Parent Brand Research Articles

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.

The brand behind the curtain: decoupling, recoupling and moral conflict in social media

Purpose Social media platforms have matured into significant arenas for moral conflict and often intense confrontation between brands and their consumers. This research aims to scrutinize the strategic development of a fresh brand entity deliberately detached from its morally compromised corporate parent, intended to reshape public perceptions and elude regulatory scrutiny. Design/methodology/approach Promoted as a center for transformative dialogue and innovation, Mission Winnow by Philip Morris is a novel example of a brand creating an entirely separate brand entity to provide sponsorship, and to associate itself with new brand values. This study employs a multisited netnography through which the posts and conversations on Mission Winnow’s platform and website hub are captured and interpreted, as well as the branded content and the free flows of consumers’ conversations generated around the brand on social media. Findings Findings reveal a broad interchange of moral controversy, acceptance and opposition discourses on social media. When consumers’ acceptance narratives gain traction, consumers extend their support toward the new brand entity, employing strategies that echo moral rationalization and decoupling. When resistance narratives dominate, consumers consciously draw connections between the decoupled brand and the parent brand’s immoral behavior. Originality/value This study expands upon prior research into brand activism and consumers’ moral reasoning toward controversial brands, linking the notion of brand decoupling to brand activism discourse and introducing key underexplored aspects like the power of imagery, linguistic creativity and nostalgia. Moreover, it presents significant implications for a more nuanced understanding of the important interrelationship of brand decoupling and recoupling on social media.

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.

Develop Social Media Strategy to Build Parent's Brand Awareness and Purchase Intention of Children's Educational Product Through Advertisement Approach

Develop Social Media Strategy to Build Parent's Brand Awareness and Purchase Intention of Children's Educational Product Through Advertisement Approach

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.

Incorporating new variables into a model of brand extension in fast fashion

This study tests a brand extension in fast fashion to explore the extension’s effect on the parent brand. It investigates whether extensions to varyingly distant product classes modify customers’ attitudes toward the parent brand. University students from the Technical University of Liberec, the Faculty of Economics (Czech Republic), aged 22-25 years, participated in an online survey for this study. The number of respondents was 310. The outcomes are relevant for this segment of customers. The model with classic brand extension factors (perceived fit (FIT), attitudes toward the brand extension (ATE), parent brand attitude change (PBCH)) was constructed. Factors of fashion leaders and emotional variables (e.g., trust and loyalty) were added to the model. The model was tested using structural equation modeling (SEM) in AMOS software and was statistically significant (Chi-squared value of 6.402, p = 0.171). A positive relationship was observed between FIT and ATE (β = 0.534, p-value = 0.000), the same as trust and ATE (β = 0.693, p-value = 0.000). Equally, ATE had a significant positive impact on PBCH (β = 0.722, p-value = 0.000) and trust and loyalty (β = 0.649, p-value = 0.000). Loyalty negatively affects ATE (β = -0.126, p-value = 0.010), indicating that these customers may have problems with brand extension, similar to a fashion leader (β = -0.126, p-value = 0.010). TRUST has a negative effect on the PBCH (β = -0.338, p-value = 0.000). Insights derived from this study hold substantial relevance for marketers in fast fashion aiming to prepare brand extensions effectively. AcknowledgmentThis work is supported by the Technical University of Liberec, Faculty of Economics – internal grant.

Centrality of sensory attributes in brand extension evaluations

PurposeCompared to typical brand extension research focusing on functional and symbolic attributes, this paper aims to examine brand extensions based on a brand's primary sensory attributes. Specifically, this paper investigates the interplay between brand equity and primary sensory attributes in shaping consumers' evaluations of brand extensions.Design/methodology/approachThis study investigates the impact of primary or central sensory attributes on brand extension evaluations for brands with differing brand equities. The authors conducted two experiments preceded by seven pretests to develop and validate the stimulus materials. The authors aim to contribute to understanding how sensory and brand-related factors influence consumers' evaluations of brand extensions.FindingsIn these experiments, the authors find that a parent brand's central/dominant sensory attribute allows the parent brand to successfully extend into functionally unrelated categories. For example, Dove’s central attribute of touch allows it to extend successfully into categories such as towels and shaving razor. However, it does not perform as well as Irish Spring (known for smell) in categories such as cologne and scented fabric softener, where Irish Spring's central attribute of smell is more relevant. Interestingly, Irish Spring, a lower equity brand, outperforms Dove in smell-related extensions, indicating that sensory attributes can counter the impact of lower brand equity if the sensory attribute is relevant to the extension category.Originality/valueThis study investigates brand extensions based on sensory attributes such as smell and touch instead of typical brand extensions based on functional and symbolic attributes. In particular, the authors examine whether the perceived fit between the parent brand’s dominant sensory attribute and the extended category (i.e. sensory fit) is more important than the parent brand's equity in the evaluation of brand extensions.

