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Article
Publication date: 14 March 2016

Jean Boisvert

The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched…

Abstract

Purpose

The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched horizontal and upward service line extensions affect transfer and reciprocal transfer of brand associations.

Design/methodology/approach

A field study using a survey methodology based on a 2×2 experimental random design was conducted with a sample representative of the target population of an established bank in Eastern Canada. Two levels of parent brand accessibility (high/low) and two levels of line extension (upward/horizontal) were tested. Pretests were conducted, and the analysis of results was done using a three-point-in-time confirmatory factorial analysis for each cell.

Findings

The findings indicate that for a newly launched horizontal service line extension, when accessibility of an established parent brand is high, information transfer and reciprocal transfer of brand associations is strong and complete. When accessibility is low, transfer is strong but incomplete, leading to partial dilution of the parent brand. In the case of a newly launched upward service line extension, for both high- and low-accessibility contexts, only key diagnostic parent brand associations transfer to the extension. Reciprocal transfer is strong, leading to a significant dilution of the parent brand.

Research limitations/implications

Other kinds of extensions (e.g. downward, distant), other types of services, and consumer goods could be tested to observe the extent to which transfer works.

Practical implications

This study provides key findings to managers who are responsible for launching newly created service line extensions (horizontal and upward). When evaluating a new vertical service line extension, consumers actively process the available information at hand (e.g. print advertising, point-of-purchase materials), but key diagnostic associations of the parent brand tend to persist over time. Thus, marketers must be careful when using or not using parent brand information during launch, though an upward service line extension is likely to dilute the parent brand’s equity, either positively or negatively.

Originality/value

This paper brings new insights to the service branding literature with respect to the dynamics of transfer of brand associations between service line extensions (horizontal and upward) and their parent brands. Drawing on the accessibility-diagnosticity framework, it closes an important theoretical knowledge gap regarding the persistence over time of accessible vs diagnostic parent brand information in the mechanisms of transfer of brand associations to and from different types of service extensions.

Details

Journal of Service Theory and Practice, vol. 26 no. 2
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 16 November 2012

Jean Boisvert

The purpose of this paper is to examine the extent to which perceived extension innovativeness, extension quality, and consumer involvement affect reciprocal attitudes…

Abstract

Purpose

The purpose of this paper is to examine the extent to which perceived extension innovativeness, extension quality, and consumer involvement affect reciprocal attitudes toward a newly launched vertical service line extension and the parent brand.

Design/methodology/approach

An empirical investigation using a survey methodology was conducted with a sample of 664 respondents representative of the target population. Three pre‐tests were conducted. Partial least squares structural equation modeling and analysis of variance helped test the complex paths of nominal, mediating, and moderating variables.

Findings

Extension innovativeness, extension quality, and consumer involvement positively mediate the relationship between the new extension and the parent brand. In addition, parent brand perceived innovativeness negatively moderates the impact of extension innovativeness on attitudes toward the parent brand. Perceived quality of the extension does not solely mediate a reciprocal attitude but is partially mediated by extension innovativeness.

Research limitations/implications

Future studies should investigate different types of services and consumer goods to generalize the results. Other dimensions of involvement could also be tested.

Practical implications

This study provides key findings to managers who are responsible for launching newly‐created upscale service extensions. When evaluating a new vertical service line extension, consumers actively process the available information. Thus, marketers must be careful to communicate the quality and the innovativeness of a new service because both factors can dynamically influence reciprocal attitudes toward the parent brand.

Originality/value

This article brings new insights as well as closing an important theoretical gap in the literature regarding the complex dynamic effects of perceived innovativeness, quality, and involvement in a context of a vertical service line extension during launch as it reciprocally impacts attitude toward the parent brand.

Details

Managing Service Quality: An International Journal, vol. 22 no. 6
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 11 October 2011

Jean Boisvert and Nick J. Ashill

The purpose of this study is twofold: first, to assess the impact of extension innovativeness on attitude towards service line extension and the mediating role played by…

Abstract

Purpose

The purpose of this study is twofold: first, to assess the impact of extension innovativeness on attitude towards service line extension and the mediating role played by extension quality (in relation to the parent brand); second, to examine the effect of consumer involvement as a moderator of the relationship between extension quality (in relation to the parent brand) and attitude towards the extension.

Design/methodology/approach

An empirical investigation using a survey methodology was conducted with a sample of 664 respondents. The structural model was assessed using partial least squares (PLS graph).

