How does parent heritage brand preference affect brand extension loyalty? A moderated mediation analysis

Abstract

Firms with high brand equity often employ the strategy of brand extension to place new products on the market. Very few studies have analyzed brand extensions in the cultural heritage context, and fewer still have dealt with brands carrying the World Heritage hallmark. This work contributes to the existing knowledge in this field by examining how cultural heritage brand preference contributes to the formation of brand-extension loyalty, taking into account the tourists' perceptions of the extension (via attitudes and image) and the moderating role of brand extension fit and authenticity. A 2 (high vs. low brand extension fit) x 3 (high, moderate, and low degree of brand extension authenticity) between-subjects experimental design was used. The results show that parent brand preference exerts a positive effect on brand extension loyalty, mediated by brand extension attitude and brand extension image. These relationships are moderated by brand extension fit.