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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…

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

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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: 17 October 2017

Pascal Kottemann, Anja Plumeyer and Reinhold Decker

The purpose of this paper is to apply the (advanced) brand concept maps (BCM) approach to reinvestigate previous findings on feedback effects resulting from brand

Abstract

Purpose

The purpose of this paper is to apply the (advanced) brand concept maps (BCM) approach to reinvestigate previous findings on feedback effects resulting from brand extension information (BEI) and to explore whether this information affects the structure of a brand’s associative network.

Design/methodology/approach

This research builds on the associative network memory model, as well as Keller’s conceptualization of customer-based brand equity, and uses a series of empirical studies with a total of 839 respondents in two different countries.

Findings

The findings reveal that BEI has no significant impact on the structure of the parent brand’s associative network at the individual level. Furthermore, key brand image dimensions (i.e. favorability, strength, and uniqueness of brand associations) are not affected.

Research limitations/implications

By applying the (advanced) BCM approach, this paper is able to address shortcomings that are incorporated with the use of Likert scales for measuring a brand’s image and for investigating feedback effects in the field of brand extension. As the results indicate that the identification of feedback effects might be influenced by the approach used to measure a brand’s image, this paper calls for further investigations of feedback effects on a brand’s image.

Originality/value

Data from three empirical studies provide insights into the cognitive processing of BEI and their impact on a brand’s associative network.

Details

Baltic Journal of Management, vol. 13 no. 1
Type: Research Article
ISSN: 1746-5265

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Article
Publication date: 1 January 2006

Jose M. Pina, Eva Martinez, Leslie de Chernatony and Susan Drury

The main objective of this study is to analyse the influence that service brand extensions have on corporate image.

Abstract

Purpose

The main objective of this study is to analyse the influence that service brand extensions have on corporate image.

Design/methodology/approach

After reviewing the previous literature, a model is proposed and tested that shows how extending a services brand affects the overall corporate image. Statistical analysis of data from a market survey involving actual services brands and hypothetical extensions was undertaken. Structural equation modelling was the main methodology employed.

Findings

It was found that the extent of perceived fit between the corporate brand and the service extension influences the perceived quality of the extension, which in turn affects corporate image, especially for corporate brands that originally had highly rated images.

Research limitations/implications

Given that the study was done with hypothetical brand extensions, the proposed model is not tested in a real situation.

Practical implications

The results offer important implications, both for academics and managers. Through an effective communication policy, the company must increase the perceived fit. The results also suggest directions for further research. For example, it would be interesting to explore how the model works across services categorised on the continuum of search, experience and credence.

Originality/value

In the literature, there are few works analysing the effect of service extensions on corporate image. The research allows the understanding of the concept of corporate image and the role performed by service brand extensions. The proposed model and the estimation with SEM methodology add value to the existing knowledge.

Details

European Journal of Marketing, vol. 40 no. 1/2
Type: Research Article
ISSN: 0309-0566

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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.

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

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Article
Publication date: 28 August 2009

Ian Phau and Edith Cheong

The purpose of this study is to examine how status‐seeking and fashion‐innovative young consumers evaluate diffusion brands. The influence of brand naming techniques and…

Abstract

Purpose

The purpose of this study is to examine how status‐seeking and fashion‐innovative young consumers evaluate diffusion brands. The influence of brand naming techniques and country of origin on brand image and product quality of diffusion brands is also examined.

Design/methodology/approach

Two well‐known luxury brands and two product categories were identified as the stimulus for the study through pretests. Data were collected using a convenience sampling method in a large Australian university. A self‐administered questionnaire was distributed and 603 usable responses were returned with the sample falling between the ages of 18‐24.

Findings

The results revealed that sub‐brands and nested brands have similar product quality and brand image evaluation when compared with the parent brand. Furthermore, sub‐brands and nested brands have demonstrated product quality fit and brand image fit with the parent brand. The findings suggest that a new brand is not a good substitute for the parent brand to express status. In addition, brand origin is a greater indication of product or brand quality than country of origin.

Research limitations/implications

Replication of study on other segments is worthy of future research. Only the influence of fashion innovativeness and status consumption on diffusion brands was examined. Other external factors can be identified and explored.

Practical implications

Marketers or brand strategists can consider establishing sub‐brands or a nested brand in the early stages of product innovation as status symbols to attract young consumers. There should also be greater emphasis on brand name instead of product involvement when marketing a diffusion brand.

