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Article
Publication date: 6 November 2018

Michelle Childs, Byoungho Jin and William L. Tullar

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such…

Abstract

Purpose

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution.

Design/methodology/approach

This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis.

Findings

Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions.

Originality/value

This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 July 2000

Arthur Cheng‐Hsui Chen and Shaw K. Chen

Examines the negative impacts of brand extension failure upon the original brand by calibrating the difference of brand equity. Using data collected from college students…

Abstract

Examines the negative impacts of brand extension failure upon the original brand by calibrating the difference of brand equity. Using data collected from college students in Taiwan, establishes four hypotheses to identify various effects of a failed brand extension in diluting the original brand’s equity. Analyzes the different effects among four types of equity‐source brands for both close and distant extensions. Equity‐source and equity level of the original brand is identified first. All components of brand equity‐source are then used to evaluate the performance of a brand extension. Finds that an unsuccessful brand extension dilutes the original brand for all three high equity‐source brands. Effects of brand dilution differ according to the type of equity source possessed by the original brand, but there is no difference in brand dilution effects from close and distant extension failures.

Details

Journal of Product & Brand Management, vol. 9 no. 4
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 August 2016

Timothy B. Kellison, Jordan R. Bass, Brent D. Oja and Jeffrey D. James

The practice of an interscholastic athletic department reproducing the logo of a collegiate team for its own use is becoming increasingly visible. In response to this…

Abstract

Purpose

The practice of an interscholastic athletic department reproducing the logo of a collegiate team for its own use is becoming increasingly visible. In response to this growth, many collegiate licensing departments have begun actively enforcing zero-tolerance policies that prohibit third parties from using their respective colleges’ trademarks. Conversely, other institutions have exercised discretion by allowing high school programs to use their athletic departments’ logos only after receiving assurances from the high school that it will adhere to strict usage guidelines. The paper aims to discuss these issues.

Design/methodology/approach

The paper provides a thorough discussion on the concept of brand dilution and its application to sport. More specifically the study gives an account of the strategies employed by trademark specialists to protect (and in some cases, enhance) the equity of their brands. To identify these strategies, a qualitative questionnaire was employed, which was completed by 13 brand managers representing institutions from the Atlantic Coast Conference, Big 12 Conference, Big Ten Conference, Mid-American Conference, Missouri Valley Conference, Pac-12 Conference, and the Southeastern Conference.

Findings

Qualitative questionnaire responses from collegiate brand managers suggest that licensing departments differ in their perceptions of the outcomes associated with allowing logo replication in high school athletic departments.

Originality/value

Perceived consequences of two enforcement strategies – prohibitive and cooperative – are highlighted, as are implications and directions for future research.

Details

International Journal of Sports Marketing and Sponsorship, vol. 17 no. 3
Type: Research Article
ISSN: 1464-6668

Keywords

Content available
Article
Publication date: 14 May 2018

Samuel Kristal, Carsten Baumgarth and Jörg Henseler

This paper aims to investigate the ways in which “non-collaborative co-creation” can affect brand equity as perceived by independent observers. It reports a study of the…

Abstract

Purpose

This paper aims to investigate the ways in which “non-collaborative co-creation” can affect brand equity as perceived by independent observers. It reports a study of the different effects on that perception attributable to non-collaborative co-creation that takes the form of either “brand play” or “brand attack” and is executed either by established artists or mainstream consumers.

Design/methodology/approach

A 2 × 2 between-subjects experiment (brand play versus brand attack; consumer versus artist) measured observers’ perception of brand equity before and after exposure to purpose-designed co-created treatments.

Findings

Non-collaborative co-creation has a negative effect on observers’ perceptions of brand equity and brand attack, causing a stronger dilution of brand equity than brand play. Artists either mitigate the dilution or have a positive effect on those perceptions.

Research limitations/implications

Future research could usefully investigate the relative susceptibility of brands to non-collaborative co-creation, the effects on brands of higher complexity than those in our experiment, exposed in higher-involvement media, and the effects of more diverse forms of co-creation.

Practical implications

Brand managers must recognise that co-creation carries considerable risks for brand equity. They should closely monitor and track the first signs of non-collaborative co-creation in progress. It could be beneficial to recruit artists as co-creators of controlled brand play.

