Parent Brand Research Articles

Dimensions of brand-extension fit

A sizable research stream in marketing finds that a strong fit between a brand extension product and its parent brand encourages positive consumer responses. Yet this large body of literature fails to provide managers with specific practical guidance about how to create brand-extension fit for optimal results. The problem is a lack of understanding of what brand-extension fit really is, and there has been little work to address this issue by synthesizing the key dimensions of brand-extension fit. The current article addresses this gap by identifying the key constituent dimensions of brand-extension fit. This is an important topic because brand extensions are essential for business renewal and growth.We identify six dimensions of brand-extension fit: feature-based, function-based, resource-based, usage-occasion-based, market-based, and image-based fit. Each dimension addresses a different aspect of brand-extension fit and suggests ways for brand managers to create brand-extension fit. Less expected is that studies that use a strict subset of these dimensions overweight those fit dimensions that are included, and the associated estimated coefficients are biased. From a managerial perspective, counterfactual analysis also shows that reliance on a strict subset of these dimensions results in suboptimal decisions.

Don’t put all your green eggs in one basket: Examining environmentally friendly sub‐branding strategies

AbstractAlthough marketers are increasingly developing strategies to promote environmentally‐friendly images for their brands, little is known about green brand architecture strategies. The current study examines two sub‐branding strategies and finds that when green products are dispersed across several sub‐brands (vs. concentrated within one sub‐brand), consumers are more likely to infer that the overall parent brand is environmentally friendly. The sincerity of the company’s sustainability efforts is found to mediate the effects of the sub‐branding strategy on consumers’ eco‐friendly beliefs of the parent brand. Specifically, consumers associate dispersed strategy (vs. concentrated strategy) with intrinsic motive (vs. extrinsic motive) of the company’s sustainability policy. As a result, dispersed strategy instead of concentrated strategy promotes spillover effects of sustainability to the parent brand, demonstrating the impact of brand structure on spillover to the parent brand equity. Managerial implications are discussed related to the automobile company’s sub‐branding strategy.

문화유산에 프로그램 경험 및 유적지 방문이 국제문화재산업전의 참가의도에 미치는 영향 - 브랜드확장 관점에서의 관여도 조절효과를 중심으로 -

This study examined the effect of a cultural heritage program experience and heritage spot visiting experience (as a parent brand) on the visiting intention to ‘Heritage Korea’ (as an extended brand) in addition to the moderating effect of involvement by adapting the ‘Brand Extension’ concept in the MICE industry. For this study, a survey was conducted from the 19th to 26th of Oct, 2020, among tourists who had visited the heritage spot and were interested in cultural heritage. The result (a total of 1,717 samples) showed that both heritage spot visiting experience and cultural heritage program experience positively affect an expo’s visiting intention, supporting H1 and H2. In addition, the moderating effect of involvement on the expo visiting intention has been found, supporting H3. The theoretical and practical implications are as follows: First, it broadened the research framework by connecting the brand extension strategy into the MICE industry, which was rarely studied. Secondly, it proved that the MICE host needs to focus on how to give the opportunity of experience on the generic contents and theme to the visitor, rather than focusing on the MICE event experience itself. Thus, it suggested for executives to try to promote generic content besides event promotion.

Can dissimilarity in product category be an opportunity for cross-gender brand extension?

Leveraging cross-gender brand extensions (new product offerings under the same brand name for customers of the opposite sex) can facilitate brand growth. However, how such strategies should be implemented remains unanswered. A popular approach is to launch a brand extension in the same or a similar product category (high fit). However, for cross-gender brand extension, this strategy can dilute the gender personality of the parent brand (i.e. masculinity or femininity). We propose that launching cross-gender brand extensions in a product category with low fit is an effective strategy as it enables cognitive distancing of the extension from the parent brand. Two experiments confirm that introducing low (versus high) fit cross-gender brand extensions mitigate the parent brand’s gender personality dilution, leading to more positive evaluations of the parent brand amongst existing customers and higher purchase intention amongst new target customers for the cross-gender brand extension.

