Parent Brand Research Articles

Peran Risk Aversion sebagai Mediator dalam Hubungan antara Parent Brand Loyalty dan Brand Extension Loyalty

This paper is aimed to examine the effect of parent brand loyalty to brand extension loyalty, vice versa, also role of parent brand association as moderator and risk aversion as mediator in the relationship of parent brand loyalty and brand extension loyalty. This paper utilizes conclusive research design with predictive causal analytics. Sample collected was from millennial mothers with children ranging from 2-7 years old and are decision makers in purchasing babies and children care products. Primary data were obtained through distributing questionnaires to 100 respondents. The data then processed using MRA for moderating variable analysis and PLS-SEM for mediator variable analysis. This research found that parent brand loyalty has significant direct effect on brand extension loyalty and vice versa, but also partial complementary mediated by risk aversion. While parent brand association proved not to be a moderating role, risk aversion is a partial compensatory mediator in the relationship between parent brand loyalty and brand extension loyalty, hence become the novelty of this study. Future study should consider discussing product categories with special cases, re-examining positive relationship of parent brand association with parent brand loyalty and brand extension loyalty, also examining individual factors that can characterize a millennial cohort consumer.

Ceftriaxone Injectables: An In vitro Evaluation of Antimicrobial Activity and Comparative Efficacy

Aims: The objective of the current study was to compare the In Vitro efficacy of regionally produced brands of ceftriaxone with that of the global innovator brand. Therefore, a fact-based conclusion at the end of the study will serve to dispel any uncertainty regarding the efficacy of medications produced locally, whether they are inferior or equal in their comparative activity.
 Study Design: This study was In Vitro Lab based study.
 Place and Duration of Study: The study was performed in Riphah International University, Department of Pharmacy from July 2021 to August 2021.
 Methodology: Five regional brands and one international parent brand (Rocephin) were chosen. The multinational product was regarded as the standard. Escherichia coli, Staphylococcus aureus, Staphylococcus epidermidis, and Pseudomonas aurogenosa were the four bacterial strains against which activities were tested. Antibiotics' zone of inhibition was measured using the agar well method, and their minimum inhibitory concentration was identified using the broth dilution method.
 Results: All tested brands showed effectiveness against Escherichia coli, Staphylococcus aureus, Staphylococcus epidermidis, and Pseudomonas aurogenosa.Some of the brands at some point showed more In Vitro efficacy than the standard brand.
 Conclusion: Health care professionals can be confident in prescribing locally manufactured brands that have equivalent efficacy to their international counterparts based on the findings of the study. Healthcare professionals can suggest the generic brand in population where medicine cost is directly affecting the patients adherence to therapeutic regimen.

Service Delivery and Branding Management in Digital Platforms: Innovation through Brand Extension

Purpose. Resources and experiences may give platform owners an advantage to expand their business to new areas of possible growth. However, can the winner take it all? Or is the spandex rule—“just because you can, does not mean you should”—valid for platforms, as well? The present study is aimed at narrowing this research gap by focusing on the innovation through brand extension impact on customer satisfaction and brand loyalty in an ever-greater area of the service sector. Design/Methodology/Approach. The partial least-squares structural equation modelling (PLS-SEM) is applied to analyse the questionnaires and explore the relationships between the proposed research model’s constructs. Findings. The results reveal that service innovation through brand extension impacts customer satisfaction and loyalty favourably. Customer satisfaction mediates the relation between innovation through brand extension and brand loyalty. Parent brand reputation intensifies service innovation through the impact of brand extension on customer satisfaction and loyalty, while perceived risk deters its effects. Customer innovativeness enhances customer satisfaction. Finally, perceived category similarity (fit) augments customer satisfaction while impacting loyalty negatively. Practical Implications. The findings provide a deeper understanding of innovation and brand management in digital platforms and forge a promising path forward for marketing researchers investigating the platform economy. Originality/Value. Little remains acknowledged regarding the theoretical interface of innovation through brand extension in the digital platform sphere and its consequences on customer behaviour. Building on this lacuna, the authors adopt an underexplored object that focuses on digital platform innovation through brand extension, customer satisfaction, and brand loyalty.

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

A strategic scheme for partnership supply networks focusing on green multi-agent transportations: a game theory approach.

