Brand Extension Research Articles

Innovating the Archetype: Discovering the Boundaries of the Triangular Designer Space

The introduction of innovations can be more successful when launched under an established brand name, e.g. as a brand extension. However, the role of the appearance of the design is often underexposed, whereas the visual appearance of products is known as a critical determinant of consumer response and product success. Based on current literature, designers and design managers only know what to design, but suffer from a lack of knowledge how to design more successful brand extensions. When designing the visual appearance of these extensions we can rely on the strong and recognizable identity of the brand (typicality), but also have to create a completely new product (novelty) referring to the much-debated MAYA Principle (Most Advanced, Yet Acceptable). In this paper we recognize the limitations of the MAYA principle and claim that the success of brand extensions cannot be explained by a simple negative linear equation of opposites as typicality versus novelty. The results of two design case studies about speakers and headphones show that at least three determinants play an important role when designing the appearance of brand extensions; product typicality (does the design look like the archetype product), novelty (how novel is the design) and brand fit (does the design refer to the brand characteristics). Besides that we argue that the optimal balance between those three actors will also be determined by the type of product (archetype or multitype). The results indicate a higher importance of a novel visual styling for speakers and a stronger connection between typicality and brand fit for headphones. To support the design process even further, we will present our findings with the aid of the Triangular Designers space that helps designers and design managers to strategically make decisions to launch successful brand extensions.

The Analysis of Brand Extension Reputation on the Intention in Choosing Private University in Indonesia

Brand reputation is important when choosing an education. Universities that already have a brand reputation can more easily attract prospective new students. There is a phenomenon where Private Universities are using extended brand reputation to compete. The purpose of this research is to analyze the impact of brand extension reputation on the intention in choosing private universities. The quantitative research method of Structural Equation Modeling uses a structured questionnaire. The questionnaires have been distributed to the students, and have been completed by email. It is a self-administrated method. The survey was conducted on students at one of Aperti (Aliansi Perguruan Tinggi) BUMN (Badan Usaha Milik Negara) with a total sample of 400 respondents using quota sampling. The results showed that the parent brand of BUMN had a significant influence on the extended brand of Aperti BUMN, which impacted student intention when choosing the university. Brand extension reputation has an indirect effect on intention through output expectation

Sales Promotion as a Tool for Improving Customer-Based Brand Equity in Kano Metropolis

Managing and building strong brand is seen today as the main goal of every organization. Having a strong brand is significant important to every organization as it result in having greater customers, achieving competitive advantage and brand extension. However, marketing researchers have not address how strong brand (brand equity) may be managed, built and improved through sales promotions. The study investigated sales promotion as a tool for improving customer-based brand equity by business organizations within Kano metropolis. The paper is conceptual. Therefore, it concludes that sales promotion as a promotional tool has a significant improvement on customer-based brand equity in Kano metropolis. Therefore, to have strength in terms of market leadership and market share, organizations must pay higher attention to their marketing activities such as sales promotion and this can be achieved by improving on the quality and awareness of the brand product and services. It is therefore, recommended that sales promotion should be strengthened and used by the organizations to create and manage strong brand as it have a positive impact on the attribute of brand knowledge which are believed to have an improvement on customer-based brand equity.

Downward price-based luxury brand line extension: Effects on premium luxury buyer's perception and consequences on buying intention and brand loyalty

This research was carried out from the perspective of downward price-based brand extensions with the aim to discover its effects on customer perceptions regarding luxury brands and brand extensions and consequences on buying intention and luxury brand loyalty. The conceptual framework is based on both previous qualitative and quantitative research. A five factors model is tested in a judgemental sample of 158 premium luxury brands consumers using Partial Least Squares (PLS). Findings confirm that extension in new segments could negatively affect the brand concept perception of the parent luxury brand. These results indicate that (a) the brand concept consistency is affected by down-price brand extension, (b) due to brand concept changes then brand personality also changes, (c) this variations affect the fit between brand personality and consumer self-image and, (d), as a consequence, the purchase intention and brand loyalty are affected in a negative way. From a managerial point of view, this type of brand extension can be less positive than expected, generating negative effects against the extension and the parent brand itself. This work contributes to rethink the use of downward price-based brand extensions as an strategic alternative for brand managers.

