Brand Extension Strategy Research Articles

EXPANDING THE BOUNDARY OF BRAND EXTENSIONS THROUGH BRAND RELATIONSHIP QUALITY

Research on brand extensions identifies the concept of perceived fit as the prime determinant of success. Yet, it is not difficult to find examples of brands that have been extended successfully into “perceptually distant” domains. In an attempt to resolve this discrepancy between research insights and practical experiences, the study investigates the role of Brand Relationship Quality (BRQ) as a critical factor determining consumer responses to brand extensions. The proposed model is tested separately in the context of three different fit scenarios (high, moderate, and low) with data from 502 consumers. The results indicate that BRQ and perceived fit exert independent effects on consumer responses and complement each other as they jointly influence evaluations of brand extensions. The study therefore extends existing theory by providing evidence that the brand extension phenomenon cannot be explained justly without including constructs that portray personal relationships consumers develop with brands and provides insights for marketers and researchers as to how such relationships can be integrated in formulations of successful brand extension strategies.

Product-to-Service Extension: The Impact of Brand Equity on Upscaled Service

A recent trend in the luxury industry shows many companies using brand extension strategies to leverage their assets among competitors. Despite the popularity of brand extensions, limited research has been conducted to determine its effectiveness when using parent product brands in order to introduce new service brands. Thus, the primary purpose of this study is to propose the framework to increase the understanding of luxury brand extensions by focusing on the horizontal category brand extension from product to service. The impact of perceived quality, brand association and brand loyalty of the luxury car brand on consumers' perception and attitude toward the rental car service brand was observed to differentiate from other research that focuses on brand extension within product categories. A total of 324 samples were collected and analyzed using structural equation modeling with AMOS. The brand association of the parent brand showed a significant impact on the evaluation of the extended service brand. In addition, a high level of the brand association was also found to influence the final purchase decision of the extended service brand. However, this study could not find any significant effect of perceived quality and brand loyalty for the parent product brand on the extended service brand. The framework proposed in this study has merit to increase the understanding of service brand extensions by exploring luxury car brands and luxury rental car brands. In the service brand extension, there was a gap in consumer perception between the product brand and the extended service brand. In order to maximize the positive impact of the parent brand, marketers and retailers should investigate the different roles of the brand equity items.

EXPLORING THE ANTECEDENTS OF BRAND EXTENSION SUCCESS: A RESEARCH ON AN ATHLETIC FOOTWEAR BRAND

Brand extension strategy which means using the current name when offering new products for the market, has become a frequently used branding strategy for firms since 1980s. Brand extension strategy is an appealing strategy for many firms since it helps reducing costs of creating a new and benefiting from the brand's equity. Thus, it is crucial for companies to understand the antecedents of extension success especially in athletic footwear segment that targets mostly young consumers. The aim of this study is to explore the relationships among the antecedents of extension success from the generation Y cohort’s perspective on an athletic footwear and to propose marketing strategies. The proposed model aims to examine the relationships among success factors such as parent brand's quality, perceived fit between and extension brand and perceived risk. For testing the proposed model in this study, a existing in the athletic footwear sector was determined. It is a very popular and favorable especially among the generation Y cohort. A hypothetical product was chosen for those consumers and collected data is analyzed by means of structural equation modelling. The sample is composed of university students in Bursa. This study is expected to make academic and practical contributions to the existing branding literature and the companies in athletic footwear industry, Turkey in particular. Keywords : Brand Extension Success, Branding Strategies, Athletic Footwear Brand, Structural Equation Modelling, Bursa.

CONSUMER PERCEIVED BRAND CONCEPT & CLOSE BRAND EXTENSION: A MULTI-MEDIATION MODEL ANALYSIS.

Purpose: This paper investigates how brand extension strategy can be used successfully by the companies while launching close brand extensions in the market. What are the antecedents (Mediating variables) of successful brand extension? Methodology: One independent variable consumer perceived brand concept was used with the dependent variable “Successful brand extension evaluation” with two mediating variables. Real life close brand extension as stimuli was used in this study. Self developed questionnaire was filled by 462 respondents by simple random sampling technique. Findings: Three hypotheses were tested with multi-mediation test by Preacher and Hayes. All three were accepted with most significant being Parent Brand Conviction and Brand loyalty jointly mediate the relationship between Consumer Perceived Brand Concept and Successful Brand Extension Evaluation for close extension.

