Reciprocal transfer effects for brand extensions of global or local origin: evidence from Norway

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.

Citation

Iversen, N.M. and Hem, L.E. (2011), "Reciprocal transfer effects for brand extensions of global or local origin: evidence from Norway", International Marketing Review, Vol. 28 No. 4, pp. 365-411. https://doi.org/10.1108/02651331111149949