Brand extension feedback effects: A holistic framework

Abstract

This study models the impact of brand extensions on parent brand attitudes. The article is positioned around a holistic framework, enabling four major new contributions. First, it explains inter-relationships among major determinants of feedback. Second, it presents a rank-order of major determinants of feedback. Third, it presents a fresh perspective on the integrating role of fit. Fourth, it models the effect specifically on the change in parent brand attitude. A further contribution is a first-of-its-kind application to India. Results indicate that the two strongest effects on brand extension feedback were perceived fit and parent brand image. The article outlines four principles for effective brand extension design and communication strategy. A precondition for launching a brand extension is a strong parent brand. Once this condition is met, the design as well as the communication strategy of the brand extension should emphasize the fit with the parent using appropriate brand elements. Positive attitudes towards the extension per se should be developed to create added value perceptions for consumers.