Competition to gain more market share leads to the development of a dynamic environment and the fulfillment of an improvement cycle in supply networks. In this paper, as the first attempt, two strategic periods based on the introduction and growth phases of supply networks are considered. Each of these periods has its own characteristics and develops different competitive structures. The allocation of market share between competing supply networks is carried out on the extent of their relationships with green orientations in the network. The ownership of supply sources in these networks is replaced by that of relationships (partnership supply) developed by some parent brands. The efforts of each parent brand towards establishing green supply relationships lead to a greater market share for it. Further to competition between the supply networks, co-petition within each network also results in the emergence of different virtual alliance structures. The performance history of each brand and its subsidiary partners in the first period is included in the second period's assessments and leads to the development or decline of the network. Another dimension of the paper lies in the development of multi-agent transportation arising from the green requirements. Two gaming-based heuristic algorithms are proposed for handling the decentralized decision-making structures in the multi-period multi-stage platform under discussion. To evaluate the taken approach, a real-world inspired case is taken into account. The numerical results prove the better performance of the proposed scheme towards green coverage of the network and, thereupon, increased market share.

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.

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

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.

Designing to Attract in an Emerging Market: Applying Behavioural Reasoning Theory to South African Consumer Reactions to an Ultra-High Temperature Milk Product Line Extension

In the ultra-high temperature (UHT) milk category, parent brands introduce line extensions as innovative product designs to address the competitiveness in the market. However, not knowing if consumers will purchase the product results in uncertainty for the product design and marketing team. Using the behavioural reasoning theory, the purpose of this study was to explore South African consumers’ reasons for purchasing a UHT line extension that was designed to include the word ‘enriched’ and other extrinsic line extension attributes comprising product packaging design, country of origin and price. An exploratory-descriptive qualitative study was conducted using six focus groups involving milk consumers from a South African university. Three behavioural approaches (i.e. curiously cautious, unconditional and habitual) emerged, with diff erentiating characteristics of the behaviour towards the UHT line extension. Each extrinsic product attribute was characterised by specifi c behavioural acts that positively or negatively infl uenced the reasons for purchasing the UHT line extension. The behavioural reasoning theory was useful in explaining the linkage between the reasons for or against purchasing a UHT line extension product and the intended behaviour, which contributes to a better understanding of consumers’ approaches to a UHT line extension. Findings can assist food designers and marketers in designing a UHT line extension that resonates with consumers.

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.

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.

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.

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.

Efecto moderador del ajuste de la extensión y la implicación en la relación entre la actitud hacia una marca padre patrimonial y la lealtad de la extensión. Aplicación al conjunto monumental de la Alhambra y el Generalife

Objective: This work proposes a model of formation of brand extension loyalty of a heritage brand parent based on the attitude towards the heritage brand parent, taking into account the mediating effect of the brand parent image and the moderating effects of the fit between the heritage parent brand and the brand extension as well as the involvement towards the product category. Methodology: An experimental study has been carried out with 328 tourists visiting the heritage destination and manipulating two levels of adjustment. A moderate mediation regression model was established using the PROCESS 3.4 software. Conclusions: The effect of the attitude towards the heritage brand on the loyalty towards the extension occurs through the image of the heritage brand. This effect is enhanced in low setting and high involvement conditions. The involvement moderates the direct effect regardless of the degree of brand extension fit. Implications: Implications are provided for the management of companies that use a heritage brand to compete in the market as well as for managers of cultural heritage. Originality and value: This work contributes to the existing knowledge about the process to the formation of brand-extension loyalty of brand of cultural heritage site, taking into account the perceptions about the parent brand in terms of attitude and image. Also, this study examines the moderating role of brand extension fit and the level of involvement with the category.

Parent brand susceptibility to negative feedback effects from brand extensions: A meta‐analysis of experimental consumer findings

AbstractGiven the prevalence of brand extensions in the market, it is important to consider extensions' potentially harmful effects on the parent brand, that is, negative feedback effects. This paper integrates experimental research on negative feedback effects using a meta‐analytic framework. The results support previous findings for extension evaluations, parent brand breadth, parent brand image fit, and consumer task motivation on the occurrence of negative feedback effects. However, four moderator variables found in earlier work are not significant: accessibility of extension information, parent brand awareness, branding strategy, and participant type. Mixed findings related to extension fit, valence of extension information, and parent brand quality are clarified, indicating that extension fit and valence of information appear to drive negative feedback while parent brand quality does not. Four methodological factors have significant effects: within‐subject‐dependent variable designs, parent brand product class, type of brand, and whether the extension was evaluated, suggesting that the effects may be, in part, an artifact of background factors. The results provide insights into when brands seem vulnerable to negative feedback effects, while simultaneously identifying common market scenarios under which brands appear less susceptible. Finally, a post hoc model points to involvement and level of processing as two key constructs that may underlie the effects of moderators.

