Brand Extension Research Articles

The Legality of Surrogate Advertisement, and Its Infringements with Respect to Trademarks

Surrogate advertising is a contentious marketing strategy whereby companies promote restricted products, such as alcohol and tobacco, by advertising permissible goods like mineral water or soda that bear similar brand identities. This practice raises legal and ethical concerns as it often circumvents public health regulations designed to limit the promotion of potentially harmful products. In India, surrogate advertising is regulated by stringent laws, including the Cable Television Networks Act, 1995, the Cigarettes and Other Tobacco Products Act, 2003, and the Advertising Standards Council of India (ASCI) Code. These regulations aim to restrict surrogate promotions that mislead consumers and blur distinctions between prohibited products and their associated brand extensions. This Article explores the legal framework surrounding surrogate advertising in India, highlighting how major brands like Kingfisher have effectively used surrogate products to maintain visibility and brand identity despite advertising restrictions and how the trademark has been infringed . It delves into the conflict between brand rights and public welfare, examining whether trademark holders have a positive right to freely use their trademarks in advertising or whether such rights are inherently limited by public policy considerations. By analyzing statutory guidelines, case law, and global standards such as the TRIPS Agreement, this study evaluates the balance between protecting public interests and preserving trademark rights in advertising practices, ultimately offering insights into potential policy reforms for mitigating the impact of surrogate advertising on consumer perception and public health.

A typology of brand knowledge associations projected in brand-generated signals

Purpose The extensive brand associations research lacks organisation when it comes to the used information cues. This paper aims to systematically map and categorise the brand knowledge associations’ components and develop a typology applicable to any brand. Design/methodology/approach Using the restaurant and hotel industries in four different European cultural clusters as contexts, this work uses well-established systematic qualitative analysis approaches to categorise, code and model pictorial content in two studies. A four-stage sampling process identified Instagram brand-posted signals (photos), 243 from 26 restaurants in Madrid, Paris and Rome for study one and 390 from 29 hotels in Moscow, Berlin and Stockholm for study two. Adhering to relevant guidelines, the manual coding procedures progressed from 246 for restaurants and 231 for hotels initially generated free information coding inductive codes to a theory-informed categorisation. Quantitative analysis complemented the qualitative analysis, revealing the information cues relative utilisation. Findings For both studies, the analysis produced a typology consisting of two high-level and five lower-level brand knowledge association categories, namely: (a) brand characteristics consisting of the brand as a symbol, the brand as a product and the brand as a person, and (b) brand imagery consisting of user imagery and experience imagery. The five lower-level categories comprise of sub-categories and dimensions, providing a more comprehensive understanding of the brand associations conceptual structure relevant to brands operating in any industry. Research limitations/implications Researchers can use this typology to holistically encapsulate brand associations or design projects aiming to deepen brand knowledge association aspects/dimensions understanding. Practical implications Managers can use this typology to portray brands. Some of the identified lower-level categories and/or sub-categories and dimensions are likely to need customisation to fit specific contexts. Originality/value The suggested categorisation offers a solid, comprehensive framework for effectively categorising and coding brand knowledge associations and proposes a new theory in the form of a typology.

Measuring the Impact of Parent Brand Equity on Brand Extension: A Luxury Fashion Industry Perspective

In a diversified consumer society with extreme product homogeneity and fierce competition, many luxury fashion brands try to broaden their product offerings. Although brand extension is now highly common, it is not always met with success. Indeed, incorrect evaluations of brand equity can lead to consumer dissatisfaction with extended products, thus losing the opportunity to extend in the target market. On the other hand, previous studies have repeatedly verified the influence of the extended brand on the parent brand’s equity. Accordingly, few studies have concentrated on the influence of the parent brand’s equity on the extended brand, especially in the field of luxury fashion brands. Therefore, this study employs the brand equity model, including brand loyalty, awareness, perceived quality, and association, and measures the influence of parent brand’s equity on the extended brand from a consumer perspective. In this study, data from 151 consumers who have purchased luxury fashion products in Kuala Lumpur were collected through quantitative methods and the results were obtained by a simple linear regression analysis of SPSS. The results showed statistical significance with p<0.05 which revealed that the parent brand's equity had a significant positive impact on its extended brand while most studies focused on the impact of the extended brand on the parent brand. Simply put, this research not only makes a theoretical contribution to the parent–extended brand relationship but also fills knowledge gaps in related fields. Moreover, based on the empirical results, this study proposes a series of suggestions for correctly measuring brand equity to facilitate smoother brand extension, providing practical guidance for the luxury fashion industry.

