Parent brand quality, service intensity and consumers’ usage consideration of service-to-service brand extensions

Abstract

PurposeThis study aims to examine the relative impact of three drivers affecting consumers’ usage consideration for a brand extension into a service category using data from actual consumers of a national oil change retailer contemplating various service brand extensions.Design/methodology/approachData for the study were collected in two separate surveys using structured self-administered questionnaires. Three drivers were measured for their effect on consumers’ usage consideration for service brand extensions (dependent variable), namely, parent brand evaluation, extension fit and degree of service intensity of the extension.FindingsThe results indicate that parent brand evaluations are the strongest drivers of brand extension usage consideration, regardless of the extension fit or the degree of service intensity of the extension. In addition, the findings suggest that the closer the fit to the parent brand, the more likely the extension will be considered. In contrast, consumers are less likely to consider using an extension as the level of service intensity increases.Originality/valueThis study’s use of actual customers of the brand, for real service brand extensions provides a higher degree of external validity than previous work in this area, and it yields a deeper understanding of the criteria used by consumers when evaluating service brand extensions. The study also provides managerial implications that are of practical value to academics and practitioners alike.