Media brand extension of tech conglomerates: The roles of parent brand loyalty, portfolio quality, perceived fit and feedback effects

Tech conglomerates have launched many extension brands to enter the streaming media market. This paper analyses a study which examined the factors that affect these brand extensions from the perspectives of consumer attitude and perceptions. A total of 1,404 participants who reported having used parent brands were recruited for the study and were included in the final sample. Five hypotheses were tested using structural equation modelling analysis. Loyalty to the parent brand, variance in brand portfolio quality and perceived fit significantly influenced attitudes towards brand extensions. In addition, perceived fit and attitudes towards brand extensions positively reinforced consumer attitudes towards the parent brand. Finally, no difference was found with reference to the aforementioned factors when the more established streaming extensions were compared with the newer extensions of tech conglomerates. A unique aspect of the study is the structural validation of brand extensions by tech conglomerates. Further, the results of the study support the understanding of the importance of feedback effects and perceived fit in the brand area of tech conglomerates.

Can consumer engagement on social media affect brand extension success? The case of luxury fashion brands and restaurants

This study aims to examine the effects of consumer engagement (CE) through social media (SM) on brand extension (BE) attitudes, extended brand loyalty, and parent brand loyalty. This study identified luxury BE strategies, particularly from luxury fashion brands to luxury restaurants. From an online survey involving 205 Korean women, we found that cognitive processing, affection, and the activation of CE positively influence attitudes toward BE. Furthermore, extension attitude positively influences both extended brand loyalty (luxury restaurant) and parent brand loyalty (luxury fashion brand), while extended brand loyalty positively influences luxury parent-brand loyalty. These findings support the associative network model and offer practical implications for marketing and branding managers for developing effective extension strategies.

The impact of Janus fit brand extensions on perceived brand innovativeness

This research addresses “Janus fit” brand extensions: extensions that are perceived to have both “fitting” and “unfitting” associations vis-a-vis the parent brand. One pre-experiment and three main experiments show that when a brand introduces a Janus fit brand extension, it is perceived to be more innovative than when it introduces either a traditional high fit extension or a low fit extension. The effects are mediated by surprise feelings. Specifically, the high brand innovativeness ratings obtained by the Janus fit extensions are explained by the fact that they elicit moderately high surprise feelings in consumers, instead of low surprise feelings (as high fit extensions) or excessively high surprise feelings (as low fit extensions). The Janus fit extensions can also be seen to evoke a “Eureka surprise experience”: an initial feeling of surprise, followed by a sudden realization that the brand extension after all makes sense for the brand in question.

Framing brand concept of vertical line extensions: The moderating role of believability

AbstractThis article examines the influence of framing a brand's concept as functional versus symbolic in the advertising of a new vertical line extension. In this research, we carried out two online experiments and collected data from 415 participants recruited from MTurk to investigate the moderating role of believability on the effect of brand concept framing on consumers' purchase intentions of vertical line extensions. The results indicate that (i) consumers evaluate a vertical extension advertising message more positively when it is framed in a consistent manner with the targeted price/quality segment and not with its parent brand or existing product line and that (ii) this effect is moderated by consumer believability such that an advertising framing effect is found for high, but not low, in believability. Perceptions of category fit mediate the relationship between framing brand concept and the evaluation of the extension. This study contributes to the advertising and marketing literature by exploring how consumers can interpret brand concept framing in advertising messages of vertical line extensions differently depending on their level of believability and, in turn, influence their purchase intentions.