Originality/value

There is limited research that examines how young status‐seeking and fashion‐innovative consumers evaluate diffusion brands. Furthermore, the study is conducted in an Australian context. Two product categories were also studied.

Details

Young Consumers, vol. 10 no. 3
Type: Research Article
ISSN: 1747-3616

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Article
Publication date: 6 November 2017

Xiang Fang and Shengdong Lin

In this paper, the authors aim to propose that status differentiation, the extent to which people differentiate their behaviors or attribute power to others according to…

Abstract

Purpose

In this paper, the authors aim to propose that status differentiation, the extent to which people differentiate their behaviors or attribute power to others according to perceived status differences, moderates the effect of stretch direction upward or downward and brand image prestige or functional on consumers 2019 responses to line extensions.

Design/methodology/approach

This study was a 2 (culture: Chinese vs American) × 2 (stretch direction: up vs down) × 2 (brand image: prestige vs functional) experiment design. Study 2 was a 2 (status differentiation: high vs low) × 2 (stretch direction: up vs down) × 2 (brand image: prestige vs functional) experiment design.

Findings

The results of two studies show that high status differentiation has a positive prestige-enhancement effect on an upward extension but a detrimental effect on a downward extension. This effect is more pronounced for prestige brands than for functional brands. In addition, the authors have found similar patterns for the prestige perceptions of the parent brands after extension.

Research limitations/implications

This research makes important contributions to the fields of cross-cultural psychology. The status differentiation beliefs could be primed temporarily and had a significant impact on individuals’ responses to line extension.

Practical implications

The research identifies status differentiation as an important factor for marketers to consider when extending their brands to global markets.

Originality/value

Past research on vertical extensions has examined numerous factors influencing consumers’ responses. This paper is the only one to examine culture factor.

Details

Nankai Business Review International, vol. 8 no. 4
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 1 December 2003

Eva Martínez and José M. Pina

In recent years, companies have been using brand extensions as a strategy for launching new products. The reason why this strategy has been popular is the fact that it…

Abstract

In recent years, companies have been using brand extensions as a strategy for launching new products. The reason why this strategy has been popular is the fact that it decreases the risk of failure of new products, because consumers initially are more willing to accept products marketed under known brands. Nevertheless, this strategy is not free from risks, since it is not convenient for all the brands, and moreover it may have negative effects on the image of the extended brand. Therefore, the main objective of this study is to analyse the influence that brand extensions have on brand image. For this analysis, an experiment is performed that examines the most important variables to consider in using the brand extension strategy. After analysing the information obtained, reaches the conclusion that brand extension strategies may influence the brand image after the extension and that variables such as the brand image prior to the extension, the perceived quality of the extension and the fit between the parent brand and the new product also affect the image.

Details

Journal of Product & Brand Management, vol. 12 no. 7
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 29 March 2011

Rafael Bravo, Nina M. Iversen and José M. Pina

This paper seeks to examine expansions of online brands into the offline market via brand extensions and via brand alliances. Specifically, it aims to compare the…

Abstract

Purpose

This paper seeks to examine expansions of online brands into the offline market via brand extensions and via brand alliances. Specifically, it aims to compare the formation of reciprocal spillover effects for both strategies.

Design/methodology/approach

Empirical survey data are analyzed through a series of standard and hierarchical multiple regressions. Different combinations of online brands, product categories and offline brands are studied.

Findings

The main results indicate that: the attitude towards the new product is determined by fit and by the functional offline brand image for alliances, while it is determined by fit and by the emotional and commitment dimensions of online brand image for extensions. Moreover, the online brand image is more vulnerable in brand alliances than in extensions.

Research limitations/implications

This work shows the applicability of commonly used theories in brand extensions and alliances to the online‐offline market expansion. Moreover, these theories allow differences across marketing strategies and across distinct brand image dimensions to be explained.

Practical implications

The results obtained may guide the management of these market expansion strategies. Particularly, the present findings are useful to predict the contribution of each brand image dimension on the attitude towards the new product and upon the feedback effects swaying the online brand image.

Originality/value

This study addresses “a hot topic” in branding by comparing two expansion strategies: brand extensions and brand alliances. This comparison is made within the under‐researched area of online branding, and in a novel scenario that is the online‐offline expansion.

Details

Marketing Intelligence & Planning, vol. 29 no. 2
Type: Research Article
ISSN: 0263-4503

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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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