Instagram live-streamings: how does influencer–follower congruence affect Gen Z trust, attitudes and intentions?

Purpose Influencer marketing is nowadays an essential practice for companies wishing to establish a rapprochement with its customers and gain their trust. Building close relationships can be fulfilled through Instagram live-streamings. Drawing upon equilibrium theory and brand extension theory, this paper aims to determine the effect of influencer–follower congruence on trust, attitudes and intentions in Instagram live-streamings. Design/methodology/approach A survey was carried out on a sample of 330 Generation Z Instagram users exposed to a live-streaming of an influencer promoting a clothing brand on Instagram. A PLS analysis was performed to validate the proposed model. Findings Results revealed that influencer–follower congruence in a live-streaming promotes followers’ trust toward the brand. In addition, influencer reputation is found to reinforce this relationship. Moreover, results showed that brand trust mediates the effect of influencer–follower congruence on brand attitude. Besides, the latter turns out be a mediator of the relationship between brand trust and followers’ intentional reactions. Research limitations/implications The study has focused on one particular live-streaming as well as a particular influencer which reduces the generalizability of the results. Future research should therefore replicate the study with different stimuli. Furthermore, it would be interesting to manipulate influencer–follower congruence in an experiment to explore the effect of varying congruence levels on trust. Practical implications This paper highlights the importance of using live-streamings for brands, especially when Gen Z is targeted. This tool can be considered as very useful to establish a trust relationship with young consumers. Moreover, the study emphasizes on the importance of choosing influencers whose image is in line with that of their followers to establish close relationships with them and gain their trust. The findings also suggest that to further strengthen trust toward the influencer, the latter should benefit from a prior good reputation. Originality/value Despite abundance of research on communication strategies on Instagram, little has focused on live-streamings. Particularly, research on influencer–follower congruence is relatively rare. Thus, this study contributes to the understanding of the effects of influencer–follower congruence on followers of Instagram live-streamings and offers valuable theoretical and practical implications in this field.

Brand extension or co-branding: The consumer's attribution of responsibility to the crossover strategies of heritage brands

Cross-over brand extension and co-branding are effective innovation strategies for heritage brands to expand into new markets. This research compares consumers' responses to these two strategies, with the aim to address the gap in the literature and provide actionable insights for heritage brand managers. Based on the conceptual link between responsibility attribution and authenticity, and across four experimental studies, this research uncovers the advantage of brand extension over co-branding and its underlying mechanism: the serial mediation of responsibility attribution and new product authenticity. Meanwhile, the consumer's mindsets (fixed vs. growth) are identified as a boundary condition. Specifically, compared to brand extension, consumers attribute less responsibility to the heritage brand in co-branding; this in turn weakens the perception of new product authenticity, and leads to lower purchase intention for the new product. However, the disadvantage of co-branding will be neutralized when the consumer's growth mindset (vs. fixed mindset) is activated.

The Influence Mechanism of Cultural Fit on the Image of Time-Honored Brands: Based on the Perspective of Brand Extension

ABSTRACT International competition and the continual emergence of new brands pose significant challenges to time-honored brands, prompting many of these established brands to adopt brand extension strategies as a means of reshaping and revitalizing their brand image. Based on the theory of brand legitimacy, this study constructs a research model of cultural fit – brand legitimacy – brand image and proposes pop culture involvement as a moderating variable. Two Chinese time-honored brands in the pharmaceutical industry, Tongrentang and Pientzehuang, were selected as the experiment scenarios. The study finds that: in the process of brand extension, cultural fit plays a positive role in influencing the brand image of the time-honored brands; brand legitimacy plays a mediation role between cultural fit and brand image; pop culture involvement plays a negative moderating role between cultural fit and brand legitimacy. Applications have also been mentioned in the study.

