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Firms often use upward product line extensions to achieve gains in brand evaluations and in overall demand. Despite the prevalence of such extensions, previous research has provided little guidance about how upward line extensions influence overall revenue when they are launched as a core product as opposed to a peripheral product. The purpose of this study is to fill this research gap.

Using data from the quick service restaurant industry, this study looks at the effects of upwardly extended core and peripheral products on product line revenue. The empirical study uses a quasi-experiment to compare customer purchases across the pre- and post-launch of upward line extensions.

The results of this study reveal that launching core and peripheral products as upward line extensions can each increase total product line revenue. In addition, findings illustrate that as compared to a core launch, this total product line revenue increase is substantially higher in the case of a peripheral launch.

First, the estimated model does not include supply availability and competition. Second, the data span only six months and this restriction prohibits us from investigating alternative sources of the causal effect. Third, the empirical setting in this study is limited to financial data in the quick service restaurant industry as a proxy of actual behavior. Finally, given that customers are not randomly assigned to treatment and control groups, the author is unable to definitively rule out the effect of unobservable attributes.

The findings suggest that firms should prioritize peripheral upward line extensions but use both types considering resource constraints (cost and human resources) and strategic importance to the firm.

This study bolsters the extant literature related to upward product line extensions by providing an empirical framework that evaluates the causal effect of upward line extension on total revenue, using field data in a real-life setting (as opposed to survey or lab experiment data) and actual firm revenue (as opposed to a perceptual outcome measure such as behavioral intentions). In addition, findings contribute to the new product development literature.

Brand extension, the use of an existing brand name on a new product, is an exceedingly popular marketing tactic as companies attempt to economise on new product launches and managers attempt to improve short run sales results. Review and analysis of current marketing research concludes that popular claims for general benefits of the practice are contradicted both by marketplace evidence and logical argument. Directions of future research to determine whether any specific conditions exist where brand extension might be an appropriate brand management tactic are outlined.

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.

Examines the inherent risks of brand extension alongside empirical evidence of the success rates of brand extensions compared with brand‐name product launches. Concludes that the brand extension is justifiable only when it can be clearly shown to enhance the success of a new product launch and existing brand equity. Puts forward a number of rules for the appropriate use of brand extension.

This paper reports a replication of Broniarczyk and Alba’s study of the influence of brand‐specific associations on brand extensions. The results broadly support the original study showing brand‐specific associations ( i.e. attributes which differentiate a brand from the competition)can dominate the effects of the parent brand to the point where they reverse extension evaluations. Thus the study provides further evidence to challenge the commonly held assumption that the effect associated with the original brand name and product category is automatically transferred to the brand extension.

The purpose of this paper is to conduct a series of tests designed to highlight changes in the physical characteristics of the yarn resulting from mechanical efforts comparable to that to which they are subjected on the weaving machine. Among the physical properties of the warp yarn, the authors examined changes include: the residual deformation, strength, elongation and elasticity, on the extender repetition effort overtension growing steadily, leading, after some time, to break. Therefore, the yarn treated extender repetition is subject to a more severe test than the actual weaving on the loom.

The initial length of the specimen under constant static load of 20 g, was 50 cm in all tests. The yarns are stored on several coils, the authors collected a quantity of thread on each of them, according to the law of chance, to avoid errors due to long periods of irregularity and the authors estimated that the extensions can be supported by the wire without danger of rupture are interesting practical point of view. Three rate extensions were chosen for the two yarns: 0.5, 1.2 and 1.9 percent. The maximum number of tractions was calculated for each wire by multiplying the maximum thread count practice by the average distance between the warp beam and the weft yarn on the weaving machine.

The fall of the resistance and elongation resulting from repeated extensions which yarn are subjected on the extensometer, corresponds almost exactly to the residual deformation recorded. Increasing the rate of extensions causes relatively large decrease in strength and elongation. The authors also notice that the strength and elongation at break tends to decrease when the number of extensions decreases. The fall of the resistance and the elongation at break is more important for carded yarns then combed yarns increases or when the frequency decreases.