中国有机农产品认证的风险管理和营销策略分析

本文解读了中国有机产品认证流程，并分析出有机农产品生产者在产品认证初期，尤其是转换期，所面临的来自生产加工和市场销售两大环节主要风险，这包括了病虫草害控制、成本价格控制、以及营销管理三个方面。结合当下中国农产品认证体系的分析，以及对目标消费者行为的判断，本文提出了转换期产品认证多样化以及产品线延伸或品牌延伸的品牌战略，从而降低国内有机农产品认证的风险并提升产品市场营销表现。 This paper aims to propose strategies in agriculture certification management and branding in order for organic agriculture risk management. The interpretation of China’s organic product certification mechanism indicates that the risk in early of the organic certification application process includes pest control, weed control, insect control, cost control, as well as marketing management. Through analysis of China’s agriculture certification mechanism and consumer behavior, a multi-certificates strategy is proposed in order for reduce the risk in the early stage, and another product line extension and brand extension strategies are proposed in order for boosting up the new entrant organic product’s market performance.

A Study on the Impact of Brand Image on Brand Extension in Sportswear Brands in Coimbatore District

These studies seek to determine the effect of brand extension strategies upon brand image in the sport apparel market among the Coimbatore district people. In the study titled “The Impact of Brand Image on Brand Extension in Sportswear Brands in Coimbatore at Tamil Nadu” In this research, by using two pre-tests, the right brands and products were chosen to be deliberate. Then the tests were approved out on four brands like Adidas, Nike, Puma and Reebok. Such variables as, the consumer's initial product image (before brand extension), perceived fit between the extended product and other products of the brand and consumer's approach to conservatory were analyzed as possible variables affecting the quality of brand image in the sport clothes market. In this study was collecting the data through questionnaire was used. The samples were selected randomly. These studies used tools for analysis are Percentage analysis and Chi-square test. This study proves that most of the respondent's trade behaviour is prejudiced by the excellence and brand image.

Influencing Factors on Consumer Acceptability of Brand Extension: A Study on Kist's Brand Extension

Organizations frequently follow brand extension strategies. The study makes an attempt to find out the influencing factors on consumer acceptability with regard to the brand extension of ‘Kist’ Product. This study examines whether this extension gained consumer acceptability in Manmunai North Divisional Secretatriat Area, Batticaloa in Sri Lanka. The acceptability of consumers on brand extension has been tested by the variables: Perceived similarity, Brand reputation, Risk free perception, and Consumer Innovativeness based on the model developed by Chernatony (2003). The conceptual definitions of different authors were used for identifying the determinants of the above variables. The data were collected from convenience sample of 200 ‘Kist’ brand consumers through close-ended questionnaire in the target area. Data were analyzed and evaluated by Univariate and Bivariate techniques. Regression analysis was used for testing the hypotheses. This study empirically examines the significance of independent variables in deciding the dependent variable ‘Consumer acceptability of Brand extension’ (CAOBE) in relation to ‘Kist’ brand. The results reveal that the variables parent brand reputations, perceived similarity and risk free perception have powerful positive effect on consumers' mind-set towards the brand extension of ‘Kist’. Along with it, even though the variable consumer innovativeness has the influence in consumer acceptance, it has not showed powerful effect on consumer acceptance. And also the brand extension of ‘Kist’ shows high level acceptance among the target consumers.The result of this study suggests a number of implications for brand extensions in Sri Lankan FMCG market.

The Effect of Brand Extension Strategy on Its Image: The Case of Majid Brand

The Effect of Brand Extension Strategy on Its Image: The Case of Majid Brand

외식기업의 모브랜드와 확장브랜드간의 상호작용 연구

This study aims to find the interaction between parent brand and extended brand, using Category Extension that is appropriate for food service. Study 1 focuses on how the parent brand affects the extended brand. To be more specific, 2X2 between subject design is set with the information of parent brand (exist/non-exist) and brand familiarity (high/low) as treatment variable. Dependent variables consist of purchase intention. Study 2 focuses on how the extended brand affects the parent brand. To be more specific, 2X2 within subject design is set with the brand familiarity (high/low) and perceived fit (high/low) as treatment variables. Dependent variables consist of purchase intention. Since the purchase intention are increased by utilizing parent brand’s information to the extended brand with low brand familiarity, introducing parent brand’s information on behalf of the new extended brand will bring positive results. This study reviews the influence of relationship variables of brand extension strategy from a food service company point of view. This is significant in providing a positive data base for establishing an effective brand extension strategy based on academic research.

