Brand Extension Research Articles

How less congruent new products drive brand engagement: The role of curiosity

When new products are announced, stakeholders often expect them to be congruent with the brand. Nevertheless, brands often go against stakeholders’ expectations and announce less congruent new products. However, the effects of brand congruence on consumers’ brand engagement (i.e., the sharing and commenting of posts) are not well understood. Drawing on schema-congruity theory, we show that (1) consumers are more curious about less congruent new products announced on social media, (2) this curiosity drives their intention to engage with the posted announcement, and (3) brand background operates as a boundary condition of this effect. While prior work shows that high congruence drives positive evaluations of brand extensions, we find that this positive effect only holds for brands with a traditional (vs. non-traditional) background. We demonstrate the robustness of our findings across three experiments using real and fictitious brands.

The choice of brand extension: the moderating role of brand loyalty on fit and brand familiarity

The purpose of this study is to investigate the role of loyalty in consumers’ selection of brand extensions in the presence of familiar competitors. The findings show that fit may not have a linear relationship with the choice of an extension when loyalty and brand familiarity are considered. Loyal consumers’ likelihood to choose high-fit and moderate-fit extensions is not much lower than their likelihood to choose products from familiar competitors. We also find an inverted-U-shaped relationship between choice behavior and degree of perceived fit for loyal and moderately loyal consumers. Moreover, brand concepts can make a brand more elastic and extendable, increasing loyal and moderately loyal consumers’ likelihood to choose moderate- and even low-fit extensions. However, disloyal consumers are highly unlikely to choose extensions over products from familiar competitors regardless of fit and types of similarity. Finally, the effect of similarity on consumers’ choice of extensions is fully mediated by loyalty and perceived risks.

Brand Alliances and Stock Reactions

Purpose: This paper examines the performance and risk of brand alliances by investigating the market value of brand alliances through the analysis of investors’ response, and look into the differen...

Strategic Brand Extension and Organizational Performance of Selected Beverage Firms in Nigeria

This study investigates the impact of strategic brand extension on organizational performance of selected beverage firms in Nigeria. The brand concept has come a long way especially during the product marketing times, where branding and management of brands played a huge role in creating differentiation and product preference in consumers’ mind. Brand extensions as a contemporary concept maximizes on brand name equity already established. Core brand names that customers are familiar with aid products newly entering the market and enable them quickly capture new market segments. Locally, adequate research attention has not been directed in area of strategies for brand extension. There appears to be existing gap for a study to be developed that looks into how strategies on brand extension affects local firm performance. The main focus of this study therefore, is to investigate the importance of strategic brand extension on the performance of beverage production companies in Nigeria. The sample size was determined using Taro Yemen's approach, and respondents were chosen using the survey research design method. The statistical approaches used were simple percentages and multiple regressions. According to the findings, all of the variables studied in this study, such as category expansion, line extension, existing family brand, and brand awareness, were positive and significant drivers to marketing performance. Brand awareness, existing family brand extension, and category extension have the most influence, followed by line growth. The study discovered that features of brand growth strategy have a positive impact on soft drink businesses' marketing success in Nigeria. As a result, the study recommends that a new or existing soft drink company in Nigeria work hard to develop a brand expansion strategy in order to increase marketing performance, among other things.

Influential factors of brand extension among university students: case for Pakistan