Findings

The results suggest that in launching a new service line extension perceived quality of the extension (in relation to the parent brand) has a direct impact on attitude towards the service line extension and mediates the effect of perceived extension innovativeness on extension attitude. The findings also suggest that consumer involvement in the extension moderates the relationship between extension quality (in relation to the parent brand) and attitude towards the extension.

Research limitations/implications

Line extensions of other types of services and consumer goods could be investigated in futures studies. Involvement is a multidimensional construct. Other dimensions of involvement could be tested in similar contexts.

Practical implications

This study is important for managers of newly created service branches. In launching a new service line extension, marketers must be careful in developing the quality of the service as well as managing its innovation as both factors influence attitude and behavioral intention outcomes. Also, the moderating role of involvement indicates that managers must attempt to reduce risk perceptions during launch.

Originality/value

The paper makes an important contribution to the emerging service line extension literature.

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Article
Publication date: 8 December 2020

Jihoon Cho and Swinder Janda

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

European Journal of Marketing, vol. 55 no. 4
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 February 1993

Moonkyu Lee and Francis M. Ulgado

Examines how customers react to service extensions, or the use ofan established company name to enter new service categories or classes.Reports the findings of an…

Abstract

Examines how customers react to service extensions, or the use of an established company name to enter new service categories or classes. Reports the findings of an experiment designed to assess the effectiveness of the extensions. Discusses the managerial implications of the results for service extension strategies in the marketplace.

Details

Journal of Services Marketing, vol. 7 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 5 February 2018

Nicolas Gonçalves Pontes

Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand…

Abstract

Purpose

Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand to its extensions. Drawing on the range theory exemplar models of categorization, this paper aims to show the effects of parent brand endpoint prices on consumer judgments of vertical line extensions.

Design/methodology/approach

Three experiments have been conducted. Experiment 1 tests the hypothesis that consumers rely on the parent brand price range when making judgments of an upscale extension. Experiment 2 tests the hypothesis that the effect of price range on extension evaluation is mediated by perceived risks for upscale extensions but not downscale extensions. The final experiment shows a boundary condition to the product line range effect on upscale extensions.

Findings

This research shows that upscale extensions are judged more favorably in the context of a wide versus a narrow product line even when the highest endpoints in both product lines are equally close to the extension and that this effect is mediated by perceived consistency and perceived risk. The range effect disappears, however, when consumers have a broad focus in which attention shifts to category endpoint prices, making parent brand prices less diagnostic of upscale extension judgments.

Practical implications

Managers may display a wider range of products and/or reduce prices of low-end models to expand product line price width. In consequence, low-end products become more competitive in terms of price and at the same time improve favorability ratings of the new upscale product.

Originality/value

Vertical line extensions and product line pricing are important topics to both academics and practitioners. Nonetheless, this is the first research to demonstrate how product line price width can influence consumer perceptions of vertical line extensions.

Details

European Journal of Marketing, vol. 52 no. 3/4
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 10 July 2009

Maryam Khan and Mahmood A. Khan

This paper seeks to deal with an exploratory analysis of the impact of technological innovations on the extent of outreach of hospitality services to customers.

Abstract

Purpose

This paper seeks to deal with an exploratory analysis of the impact of technological innovations on the extent of outreach of hospitality services to customers.

Design/methodology/approach

After a review of several hospitality services, two factors were selected to assess their outreach to customers: location of service provider; and direct or indirect service delivery mode.

Findings

Placing these factors on different axes, cells were created to distinguish innovative features of these services. It became apparent that, as the technological innovations develop, new categories of services are emerging. These categories were placed into six different cells identifying services based on their innovative characteristics. When the proximity of the service provider to the customer is less, the range of services involves: service and style improvements; serviceline extensions; and major service innovations. With the increase in distance between service provider and customer, service processes become prominent and involve: process improvements; process‐line extensions; and major process innovations. With the advancement of technology, services move from direct to indirect delivery mode in both service and service process innovations. In order to illustrate the assumptions, examples of services and technology used are provided.

Research limitations/implications

Recommendations are provided for utilizing technology for enhancing services based on the location of their target markets. This is an exploratory analysis of the current situation, which will rapidly change with technological developments.

Practical implications

Findings led to the recommendations for service innovations, location of desired markets, and providing services to customers at near and far locations. Service providers and marketers can benefit by utilizing innovative technology suitable for reaching their selected target customers.

Originality/value

The work is a first step in studying services, technology use, and outreach to customers. Identifying service categories will help service marketers in locating their target market and providing services to customers using developing technology.