Strategic Management of Luxury Brands: A Case Study of Louis Vuitton’s Market Performance and Consumer Loyalty

This study explores the critical role of brand strategy management in the luxury goods industry, focusing on Louis Vuitton (LV) as a case study. With the continuous development of the global economy and heightened consumer expectations, competition in the luxury market has intensified. Brand strategy management, encompassing positioning, communication, maintenance, and extension, emerges as a vital competitive tool that influences market performance and consumer loyalty. This research aims to uncover the unique aspects of LV's brand strategy, its impact on market performance and consumer loyalty, and the challenges the brand faces. Through an in-depth literature review and case analysis, the study identifies key success factors of LV's brand strategy, providing strategic recommendations for other fashion brands to enhance their market competitiveness. The findings contribute to the existing literature by filling gaps in the understanding of luxury brand management and offering practical insights for industry practitioners. Additionally, the study highlights the importance of innovation and adaptation in maintaining brand prestige and relevance in an ever-evolving market landscape, emphasizing how LV's strategic decisions have solidified its position as a leader in the luxury sector. This comprehensive examination not only sheds light on LV's enduring success but also offers valuable lessons for emerging brands aiming to navigate the complexities of the luxury market.

Brand extension strategy in the presence of carbon tax regulation policy and social influence

Brand extension is a common marketing strategy used to capture a competitive advantage in the fashion industry and often causes social influence between the parent and sub-brands. On the one hand, sub-brand consumers are more willing to buy products when the parent brand sells well. On the other hand, the parent brand consumers’ purchase intention decreases when the sub-brand product sells too much. The fashion industry also contributes considerably to global carbon emissions. To reach sustainable development goals, governments impose carbon taxes. This paper analyzes how social influence and carbon tax regulations can affect a monopolistic firm’s brand extension strategy. The analytical results show that the firm extends from the parent brand to the sub-brand when the magnitude of social influence is not strong in the absence of a carbon tax, as the market expansion effect dominates the cannibalization effect. When the regulator imposes a carbon emissions tax, the range is further narrowed of the social influence that allows the firm to benefit from brand extension strategy because of the cost effect. Counterintuitively, the brand extension strategy can force the regulator to lower the tax price. Moreover, our findings reveal that social influence exerts an inverse impact on the regulator’s tax pricing decisions, contingent upon the extent of the parent brand’s brand power advantage. Carbon tax regulation hurts the firm and consumer surplus, but benefits the environment and social welfare. Additionally, we reaffirm the robustness of our findings under conditions of asymmetry in the intensity of social influence and different pollution damage functions. Intriguingly, we find that the firm can mitigate the negative cannibalization effect by selling its sub-brand products through a downstream retailer.

The Influence of Service Quality, Store Atmosphere, and Experiential Marketing on Customer Loyalty at Famicafé Tenggilis Surabaya

Competition in the retail business has become a highly competitive and dynamic arena in the global economy. The intense competition among retail businesses encourages them to compete for consumer interest and market leadership by devising various strategic plans to increase competitive advantage. FamilyMart, under PT Fajar Mitra Indah, is one of the retail businesses currently competing to win the market in Indonesia. FamiCafé, created by FamilyMart is a brand extension that combines the concept of a minimarket with a cafe. This research examines the effect of service quality, store atmosphere, and experiential marketing on customer loyalty at FamiCafé Tenggilis Surabaya. This research uses quantitative methods involving 108 respondents selected from the population of FamiCafé Tenggilis Surabaya customers. Nonprobability sampling with a purposive sampling approach was used for sample selection. Data was collected through distributing questionnaires and measured using a Likert scale. The data analysis process uses Partial Least Squares (PLS) analysis tools with the help of SmartPLS software. Based on the research findings, it was revealed that service quality affects customer loyalty at FamiCafé Tenggilis Surabaya, store atmosphere has no effect on customer loyalty at FamiCafé Tenggilis Surabaya, and experiential marketing affects customer loyalty at FamiCafé Tenggilis Surabaya.