Brand Rejuvenation

The dwindling competition for shelf space in retail stores added with high advertising costs gave FMCG sectors an opportunity for brand extensions and maximizing their profits. In such a scenario, though the value of brand could not be undermined from a consumer perspective, the complexities of its management determining the various contributing factors for new extension success, and the attitude of retailers and consumers towards new products or extensions based on various variables need to be pragmatically considered. The data were collected from 360 retailers and 360 consumers from the four major cities of South India. Review of the literature on management of brands pointed to several important variables. In this context, discriminant analysis was applied to assess the responsiveness of retailers and consumers towards the various factors affecting the success of brand extensions. Nevertheless, the present study may throw light on the effect of hypothetical brand extensions on their core brands of FMCGs in India.

N400 correlate of brand associations

A number of neuromarketing studies employed brain responses called event-related potentials or ERPs as neural markers of brand associations. The use of the N400 component of ERPs in particular appeared to be the promising to study typicality of product-brand associations and their role for brand extension (Wang et al., 2012). The question, however, remains whether the N400 observed in the product-brand associations and brand associations as such can be explained by the same neurobiological mechanisms as the classical N400 response which in the neuroscience of language reflects semantic associations. In this electroencephalographic study, we compared semantic N400 in response to incongruency of sentence endings with the neural response to the degree of incongruency of associations to brands. To test, whether in the same subjects, incongruent brand associations would elicit the N400 brain response resembling semantic N400 we constructed two-word phrases in which brand names were proceeded by congruent or incongruent adjectives that played the role of brand associations. Sentences lacking any marketing context served as control stimuli and evoked classical centro-parietally distributed N400 response. The sensitivity of the brain activity to the incongruent brand associations was manifested in the fronto-centrally distributed N400 response within the same time window as in the non-marketing context. However, the correlation analysis of the N400 amplitudes in the brand and non-brand conditions did not reveal significant association between them suggesting different neuronal networks subserving processing of pure semantic and brand-association incongruences. To conclude, further studies employing multichannel EEG or magnetoencephalographic imaging would be necessary to elucidate the brain origin of brand and marketing associations as compared to pure semantic associations.

The Form and Degree of Familiarity of Brand Extension: A Study of Higher Education in Indonesia

The variety of consumer preferences for products requires the proper branding strategy techniques. Brand extension is a strategy to attract consumers by utilizing the value/equity and reputation of the parent brand. The brand extension uses a brand from its parent that is already well known or has a solid value in the consumers' perception. This study aims to explore the form of brand extension on the preferences of higher education consumers in Indonesia. The method employed is desk study and literature review. The results show three general forms of brand extension associated with the parent brand, namely brand extension with the corporate, mass organization, and education center parent brands. The authors conclude that the degree form of brand extension with parent brands from mass organizations is more dominant than parent brands from corporates and education centers in the higher education industry in Indonesia. The socio-economic characteristics of Indonesia have a decisive effect on the choice of the extended brand of mass organizations. Keywords: Brand extension, University, Parent Brand, Indonesia DOI: 10.7176/EJBM/14-10-07 Publication date: May 31 st 2022

유네스코 세계유산과 제주의 브랜드 개성으로부터의 제주의 브랜드 가치측정: 관광목적지 브랜드 개성, 브랜드 적합성, 브랜드 가치의 관계성을 중심으로

Within the brand extension perspective, this study aims to examine how the destination brand personality of Jeju Island and UNESCO World Heritage Sites can influence the destination brand value employing the perceived brand fit concept. This study measured eight dimensions of brand personalities of Jeju Island and UNESCO World Heritage Site, and four dimensions of brand equity to measure the brand value of Jeju Island. Based on the previous research on brand equity, the components of brand equity were divided into (1) brand equity and (2) brand loyalty. The survey was conducted on tourists from the West which in this study justified being a new potential target market of Jeju Island. The findings of this study showed that ‘sophisticate’ and ‘peacefulness’ of personality fit difference between the Jeju Island and UNESCO World Heritage Sites personality have a positive relationship to the overall perceived brand fit, while ‘uniqueness’ has a negative relationship. Furthermore, the overall perceived brand fit was found to have a significant relationship with all brand equity components and only brand awareness and brand image have a significant relationship with brand loyalty.