Brand extension is considered to be a highly plausible and essential factor for the success of new products. It is an elusive concept that adds value to the offered products and gives a competitive advantage for strategical positioning of new products in the consumers' minds. This study carefully considers the influential factors for the evaluation of brand extension for products targeting young customers. This study analyzed the three important characteristics of consumers by employing a new and proposed nomological network to assess the brand extension and its strategies. First, the brand extension was directly regressed with the need for uniqueness and with innovativeness. After observing the significance of the regressed model, the model was finally analyzed with the intervening variable of need for variety. Six hypotheses were developed, and the proposed theoretical model was assessed through structural equation modeling (SEM) with the help of SmartPLS. Data was collected from 331 university students of southern Punjab, Pakistan. It was found that all three personal characteristics of young consumers (need for uniqueness, innovativeness, and need for variety) are highly significant with the evaluation of brand evaluation. The proposed model explained more than 30% variation in the observed phenomenon. It was observed that the need for variety partially mediates the relationship between the need for uniqueness, innovativeness, and brand extension. As per the results of this study, it was found that the variety of products matters a lot for young customers so, marketers must consider the variation in the products while extending their product line. Theoretically, this study contributed and enhanced the nomological network of brand extension for young consumers. Practically, the study would help the decision-makers understand the preferences of the young generation to devise the new strategies of brand extension.

Marketing theatrical films for the mobile platform: the roles of web content/social media, brand extension, WOM, and windowing strategies

As the mobile is recognised as a significant distribution platform for theatrical films, differences between mobile and theatrical platforms are of great interest to researchers and practitioners. This study investigated the effects of specific marketing factors - such as web content/social media, brand extension, eWOM, and windowing strategies - on the distribution of theatrical films on mobile platforms using movie industry data from South Korea. This study also compared the effects of factors affecting mobile and theatre performances. Results show that certain web content activities, brand extensions, star power, sequels, and movie length significantly influenced mobile movie performance. A comparison of the factors affecting mobile and theatre performances revealed that there was also a clear difference in the marketing factors of each platform.

Box office collection of sequel movies: exploring brand extension effect

The ever-increasing popularity of Hindi Cinema, also called Bollywood, provides a tremendous opportunity for production houses and studios. This study aims to study the role sequels play as brand extensions in this multibillion-dollar industry. In the first study, we analyse earnings for both sequels and non-sequels movies released during last three years, while accounting for various parameters that could affect a movie's performance. In the second study, we conduct an experiment to capture customers' perceptions of precursors of purchase behaviour. Results indicate that overall sequels perform better than non-sequel movies, and have higher ratings on precursors of purchase behaviour than non-sequel movies. We also found that word of mouth (WOM) publicity would be positive and higher for a sequel. Further, brand extensions through sequels also help take the load off the pre-release marketing budget. The research also opens up avenues into fields such as television series, web series, and books.

Investigating determinants of brand extension success in a fit and a non-fit scenario

Previous research has shown that creative brand extensions do not necessarily translate into market success. While past studies emphasised the relevance of fit for the success of brand extensions, ...

Investigating determinants of brand extension success in a fit and a non-fit scenario

Investigating determinants of brand extension success in a fit and a non-fit scenario

旅游目的地品牌延伸对游客行为意向的影响——以故宫博物馆为例

旅游目的地品牌延伸对游客行为意向的影响——以故宫博物馆为例

Indirect tobacco advertising, promotion and sponsorships in the Indian Premier League 2020: Tobacco Industry's continuous presence in Indian cricket