Originality/value

This study offers a more complete insight into the effect of non-collaborative co-creation on observers’ perceptions of brand equity than so far offered by the existing literature. It connects the fields of brand management and the arts by investigating the role and impact of artists as collaborative or non-collaborative co-creators of brand equity.

Details

Journal of Product & Brand Management, vol. 27 no. 3
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 13 March 2009

Isita Lahiri and Amitava Gupta

The purpose of this paper is to examine situations in which brand extensions are likely to dilute beliefs associated with family brands.

Abstract

Purpose

The purpose of this paper is to examine situations in which brand extensions are likely to dilute beliefs associated with family brands.

Design/methodology/approach

Hypotheses are developed and tested in a consumer survey that included experimental and control groups.

Findings

The findings show the congruity of the extension with the family brand is an important factor, the absence of which increases the chances of dilution of the family brand. Perceived success/failure of the extension is a more important factor that also enhances or dilutes the image of the family brand.

Research limitations/implications

Brand names can be hurt by brand extensions, which contain attributes incompatible with or negating favorable family brand beliefs.

Practical implications

If managers feel the dilution is occurring because of an extension, they can increase perceptions that the extension is atypical of the family brand.

Originality/value

This paper identifies certain key attributes of extensions that, if ignored, may dilute the image of the family brand.

Details

International Journal of Commerce and Management, vol. 19 no. 1
Type: Research Article
ISSN: 1056-9219

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Article
Publication date: 1 October 1997

Siew Meng Leong

Examines the effects of extending master brandsbrands which so dominate a product category that they are almost synonymous with it. Three factors were experimentally…

Abstract

Examines the effects of extending master brandsbrands which so dominate a product category that they are almost synonymous with it. Three factors were experimentally manipulated — category dominance, the success of an extension, and the similarity between the extended and original products. The results indicated that a brand’s association with its original product category was diluted when an extension failed. This effect was moderated by category dominance prior to the extension. Specifically, the dilution effect was less pronounced for master brands than for brands which were less dominant in a product category. However, the similarity between the extended and original product categories did not moderate the dilution effects of master and less dominant brand extensions.

Details

Journal of Consumer Marketing, vol. 14 no. 5
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 2 June 2010

F. Müge Arslan and Oylum Korkut Altuna

The purpose of this study is to investigate the effects of fit, familiarity, perceived quality and attitude towards the brand on product brand image after an extension and…

Abstract

Purpose

The purpose of this study is to investigate the effects of fit, familiarity, perceived quality and attitude towards the brand on product brand image after an extension and also to examine whether the product image of a brand is diluted as a result of brand extension.

Design/methodology/approach

The model adopted for the study is based on that developed by Martinez and de Chernatony. A questionnaire consisting of seven constructs (general brand image, product brand image, quality, familiarity, fit, attitude, and demographic characteristics) was administered to 474 respondents. Convenience sampling and face‐to‐face survey methods were used. The brands and extensions used in the study were the same as in the Martinez and de Chernatony study. The difference between these two studies is that, while Martinez and de Chernatony have investigated the effects of brand extension on both general brand image and product brand image, in this study general brand image is examined only before the extensions in order to compare the two brands. The results of the pre‐tests showed that Turkish consumers could not assess the effects of hypothetical extensions on the general brand image. Therefore, as for the effects of brand extensions, only the product brand image after the extension is investigated.

Findings

The results show that brand extensions affect the product brand image negatively, whereas the fit between the parent and extension brands decreases the negative effect. The drop of image as a result of extension is greater when the perceived image and quality of the parent brand are higher. Perceived quality of the brand, consumers' brand familiarity, fit perceived by the consumer, consumers' attitudes towards the extension have a positive effect on the product brand image after the extension.

Research limitations/implications

Owing to the sample size and sampling method, the study has its own limitations in terms of external validity. In addition, only two brands and two extensions were tested and the extensions used were hypothetical, which may lead to a lack of generalizability.

Practical implications

The higher the image of a brand, the more the dilution that occurs, which means that companies should take caution when extending into different product categories.

Originality/value

The study is one of the very few research efforts conducted in the Turkish market concerning brand extensions and the sample used in the research consists of consumers rather than students.

