scholarly journals Neural Bases of Brand Reputation Effect on Extension Evaluation: An ERPs Study

2021 ◽  
Vol 15 ◽  
Author(s):  
Chang Liu ◽  
Zhijie Song ◽  
Rui Shi

Brand extension, as a marketing strategy, is frequently utilized by enterprises to produce new products. There exist several critical factors determining its success, such as brand reputation and perceived fit. The present study adopts the event-related potentials (ERPs) method to explore the underlying neural mechanism of the joint influence of the two factors on consumers’ evaluation of brand extension. Specifically, consumers were presented with a brand with corporate social responsibility (CSR) or corporate ability (CA) reputation, following attached to an extension product (high fit vs. low fit). And then, they were given a 5-point scale to report their acceptance intention (AI) toward the brand extension. Behavioral data showed a higher AI and a shorter reaction time for high fit in contrast to low fit conditions. For low fit conditions, consumers were more inclined to accept the extension product with a brand with CSR than CA reputation. Neurophysiologically, CSR reputation evoked a larger P2 amplitude and LPP amplitude than CA reputation. Moreover, the low fit conditions elicited a more positive LPP amplitude than the high fit conditions in the context of a brand with a CSR reputation. Yet, for a brand with a CA reputation, the effect of perceived fit was not found. These results may reflect early attention resources engagement and altruistic motivation at the late stage during brand extension evaluation. The findings provided neurological evidence for which of the two types of brand reputation (CSR vs. CA) have a more positive effect on brand extension.

Author(s):  
Zain-Ul Abideen ◽  
Abdul Latif

<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>


2016 ◽  
Vol 628 ◽  
pp. 30-34 ◽  
Author(s):  
Agnieszka Fudali-Czyż ◽  
Marta Ratomska ◽  
Andrzej Cudo ◽  
Piotr Francuz ◽  
Natalia Kopiś ◽  
...  

2017 ◽  
Vol 51 (5/6) ◽  
pp. 850-868
Author(s):  
Radu Dimitriu ◽  
Luk Warlop ◽  
Bendik Meling Samuelsen

Purpose The purpose of this paper is to show that high similarity between a parent brand and an extension category can have a detrimental effect on how a brand extension is perceived to perform on specific attributes. This happens because similarity influences the perceived positioning of a brand extension: lower similarity extensions can be perceived as “specialized” products, whereas high similarity extensions are perceived as “all-in-one” products not performing exceptionally well on any specific attribute. Design/methodology/approach The authors test the hypothesized effect through three experimental studies. The authors manipulate similarity both within subjects (Study 1a) and between subjects (Study 1b and Study 2). Further, the authors test the effect for specific attributes that are physical/concrete in nature (Study 1a and Study 1b) as well as attributes that are abstract/imagery-related in nature (Study 2). Findings High compared to low similarity improves perceptions of overall performance (i.e. performance across all attributes). But as expected, the authors also find that a high similarity brand extension is perceived to perform worse on the attribute on which a low similarity brand extension specializes, even when the parent brands of the extensions possess that attribute to the same extent. This perception of attribute performance carries on to influence brand extension purchase likelihood. Practical implications The degree of brand extension similarity has consequences for how brand extensions are perceived to be positioned in the marketplace. Although high similarity extensions receive positive evaluations, they might not be suitable when a company is trying to instil a perception of exceptional performance on a specific attribute. Originality/value The authors demonstrate a consequential exception to the marketing wisdom that brands should extend to similar categories. Although the degree of brand extension similarity has been repeatedly shown to have a positive effect on brand extension evaluation, the authors document a case when its effect is actually detrimental. This study’s focus on the dependent variable of perceived performance on specific attributes is novel in the brand extension literature.


2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Yasir Ali Soomro ◽  

Purpose: This paper investigates how brand extension strategy can be used successfully by the companies while launching close brand extensions in the market. What are the antecedents (Mediating variables) of successful brand extension? Methodology: One independent variable consumer perceived brand concept was used with the dependent variable “Successful brand extension evaluation” with two mediating variables. Real life close brand extension as stimuli was used in this study. Self developed questionnaire was filled by 462 respondents by simple random sampling technique. Findings: Three hypotheses were tested with multi-mediation test by Preacher and Hayes. All three were accepted with most significant being Parent Brand Conviction and Brand loyalty jointly mediate the relationship between Consumer Perceived Brand Concept and Successful Brand Extension Evaluation for close extension.


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