Can followers overcome pioneers? The role of superior alignable differences in consumer evaluation of brand extensions

Abstract

PurposeThis paper seeks to examine whether the follower extensions with superior alignable differences can overcome the pioneer extensions with regard to brands.Design/methodology/approachThree laboratory experiments were conducted to test hypotheses.FindingsFindings suggest that the effect of superior alignable differences on consumer evaluations of followers vs pioneers is moderated by two factors – the perceived fit between the parent brand and extensions, and order of market entry. High fit followers with superior alignable differences easily overcome pioneers; however, such alignable differences do not help low fit followers to overcome pioneers. Although the low fit followers with better quality and superior alignable differences can overcome the low fit pioneer, they cannot overcome the high fit pioneer.Research limitations/implicationsThe limitation of the study is that it does not explore how low fit followers can overcome high fit pioneers.Practical implicationsManagers can better determine whether and how to introduce brand extensions as a pioneer or follower.Originality/valueThe originality and value lie in first examining whether follower extensions can overcome pioneer extensions.