Details

Journal of Product & Brand Management, vol. 19 no. 3
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 6 May 2014

Patrick Walsh, Isabell Rhenwrick, Antonio Williams and Adia Waldburger

While brand extensions and licensing are two distinct brand strategies, recent literature suggests that licensing be treated as an “external” brand extension. As both of…

Abstract

Purpose

While brand extensions and licensing are two distinct brand strategies, recent literature suggests that licensing be treated as an “external” brand extension. As both of these strategies have the ability to have positive and negative effects on the team's brand it is important to understand if consumers are aware if they are purchasing licensed products or extensions. Therefore, the purpose of this paper is to examine if consumers are aware when a brand extension or licensing situation is present.

Design/methodology/approach

This research involved exposing participants to a total of 16 products (eight brand extensions and eight licensed products) and asking participants to indicate who developed the products they were exposed to.

Findings

The results suggest that participants had a difficult time correctly identifying team licensed products, while in general they were able to successfully identify team brand extensions.

Research limitations/implications

This study provides empirical evidence suggesting that licensed product should not be classified as brand extensions as has been previously suggested. As such, research on brand extensions may not be applicable to licensing and vice versa.

Practical implications

As there is some confusion in regards to who is manufacturing team licensed product, it is important that sport properties choose licensees that produce high quality products to limit potential negative effects on their brand.

Originality/value

This was the first known study to examine differences in consumer awareness of team brand extensions and licensed products.

Details

Sport, Business and Management: An International Journal, vol. 4 no. 2
Type: Research Article
ISSN: 2042-678X

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Book part
Publication date: 14 December 2017

Kenichi Ohkita

This chapter identifies the coopetitive aspects of international brand licensing through the relationship between Burberry Group Plc and Sanyo Shokai. The well-documented…

Abstract

This chapter identifies the coopetitive aspects of international brand licensing through the relationship between Burberry Group Plc and Sanyo Shokai. The well-documented relationship between the two firms is used to contribute to coopetition literature and brand licensing literature within an international context. This chapter answers how and why this initially mostly coopetitive relationship succeeded and what led to its eventual denouement. Both partners initially prospered, Burberry had its name efficiently spread across Japan, and Sanyo borrowed from the reputation established by Burberry’s brand name. After some time, Sanyo created brand extensions for the Japanese market which were more affordable than Burberry’s products. They were a big success, further popularizing the Burberry brand across Japan and handsomely benefiting both firms. Burberry grew concerned about inconsistent brand image. The ubiquity of the extension was diluting the luxury parent brand. Burberry thus prematurely ended the licensing agreement with Sanyo. The findings of this study offer valuable insights to firms either intending to internationalize through licensing or intending to be a long-term licensee.

Details

Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms
Type: Book
ISBN: 978-1-78714-502-3

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Article
Publication date: 21 August 2017

Areti T. Vogel and Kittichai Watchravesringkan

This paper aims to uncover consumer evaluations of high-priced traditional retail luxury brands and more affordable neo-mass luxury retail brands when they imitate the…

Abstract

Purpose

This paper aims to uncover consumer evaluations of high-priced traditional retail luxury brands and more affordable neo-mass luxury retail brands when they imitate the innovative designs of one another.

Design/methodology/approach

Using a scenario inspired by a lawsuit involving admitted copying practices, this study used a one-way (time of product introduction: the traditional luxury brand launches the product design before the neo-mass luxury brand vs the neo-mass luxury brand launches the product design before the traditional luxury brand) between-subjects experimental design to examine the effect of time of product introduction (such that consumers are aware of imitation practices) on brand attitude, brand equity (measured via the dimensions of brand associations, brand image, brand credibility and brand leadership) and brand preference.

Findings

Results reveal that consumer awareness of imitation practices is important in determining changes in brand equity, brand attitude and brand preference, regardless of luxury brand type. The research also indicates that consumers evaluate traditional luxury brands that engage in imitation practices more negatively than neo-mass luxury brands that do so.

Research limitations/implications

This research provides a deeper understanding of consumer response to imitation practices, along with managerial insight for luxury brands operating in that sphere. Limitations and future research directions are also offered.

Originality/value

This study appears to be one of the first to investigate imitation practices by using stimuli inspired by a copycat case, and one of few that assesses consumer evaluations of imitation by existing brands.

Details

Journal of Product & Brand Management, vol. 26 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

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