Details

International Journal of Contemporary Hospitality Management, vol. 21 no. 5
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 1 April 2021

Jean Boisvert and Nicholas Jeremy Ashill

The purpose of this study is to assess the extent to which gender impacts the evaluation of vertical line extensions of luxury brands in a cross-national context. The…

Abstract

Purpose

The purpose of this study is to assess the extent to which gender impacts the evaluation of vertical line extensions of luxury brands in a cross-national context. The topic of brand/line extensions has been investigated in the mainstream branding literature. On the other hand, the topic has received less attention in the luxury literature. At the same time, while research has examined brand/line extensions from an international perspective, the impact of gender on consumer purchase intentions of luxury downward line extensions in different countries has remained unexplored.

Design/methodology/approach

Based on an ANOVA design (2 extension types × 2 genders × 2 countries). The independent variables were ordered as follows: gender (male/female), vertical line extensions (upscale/downward) and country of living (France/USA). The purchase intention of the extension was chosen as the dependent variable.

Findings

The study results show that key differences exist between men and women regarding vertical luxury line extensions. For instance, women in both countries rate a new downward line extension of a luxury brand more positively than men. In contrast, although women evaluate a new upscale line extension of a luxury brand similarly to men in France, women are more positive than men in the USA. Also, US men rate an upscale extension less positively than their French counterparts. Finally, women in both countries rate luxury downward extensions more positively than men.

Originality/value

This study contributes to the literature of luxury brand management by examining how gender types process and respond to upscale and downward luxury line extensions versus purchase intentions in two different countries. This paper is unique as gender types are not often compared in previous research while fundamental distinctions exist, leading to significant differences. Practically, this study also provides key insights for marketing strategy development and adjustment for luxury manufacturers in terms of their target market, more specifically men versus women.

Details

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

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Article
Publication date: 13 February 2017

Christina Sichtmann, Klaus Schoefer, Markus Blut and Charles Jurgen Kemp

This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (serviceservice extensions) and…

Abstract

Purpose

This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (serviceservice extensions) and to products (service–product extensions), and the extension category’s influence on brand/consumer-level success drivers, as well as the perceived quality of the extension.

Design/methodology/approach

This study included an empirical testing of a conceptual framework using a hierarchical linear modeling approach and testing of hypotheses with a multilevel regression analysis. The data set consisted of 216 respondents reporting on both product and service extensions. Data were collected on three levels, namely, consumer level, parent brand level and extension level.

Findings

The findings indicate a general and consistent extension category-dependent effect that moderates the importance of brand extension success drivers. The influence of parent brand reliance and perceived parent brand quality were found to have stronger effects, whereas parent brand conviction was weaker in the context of service-to-service extensions.

Research limitations/implications

The study focuses on two brands with four extensions. Further research could replicate the study with a broader range of brands and extensions.

Practical implications

The study provides guidance to service managers to enhance consumers’ extension evaluations through better-positioned communication efforts when extending to different categories.

Originality/value

The study is one of the first empirical investigations into category-extension effects and its moderating role regarding brand and consumer level success drivers. Sparse research has been dedicated to a real-world occurrence of services extending between extension categories; this study thus furthers service brand research in terms of brand management decisions.

Details

European Journal of Marketing, vol. 51 no. 1
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 5 September 2018

Jean Boisvert and Nicholas J. Ashill

The purpose of this paper is to empirically assess the impact of branding strategies on horizontal and downward line extensions of French luxury brands in a cross-national…

Abstract

Purpose

The purpose of this paper is to empirically assess the impact of branding strategies on horizontal and downward line extensions of French luxury brands in a cross-national context (France vs USA).

Design/methodology/approach

This study is based on a two line extensions (horizontal/downward) × three branding strategies (direct brand/sub-brand/standalone brand) x two country (France/USA) between-subjects ANOVA design.

Findings

The study shows that the subtyping effect created by a sub-branded luxury downward line extension tends to be rated similarly to a direct branded extension which oppose previous beliefs put forward in non-luxury settings. In contrast, a new independent/standalone extension fully uses the subtyping effect which helps attenuate this risk related to luxury downward stretches. The study also found that the effect of gender in cross-national settings must always be taken into consideration as significant variations occur in the process.

Research limitations/implications

The study covers two countries but should be replicated in other cross-national contexts.

Practical implications

This study helps marketing managers of luxury brands make a better decision when it comes to launching vertical line extensions (upscale/downward) by carefully using types of branding strategies and relevant communications whether women and/or men are targeted in cross-national contexts.

Originality/value

This study breaks new ground in the international luxury literature by providing key theoretical and managerial insights in terms of launching new downward line extensions with the proper use of branding strategies when targeting specific genders.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

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