Leveraging Cofollowership Patterns on Social Media to Identify Brand Alliance Opportunities

The use of cobranding and brand extension strategies to access new markets has been a topic of significant interest. However, surprisingly few studies have examined cross-category connections of brands using publicly available digital footprints. In this study, the authors introduce a new, scalable automated approach for identifying potential cobranding and brand extension opportunities using brand networks derived from publicly available Twitter followership data. The digital user–brand relationship, established through followership activity, is regarded as an expression of interest toward the brand. Common followership patterns between brands are then extracted to capture cointerest between those brands’ audience. By utilizing the cointerest patterns, the approach aims to derive cross-category brand–brand and brand–category connections, which can serve as important measures for assessing cobranding and extensions opportunities. This article introduces a new construct, transcendence, which measures the extent to which a brand’s followers overlap with those of other brands in a new category. The analysis is conducted at different points in time to help managers track shifts in brand transcendence.

The Context (In)Dependence of Low-Fit Brand Extensions

Low-fit brand extensions, while often presenting profitable opportunities for existing brands, are known to meet with varying levels of consumer acceptance. This research identifies conditions in which low-fit extensions can succeed. Specifically, the authors show that the extent to which consumers consider the context in forming judgments (i.e., they are context dependent) determines their acceptance of low-fit extensions. Across four studies, the authors examine the combined effects of context (in)dependence and type of information. Context-dependent consumers form their evaluations on the basis of the type of brand extension information provided, such that providing benefit-based information enhances the evaluations of low-fit extensions, whereas providing attribute-based information leads to a reliance on extension fit and subsequent unfavorable evaluations of low fit extensions. In contrast, context-independent consumers are more likely to base their judgments on extension fit regardless of whether they receive attribute- or benefit-based information. Acceptance of high-fit extensions is unaffected by context (in)dependence and type of information. These findings provide a two-step strategy (i.e., sensitize consumers to context and providing benefit-based extension information) to managers for launching low-fit extensions and leveraging existing parent brand equity.

Brand extension and purchase intention of Jordanian banks’ clients

Product/service extension is crucial for product/service development strategies; therefore, the study aims to investigate the impact of brand extension on consumers’ purchase intentions. Data were collected by questionnaire from 221 clients of Jordanian banks. SPSS 25 supported with AMOS has been used for structural equation modeling (SEM) to test the relationship and hypothesis. The study revealed that the eight brand extension sub-variables (companion product extension, brand prestige extension, brand distinction extension, component brand extension, leveraging a lifestyle, product form extension, company expertise extension, and customer franchise extension) are co-related. In general, the brand extension affects the consumers’ purchase intention, whereas companion product extension, brand prestige extension, brand distinction extension, component brand extension, and leveraging a lifestyle extension significantly affect consumer’s purchase intention. On the contrary, product form extension, company expertise extension, and customer franchise extension do not significantly affect consumers’ purchase decisions. In conclusion, a larger number of customers in future research as well as a similar research in different countries and a specific brand case study are recommended.

Effects of Parent Brand Equity on Perceived Fit and Customer Behavior of Extended Brand-Focused on MICE Destination.

This study aims to examine the relationship among tourism destination brand equity (as parent brand), perceived fit, and customer behavior intention toward the extended MICE destination brand. It also identifies the moderating effect of place attachment between brand equity and customer behavior by adopting the brand extension concept in tourism and MICE destinations. The analysis of data collected from 381 respondents revealed that perceived fit is the most important factor influencing customer behavior, even though tourism brand equity and place attachment both had a positive effect on customer behavior, supporting all hypotheses. The theoretical implication of broadening the brand extension concept in MICE destinations and DMO marketing strategies is discussed.

The impact of luxury brand status signaling, extension authenticity and fit on luxury line extension evaluation: a cross-national study

PurposeGrounded in categorization theory, this study examines the impact of luxury parent brand status signaling on brand extension authenticity and consumer attitudes in two international luxury markets.Design/methodology/approachUsing samples of luxury consumers from France and the United States, the study's hypotheses are tested using confirmatory factor analysis (CFA), structural equation modelling (SEM) and multi-groups comparisons.FindingsFindings demonstrate that luxury parent brand (PB) status signaling, familiarity and perceived quality impact luxury extension authenticity, and authenticity has a significant effect on consumer attitudes toward the extension. The relationship between PB status signaling and extension authenticity is stronger for French consumers compared to their American counterparts. The effect of luxury PB perceived quality and familiarity on PB status signaling is similar for both American and French consumers. However, the effect of PB familiarity on luxury brand extension authenticity is stronger in France than the United States.Research limitations/implicationsResults provide researchers and managers with insights on how to design marketing programs for luxury line extensions in a cross-national context.Originality/valueThe authors contribute to existing literature examining factors related to the parent brand and the relationship between the parent brand and the extension by examining the effect of PB status signaling and extension authenticity on extension attitudes in two international luxury markets.