Key antecedents of brand equity in heritage brand extensions: The moderating role of tourist heritage experience

This study examines how the degree of fit between the brand extension and the parent brand, in the case of heritage sites, affects the extension's brand equity-formation, considering the mediating role of brand attitude and brand credibility and the moderating role of the tourist's level of experience of the parent heritage brand. An experimental design is applied, in which two different levels of fit between the parent heritage brand and the brand extension are controlled between subjects. Suggestions are provided for effective ways of enhancing heritage brand equity and therefore contributing to destination promotion and competitiveness.

The impact of Quick Service Restaurant Brand Extension Evaluations on Purchase Intention and eWOM

Brand extension has been popularly used in the marketing field. It is because, when a firm extends their brand, they have a purpose to introduce their new brand/product without any challenge by connecting with the parent brand. Thus, between the parent brand and extension brand are not apart from association and similarity. Brand image has a part in the ability of consumers to make association to the parent brand and its extension. So, brand image and extension similarity is considered to be important when evaluating brand extension. Brand extension evaluation also will affect consumers’ purchase intention. In this study, the effect of eWOM through social media was also tested to the brand extension evaluation. In this research we use Starbucks and Starbucks Reserve as an object of the study with a within subject experiment. The first study was done using 2x2 (Brand image fit: Utilitarian/Symbolic, Brand extension similarity: High Similarity/Low Similarity), tested the effect of purchase intention and the second study was 2x2 (Brand image fit: Utilitarian/Symbolic, Brand extension similarity: High Similarity/Low Similarity) to measure the effect of eWOM. The findings in the first study shows the positive effect of purchase intention on extension similarity. If brand extension similarity and brand image are combined there will be interaction. The second study only shows the main effect, both on image and similarity. In the second study there is no interaction.

Drivers of autonomous vehicles\u2014analyzing consumer preferences for self-driving car brand extensions

Autonomous cars are considered to be the next disruptive innovation that will affect consumers. It can be expected that not only traditional automakers will enter this market (e.g., Ford) but also technology companies (e.g., Google) and newer companies dedicated to self-driving cars (e.g., Tesla). We take a brand extension perspective and analyze to what extent consumers prefer autonomous cars from these brand categories. Our empirical study is based on discrete choice experiments about adopting autonomous vehicles in a purchase scenario and in a renting context. Our findings show that brands play a central role when making autonomous driving decisions. Brand preferences differ systematically when buying versus renting a self-driving car. While technology brands are most preferred overall, consumers favor automaker brands over new brands only when purchasing, not when renting. We further disentangle the brand strength into the marginal effects of image associations. For example, Google’s strong brand positioning can be explained by experiences with the parent brand, but it could still improve brand strength by highlighting the relevance of the associated brand portfolio for self-driving cars. The effect of these brand extension success factors differs between parent-brand categories and also between the renting and purchasing scenarios, which requires a dedicated brand management.

An Evaluation of Retail Brand Extension in the Context of Store Atmosphere, Perceived Quality of Parent and Extended Brands, and Perceived Fit

The purpose of this study is to examine the mediator role of the parent brand quality between the store atmosphere and extended brand quality and to investigate the moderator role of perceived fit in the effect of the parent brand quality on the extended brand quality. Data from 200 participants were collected through surveys conducted face-to-face in Ankara. The results of the process analyses reveal that the parent brand quality is a mediator between the store atmosphere and the extended brand quality. Perceived fit is a moderator between the parent brand quality and the extended brand quality.