Conventional Wisdom vs Marketing Academia: Is There Such a Thing as Bad Publicity

Literature often assumes that publicity events are strictly positive or negative. However, instances exist where both positive and negative impacts on attitudes toward the brand occur simultaneously, such as when performance-related perceptions are positively influenced while value-related perceptions are negatively affected, or vice versa. The literature on negative publicity and brand extension is combined in this study to argue that purchase intent is decreased by negative publicity if only core brand associations are affected by the negative publicity and/or if the negative publicity results from managerial decisions. In Experiment I, participants were presented with a negative publicity incident that positively impacted performance-related perceptions while negatively affecting value-related perceptions. In this scenario, a significant reduction in purchase intention is observed if the incident results from managerial decisions, regardless of whether the negative publicity impacts core or peripheral associations. In Experiment II, participants were presented with a negative publicity incident that positively impacted value-related perceptions while negatively affecting performance-related perceptions. In this scenario, a significant reduction is observed if the incident impacts core associations but arises from external events. Married individuals are also found to be more sensitive to publicity incidents. Based on the findings, theoretical and managerial implications and directions for further research are also discussed.

Digital Twin-Based Alternate Ego Modeling and Simulation: Eva Herzigová as a 3D MetaHuman Avatar

Abstract Due to Dimension Studios and Unsigned Group, by likeness and movement digitization, the human supermodel Eva Herzigová’s highly realistic metahuman and 3D digital twin lead to perpetual career extension (e.g., on virtual runway shows by catwalk replication or in advertising campaigns by particular pose adoption), including in virtual worlds such as metaverse spaces, by use of extended reality technologies, in terms of virtual clothing, digital hair, skin texture, facial and body expressions, and makeup styling as avatar appearance and persona. In this paper, we show how, by likeness capturing (e.g., signature walk by motion capture shoot for face and body movement tracking) and virtual clothing, Eva Herzigová’s hyperreal 3D avatar (lifelike 3D digital human clone or realistic virtual human) is configured with subsequent restyled hair and make-up, 3D clothing modeling, and extended reality fashion shows on virtual catwalks or campaign shoots. We clarify that photographic reference materials and a sensor-based motion capture suit assisted Metahuman Creator in capturing facial and motion data for Eva Herzigová’s digital avatar, configuring realistic depiction and virtual activations of beauty standards, in addition to digital likeness, signature style, talent representation, and narrations, typifying digital human creation and presence in virtual worlds (e.g., for metaverse-based shoots). We conclude that Eva Herzigová’s hyperrealistic 3D digital human twin and MetaHuman avatar operate as a styled virtual alter ego and versatile personal brand extension by motion capture technologies for immersive virtual fashion shows, live video streams and broadcast, and digital wearable modeling.

Perceived Risk as a Mediator Between Brand Trust, Perceived Fit, and Brand Extension Success: Case Study of China Time-honored Brand

Perceived Risk as a Mediator Between Brand Trust, Perceived Fit, and Brand Extension Success: Case Study of China Time-honored Brand

Exploring the role of green brand extensions and greenwashing in the fashion industry

ABSTRACT Consumers’ increasing awareness of sustainability is reshaping consumption patterns, prompting fashion companies to adopt environmentally friendly initiatives. Certain fashion companies opt for brand extensions, whereas others create entirely new brand lines. Some companies even turn to greenwashing, conveying unsubstantiated claims about the eco-friendliness of their products. This study explored the combined influence of brand strategy (brand extension versus new brand name) and the presence/absence of greenwashing claims on a fictitious fashion brand company’s website on consumers’ purchase intentions. The results of our 2 × 2 between-subjects experiment show a significant interaction effect, highlighting that greenwashing significantly and adversely influences purchase intentions when fashion companies choose to use a new brand name for their innovative sustainable fashion clothing line. This study contributes valuable insights into consumer responses to different brand strategies and greenwashing in the pursuit of sustainable fashion choices.

Act your age to engage: field evidence on parent versus brand extension

Act your age to engage: field evidence on parent versus brand extension

Exploring the landscape of brand extensions: A bibliometric analysis of scholarly trends and insights

Exploring the landscape of brand extensions: A bibliometric analysis of scholarly trends and insights

The Outrigger Hotels and Resorts Brand Portfolio and Brand Extension

Emerging from the need for mid-scale properties in Waikiki, the Hawaii-founded hotel brand, Outrigger was born. The Outrigger hotel company’s brand portfolio quickly grew alongside Hawaii’s tourism. As the company continued to grow, the need for brand differentiation within the company arose. Today, the company has three distinct segments in its portfolio defining its economically priced, premier, and long-stay accommodations. As the company continues to grow and strive to achieve its current mission of becoming “The Premier Beach Resort Brand in the World,” it may signal a time to reevaluate its product offerings, positioning, and branding strategy.

