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1 – 10 of over 7000Michael A. Merz, Dana L. Alden, Wayne D. Hoyer and Kalpesh Kaushik Desai
Nina M. Iversen and Leif E. Hem
Consumers' evaluations of brand extensions have gained considerable attention in the marketing literature. The purpose of this study is to investigate how a brand's perceived…
Abstract
Purpose
Consumers' evaluations of brand extensions have gained considerable attention in the marketing literature. The purpose of this study is to investigate how a brand's perceived global or local origin impacts evaluations of brand extensions and creates transfer effects of brand meaning. The paper conceptually characterizes the transference process and empirically tests the nature and extent of spillover effects of origin associations across multiple parent brands and extensions.
Design/methodology/approach
For the empirical testing of the conceptual model of transfer effects of origin associations we undertook a cross‐sectional consumer survey amongst a sample of 267 Norwegian respondents. Structural equation modelling was used to investigate the causal relationships between the latent exogenous and endogenous variables in the conceptual model.
Findings
The present study indicates that the global and local origin framework, first introduced by Steenkamp et al. in 2003, can explain the occurrence of reciprocal transfer of brand meaning across parent brands and extensions. The paper shows that global and local origin associations operate in a manner very similar to brand associations in the transference of perceptions. It finds that distinct origin associations influence the pre‐brand image and drive the forward effect on the attitude towards the extension as well as the subsequent backward effect upon the post‐brand image of the parent brand.
Originality/value
This paper reveals for the first time that distinct origin associations can initiate spillover effects across parent brands and extensions. This study is therefore an important step towards the generalizability of main brand extension studies to other contexts such as extensions of global brands.
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The purpose of this paper is to examine current and prospective consumer perceptions, purchase intent and parent brand evaluation due to green brand – line and category extensions…
Abstract
Purpose
The purpose of this paper is to examine current and prospective consumer perceptions, purchase intent and parent brand evaluation due to green brand – line and category extensions by marketers of established (non‐green) brands for products with high vs low perceived environmental impact.
Design/methodology/approach
The paper analyses responses to online surveys by 602 pet‐owners at social networking websites. The quasi‐experiment considered perceived environmental impact of core product, parent‐brand user status, and green extension strategy (line vs category). Brand extension evaluation, purchase intent, and parent brand evaluation were then measured.
Findings
Results suggest that consumers are more likely to purchase green extensions of products with high perceived environmental impact and that current consumers prefer green line extensions to green category extensions. Both have similar reciprocal impact on parent brand evaluation among current consumers.
Research limitations/implications
The data have external validity but lack the control possible in laboratory experiments. Future research should replicate the study in other product categories.
Practical implications
Managers of established brands should consider brand extensions of products associated with high environmental impact only.
Originality/value
This paper examines managerial implications of line vs category extension strategies for green brand extensions of established brands.
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Anna-Karina Schmitz, Tim Oliver Brexendorf and Martin Fassnacht
Vertical line extension is an attractive growth strategy that allows brands to address heterogeneous consumer needs and react to competitive pressure. The purpose of this paper is…
Abstract
Purpose
Vertical line extension is an attractive growth strategy that allows brands to address heterogeneous consumer needs and react to competitive pressure. The purpose of this paper is to systematically review and summarize vertical line extension research to derive general insights into vertical upward and downward line extension.
Design/methodology/approach
Drawing on a systematic review of 536 academic articles and predefined inclusion criteria, this research identifies and evaluates all articles that add knowledge to the topic of vertical line extension (n = 64).
Findings
This research derives general insights in several vertical line extension-specific issues. Different forms of vertical line extension, conceptual differences between upward and downward extensions, as well as the role of perceived fit, extension degree and the parent brand are crucial for the study and evaluation of extension and parent brand feedback effects. Those effects are complex and often work in opposing directions not only for the parent brand but also for the extension. Future research needs to face that complexity as well as methodological issues and different research contexts to further advance the literature stream.
Originality/value
This paper provides a comprehensive, state-of-the-art review of vertical line extension research characteristics and results. It provides new insights on the characteristics and effects of vertical line extensions and guides future research on the topic.
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Isabel Buil, Leslie de Chernatony and Leif E. Hem
The aim of this paper is to examine the impact of perceived fit, brand type and country's culture on the consumers' attitude towards brand extensions and on the parent brand…
Abstract
Purpose
The aim of this paper is to examine the impact of perceived fit, brand type and country's culture on the consumers' attitude towards brand extensions and on the parent brand equity.
Design/methodology/approach
Data were collected in three European countries: Spain, UK, and Norway. A series of analyses of variance (ANOVA) were conducted to test the hypotheses.