Predicting Under- and Overperforming SKUs within the Distribution–Market Share Relationship

This research presents a retail analytics application which uses machine learning (ML) to identify and predict under- and overperforming consumer packaged goods (CPGs) using retail scanner data. Essential to measuring market performance at the SKU level is the relationship between distribution and market share (the velocity curve). We validate that ML can reproduce the velocity curve, and ML is further used to predict underperforming, in-line performing, and overperforming SKUs relative to the velocity curve, based on a range of variables (SKU features) at a point in time. Our ML approach can correctly predict 83% of SKUs as under-, in-line-, or overperforming based on their characteristics. The research analyzes 9,321 SKUs of 2,565 brands across seven product categories of CPGs which were sold in 8,117 stores from 49 different retail chains of five different retail channels located in the US states of California, New York, Texas, and Wisconsin. The retail stores comprise convenience stores, drug stores, food stores, liquor stores, and mass merchandise retail stores. The data is Nielsen retail store scanner data for the calendar year 2014. The relationship between distribution and market share is a market-wide proxy for the ratio of relative sales in a category to, for example, aggregate shelf space, a key retail productivity metric. We further find indications that the distribution of SKUs across different store sizes, the stores’ category specialization, the line length of the brands, the overall performance of the parent brand, and sales consistency are the most important characteristics for the prediction of market share performance beyond the velocity curve. The methods and results presented will help CPG marketers (suppliers and retailers) understand which SKUs are under-, in-line-, or overperforming and the potential factors contributing to that performance. Optimizing assortments and portfolios is essential to decrease failure rates of individual SKUs. ML approaches can evolve to complementary support tools for such management problems.

When to get it is to eat it—Assessing brand fit-mediated equity of extended restaurants of a high-end automobile vendor

While brand extensions have been widely practiced in contemporary business marketing and management, empirical rather than hypothetical examinations of extended branding in the hospitality sector are still scant. This study responds to current research gap by comprehensively modeling and assessing the effectiveness of brand extensions of a high-end automobile brand into full scale restaurant services. Brand fit is constructed as the mediator between the extended brand and the high-end parent brand. Data were gathered from 258 patrons at one ‘Mercedes me’ restaurant in east China. Research findings from Structural Equation Modeling (SEM) showed that brand quality, brand fit, brand satisfaction and brand loyalty were positively related to each other for the restaurant brand of the high-end auto maker. The interrelationship between brand quality and brand satisfaction of the extended brand was significantly mediated by its brand fit with the parent high-end auto brand modeling. This study contributes to knowledge enrichment on the mechanism of brand extensions and their effects on the equities of both the extended brand and the parent brand in the hospitality sector.

How Life-Role Transitions Shape Consumer Responses to Brand Extensions

Life-role transition is a state wherein people pass through different life stages, involving changes in identities, roles, and responsibilities. Across six studies, the current research shows that consumers under life-role transition have more favorable attitudes toward distant (i.e., low- or moderate-fit) brand extensions than consumers who are not under life-role transition. The effect is driven by a sense of self-concept ambiguity associated with life-role transition, which subsequently prompts dialectical thinking that helps improve perceived fit between a parent brand and its extension, finally resulting in more favorable brand extension evaluation. This effect diminishes for (1) near (i.e., high-fit) brand extensions that do not require dialectical thinking for perceiving fit; (2) for sub-brand (vs. direct brand) architecture, for which there is less of a need to use dialectical thinking to reconcile the inconsistencies between a parent brand and its extension; and (3) when consumers perceive they have resources to cope with the life-role transition, which attenuates self-concept ambiguity. This research offers important theoretical and managerial insights by focusing on life-role transition—an important aspect of consumers’ lives that has been largely underresearched—and by demonstrating how and why it elicits more favorable attitudes toward brand extensions.

The role of brand strength, type, image and product-category fit in retail brand collaborations

Retailer brand collaborations are an underexploited way for retailers to expand product lines and target new segments relatively quickly and cheaply, yet little work has explored the area and the influence of important factors in the image inheritance process remains unknown. Using data from two experiments involving 240 subjects, we examine the role of brand type, brand strength and the fit between parent and brand collaboration product categories to show that a new retail product's image inherits more characteristics from a symbolic parent brand (even when the brand is weak) and when there are higher degrees of parent retailer-image fit. However, fit between the new retail collaboration's product category and that of the parent brands is only important for functional brands. The results help retailers decide which partner to choose to maximize image inheritance.

