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.

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.

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>

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.

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.

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.

The Importance of the Brand in Brand Extension

1994 ◽  
Vol 31 (2) ◽  
pp. 214-228 ◽  
Author(s):  
Susan M. Broniarczyk ◽  
Joseph W. Alba
Keyword(s):  
Brand Extension ◽  
Consumer Perceptions ◽  
Brand Extensions ◽  
Relative Importance ◽  
Consumer Knowledge ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Product Categories ◽  
Two Factors ◽  
Brand Affect

Recent research has identified two factors that influence consumer perceptions of a brand extension: brand affect and the similarity between the original and extension product categories. However, surprisingly little attention has been paid to other associations specific to the brand itself. The authors perform three experiments to explore the relative importance of these associations. The experiments reveal that brand-specific associations may dominate the effects of brand affect and category similarity, particularly when consumer knowledge of the brands is high. The authors conclude by discussing the implications of these findings for managerial decision making and the process by which consumers evaluate brand extensions.

scholarly journals Consumers’ Attitudes towards Brand Extensions: An Analysis on Food and Textile Industries in Turkey

2016 ◽  
Vol 8 (1) ◽  
pp. 72
Author(s):  
Nilay Sahin ◽  
Elif Akagun Ergin
Keyword(s):  
Brand Loyalty ◽  
Success Factors ◽  
Brand Extension ◽  
Brand Extensions ◽  
Exploratory Research ◽  
Application Process ◽  
Product Categories ◽  
Parent Brand ◽  
Textile Industries ◽  
The Impact

<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>

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