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.

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.

Understanding Cultural Differences in Consumers’ Reactions to Foreign-Market Brand Extensions: The Role of Thinking Styles

2019 ◽  
Vol 27 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Helena F. Allman ◽  
Kelly Hewett ◽  
Mandeep Kaur
Keyword(s):  
United States ◽  
Spillover Effects ◽  
Foreign Market ◽  
The United States ◽  
Vertical Line ◽  
Thinking Styles ◽  
Global Brand ◽  
Line Extension ◽  
Parent Brand

One popular strategy for brands to grow outside of their home markets is to use line extensions. Although extensive research has examined how factors such as culture influence product acceptance across markets, far less is known regarding how such factors influence parent brand perceptions in response to an extension. This article investigates the role of one aspect of culture, consumers’ thinking styles, in terms of postextension parent brand spillover effects, and considers potential implications for firms’ global brand strategies, including the extension’s direction (upward or downward) and parent brand concept (functional or prestige). Through two studies, one using consumer panels in the United States and India and the other set in the United States, the authors examine consumer-level differences by measuring thinking styles. Results based on both studies indicate that vertical line extension type affects analytic thinkers’ reactions more than those of holistic thinkers, and parent brand image benefits (suffers) when a vertical line extension is for a functional (prestige) brand, regardless of consumers’ thinking style. The authors find interesting differences in the role of thinking styles based on the particular dimension examined.

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.

scholarly journals The Role of Hours Changes for the Increase in German Earnings Inequality

2019 ◽  
Vol 239 (2) ◽  
pp. 277-304 ◽  
Author(s):  
Martin Biewen ◽  
Daniela Plötze
Keyword(s):  
Working Hours ◽  
Earnings Inequality ◽  
Inequality Measure ◽  
Firm Characteristics ◽  
Male And Female ◽  
Wage Rates ◽  
Using Data

Abstract Using data from the German Structure of Earnings Survey (GSES), this paper studies the role of changes in working hours for the increase in male and female earnings inequality between 2001 and 2010. We provide both classic decompositions of the variance of log earnings into the variances of hours, wage rates and their covariance, and decompositions based on reweighting the conditional hours distribution. Depending on the inequality measure considered, our results suggest that between 10 and 30% of the increase in male earnings inequality and 37 to 47% of the increase in female earnings inequality can be explained by changes in working hours. In addition, a large part of the inequality increase can be accounted for by changes in the composition of person and firm characteristics.

INOVASI PEMBELAJARAN AKIDAH AKHLAK MENGGUNAKAN METODE ROLE PLAY DALAM MENINGKATKAN PRESTASI BELAJAR SISWA

2018 ◽  
Vol 2 (1) ◽  
pp. 52-63
Author(s):  
Ansori Ansori
Keyword(s):  
Data Reduction ◽  
Role Play ◽  
Learning Goals ◽  
New Paradigm ◽  
Learning Materials ◽  
Analysis Technique ◽  
Flexible Schedule ◽  
Using Data ◽  
Real Action

The use of various methods will greatly help students in achieving learning goals. As role play method is one way mastery of learning materials through the development of imagination and appreciation of students on learning materials. Data collection techniques in this study are observation, interviews, and documentation. To analyze the data in this research using data analysis technique of Miles and Huberman model that is data reduction (Data Reduction), data presentation (Data Display) and conclusion (Conclution Drawing / verification) The findings in this research is innovation of role play method can change paradigm to the new paradigm so that the role of the teacher is more as a facilitator, counselor, consultant, and comrade study Flexible schedule, open as needed Learning directed by students themselves Problem-based, project, real world, real action, and reflection Design and investigation. Computers as tools, and dynamic media presentations.

Preliminary Report on the Research of “Activity Centers” in Taidong, Taiwan

2019 ◽  
Vol 40 (2) ◽  
pp. 121-125
Author(s):  
Petr Janda
Keyword(s):  
Preliminary Report ◽  
Research Method ◽  
Local Communities ◽  
Traditional Beliefs ◽  
Aboriginal Communities ◽  
Religious Significance ◽  
Local Actors ◽  
Symbolic Value ◽  
Suitable Location

This report presents current research on aboriginal activity centers in Taidong County, Taiwan, primarily in the townships of Chishang and Yanping with over 30% of the population being of aboriginal ancestry. Taidong County is the region with the most distinctive aboriginal communities in Taiwan. The research attempts to identify the actors behind the operation of such centers and their significance for aboriginal communities. The research investigates the process of selecting suitable location for the facilities, the specific features of such centers, the potential religious significance of the locations including the role of traditional beliefs in predominantly Christian aboriginal communities, the symbolic value of structures built in the traditional style for construction of ethnicity and financing that enables the construction of the facilities and the organization of the festivities held in them. The principle research method used was interviews with local actors including local representatives, organizers of festivities, as well as members of local communities. The research began in 2017.

The role of corporate investment in social responsible practices in the promotion of employees’ organizational citizenship behaviour

2014 ◽  
Author(s):  
Ana Patrícia Duarte ◽  
José Gonçalves das Neves
Keyword(s):  
Job Satisfaction ◽  
Organizational Citizenship ◽  
Economic Uncertainty ◽  
Socially Responsible ◽  
Organizational Survival ◽  
Current Scenario ◽  
Reducing Costs ◽  
Using Data ◽  
Airline Company

In the current scenario of economic uncertainty, where many organizations struggle harder for reducing costs while improving their competitiveness, employees’ organizational citizenship behaviours might have an enhanced importance for organizational survival and success. A model proposing that corporate engagement in internal socially responsible practices enhances employees’ job satisfaction and consequently increases employees’ extra-role behaviours was tested. Using data obtained from a sample of employees from an airline company (n=133), the model was examined and supported. We have therefore concluded that organizations may foster employees’ extra-role behaviours by investing in corporate socially responsible practices that signal corporate concern with employees and promote job satisfaction.

Peranan Ketua Pengurus dan Manajer Dalam Penyusunan dan Penerapan Laporan Keuangan Berbasis SAK ETAP Pada Koperasi di Kota Palembang

2019 ◽  
Vol 14 (2) ◽  
pp. 119
Author(s):  
Riza Syahputera ◽  
Martha Rianty
Keyword(s):  
Data Analysis ◽  
Sampling Technique ◽  
Financial Statements ◽  
Significant Positive Effect ◽  
Analysis Technique ◽  
Regression Test ◽  
Using Data ◽  
The City ◽  
Positive Effect

AbstractThis study aims to determine the effect of the role of the Chairperson and Cooperative Manager in the preparation and application of Financial Statements based on SAK ETAP in cooperatives in the city of Palembang. This research is a quantitative study using data obtained from questionnaires and measured using a Likert scale. The sampling technique used is purposive sampling. The sample used in this study was the Chairperson of the cooperative and the manager of the cooperative in the city of Palembang. The cooperatives studied were 203 cooperatives. The data analysis technique used is multiple linear regression test. The results showed that the role of cooperative leaders and managers had a significant positive effect on the preparation and application of SAK ETAP-based financial statements.Keywords : chairman, manager, SAK ETAP, cooperative

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