Understanding the role of image, quality and price for developing prestigious mass brands

PurposeThis research article aims to understand the role of brand image, service quality and price (charge) in revitalising functional mass brands into prestigious mass brands.Design/methodology/approachThe empirical research framework was developed by synthesising the past literature on masstige marketing and brand extension. Data was collected using a survey questionnaire from 396 respondents availing M-Wallet. Structural equation modelling was used to validate the brand revitalization attributes; further, the binary logistic regression model examined the effect of revitalization attributes on the chance of increasing customer's perception of masstige.FindingsThe exploratory study suggested brand image, service quality and value for money pricing as essential attributes to revitalize mass brands into masstige brands; furthermore, path analysis validated the positive effects of these attributes on the perception of masstige. The proposed binary logistic regression model suggested brand image as sensitive attributes, increasing the odds ratio by 9.39 times in favour of perceiving brand as masstige followed by the perceived service quality that is 5.87 times. The prediction capability of the proposed binary logistic regression model is found to be 96%.Practical implicationsThe methodology of this study provides the basis for future researchers to advance research on masstige. This study will assist the marketers of mass brands to make better marketing decisions related to how masstige image can be sustained or a new or less known brand can be revitalized into a prestigious brand.Originality/valueThis study is the first to provide empirical evidence of how the mass brand can be revitalised as masstige brands by considering image, quality and price attributes.

Global evidence of persistent violations of the International Code of Marketing of Breast-milk Substitutes: A systematic scoping review.

The influence of marketing on infant and young child feeding and health is well recognized, and an International Code was adopted by the World Health Assembly (WHA) in 1981 to reduce inappropriate marketing and protect breastfeeding. Yet the marketing and influencing continue. This scoping review systematically examined the published research evidence on the nature and extent of exposure to International Code violations from 1981 to August 2021. We used several search strategies involving multi‐language databases, organization websites, citation tracking, and expert consultation, to find research items meeting our inclusion criteria. We evaluated 657 items and retained 153 studies from at least 95 countries in the review. The majority of the studies (n = 113) documenting exposure to inappropriate marketing were published since 2010. Studies reported a broad range of marketing violations targeting mothers and families, health workers, and the general public. Marketing via digital platforms and brand extension has become more frequent. The evidence shows the use of misleading and inaccurate labeling and health and nutrition claims in breach of the Code. Our review confirms that violations of the Code have not ceased and calls for renewed attention from the WHA and national governments to protect the health of children and their mothers.

Impact of brand nostalgia on intention to purchase brand extensions: moderating role of brand attachment

PurposeThe study aims to investigate the impact of brand nostalgia, self-brand connections and parent brand trust on brand extension purchase intention. Additionally, the research examines the moderating effect of brand attachment on the link between brand nostalgia and intention to purchase brand extensions, as well as the relationship between self-brand connections and intention to purchase brand extensions.Design/methodology/approachThe study collected data from 458 respondents in India using a cross-sectional survey research methodology. The collected data were analysed in two stages in SPSS, using structural equation modelling and the process macro bootstrapping method.FindingsThe study’s results indicate that although brand nostalgia and self-brand linkages exert a favourable impact on intention to purchase brand extensions, this effect is not significant when it comes to brand trust. Brand attachment acts as a moderator between brand nostalgia and the intention to purchase brand extensions. Additionally, brand attachment acts as a moderator between self-brand connections and the intention to purchase brand extensions.Research limitations/implicationsThe study adds to the consumer–brand relationship and brand extension literature by proposing and empirically testing a comprehensive model that determines the role of brand nostalgia in the formation of self-brand connections with the brand, trust in the parent brand and, finally, the intention to purchase brand extensions. Additionally, it examines if consumers’ attachment to the parent brand increases or decreases their intention to purchase brand extensions.Practical implicationsConsumer brand nostalgia may be leveraged while introducing brand extensions into the market. What is more, managers could use brand attachment to enhance the impact of brand nostalgia for favourable brand expansion assessments.Originality/valueTo the best of the authors’ knowledge, this is the first research to examine the influence of brand nostalgia and self-brand connections on the intention to purchase brand extensions. Besides, it tests the moderating impact of brand attachment on the relationship between brand nostalgia and intention to purchase brand extensions.

