Dimensions of brand-extension fit

Abstract

A sizable research stream in marketing finds that a strong fit between a brand extension product and its parent brand encourages positive consumer responses. Yet this large body of literature fails to provide managers with specific practical guidance about how to create brand-extension fit for optimal results. The problem is a lack of understanding of what brand-extension fit really is, and there has been little work to address this issue by synthesizing the key dimensions of brand-extension fit. The current article addresses this gap by identifying the key constituent dimensions of brand-extension fit. This is an important topic because brand extensions are essential for business renewal and growth.We identify six dimensions of brand-extension fit: feature-based, function-based, resource-based, usage-occasion-based, market-based, and image-based fit. Each dimension addresses a different aspect of brand-extension fit and suggests ways for brand managers to create brand-extension fit. Less expected is that studies that use a strict subset of these dimensions overweight those fit dimensions that are included, and the associated estimated coefficients are biased. From a managerial perspective, counterfactual analysis also shows that reliance on a strict subset of these dimensions results in suboptimal decisions.