Factors influencing luxury service brand extension in a developing country

PurposeDespite the prevalence of luxury brand extension in the service industry, customers tend to be skeptical of the value of the extended brand. This study aims to investigate whether a parent luxury service brand significantly alters customers’ predicted quality, identity and attitude toward the extended brand.Design/methodology/approachThis study uses partial least squares structural equation modeling to examine the proposed hypotheses in a developing country.FindingsThe results show that the parent brand’s brand distinctiveness positively and significantly signals the identity and quality of the extended brand. The model also identifies the mediating effects of quality as it signals the relationship between customers’ perception of the parent brand and attitude toward the extended service brand. As expected, as the quality of the extended brand improves, so does attitude toward the extended hotel brand. By contrast, the perceived identity of the extended brand does not significantly increase support for a positive attitude toward the extended brand.Originality/valueThis study contributes to the existing consumer marketing literature by suggesting future research directions and brand extension strategies for luxury hotel brand companies in developing countries.

Exploring the Power of Brand Extension in Museums. Insights from the Louvre Abu Dhabi

This study investigates the Louvre Abu Dhabi as a brand extension of the Louvre in France, focusing on factors influencing brand extension attitude and its impact on visit intention. Data from 934 questionnaires are analyzed using partial least squares in a multi-group study. The research aims to enrich discourse on tourist brands by examining brand image, perceived fit, and perceived brand localness within the context of the Louvre Abu Dhabi project. Results suggest a potential correlation between positive brand extension evaluation and increased future visits, highlighting practical implications for brand management in cultural tourism. The study also raises theoretical questions regarding global marketing research, emphasizing the need for an integrative approach to understand brand extension attitude’s role in enhancing visit intention.

담배 제품의 간접광고 금지와 WTO 규정과의 일치성 검토

Purpose: This paper examines whether the ban on indirect tobacco advertising is a potential legal issue under the relevant WTO agreements and explores interpretative solutions. Research design, data, and methodology: In a strict sense, prohibiting brand extension and partnership can be judged as a violation of Articles 15.1 and 15.4 of the Intellectual Property Rights Agreement on Trademark Registration Obligations (hereinafter referred to as the TRIPS Agreement). On the other hand, with Article 20 of the TRIPS Agreement and Article III:4 of the GATT, this study reviewed many aspects of consistency with the provisions of the GATS and TBT agreements. Results: Particular attention should be paid to legal issues related to regional trade agreements (Mega-FTA and investment treaties) or the constitutions of individual countries (freedom of expression), including Korea, and additional legal foundations must be established. Conclusions: This paper finds that governments face fewer legal challenges based on WTO-related trade rules than legal challenges based on regional trade agreements or domestic constitutions. A review of the relevant international trade rules of the WTO does not appear to pose the greatest obstacle to member countries adopting a ban on product placement for tobacco products.

Super app on demand: Exploring the impact of service synergy on willingness to use a new service

People prefer managing diverse activities within a “Super App,” driving the need for additional services to monopolize users’ time continually. In advancing this emerging theme, we present a model integrating synergy and brand extension theories to deepen the understanding, from the user’s perspective, of how an established super app (LINE) influences the launch of a new service (LINE Shopping). Focusing on their unique synergy, a phenomenon absent in single-purpose apps, we introduce the novel concept of expected service synergy. We establish five enabler-synergy linkages and one synergy-use linkage, empirically supporting all the hypotheses with survey data from 814 LINE users. Finally, enablers associated with LINE (perceived external prestige and brand competence), LINE Shopping (complementarity and compatibility), and their relationship (perceived fit) significantly contribute to expected service synergy. This synergy is crucial in motivating users’ willingness to utilize LINE Shopping. Our findings offer actionable guidelines for super app practitioners and researchers.