It is better with a shade of blue! Consumer evaluation of unisex extension of brands

AbstractLaunching unisex or agender extension of existing brands is being increasingly practiced by marketers today. However, there is limited research that explores consumers’ responses to unisex brand extensions. The purpose of this research was to contribute to the understanding of consumer evaluation of the agender extension of brands. It uses the theory of social identity as an overarching conceptual lens to examine the influence of consumer’s biological gender, gender image of the parent brand, and product type on the evaluation of the unisex extension of brands. Hypotheses are developed and tested across three experimental studies conducted among graduate student‐participants of a management school. Our findings suggest that women compared to men are more favorable towards unisex brand extensions and unisex offerings in general. Additionally, a unisex extension of a masculine brand is preferred over feminine brands by both men and women. Finally, for products that are higher on symbolic value women evaluate unisex extension more favorably, whereas for men the evaluations worsen. The research findings will help managers in taking unisex brand extension decisions.

Urban Company: The Road from Local to Global

With a great response from Indian urban consumers, home services start- up, Urban Clap looked forward to venture into the global markets. The think tanks thought of rebranding the company from Urban Clap to Urban Company. The company was successful in luring investors and raising capital. It rigorously focused on employee training and improving customer experience which resulted in great success for a 6-year-old start – up. Urban Company co-founder Abhiraj Bhal said at the announcement that the intention behind the rebranding was to have a globally acceptable company name (Sheth, 2020). For increasing the scale of operations, the company tied up with NSDC to source, train and employ at least a million individuals from tier 2 and 3 cities. It is a historical fact that many times rebranding may fail. When we compare the entry of foreign brands into India, we see that the majority have used their original name and value proposition which is carried by the parent brand. Only time can tell that the decision will go right or wrong for “Urban Company”.

Competitive planning of partnership supply networks focusing on sustainable multi-agent transportation and virtual alliance: A matheuristic approach

The partnership supply of market needs is one of the most regarded orientations in recent years. In this paper, a competitive model is designed in partnership supply networks including parent firms (brands), manufacturing plants, governmental logistics company and franchised stores. In the raised scheme, the involved supply networks seek to develop their upstream and downstream partnerships (respectively with manufacturing plants and franchised stores) in a competitive environment. Besides this cross-network competition, the downstream partners of each network develop some virtual alliances. In such alliances, each of the involved members, further pursuing its own interests, aims to increase the overall share of the parent brand. Even more striking, a multi-agent transportation platform is implemented in the distribution of products to meet the environmental sustainability requirements. The state-owned logistics company, as the market leader of the cited distributed structure, dictates its strategy to the supply networks seeking to gain the most possible partnership interactions. Hence, in this paper, a multi-level competition-oriented problem is considered in the partnership supply networks and formulated upon multiple hierarchical stages. Due to the NP-hardness of the problem and given its structural features, a matheuristic approach based on a combination of the Benders Decomposition method and Particle Swarm Optimization algorithm is developed. The proposed solving approach is compared against a gaming-based heuristic and also a pure Benders Decomposition. The results of the evaluations indicate the superiority of the suggested hybrid approach, especially in large-scale instances.

Is similarity a constraint for service-to-service brand extensions?

Are service brands constrained in launching new service offerings? Both research evidence and managerial wisdom suggest brands should extend to similar categories. However, in five studies using real-life brands - four experiments and one large-sample survey - we provide evidence that similarity is less of a constraint for service brands extending to other service categories (service-to-service extensions), compared to cases involving parent brands or extension categories of a product nature. Importantly, we demonstrate that such an effect occurs because service brands possess associations relevant across the spectrum of service categories. Our results suggest that service brand managers have the opportunity to stretch their brands to dissimilar service offerings; yet, they need to ensure the marketing execution does not make the brands’ service associations inaccessible to consumers. The findings suggest that even product brands can build service associations by adding service components to their offering, thus becoming “servitized” and better able to extend to dissimilar service categories. Overall, our work contributes to the academic debate documenting that the principles governing the management of product vs. service brands are not identical.