Findings
Brand extensions with high fit receive more favourable consumer evaluations and decrease the negative feedback effects of extensions on parent brand equity. Results also reveal that parent brand equity dilution is higher when the brand used to launch the extension has high equity. Finally, findings indicate different consumers' responses to extensions and effects on parent brand equity across countries.
Research limitations/implications
Important directions for future research would be to include other countries and carry out a more in‐depth analysis to understand the effect of culture.
Practical implications
Managers should launch extensions with high perceived fit. In addition, greater effort is needed to extend high equity brands, due to their greater dilution. Finally, managers need to understand that consumer evaluations and feedback effects of the same brand extensions can vary due to cultural differences between consumers. Therefore, standardised brand extension strategies should be carefully considered.
Originality/value
The study focuses, not only on consumer evaluations of extensions, but also on the effects of extensions on the parent brand equity. Furthermore, this paper is one of the first to empirically examine and show that consumer evaluations of extensions and feedback effects on parent brand equity differ across countries.
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Vicki R. Lane and Fernando Fastoso
Previous research warns against low-fit extensions as prone to causing negative spillover and, through it, harming the parent brand equity. Using the theory of schema-triggered…
Abstract
Purpose
Previous research warns against low-fit extensions as prone to causing negative spillover and, through it, harming the parent brand equity. Using the theory of schema-triggered affect and the link formation hypothesis, the purpose of this paper is to develop and tests predictions as to how negative spillover from low-fit extensions can be actively managed through repeated ad exposure.
Design/methodology/approach
A controlled experiment assesses the response of US consumers to the Dutch Heineken brand, a top 100 global brand, following sequential and repeated exposure to print ads depicting extensions for either Heineken wheat beer (i.e. a high-fit extension) or Heineken pretzels (i.e. a low-fit extension). Analytical methods include multiple regression, ANOVA, and t-tests.
Findings
The findings show that repeated ad exposure has a positive moderating effect on the magnitude of spillover from extension to brand. Second, the findings also show that repeated ad exposure changes the valence of spillover from low-fit extension to brand from negative to positive. In combination, the findings suggest that low-fit brand extensions can, when carefully managed, be a viable strategic option for market growth that is especially relevant for global brands.
Research limitations/implications
This research shows that repeated ad exposure can change the valence of spillover from low-fit extensions to the parent brand from negative to positive. Future research should extend the work by considering other brands and alternative tools that managers can use to make low-fit extensions a viable strategic choice.
Practical implications
This study finds, in contrast to previous research, that managers should indeed consider low-fit brand extensions as a viable strategic option for brand growth. This is possible because the findings show that repeated ad exposure can be used to control potential negative spillover from a low-fit extension to parent brand. This conclusion is particularly relevant for global brands, i.e. brands for which the opportunity costs of limiting global expansion and the financial investment necessary to establish a new brand with global appeal are substantial.
Originality/value
This paper differs from other spillover studies by manipulating repeated ad exposure, a mechanism which the authors theoretically link to spillover and which managers can also directly influence. In doing so, this paper offers a theoretical explanation and an empirical test of how negative spillover from low-fit extensions can be managed.
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Samuel Babu Sekar, Sajeev Varki and Yasmeen Elsantil
Compared to typical brand extension research focusing on functional and symbolic attributes, this paper aims to examine brand extensions based on a brand's primary sensory…
Abstract
Purpose
Compared to typical brand extension research focusing on functional and symbolic attributes, this paper aims to examine brand extensions based on a brand's primary sensory attributes. Specifically, this paper investigates the interplay between brand equity and primary sensory attributes in shaping consumers' evaluations of brand extensions.
Design/methodology/approach
This study investigates the impact of primary or central sensory attributes on brand extension evaluations for brands with differing brand equities. The authors conducted two experiments preceded by seven pretests to develop and validate the stimulus materials. The authors aim to contribute to understanding how sensory and brand-related factors influence consumers' evaluations of brand extensions.
Findings
In these experiments, the authors find that a parent brand's central/dominant sensory attribute allows the parent brand to successfully extend into functionally unrelated categories. For example, Dove’s central attribute of touch allows it to extend successfully into categories such as towels and shaving razor. However, it does not perform as well as Irish Spring (known for smell) in categories such as cologne and scented fabric softener, where Irish Spring's central attribute of smell is more relevant. Interestingly, Irish Spring, a lower equity brand, outperforms Dove in smell-related extensions, indicating that sensory attributes can counter the impact of lower brand equity if the sensory attribute is relevant to the extension category.
