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Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-726-1

Article
Publication date: 19 July 2011

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…

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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.

Details

International Marketing Review, vol. 28 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 13 November 2009

Patrali Chatterjee

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…

3006

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, parentbrand 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.

Details

Journal of Systems and Information Technology, vol. 11 no. 4
Type: Research Article
ISSN: 1328-7265

Keywords

Open Access
Article
Publication date: 2 March 2023

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…

1932

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.

Details

Journal of Product & Brand Management, vol. 32 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 13 November 2009

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

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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.

Details

European Journal of Marketing, vol. 43 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 11 April 2016

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…

1180

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.

Details

International Marketing Review, vol. 33 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 26 July 2013

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

2258

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.

Details

Journal of Consumer Marketing, vol. 30 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 21 May 2019

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.

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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.

Details

Journal of Service Management, vol. 30 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 29 March 2013

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…

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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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 January 2004

Mary R. Zimmer and Subodh Bhat

The evidence for the reciprocal effects of a brand extension on its parent brand is unclear. An experiment was conducted to investigate the impact of an extension's quality, its…

6311

Abstract

The evidence for the reciprocal effects of a brand extension on its parent brand is unclear. An experiment was conducted to investigate the impact of an extension's quality, its fit with the parent brand, and parent brand dominance, on parent brand evaluation. The paper finds that extension quality and fit did not dilute parent brand attitude; in other words, an extension either left parent brand attitude unchanged or enhanced it moderately. The only effect of brand dominance was that it enhanced parent brand attitude when the extension was a good fit. Further, the introduction of an extension, regardless of its fit or quality, enhanced parent brand attitude for a durable product relative to a control group. It seems that parent brand attitudes are held strongly enough to resist the new information that is associated with a newly introduced brand extension.

Details

Journal of Product & Brand Management, vol. 13 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

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