Ineffective brand extensions and the Sisyphus Effect

Purpose – This paper aims to extend previously reported research on the Sisyphus Effect in consumers’ decision making to consumers classified as either maximizers or satisficers. The purpose of this study was to examine whether the Sisyphus Effect influences consumer behavior related to purchasing brand-extension products and explore factors that influence the Sisyphus Effect in brand extension. Design/methodology/approach – A survey was administered to participants in three studies. A convenience sample consisting of 875 participants was asked to complete the questionnaires. The authors assessed whether the participants were maximizers or satisficers. In addition, the participants were given information on brand-extension products that differed in the level of involvement and price and were asked whether they would purchase them. Findings – Using regression analysis, the authors found that consumers’ willingness to purchase extended products became weaker as maximization tendencies became stronger. In addition, purchase involvement was confirmed as a situational factor that can increase maximization tendencies even in individuals who do not maximize as a default strategy. Finally, for low-involvement extended products, the authors found that product price played a moderating role in the negatively correlated relationship between maximization tendency and willingness to purchase a product. Originality/value – This study suggests avenues to increase the effectiveness of a brand-extension strategy and illustrates some tactics that are not likely to be successful.

The Interaction of Signals: A Fuzzy Set Analysis of the Video Game Industry

Customers continuously evaluate the credibility and reliability of a range of signals both separately and jointly. However, existing econometric studies pay insufficient attention to the interactions and complex combinations of these signals, and are typically limited as a result of difficulties controlling for multicollinearity and endogeneity in their data. We develop a novel theoretical approach to address these issues and study different signaling effects (i.e., word-of-mouth, brand reputation, and distribution strategy) on customer perceptions. Using data on the US video games market, we apply a fuzzy set qualitative comparative analysis (fsQCA) to account for cause-effect relationships. The results of our study address a number of key issues in the economics and management literature. First, our results support the contention that reviews from professional critics act as a signal of product quality and therefore positively influence unit sales, as do the discriminatory effects of prices and restricted age ratings. Second, we find evidence to support the use of brand extension strategies as marketing tools that create spillover effects and support the launch of new products.

Predicting retail brand extension strategy success: A consumer based model

Predicting retail brand extension strategy success: A consumer based model

Dove hair oil: marketing in India

Study level/applicability The case is intended to be used by post-graduate students of Management in the courses of Marketing Management and New Product Management. This case may also be used in other courses like Consumer Behaviour and Strategic Marketing. Case overview Indian fast-moving consumer goods (FMCG) sector set to reach an astonishing INR165.62 trillion (US$3.6 trillion) by 2012 gave a tremendous opportunity to Hindustan Unilever Limited (HUL) to establish its footprint in all consumer packaged products. Dove, a brand of HUL, primarily catering to the premium segment of the market, launched Dove Elixir Hair Oil in November 2012 priced at INR185 (US$3.41) for 90 ml. This was five times higher than any other light hair oil in the market. The case brings out facts that describe market situations at that time and questions if a substantial market at higher end, for Dove hair oil, was available. Expected learning outcomes This case has been documented to help students understand the concept and applicability of brand extension strategy. The students shall learn the dynamics of this strategy in the market by answering the following questions: What are the factors that contributed to the growth of FMCG market in India? Evaluate HUL's decision to extend the brand Dove into other product categories? Was the market for Dove hair oil available at the higher end? What strategies should Dove use for its hair oil? Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

AN INTEGRATED MODEL FOR EXTENDING BRAND BASED ON FUZZY ARAS AND ANP METHODS

Brand extension is one of the most popular strategies in marketing. This is due to the fact that consumers usually take into account the brand first because it indirectly reflects the design, quality, and functions. According to the significant role of brand in creating benefit and diminishing risk for a new product, this study intended to develop a novel model for selecting the most appropriate strategy in brand extension. However, there are a number of criteria influencing the possible strategies, and they often are interdependent. Therefore, a multi-criteria decision making model based on Analytic Network Process and Additive Ratio Assessment methods has been developed to systematically clarify the interdependent relationships among the evaluation criteria of brand extension and then, scientifically evaluate the feasible strategies and rank the priorities of brand extension strategies. The results of the proposed model show that “Production cost” is the most important factor, followed by “Quality of parent brand” and “Perceived risk” while “Ice cream” is the highest satisfaction of brand extension.

Relationship marketing management: Its importance in private label extension

Relationship marketing aims to generate long-term profitable relationships between partners. In the context of the convenience goods market, the present study considers private labels in traditional categories as a tool to develop effective relationships. The main contribution of the study is the use of the relationship approach to explain private label loyalty and the success of store brand extension strategies. Drawing upon a sample of 434 individual and using EQS software, this study shows that customer experience, satisfaction, trust, and commitment to private labels play an important role in customer loyalty toward private labels in convenience goods, increasing consumers' propensity to buy private labels in new categories such as durable goods. Generating trust and commitment, which ultimately result in loyalty, is therefore a strategic goal and a source of long-term profitability for retailers.