Exploring the Peer Effect of Physicians' and Patients' Participation Behavior: Evidence from Online Health Communities.

Background: Little research has studied the peer effect of physicians and patients in online health communities (OHCs) simultaneously. The study investigates the impact of the focal physician’s peers (F-peers) on the focal physician (F-physician), and the impact of patients of the focal physician’s peers (F-P-patients) on the focal physician’s patients (F-patients). Moreover, based on brand extension and accessible–diagnosable theories, this study explores the moderating effects of the intensity of F-peers’ knowledge sharing behavior and department reputation. Methods: This study collects data of 3297 physicians and related patients from Haodf.com platform between January 2019 and December 2019. Both two-way fixed effect and panel negative binomial regression are adopted to quantify the effects. Results: Results show that the behavior of F-peers positively affects the behavior of the F-physician, while the behavior of F-P-patients positively affects the behavior of F-patients. Moreover, both the intensity of F-peers’ knowledge sharing behavior and department reputation have a compound moderating effect. Conclusions: This study contributes to the literature of peer effects by constructing the conceptual framework of different types of individual participation behaviors in OHCs. The findings offer practical guides for establishing an incentive mechanism and formulating peer incentives or competition strategies in OHCs.

Brand extension and channel structure: An analysis of the effects of social influence

We observe in practice that manufacturers of conspicuous or luxury goods extend their major brands to the low-end market with different channel structures. The brand extension will cause social influence between the parent and sub brands. On one hand, the high-end consumers are less willing to buy the parent brand due to the sub brand sales to the low-end market. On the other hand, the low-end consumers may find the sub brand more attractive with parent brand sales to the high-end market. In this paper, we build a game-theoretical model to study the impacts of social influence on a luxury good manufacturer, which sells the parent brand through a retailer and has the option of extending to a sub brand under different channel structures. Specifically, we study the following three brand extension structures: brand extension with the same retailer, with different retailers, and with direct selling. We study and compare the equilibrium decisions and profits across different structures, and find that social influence and channel structure have significant impacts on the brand extension decisions and profits. For example, as the positive influence of the parent brand on the sub brand’s sales increases, the manufacturer’s and retailer’s equilibrium profits may decrease under brand extension. Compared to the benchmark of no sub brand, both the manufacturer and retailer get higher profits under brand extension with the same retailer. Under the other two extension structures, however, the manufacturer’s and retailer’s profits may be lower. Interestingly, the retailer’s profit from selling both the parent and sub brands may be even lower than that of selling the parent brand only.

Enjoy Your Favourite Book as a Movie: Using an Experiential Learning Exercise to Improve Student Understanding of Brand Extensions and Marketing Plan Preparation

Marketers frequently use brand extensions to introduce new products and services. However, educators have limited resources to simulate the challenges of this strategy in classrooms. Using the scenario of a book being turned into a movie, we describe an experiential learning activity that guides students through the many stages of developing a brand extension. In this project, they also have the opportunity to put themselves in the shoes of a marketing manager in the preparation of a thorough plan for expanding an established brand to a new target market. The outcomes of its implementation in a marketing course, as well as the implications for marketing educators, are reviewed.

Extension and customer reaction on sharing economy platforms: The role of customer inertia

The peer-to-peer economy has been on an impressive trajectory for a relatively short time and includes a broad array of platforms, business models, and transactions. It is important to understand how these platforms are extended and how customers evaluate them. We test a brand extension research model and validate it in the context of peer-to-peer sharing. We also examine the roles of the key factors that determine a brand extension’s success. Our findings illustrate that the first two factors have both direct and indirect effects, and the last one has indirect effects on the customer’s repurchase intentions. Moreover, for highly inertial customers, the fit of the parent brand with the extension has less of an impact on customers’ perception of quality regarding the extended brand. This research advances our understanding of how customers interact in peer-to-peer sharing contexts and provides insights into the marketing strategies needed on these platforms.