The Influence of Parent Brand Image on Extended Brands: A Conceptual Framework

The Influence of Parent Brand Image on Extended Brands: A Conceptual Framework

Consumers' attitudes on downscale extensions of a luxury automotive brand

PurposeThis study aims to understand how consumers evaluate downscale vertical line extensions of a prestige/luxury original equipment manufacturer (OEM) in the European automotive market. The authors investigate the moderator effects of innovativeness and the need-for-status traits on the relationships between consumers' extension perceived fit (EPF), extension attitude (EA) and extension perceived value (EPV).Design/methodology/approachExperimental design with quantitative analyses based on a sample of 419 participants. Participants were randomly assigned to two treatments: low-fit and high-fit extension simulations.FindingsThe purchase intention of the downscale vertical extension of a luxury OEM brand is directly influenced by EPV and indirectly influenced by consumer EA and EPF with the parent brand. Findings also suggest that parent brand equity is transferable to extensions that present closeness and consistency with the brand’s heritage. Moreover, the need for status strengthens the relationship between the EPF and the extension perceived social value (EPSV).Originality/valueThe authors developed a realistic simulation of a downscale model of a well-known prestige/luxury car brand. The authors test the influence of innovativeness and need-for-status personal traits on consumer extension acceptance.

How best to advertise low-fit brand extensions: a construal level theory perspective

PurposeLow-fit brand extensions offer several potential benefits, yet their success is challenging. Building on construal level theory, this study aims to investigate how different advertising appeals can improve the evaluations of low-fit brand extensions through two different processes (cognitive and affective).Design/methodology/approachTwo experiments were conducted with US consumers. Study 1 used a 2 (extension fit: high, low) × 2 (ad appeal: abstract, concrete) between-subjects design. Study 2 applied a 2 (brand associations: promotion, prevention) × 2 (ad appeal: promotion, prevention) between-subjects design. Multivariate analyses and follow-up means comparisons were used to analyse data.FindingsStudy 1 found that an abstract ad appeal is more effective for promoting low-fit brand extension because it improves the perception of fit. Study 2 showed promotion vs prevention ad appeals lead to better evaluation of low-fit brand extensions when matched with parent brand associations (promotion vs prevention) in terms of construal level. This matching effect is underpinned by processing fluency.Research limitations/implicationsAd appeals can influence low-fit brand extension evaluation by influencing the perception of fit (cognitive process) or processing fluency (affective process). Future research could consider different ad appeals and other construal related factors to generalise these findings.Practical implicationsMarketers can design different ad appeals to effectively advertise low-fit brand extensions. These findings can guide managers in the development of effective advertising strategies.Originality/valueThis research offers a new perspective on how ad appeals can enhance low-fit brand extension evaluation.

High street banking on the app: branding strategies of traditionally-driven neobanks

PurposeSeveral high street retail banks are extending their brands into digital banking through fully digital, app-only neobanks, which have been described as traditionally-driven neobanks (TDNBs). These TDNBs are considered a form of brand extension, representing the increased complexity of branding banks and financial institutions. This study explicitly addresses the branding strategies employed by TDNBs.Design/methodology/approachThis study has adopted a case study research design, using a multi-stage data collection strategy. Initially, interviews were conducted with bank managers, followed by interviews with customers. Later, user-generated content was extracted through verified reviews from the app store. Subsequently, these three strands of data were thematically analysed and triangulated, in order to gain a holistic understanding of the branding strategies used by TDNBs.FindingsThree key themes emerged regarding the branding strategies of the TDNBs: aligning with the parent brand, reinforcing the digital experience, and enhancing the brand image.Research limitations/implicationsThis study contributed to the growing body of research on marketing, branding, and digital transformation of bank services. As more traditional banks are exploring opportunities to pivot and explore other fintech options, this study offers significant insights that will help in managing brand experience and promotion across customer journeys in the banking sector.Practical implicationsThis study contributes to the growing body of research on marketing, branding, and digital transformation of bank services. Even as more traditional banks explore opportunities to pivot as well as other fintech options, this study offers significant insights to help manage brand experience and promotion across customer journeys in the banking sector.Originality/valueWhile previous studies on banking and financial services have concentrated on traditional retail and high street banks, there is a need for a greater understanding of the brand positioning of digital banks, especially those created by traditional banks.

NPS spillover in brand extensions: An empirical study

This research proposes an empirical framework to help firms understand to what degree the transaction-specific Net Promoter Scores (NPS) spill over and affect customer spending across multiple product categories under the same parent brand. The proposed framework is applied to novel individual-level, cross-sectional, and time-series NPS ratings matched with transaction details from a leading lifestyle conglomerate in the Middle East. Findings provide strong support for the presence of the NPS spillover in brand extensions and show that the spillover is moderated by customer learning both within and across categories. The theoretical and managerial implications of these findings are discussed.

