Do line extensions influence parent brand equity? An investigation of supermarket packaged goods
Abstract
Purpose
The purpose of this empirical paper is to determine the effects of line extension introductions on parent brand equity.
Design/methodology/approach
The paper uses a cross‐sectional sample of 318 supermarket brands. A system of equations is proposed and estimated using seemingly unrelated regression.
Findings
Brands benefit from line extension introductions, but only high equity brands benefit from innovation. Low equity brands benefit from the solo advertising of their new line extensions.
Practical implications
The results suggest that there are two routes for improving brand equity; high equity brands can introduce innovative products, while low equity parent brands may improve brand equity by supporting new line extensions with solo advertising.
Originality/value
The paper is important in identifying the effects of new product introduction and innovation on brand equity.
Keywords
Citation
Clark Sinapuelas, I. and Ram Sisodiya, S. (2010), "Do line extensions influence parent brand equity? An investigation of supermarket packaged goods", Journal of Product & Brand Management, Vol. 19 No. 1, pp. 18-26. https://doi.org/10.1108/10610421011018356
Publisher
:Emerald Group Publishing Limited
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