Abstract
The purpose of this paper is to examine consumers’ perceptions of the parent brand and their attitudes towards the brand extensions by exploratory researching the topic in the new context of one emerging European market. Theoretical part gives a comprehensive description and analysis of the main features of the brand extension strategy. The purpose of the primary research is to explore and understand Croatian consumers’ perceptions about the global parent brand (Coca-Cola) and their attitudes towards its extensions on the Croatian market. Research results support the assumption that managers should introduce brand extension when they are sure of the position of the parent brand and its former extensions in the consumers’ mind. As such, results corroborate previous findings, showing how it is necessary to know the existing level of brand affect, brand loyalty, and brand trust since they have different impacts on consumers’ perceptions of the brand extension. The main contribution of the paper stems from the replication and extension of the previous research in the new context (in terms of the level of the market development and consumer culture). Research findings add to the existing knowledge with insights and results from the new market (Croatia), and as such might help in increasing understanding of the brand extension phenomena in the field of the strategic brand management in emerging markets.
Highlights
Considerable evidence in marketing supports the assumption that the brand extension strategy allows the company to expand its business in the new areas, primarily thanks to the security that a well-known parent brand brings
According to Nielsen’s global research (2015, p. 14), brand extensions are “approximately three to four times more common than new manufacturer and new brand launches combined.”. This strategy should be used with caution – it cannot be applied to all products, and it can happen that consumers do not accept the brand extension
In line with the research reviewed here, we propose that: H3: The relationship between the brand trust (BT) and the consumers’ attitude towards brand extension (BE) is mediated by the brand loyalty (BL)
Summary
Considerable evidence in marketing supports the assumption that the brand extension strategy allows the company to expand its business in the new areas, primarily thanks to the security that a well-known parent brand brings. 14), brand extensions are “approximately three to four times more common than new manufacturer and new brand launches combined.”. Despite existing numerous research dedicated to the brand extension strategy in the developed markets, the knowledge about consumers’ attitudes toward the brand extensions in the emerging markets is still limited, insufficient and based mainly on research findings from the context of large Asian markets. In researching the specificities of the model of the brand extension impact on parent brand-equity in India, Dwivedi & Merrilees (2013) findings have corroborated previous ones from developed markets showing that brand extension attitude significantly influences change in brand-equity of the parent brand. Researching consumers’ attitudes toward the brand extensions in the emerging markets within European context presents an actual and timely topic which has not been sufficiently researched so far
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