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

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.

Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina

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.


Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina

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.


2018 ◽  
Vol 9 (1) ◽  
pp. 135-153 ◽  
Author(s):  
Durdana Ozretic-Dosen ◽  
Marta Brlic ◽  
Tanja Komarac

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.


2018 ◽  
Vol 22 (4) ◽  
pp. 476-493 ◽  
Author(s):  
Irem Eren-Erdogmus ◽  
Ilker Akgun ◽  
Esin Arda

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.


2016 ◽  
Vol 8 (1) ◽  
pp. 72
Author(s):  
Nilay Sahin ◽  
Elif Akagun Ergin

<p>Brand extensions refer to use an established brand name in new product or product categories and are extensively applied as a marketing strategy. Brand extension success factors vary according to cultures. Consumers’ attitude towards extensions is modified on the basis of their cognitional reactions and relations between the parent brand and extended product and/ or product categories. This study aims at conducting an exploratory research and revealing the relationship between the parent brand and the extended brand. More specifically, the impact of parent brand loyalty on the extension is explored. Therefore, the main objective is to evaluate the attitudes of consumers towards brand extensions through brand loyalty. The study analyzes consumers’ attitudes towards brand extensions specifically in food and textile industries. This is in particular to portray that consumers respond positively to brand extensions in various industries due to different motivations. During the methodology application process, in-depth interviews were carried out with 16 participants who were selected from employees working for public and private institutions in Ankara, the capital of Turkey. The interviews were conducted in two stages. During the first stage, the interviews lasted approximately 45 minutes and consisted of open-ended questions about participants’ brand choices, reasons for choosing the brands they use. The goal was to evaluate their brand loyalty levels. In addition, the participants were provided with the definition of brand extension and their reactions towards extension were noted. In the second stage, the participants were asked to evaluate their attitudes towards brand extensions in food and textile industries along with the factors that have impact on their evaluations. The participants were specifically observed in terms of their approach to brand extensions where the extension was in a totally different sector from the parent brand. The results indicate that brand awareness has a significant impact on brand extensions with regards to quality and trust. However, this impact is at the highest level when the extension is within the same sector with the parent brand. Whenever the extension is in a different sector, consumers not only have negative attitudes toward that extension but also become suspicious about the parent brand. Thus, quality and trust are pivotal factors influencing consumers’ positive attitudes towards brand extensions.</p>


2000 ◽  
Vol 86 (3) ◽  
pp. 807-818 ◽  
Author(s):  
Karen E. Flaherty ◽  
James M. Pappas

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.


2020 ◽  
Vol 17 (2) ◽  
pp. 135
Author(s):  
Rosa Prafitri Juniarti ◽  
Adi Zakaria Afiff

Brand extension is a topic that has been widely discussed by academics and practitioners in various studies. Unfortunately, there are only a few that address the role of product involvement, advertising appeals, and value dimensions in the extension acceptance as their main issue. Therefore, this study aims to mixed three controlling factors which are product involvement, advertising appeals, and brand value dimensions in determining how consumers respond to the parent brand and extended brand. This study was designed to test the possible interaction in a 2x2x2 full-factorial between advertising appeals (informational vs. emotional), brand extension perceived fit (high vs. low), and value dimension (symbolic vs. functional) for high involvement products. This study confirmed that there were significant differences in the main effects for both consumers' evaluation toward brand extension and the parent brand in the case of a symbolic brand and the high fit of extensions. Emotional appeals play important role in enhancing this degree because of the high level of its brand associations. As symbolic brand often referred as premium brand, the more positive the level of quality perception, the higher level of consumers' evaluation toward brand and brand loyalty will be. Thus, the more loyal consumer to the parent brand, the more positive evaluations of the extension will be.


Paradigm ◽  
2018 ◽  
Vol 22 (2) ◽  
pp. 125-142 ◽  
Author(s):  
Richa Joshi ◽  
Rajan Yadav

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.


2003 ◽  
Vol 67 (1) ◽  
pp. 4-13 ◽  
Author(s):  
Subramanian Balachander ◽  
Sanjoy Ghose

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.


Author(s):  
Elise Prosser ◽  
Melissa St. James

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.


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