Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts

Abstract

We aim for a deeper understanding of how the theory of green brand extension is effectively used in brand management practice. Therefore, we conducted three consecutive studies to unfold corporate activities as well as consumer perceptions. (1) Employing a qualitative content analysis, we explore and explicate characteristics of 37 green brand extensions. (2) We discuss green brand extensions in four focus groups and categorize facets of consumer skepticism. (3) To deepen and triangulate the findings, we conduct 50 interviews with consumers with a wide range of environmental involvement. Our theoretical sampling offers rich insights into perspectives of consumers, however, limited to personal reflections on a subset of brands in the German FMCG market. First, we unveil three characteristics of green brand extensions, based on their benefits and beneficiaries. Moreover, we emphasize that in contrast to the original brand extension theory, the main image transfer is intended to focus on reverse greening effects. Second, we note that consumer responses reflect various categories of skepticism around FMCG giants as originators of such extensions as well as their underlying intentions. In addition, we interpret different effects of ecolabeling linked to its sender. Third, we empirically demonstrate that consumers with a higher environmental involvement can be expected to scrutinize green brand extensions more critically. Moreover, we describe consumer perceptions and evaluations linked to brand loyalty and brand knowledge.