The maximum difference of the resistance is 32 g, 10.3 percent in the case of carded yarns, while in the case of the combed yarns; the same difference is 25 g, or 6.4 percent of the initial strength. Similarly, the maximum fall of the elongation at break for carded yarns is about 2 or 16.1 percent of the initial elongation, while the corresponding drop in the case of the combed yarns is 1.8 or 10.9 percent of the initial elongation. The corresponding values found during the testing wool combed yarns, were, respectively about 4.8 and 6.6 percent.

The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical dimensions.

This paper develops a model to evaluate when it is preferable for a firm to extend the product line in a vertical or horizontal direction. Consumers are modeled as being vertically heterogeneous with respect to their valuation of quality and horizontally heterogeneous with respect to their preference on the esthetic component of the product. These model characteristics allow us to consider a broader set of product line extension strategies. By considering both a vertically integrated channel and a decentralized channel, this study investigates how channel structure influences optimal product line design. The problem with supplemental numerical analyses is mathematically analyzed.

The analysis shows that a horizontal product line extension strategy that offers the customized product can be used as an alternative to a vertical product line extension strategy. If the fixed cost is not too high, offering the customized product with low quality may be preferred to the quality-based segmentation strategy. Furthermore, the analysis shows that the channel structure is influential as the preference for the horizontal product line extension strategy is more pronounced in the decentralized channel than in the centralized channel.

The analysis presented in this paper is limited by the consideration of full market coverage. Further research is needed to see how the results can be generalized to the case with partial market coverage.

The analysis suggests that a firm may consider product customization as part of its product line strategy. Information regarding market characteristics and channel structure is important when deciding on the optimal product line design.

The model reflects a more realistic marketing strategy and channel structure than previous studies that typically consider product line extension in only one direction and focus on the centralized distribution channel. Combining the standard product line extension and customization strategies also represents an important contribution to the literature. These extensions produce interesting new results and insights into a firm’s optimal product line design strategy.

This chapter sheds light on the ‘country of origin’ concept. The author contends that this concept is composed of micro- and macro-components. He argues that the tourists’ hedonic and monetary gratifications are derived from the travel experiences. Therefore, the country-of-origin image (COI) can have an impact on the destination’s brand extension. In this light, this contribution examines the relationship among COI, overall brand equity and brand extension. The author implies that the hedonic and monetary values can have a moderating effect on the impact of COI and on destination brand extension.

This article aims to understand the influences surrounding the consumption of fragrances, especially if these products fit as a brand extension of luxury brands. More specifically, it aims at identifying the main reasons behind the process of buying fragrances and the main features associated with the consumption of fragrances.

This research adopts a qualitative approach in the form of 15 in-depth interviews with consumers of fragrances, seeking to assess attitudes and influences in the consumption of fragrances as a brand extension of luxury brands.

This research shows that the emotional use of fragrances as a luxury product is much more important than their functionality, the relationship between the studied consumers and fragrances depends on the occasion of consumption (season of the year; day or night) and the aroma and the durability of the aroma is the main decision criterion for the purchase of fragrances. Respondents have also mentioned comfort, elegance and sophistication as attributes to choose a fragrance as a luxury product.

This article adds to the current knowledge on the topics of luxury brand management and buying behaviour by providing a better understanding of attitudes and influences towards the use of fragrances. This research recognizes the importance of a brand extension strategy for luxury brands, especially in the case of fragrances.

Building strong human brands inscribed in social and symbolic recognition is a strategic issue for branded individuals. In the context of film director human brands, this study aims to examine the respective influences of the economic and critical performance of films, on the one hand, and the professional legitimacy bestowed by internal stakeholders, on the other, on changes in human brand identity. Contrary to what is generally believed, it shows that the specific legitimacy bestowed by producers and the institutional legitimacy bestowed by elite peers mediate the effects of performance on changes in human brand identity. Brand extension (i.e. new films) incongruence and initial human brand identity moderate the effect of performance on legitimacy.

This study is applied to film director human brands and to their extensions through the films they make. Data were collected for 81 films, including information before and after the brand extension occurs, to capture changes in human brand identity and extension effects.

The results show that economic performance influences both specific and institutional legitimacy, whereas critical performance only impacts institutional legitimacy. These relationships are moderated by initial human brand identity and congruence. Both types of professional legitimacies also help reinforce human brand identity.

The study challenges the role of performance on the building of human brand identity and shows that the latter is co-constructed by the branded individual and internal stakeholders. It also enhances the key roles of global incongruence and genre incongruence in the model.