BackgroundIndian Premier League (IPL) cricket tournament - a shorter version of the sport which is played between assorted company-owned or individual owner teams - has grown immensely popular over the last decade. There is long history of tobacco advertisement, promotion and sponsorship (TAPS) in cricket. While direct and indirect TAPS is completely prohibited under the Cigarettes and Other Tobacco Products Act (COTPA), 2003 the nexus between tobacco industry and cricket in India continues. We monitored any tobacco product and allied brand or surrogate advertisement, promotion, sponsorship (TAPS) or placement during every match played in the IPL-13 season in the year 2020. MethodsUsing an investigative approach, 60 match highlights during IPL-13 (during September 19 to November 10, 2020) were monitored for TAPS (both on-site i.e. sportswear and/or in stadia) shown on the official website (www.iplt20.com). All sponsors and advertisers were validated using brand names or logos from their respective official website. ResultsTwo IPL teams (Rajasthan Royals and Royal Challengers Bangalore) were sponsored by major tobacco industry owned brands. Violations by a major smokeless tobacco company promoting their brand extension product i.e. Vimal Elaichi, on the official telecast websites (www.espncricinfo.com and www.cricbuzz.com) and television channels (www.Zeenews.india.com/Gujarati) was observed. Tobacco companies i.e. Kamla Pasand and ITC Limited were also listed as associate sponsors for the 2020 championship. ConclusionDespite comprehensive ban under India's tobacco control law (COTPA, 2003), sponsorship by tobacco industry was found widespread in IPL-13. Advertisement and logos of tobacco companies are persistent during the telecast and promotion of the IPL events, in clear violation of India's tobacco control legislation and Article 13 of WHO's Framework Convention on Tobacco Control (WHO-FCTC) and its guidelines. Given that India and South Asia comprise the largest audience for televised cricket, strong exclusion criteria is needed by the international cricket authority and national cricket associations to ensure compliance with the national law and global good practice, making the cricketing world truly tobacco free.

Exploring brand extension evaluation in the mobile internet environment

Exploring brand extension evaluation in the mobile internet environment

Consumers’ evaluation of extensions among extensions and the backdrop effect

ABSTRACT Given the widespread acceptance of extensions-led brand strategies on the one hand, and a reduction in the size of brand portfolios by marketers and retailers on the other, many product categories now consist largely of extensions of brands from other categories. This paper examines consumers’ evaluation of a brand extension when its competitive context consists of other extensions. The results from two studies show that consumers’ perceptions of the fit of a focal extension with its brand’s core category and their acceptance of the focal extension are conditional on the relationship of the competing extensions with their respective parent categories. This ‘backdrop effect’ is mediated by consumers’ perceptions of fit between the competing extensions’ parent and extension categories and moderated by consumers’ differentiation versus integration mindsets.

Consumer response to different advertising appeals: The role of brand value and the perceptual fit of an extended brand for high-involvement products

Brand extension is a topic that has been widely discussed by academics and practitioners in various studies. Unfortunately, there are only a few that address the role of product involvement, advertising appeals, and value dimensions in the extension acceptance as their main issue. Therefore, this study aims to mixed three controlling factors which are product involvement, advertising appeals, and brand value dimensions in determining how consumers respond to the parent brand and extended brand. This study was designed to test the possible interaction in a 2x2x2 full-factorial between advertising appeals (informational vs. emotional), brand extension perceived fit (high vs. low), and value dimension (symbolic vs. functional) for high involvement products. This study confirmed that there were significant differences in the main effects for both consumers' evaluation toward brand extension and the parent brand in the case of a symbolic brand and the high fit of extensions. Emotional appeals play important role in enhancing this degree because of the high level of its brand associations. As symbolic brand often referred as premium brand, the more positive the level of quality perception, the higher level of consumers' evaluation toward brand and brand loyalty will be. Thus, the more loyal consumer to the parent brand, the more positive evaluations of the extension will be.

On the Extendibility of Brands with Subordinate versus Basic Category Concepts

In this paper, we use a series of experimental studies to show that consumers’ response to the extension of a brand associated with a basic versus a sub-category depends on the closeness of the brand's parent and extension categories. When the two categories are close, consumers respond more favorably to the extension of a brand with a basic category concept, but the pattern reverses when the categories are far apart. However, a brand with a basic category concept can mitigate its disadvantage in a distant category by first launching an intervening line extension. Our results suggest that brands with sub-category concepts are not limited in their ability to extend, and can help retailers meet the twin objectives of leveraging the high growth of specialized categories and rationalizing their brand portfolio. They also suggest that managers should aim to extend brands with sub-category concepts into distant categories where the modifier in the brand concept is relevant rather than into close categories.

