EXPRESS: The Context (In)Dependence of Low Fit Brand Extensions

2022 ◽  
pp. 002224292210768
Author(s):  
Pragya Mathur ◽  
Malika Malika ◽  
Nidhi Agrawal ◽  
Durairaj Maheswaran
Keyword(s):  
Brand Equity ◽  
Brand Extension ◽  
Brand Extensions ◽  
Consumer Acceptance ◽  
Combined Effects ◽  
Parent Brand ◽  
Context Dependent

Low fit brand extensions, while often presenting profitable opportunities for existing brands, are known to meet with varying levels of consumer acceptance. This research identifies conditions under which low fit extensions can succeed. Specifically, the authors show that the extent to which consumers consider the context in forming judgments (i.e., are context dependent) determines the acceptance of low fit extensions. In four studies, the authors examine the combined effects of context (in)dependence and type of information, and show that context dependent individuals form their evaluations on the basis of the type of brand extension information provided. For context dependent individuals, providing benefit-based information enhances the evaluations of low fit extensions, whereas providing attribute-based information leads to a reliance on extension fit and subsequent unfavorable evaluation of low fit extensions. In contrast, context independent individuals are more likely to base their judgments on extension fit regardless of whether attribute- or benefit-based information is provided. The acceptance of high fit extension is unaffected by context (in)dependence and type of information. Our findings provide a two-step strategy (i.e., sensitizing consumers to context and providing them benefit-based extension information) for managers to successfully launch low fit extensions and leverage existing parent brand equity.

Evaluating the Feedback Effects of Brand Extension on Parent Brand Equity: A Study on Indian FMCG Industry

2017 ◽  
Vol 21 (3) ◽  
pp. 305-313 ◽  
Author(s):  
Richa Joshi ◽  
Rajan Yadav
Keyword(s):  
Brand Equity ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Brand Extension ◽  
Brand Extensions ◽  
Indian Market ◽  
Feedback Effects ◽  
Equation Modelling ◽  
Parent Brand ◽  
Fast Moving Consumer Goods

Brand extension is an important strategy to utilize the credibility of the brand and to minimize the advertising costs. The strategy is used in various industries these days but fast moving consumer goods (FMCG) is such an industry which lie closer to a consumer, hence the immediate effect of any strategy can be properly viewed in this industry. The study is an attempt to provide a framework to examine the effects of brand extension strategy on parent brand equity. It is based on two real FMCG brands of Indian market and their brand extensions. Two frameworks are shown based on the two brands Saffola and Fortune with a sample size of 285 and 278 respondents, respectively. Structural equation modelling is used to analyze the effectiveness of both the frameworks. The findings indicate that brand extensions do affect parent brand equity. Therefore, extensions should be introduced in such a manner that they help to strengthen parent brand equity.

The Influence of Brand Extension Smartphone Samsung Galaxy Variable towards Brand Equity of Mother Brand of Samsung

2018 ◽  
Vol 3 (1) ◽  
pp. 06-15
Author(s):  
Sudaryanto Sudaryanto ◽  
Jery Courvisanos ◽  
Alif Puji Rahayu
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Brand Equity ◽  
Perceived Risk ◽  
Goodness Of Fit ◽  
Brand Extension ◽  
Jel Classification ◽  
Brand Extensions ◽  
Statistical Testing ◽  
Validity And Reliability

Objective - The purpose of this study is to identify the influence of similarity, reputation, perceived risk, and innovation as brand extensions of smartphones developed by Samsung, toward brand equity. Methodology/Technique - This study uses explanatory research. The population in this study consists of consumers of Samsung Galaxy mobiles for at least one month. Questionnaires were delivered to the respondents, after it had passed the validity and reliability tests. Following on from the the statistical testing, the data was analysed using a multiple linear regression. Then, the classical assumption test was conducted to determine the goodness of fit of the model. The data was collected using a questionnaire consisting of a closed statement, measured by a Likert Scale Findings - The results of this study show that similarity, reputation, perceived risk, and innovation as the variable dimensions have a significant effect on Brand Equity of Samsung Galaxy mobiles. Type of Paper: Empirical Keywords: Brand Extension; Brand Equity; Similarity; Reputation; Perceived Risk; Innovation; Explanatory Research. JEL Classification: M3, M30, M39.

Exploring the Mediating Effect of Parent Brand Reputation on Brand Equity

Paradigm ◽  
2018 ◽  
Vol 22 (2) ◽  
pp. 125-142 ◽  
Author(s):  
Richa Joshi ◽  
Rajan Yadav
Keyword(s):  
Brand Equity ◽  
Brand Extension ◽  
Product Line ◽  
Mediating Effect ◽  
Mediating Role ◽  
Brand Reputation ◽  
Multiple Dimensions ◽  
Parent Brand ◽  
Relationship Of

Companies with product line consisting of multiple brands very well understand the weightage of parent brand reputation as a seal of approval to consumers. This understanding not only helps them bolstering the reputation of other products but also creates a powerful brand voice and resulting brand equity. Brand equity is understood with the help of multiple dimensions in the existing literature. In addition to this, many researches on brand extension have traced the pivotal change in brand equity owing to the variation in brand extension attitude of consumers. However, very little amount of significant contribution has been observed with respect to the mediating role of parent brand reputation. Specifically, the article proposes to test the role of parent brand reputation in mediating the relationship of brand extension with brand equity.

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>

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.

scholarly journals Strategic Brand Management in Emerging Markets: Consumer Perceptions of Brand Extensions

2018 ◽  
Vol 9 (1) ◽  
pp. 135-153 ◽  
Author(s):  
Durdana Ozretic-Dosen ◽  
Marta Brlic ◽  
Tanja Komarac
Keyword(s):  
Emerging Markets ◽  
Brand Management ◽  
Brand Extension ◽  
Brand Extensions ◽  
Market Development ◽  
Brand Trust ◽  
Comprehensive Description ◽  
Parent Brand ◽  
Research Findings ◽  
Brand Affect

The purpose of this paper is to examine consumers’ perceptions of the parent brand and their attitudes towards the brand extensions by exploratory researching the topic in the new context of one emerging European market. Theoretical part gives a comprehensive description and analysis of the main features of the brand extension strategy. The purpose of the primary research is to explore and understand Croatian consumers’ perceptions about the global parent brand (Coca-Cola) and their attitudes towards its extensions on the Croatian market. Research results support the assumption that managers should introduce brand extension when they are sure of the position of the parent brand and its former extensions in the consumers’ mind. As such, results corroborate previous findings, showing how it is necessary to know the existing level of brand affect, brand loyalty, and brand trust since they have different impacts on consumers’ perceptions of the brand extension. The main contribution of the paper stems from the replication and extension of the previous research in the new context (in terms of the level of the market development and consumer culture). Research findings add to the existing knowledge with insights and results from the new market (Croatia), and as such might help in increasing understanding of the brand extension phenomena in the field of the strategic brand management in emerging markets.

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.

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