English

Brand extension strategy, based on the idea that the built-in value of the familiar brand name is transferable to new products. The major aim of this research paper was to find out that how consumer evaluate brand Extension. Authors have used four variables to establish the relationship with the dependent variable “consumer evaluation” of brand extension. The variables used in the study were listed as (1) Innovativeness (2) Multiple Brand extensions (3) Brand concept and consistency (4) Brand extension fit. In addition, four real life brands have been used as stimulus in this study. Questionnaire was developed and through Convenience sampling; it was administrated among sample population of 110. Regression analysis was used as statistical tool to analyze the relationship among dependent and independent variables. The findings showed that Consumer evaluation would be positive for those brand extensions that have a strong reputation for introducing multiple brands. Likewise, there was a positive relationship between consumer level of innovativeness and how consumer evaluates brand extension. Innovative consumers were more positive and favorably inclined towards brand extensions.

The Effect of Brand Extension Strategies upon Brand Image in the Mobile Market

This study analyzes the impact of brand extension strategies upon brand image in the mobile market. Questionnaires were designed to measure variables of the Nokia brand and product fit laptops. The samples were selected randomly. Also, SPSS and Amos software were used to analyze data and test hypotheses. The results indicate that the brand image quality after implementing the brand extension strategy has been influenced by brand's image before extension, perceived fit between the new product and other products of the brand and the new product acceptance by consumers. But, the influence of the perceived quality of the product on consumer's attitude to new product has been not approved.

The moderating roles of perceived complementarity and substitutability on the perceived manufacturing difficulty–extension attitude relationship

The extant brand extension literature shows a curvilinear relationship between consumers' perceived difficulty of manufacturing the brand extension and their attitude towards the extension. This paper advances this research area by investigating the moderating roles of consumption-fit dimensions. Specifically, this research examines how the perceptions of the product extension's complementarity and substitutability affect the relationship between perceived difficulty of manufacturing the extension and extension attitude. To test these relationships, the study uses a four-country sample comprising of both graduate and undergraduate students. Study results demonstrate that perceived complementarity helps easy-to-make extensions while hurting difficult-to-make extensions, but perceived substitutability hurts extension attitude. These findings advance theory and offer managerial implications. Product and brand managers need to consider the joint effects of consumption fit and extension difficulty while using brand extension strategies.

The Effect of Brand Extension Strategies upon Competitive Advantage in Service Companies from Costumers point of View

This study analyzes the impact of brand extension strategies upon Competitive Advantage in Service Companies from Costumers point of View among Parsian Bank and its Affiliated Service Companies in Isfahan City. In this study, for collecting data a questionnaire was used. The samples were selected randomly. Also, SPSS and Amos software were used to analyze data and test hypotheses. The results indicate that the probability of success and acceptance of brand extension in order to have a competitive advantage Influenced by the Perceived product quality, perceived fit between the extended product and other products of the brand and consumer's attitude to extension. Also, the consumer's attitude to extension has been affected by Perceived product quality and perceived fit in this study.

Brand extensions

PurposeAlthough the investigation of brand extension strategies has gained importance, existing research focusses primarily on consumer attitudes to brand extensions, and to date, little research has been made on the luxury market. Moreover, studies on the impact of brand extensions have been limited to explicit measurement methods. Therefore, the aim of this study is to provide new insights by focussing on the change of consumers’ brand perception related to downgrading and upgrading brand extensions strategies in the luxury market based on an implicit association test (IAT).Design/methodology/approachIn this exploratory study context of examining the spontaneous reaction time with reference to the luxury concept by confronting respondents with adequate verbal brand extension stimuli, a ST‐IAT was considered for the empirical tests of these hypotheses.FindingsThe study results give evidence that consumers’ perception of an upgrading or downgrading strategy of a brand varies in accordance to these hypotheses. Hence, the reaction time of the H&M subjects decreased after having read the upgrading stimulus whereby, in the case of Karl Lagerfeld, the ST‐IAT reaction times showed that the downgrading information resulted in a weaker association of Karl Lagerfeld with luxury.Originality/valueThe use of implicit measurement methods is becoming increasingly important for assessing consumer reaction to the new product line. Particularly, when luxury brands apply a downgrading strategy, the risks of possible damages to the core brand are much higher than in the case of an upgrade of a basic brand to the luxury or premium segment.