Mark Twain in Context

Mark Twain in Context

Analisa Citra Merek, Kualitas Produk, Perluasan Merek Terhadap Kepuasan dan Loyalitas Pelanggan

PT Kimia Farma Tbk, as one of the pioneers of the Indonesian pharmaceutical industry, is currently participating in the development of cosmetic products under the Marcks brand. Marcks' products are known to the public as powder, and always ranks third in the Top Brand title. The success of Marcks 'powder in dominating Top Brand has not been followed by other Marcks' products such as compact face powder, moisturizers and facial cleansers. This study aims to determine the effect of brand image, product quality, and brand extension on customer satisfaction and its impact on customer loyalty. This research is an explanatory research with a quantitative approach using a questionnaire as a research instrument. The population in this study were all Marcks product users who live in Jakarta. The sampling method is purposive sampling with a sample of 174 respondents. Data analysis uses the Structural Equation Modeling (SEM) LISREL 8.70 program. The results of the study explained that there is an influence between variable brand image, product quality and brand extension partially on customer satisfaction. However, brand image, product quality and brand extension have no effect on customer satisfaction. Customer satisfaction affects customer loyalty.

Branding the hotel industry: The effect of step-up versus step-down brand extensions

The study investigates how customer perceptions of parent brands influence the perceived value of brand extensions in the hotel industry and how these relationships are moderated by the nature of the brand extension in question. Drawing on brand equity logic, the study proposes that perceived positive brand attributes, awareness, attitudes, and loyalty toward the parent brand positively relate to higher perceived value of the brand extension, and that these positive relationships grow stronger in cases of step-down extensions rather than step-up extensions. Survey results from UK hotel customers reveal that only perceived parent brand attributes and attitudes seem to have a positive impact on perceived value of the extension and subsequent (re)visit intentions. The moderation results further reveal that the positive relationships turn stronger in cases of step-down extensions and insignificant during step-up extensions. Managers are therefore cautioned to apply step-up extensions too frivolously, as such extensions seem largely ineffective in generating consumer value and subsequent behavioral intentions, whereas the effectiveness is heightened in cases of step-down extensions.

CUSTOMER EXPERIENCE OF MULTI-SERVICE PLATFORM: THE MEDIATING ROLE BETWEEN BRAND EXTENSION STRATEGY AND BRAND IMAGE

As the pioneer in multi-service platform, GO-JEK faces tight competition from other similar type of businesses. GO-JEK extends its product through a lot of extensions to strengthen GO-JEK’s position. This research aims to analyze the impact of brand extension strategy on brand image with customer experience as the mediating role. The type of research is explanative, research method using survey with quantitative approach, and data analyze using Sobel test to determine the impact of brand extension strategy on brand image with customer experience as the mediating role. Based on data analyze result from 378 samples, brand extension strategy gives significant contribution to customer experience, customer experience gives significant contribution to brand image, brand extension strategy gives significant contribution to brand image, and brand extension strategy through customer experience give significant contribution to brand image. So there’s mediating role of customer experience to mediating the impact of brand extension strategy on brand image of GO-JEK in Bandung.

Sense hardness: Effect of haptic perception on consumer attitudes towards brand extension

AbstractEstablished brands endeavor to extend their products into new categories to grab market share and benefit from the positive spillover effect. The “fit” between extension products and their parent brands is a critical challenge companies face when launching a new product in a new product category, which is very different from the category served by the parent brand. A potential clue influencing consumers' perceived fit and attitudes towards extension products is the nondiagnostic haptic cues in touch environments. Thus, this study predicts that soft perception elicits more favorable attitudes towards extension product through attitude certainty and perceived fit than hard haptic perception. It develops a conceptual framework to anticipate that not all extension product judgements are equally affected by nondiagnostic haptic cues. Consumers' attitudes are less affected by nondiagnostic haptic cues when the extension product is from a close brand extension. The study examined the conceptual framework of four studies. Results of this work have many implications for package and offline stores design while contributing to the research in brand extension, cognition, and embodiment.