The Impact of E-satisfaction, brand reputation and E-trust on Eloyalty: An Empirical Study of apparel industry of Rawalpindi and Islamabad

The objective of this paper is to examine online brand relationships, and the connection between satisfaction, trust, and loyalty on the online level. The website is considered to be an extension of the parent brand. It also seeks to explore the effects of offline experiences on online level experiences. Methodology employed included a survey through distributing close-ended questionnaires individually to people of Rawalpindi. The sample size for this study was 200. Responses of questionnaires were analyzed through SPSS statistics by performing Regression and Correlation analysis. The results confirm the results of previous studies, indicating that satisfaction and trust at the site level is a determining factor in the retention of online businesses. However, they also show that brand-level experiences can vary depending on online satisfaction, trust and loyalty, depending on the relationship between the consumer and the brand. Interestingly, in this case, the duration of the user’s history and the registration of the website have a negative impact on online trust. This article combines the literature on the satisfaction and reputation of online brand loyalty. The findings of the study are based on large-scale surveys that provide researchers and practitioners with valuable insights into how the brand experience is related to clients’ attitudes and commitments to health. ’Internet. The context of the study, the magazine publishing industry, has drawn less attention from researchers, although several publishers have expanded their brands online.

Distribution velocity in wine retailing

Little is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications. Sales of 3,524 wine SKUs across 4,218 stores in 4 states in the US over one year of observation are analyzed. We use an established distribution velocity model (Reibstein & Farris 1995) to estimate the relationship between distribution and market share. We then use the market share deviations from the expected values and apply a secondary robust regression to investigate possible relationships between various product- and distribution characteristics and those market share deviations. The results show that the distribution velocity in wine retailing is convex and increasing, in line with previous findings for other consumer-packaged goods in the marketing literature. Beyond distribution breadth, we find that overall parent brand performance (above), unit price (above), packaging type (above), country-of-origin, grape variety, sales consistency (above) and store specialization (below) are associated with above or below expected market share of wine SKUs.

Sustainable Brand Extensions of Fast Fashion Brands; the Influence on Parent Brand Attitude

Abstract: Fashion industry to be one of the largest consumer industries & the second most polluting in the world because only a few industries confront as many sustainability issues as the fashion industry. This sustainability challenge is increasing day by day due to the nature of the fast fashion model, which have accelerated the consumption of fast fashion clothing goods made of poor quality and have short product lifespans. On the other hand, due to consumers’ and society’s rising demand for sustainable fashion products, fast fashion companies are investing heavily in integrating sustainability into their products or services. Most of these companies are adopting sustainable brand extension strategies for sustainable branding. The purpose of the study is to assess how younger Indian consumers’ parent brand attitudes are affected in the case of sustainable brand extension introduced by fast fashion brands. To address this purpose, a literature review was conducted before conducting the primary study by using a quantitative research design via a self- administered questionnaire. The result of primary research indicated that focusing on sustainable branding with a brand extension strategy is not misguided since it positively impacts brand attitude. The result of primary research indicated that focusing on sustainable branding with a brand extension strategy is not misguided since it positively impacts brand attitude. In addition, based on the multiple regression analysis, it concluded that all of the selected variables {brand influence (brand knowledge & brand affect), attitude towards sustainable brand extension (ATSBE), and consumer influence (fashion interest, social belonging, and sustainability concern)} are significantly correlated with brand attitude. In this process, brand influence factors are considered the most important in terms of affecting brand attitude. Therefore, for the effectiveness of sustainable brand extensions, companies should focus on not only brand extension fit but also brand factors such as brand knowledge and brand affect.

BRAND CONGRUITY WITH PARENT BRAND MEMPENGARUHI GREEN PURCHASE BEHAVIOR?

<p><em>This research aims to analyze the factors that influence the perceived value of environmentally friendly products on purchasing behavior for environmentally friendly brand products. The aim of this research is to build a comprehensive model and test the relationship between attitudes towards parent brand and self-brand congruity. Attitude toward green brand extension is used to mediate the relationship between the two constructs, namely the green brand perceived value and green brand purchase behavior. Respondents in this research were users of environmentally friendly fashion, namely Levi's products, The Body Shop in Semarang. The sampling technique used was purposive sampling technique. The questionnaire distributed in this research was 444 respondents. Only 400 questionnaires could ultimately be used in this research. The data analysis technique in this research uses PLS-SEM with WarpPLS version 7.0. The research results show that: (1) attitudes towards the parent brand and self-brand congruity have a positive effect on the green brand perceived value (2) green brand perceived value has a positive effect on attitudes towards green brand extension and (3) attitudes towards green brand extension have a positive effect on green brand purchase behavior.</em></p>