How common is new product failure and when does it vary?

This study aims to explore how common new product failure is in consumer packaged goods (CPG) categories and investigate the conditions in which the new product failure rate varies. This study analyzes 83,719 new stock-keeping units (SKUs), which were introduced over 8 years (2002–2009) across 31 CPG categories in the USA. Failure is the permanent cessation of sales, which is measured in consumer panel data. We find that one in four (25%) new SKUs are no longer bought 1 year later—a rate that increases to approximately 40% 2 years post-launch. New SKU failure was more likely for new launches that were introduced into higher revenue categories and by smaller share parent brands. Our findings can be used as a resource to aid marketing practitioners’ understanding regarding how common failure is for new CPGs and when there is greater associated risk.

A Concise Guide to Parent Brands and Subbrands

A Concise Guide to Parent Brands and Subbrands

Linking spaces, linking people

El proyecto Linking spaces, linking people es una serie de acciones / intervenciones que se plantean como estrategia de branding de la marca LINK by UMA-Atech en el campus universitario de la Universidad de Málaga. Estrategia compuesta de diferentes intervenciones que consisten en instalaciones artísticas por el campus mediante un lenguaje propio de las prácticas artísticas contemporáneas, logrando así una combinación en la estrategia de comunicación –acorde con la filosofía disruptiva– de la marca objeto de este estudio: LINK by UMA-Atech, una marca de la Universidad de Málaga. LINK by UMA-Atech es la marca de un servicio dedicado exclusivamente al impulso del emprendimiento y la innovación abierta, y cuyo hub constituye un ecosistema singularmente diferenciado de la su marca matriz (i.e. marca institucional de la UMA). Nuestro objetivo es analizar este caso, dentro de su arquitectura de marcas, en comparación con el caso de la marca Wayra, como referente de emprendimiento e innovación abierta e inscrita en la corporación Telefónica. y así plantear una metodología de implosión y explosión de la identidad de marca mediante una estrategia de explosión que se ve reflejada en la estrategia que generó como resultado Linking Spaces, linking people. Además, mediante este artículo identificamos nexos de unión a través del branding art y la necesidad de construir una tipología de arquitectura de marcas para la Universidad de Málaga que le permita optimizar y gestionar de forma diferencial su identidad y todo su sistema de marcas.

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.

Brand equity protection and new geographic dynamics evidence from franchising in Brazil

The success of franchising contracts may depend on the market. Business format franchising is based on having a common brand name and concept within the chain developed by the franchisor. As intangible assets, all brands and related business concepts do not have the same profitability. Thus, we address the question of spatial organisation impact on franchise contracts managed by the parent brand in the Brazilian market. Within the traditional agency view, the presence of distant retail outlets leads the franchisor to choose a payment mechanism designed to provide incentives to the franchisee; that is, a low royalty rate associated with a high fixed fee. Based on a unique panel dataset, we provide evidence that spatial dispersion has the opposite impact in Brazil. This new insight suggests the need for brand assets protection, decisive in an emerging market context. Moreover, monetary provisions and alternative tools play a critical role in brand maintenance and support.

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.

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.

How does parent heritage brand preference affect brand extension loyalty? A moderated mediation analysis

Firms with high brand equity often employ the strategy of brand extension to place new products on the market. Very few studies have analyzed brand extensions in the cultural heritage context, and fewer still have dealt with brands carrying the World Heritage hallmark. This work contributes to the existing knowledge in this field by examining how cultural heritage brand preference contributes to the formation of brand-extension loyalty, taking into account the tourists' perceptions of the extension (via attitudes and image) and the moderating role of brand extension fit and authenticity. A 2 (high vs. low brand extension fit) x 3 (high, moderate, and low degree of brand extension authenticity) between-subjects experimental design was used. The results show that parent brand preference exerts a positive effect on brand extension loyalty, mediated by brand extension attitude and brand extension image. These relationships are moderated by brand extension fit.