Originality/value
This study investigates brand extensions based on sensory attributes such as smell and touch instead of typical brand extensions based on functional and symbolic attributes. In particular, the authors examine whether the perceived fit between the parent brand’s dominant sensory attribute and the extended category (i.e. sensory fit) is more important than the parent brand's equity in the evaluation of brand extensions.
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Abhishek Dwivedi and Bill Merrilees
Brand extension attitude is a key antecedent of consumers' reciprocal evaluations of parent brand equity. Traditionally, the link from brand extension attitude to change in parent…
Abstract
Purpose
Brand extension attitude is a key antecedent of consumers' reciprocal evaluations of parent brand equity. Traditionally, the link from brand extension attitude to change in parent brand equity is modeled as a direct path, potentially obfuscating any underlying processes. The current research aims to propose that the impact of brand extension attitude on change in parent brand equity materializes via change in parent value equity perceptions of a parent brand.
Design/methodology/approach
A conceptual model is developed, positioning change in parent value equity as a mediator of the effect of brand extension attitude. The model is estimated on a sample of 888 Australian consumers using a cross‐sectional self‐administered survey. Drawing upon actual industry dynamics, a hypothetical scenario of Australian supermarkets extending into the banking sector is used as stimulus.
Findings
The research model demonstrates acceptable fit to data, confirming most hypotheses. Change in parent value equity mediates the effect of brand extension attitude on change in parent brand equity. Rival model comparisons, however, reveal that a partial mediation scenario better represents feedback effects. The research model is suitably modified to include an additional path.
Practical implications
The current study broadens the scope of brand extension feedback effects from parent brand equity to additionally include parent value equity. Practitioners can now envision brand extensions as simultaneously impacting multiple facets of a parent brand, not previously considered.
Originality/value
The current research explicates an underlying process of how consumers' extension‐derived attitudes are converted into revised parent brand equity evaluations. Such an insight is novel in the literature.
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Yiran Su and Thilo Kunkel
The purpose of this paper is to examine the underlying mechanism of the spillover effect from a service brand alliance to its parent brand at the post-consumption stage.
Abstract
Purpose
The purpose of this paper is to examine the underlying mechanism of the spillover effect from a service brand alliance to its parent brand at the post-consumption stage.
Design/methodology/approach
Online surveys were used to collect both qualitative and quantitative data from participants of an actual event. Conceptual models were developed and tested on two cross-sectional samples using structural equation modeling.
Findings
Results demonstrate perceived brand contribution and consumer involvement mediate the relationship between the service brand alliance experience and the evaluation of its parent brand at the post-consumption stage. While perceived brand fit had an indirect effect on the parent brand, the spillover was mostly driven by service alliance experience and perceived brand contribution.
Practical implications
Findings indicate brand managers should focus on consumers’ brand experience of the service brand alliance to drive spillover evaluations to the parent brand, and organizations could extend brand alliances to services with low category fit to the parent brand if consumers are to have a good experience with the service brand alliance.
Originality/value
This research extends findings on brand alliance research that was based on hypothetical brands and indicated that the spillover effect from a brand alliance to the parent brand is influenced by perceived brand fit. The findings highlight the importance of consumer experiences in driving the spillover effect at the post-consumption stage, where consumers evaluate brand relationships from a value-added perspective that goes beyond the service category fit.
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Abhishek Dwivedi and Bill Merrilees
Most of the literature on feedback effects emanates from the West, and is thus relevant to Western brands. The purpose of this paper is to model the impact of brand‐extensions on…
Abstract
Purpose
Most of the literature on feedback effects emanates from the West, and is thus relevant to Western brands. The purpose of this paper is to model the impact of brand‐extensions on parent brand‐equity within the Asian (specifically Indian) context. Additionally, parent brand trust is examined as a new antecedent of brand‐extension feedback.
Design/methodology/approach
Scenario of an Indian product brand hypothetically entering the service sector is chosen as stimulus in the study. A cross‐sectional survey of 327 Generation‐Y respondents is conducted. Structural equation modeling is used for testing the conceptual model.
Findings
The model of brand‐extension feedback fits the data adequately, and five of the six hypotheses are supported. Brand‐extension attitude significantly impacts change in brand‐equity, which is consistent with the extant Western literature. Parent brand trust has a strong impact on change in brand‐equity of a parent brand.
Practical implications
The role and impact of parent brand trust is particularly important in the Asian context. Thus, prior to embarking on a brand‐extension decision, an audit of parent brand trust is recommended. Further, this research opens up newer brand‐extension possibilities for brand managers contemplating brand‐extensions.
Originality/value
This research is a first‐of‐its‐kind from the Asian region (specifically, India) to measure brand‐extension feedback effects on change in brand‐equity of a parent brand. Parent brand trust is introduced as a new antecedent of brand‐extension feedback.
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