key benefit in question. The research offers insights for the kind of information managers should communicate for brands trying to extend into new categories. The research also raises interesting questions regarding the extent to which brands can own a strong position on a particular benefit over time. Originality/value – No prior work has evaluated brand effects (i.e. the relative use of brand vs attribute sources) to evaluate brand benefits over time. Our results demonstrate the value of the decompositional procedure we recommend and the importance of knowing which source is relied upon more heavily as consumers evaluate brands.

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.

The impact of gender on the evaluation of vertical line extensions of luxury brands: a cross-national study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean Boisvert ◽  
Nicholas Jeremy Ashill
Keyword(s):  
Purchase Intentions ◽  
Vertical Line ◽  
Luxury Brands ◽  
Content Type ◽  
Luxury Brand ◽  
Line Extensions ◽  
Line Extension ◽  
Study Results ◽  
The Impact ◽  
Cross National

Purpose The purpose of this study is to assess the extent to which gender impacts the evaluation of vertical line extensions of luxury brands in a cross-national context. The topic of brand/line extensions has been investigated in the mainstream branding literature. On the other hand, the topic has received less attention in the luxury literature. At the same time, while research has examined brand/line extensions from an international perspective, the impact of gender on consumer purchase intentions of luxury downward line extensions in different countries has remained unexplored. Design/methodology/approach Based on an ANOVA design (2 extension types × 2 genders × 2 countries). The independent variables were ordered as follows: gender (male/female), vertical line extensions (upscale/downward) and country of living (France/USA). The purchase intention of the extension was chosen as the dependent variable. Findings The study results show that key differences exist between men and women regarding vertical luxury line extensions. For instance, women in both countries rate a new downward line extension of a luxury brand more positively than men. In contrast, although women evaluate a new upscale line extension of a luxury brand similarly to men in France, women are more positive than men in the USA. Also, US men rate an upscale extension less positively than their French counterparts. Finally, women in both countries rate luxury downward extensions more positively than men. Originality/value This study contributes to the literature of luxury brand management by examining how gender types process and respond to upscale and downward luxury line extensions versus purchase intentions in two different countries. This paper is unique as gender types are not often compared in previous research while fundamental distinctions exist, leading to significant differences. Practically, this study also provides key insights for marketing strategy development and adjustment for luxury manufacturers in terms of their target market, more specifically men versus women.

Conceptualisation and Modelling of the Process behind Brand Association Transfer

2011 ◽  
Vol 53 (4) ◽  
pp. 541-556 ◽  
Author(s):  
Jean Boisvert
Keyword(s):  
Repeated Measures ◽  
Statistical Difference ◽  
Empirical Process ◽  
Brand Associations ◽  
Brand Association ◽  
Line Extension ◽  
Parent Brand ◽  
Managerial Implications ◽  
The Difference ◽  
Affect Transfer

Although the concept of affect transfer has been addressed by many in the literature, the process underlying the transfer of brand associations from parent brands to their extensions is still unclear despite important theoretical and managerial implications. This paper proposes to conceptualise and model the empirical process underlying such transfer. The findings reveal that the capability of a parent brand to transfer specific brand associations to a line extension depends on an optimisation process where strong transfer occurs only when repeated measures of the same associations are not statistically distinct. Conversely, the transfer is limited when the statistical difference is either positive or negative in repeated measures. When the difference is positive, the extension appears to already ‘own’ the association in comparison to the parent brand and when negative the association is not compatible with the extension. The methodological and managerial implications of brand association transfer are discussed.

The impact of branding strategies on horizontal and downward line extension of luxury brands

2018 ◽  
Vol 35 (6) ◽  
pp. 1033-1052 ◽  
Author(s):  
Jean Boisvert ◽  
Nicholas J. Ashill
Keyword(s):  
Design Methodology ◽  
National Context ◽  
Luxury Brands ◽  
Content Type ◽  
Line Extensions ◽  
Line Extension ◽  
Branding Strategies ◽  
The Impact ◽  
Practical Implications ◽  
Cross National

PurposeThe purpose of this paper is to empirically assess the impact of branding strategies on horizontal and downward line extensions of French luxury brands in a cross-national context (France vs USA).Design/methodology/approachThis study is based on a two line extensions (horizontal/downward) × three branding strategies (direct brand/sub-brand/standalone brand) x two country (France/USA) between-subjects ANOVA design.FindingsThe study shows that the subtyping effect created by a sub-branded luxury downward line extension tends to be rated similarly to a direct branded extension which oppose previous beliefs put forward in non-luxury settings. In contrast, a new independent/standalone extension fully uses the subtyping effect which helps attenuate this risk related to luxury downward stretches. The study also found that the effect of gender in cross-national settings must always be taken into consideration as significant variations occur in the process.Research limitations/implicationsThe study covers two countries but should be replicated in other cross-national contexts.Practical implicationsThis study helps marketing managers of luxury brands make a better decision when it comes to launching vertical line extensions (upscale/downward) by carefully using types of branding strategies and relevant communications whether women and/or men are targeted in cross-national contexts.Originality/valueThis study breaks new ground in the international luxury literature by providing key theoretical and managerial insights in terms of launching new downward line extensions with the proper use of branding strategies when targeting specific genders.

Rationales of gender diversity management policies and practices in India: an exploratory empirical study in the Indian IT/ITeS industry

2020 ◽  
Vol 39 (6) ◽  
pp. 667-688
Author(s):  
Shreyashi Chakraborty ◽  
Leena Chatterjee
Keyword(s):  
Survey Methodology ◽  
Economic Value ◽  
Gender Diversity ◽  
Diversity Management ◽  
Business Case ◽  
Full Time ◽  
Content Type ◽  
Indian Context ◽  
Management Policies ◽  
Policies And Practices

PurposeThe Indian context is marked with weak anti-discrimination laws and patchy implementation of protection of civil rights of women at workplaces. The purpose of this paper is to unearth the rationales of the adoption of gender diversity management policies and practices in India, in the absence of laws and regulations.Design/methodology/approachInspiration is drawn from previous studies on diversity management in other national contexts, and a survey methodology was adopted. The lead researcher administered the questionnaires personally to all respondents to ensure that the understanding of the questions is uniform across respondents as gender diversity management is a relatively new concept in India.FindingsSize of the organisation (number of full-time employees), the influence of external organisations and perceived enhanced organisational flexibility were found to explain the adoption of gender diversity management policies and practices in the Indian IT/ITeS industry. Findings also indicate that Indian subsidiaries of foreign multinationals tend to adopt more gender diversity management policies and practices as compared to Indian-owned organisations.Research implicationsThis study provides evidence that organisations do not always enact structures or behaviours in the pursuit of normative rationality and also consider the economic value of them, establishing an organisational agency in adopting legitimated norms or practices. The study also shows that gender diversity management policies and practices are not only dependent on the enactment of laws but also are adopted because of the economic benefit perceived.Originality/valueDiversity management policies and practices have been mostly studied in national contexts with anti-discrimination laws or affirmative action programs and have been claimed to be a successor of equal employment opportunity (EEO) policies. In the absence of stringent laws to reduce or eliminate discrimination against women employees in Indian workplaces, this study contributes to the literature by determining whether the business case for gender diversity drives the adoption of gender diversity management in the Indian context.

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