By-Brand or By-Category? The Effect of Display Format on Brand Extension Evaluation

Although consumers often encounter brand extensions for the first time during a store visit, most research on brand extensions does not take into consideration how product display in retail environments might affect evaluation of a brand extension. We explore the effect of two distinct display formats on brand extension evaluations: by-brand display, where a brand extension is presented in the context of other products made by the same parent brand (e.g., Nike razors displayed with Nike sneakers, Nike sportswear, etc.), and by-category display, where a brand extension is presented in the context of competing brands within the extension category (e.g., Nike razors displayed with Philips razors, Gillette razors, etc.). Three studies demonstrate that low fit extensions of high quality brands are evaluated more favorably when displayed by-category than by-brand, whereas high fit extensions of low quality brands are evaluated more favorably when displayed by-brand than by-category. In support of the proposed underlying mechanism, we show that display format influences consumers’ evaluations of brand extensions by changing the weight of importance given to parent brand quality and brand-extension fit information. Finally, we demonstrate that display format not only influences evaluation of the extension, but also has downstream consequences for the consumption experience with the extension.     

Does poor fit always lead to negative evaluations? Extension advertising and perceived brand quality

This article investigates the moderating roles of advertising strategy (relational vs. elaborational) and perceived parent brand quality on the influence that parent brand–extension fit exerts on consumer evaluations of both extensions and the parent brand. Two studies manipulate fit in terms of either brand concept consistency or product feature similarity. Lower fit results in negative consumer responses, yet an elaborational advertising strategy mitigates the negative effects of lower fit on extension evaluations. This mitigating effect is stronger for high quality than for average quality brands. The results also indicate extension feedback effects for the parent brand, suggesting that elaborational advertising strategies may reduce the impact of fit on parent brand feedback effects. This latter link is not moderated by parent brand quality.     

Exploring ethnic consumer response to crossover brand extensions

This research uses a social identity theory approach to investigate the impact of cultural identity on ethnic consumer response to ethnic crossover brand extensions—brands associated with one ethnic group that crossover into a product category associated with another ethnic group (e.g., McDonald's Café con leche). Study 1 demonstrates that the manner in which crossover brand extensions blend ethnic consumers' in-group and out-group cultural representations impact brand extension cultural fit and parent brand attitudes, and perceived ethnic target market impacts brand extension attitudes. Study 2 demonstrates that high ethnic embeddedness extensions strengthen ethnic consumers' self-brand connections. These findings provide managerial implications for practitioners considering a crossover brand extension strategy.     

When distraction may be a good thing: The role of distraction in low-fit brand extension evaluation

This study examines the effect of distraction after being exposed to information on low-fit brand extension evaluation. We show that when consumers are distracted (vs. engaging in deliberate thinking) after encoding extension information they evaluate low-fit brand extensions more favorably. Findings suggest that distraction can help establish connections of remotely associated information between a parent brand and a low-fit extension. We also find that the effect of distraction is contingent on the individual characteristic of consumers' agency–communion orientation. The core effect holds strongly for consumers high in communion orientation, but not for those with an agency orientation. Finally, we examine how marketing communication strategies (i.e., manipulating product message construal level) interact with distraction to influence consumer perceptions of low-fit brand extensions. Theoretical and practical implications of these findings are discussed.     

The relative advantages of benefit overlap versus category similarity in brand extension evaluation: The moderating role of self-regulatory focus

The literature has identified factors that determine the favorable evaluation of a new brand extension, such as sharing a common product category or providing similar core benefits as the parent brand. However, there has been little research on which of these factors has a greater impact on consumer evaluation. This study explores how self-regulatory focus moderates the relative impacts of benefit overlap (i.e., the consistency of core benefits provided by extensions) versus product category similarity (i.e., the similarity among product categories that include the extensions) on brand extension evaluations. The results of an experiment support the prediction that benefit overlap extensions have greater significance for promotion-focused consumers, whereas category similarity extensions are favored by prevention-focused consumers.     

Consumer–brand relationship quality: When and how it helps brand extensions

Two studies demonstrate that strong brand relationship quality (BRQ) enhances consumer judgments about brand extensions. Different methods (survey vs. experiment), participants (real consumers vs. college students), and cultural contexts (Korea vs. Canada) demonstrate that this effect generalizes. Study results suggest that this effect only occurs for two moderately-low-fit extensions: the extension and the parent are similar product categories with inconsistent attributes, or dissimilar product categories with consistent attributes. Two different cognitive processes underlie the BRQ effects depending on these conditions.     

Consumer Responses to Vertical Service Line Extensions

Vertical line extensions extend an established brand to products at different price/quality points. In this study, we examine consumer evaluations of vertical service line extensions and the feedback effects of these extensions on the parent brand. Findings of two empirical studies in the hotel industry indicate that consumers perceive higher risks in step-up extensions than in step-down extensions, which consequently influences their evaluations of the extensions. This effect of extension direction is also found to be moderated by risk relievers such as service guarantee and consumers’ prior knowledge in the service category. Furthermore, we found that a parent brand receives more positive evaluations after the introduction of a step-up extension than that of a step-down extension.     

消费者品牌延伸评价中的"拥有者效应"

A two levels of product similarity times two levels of brand image consistency times three levels of ownerships factorial experiment was designed to explore the ownership effects when consumers evaluate brand extensions and judge parent brand after receiving brand extension information. Evidence shows that ownership effects do exist in both extension and parent brand evaluations. Brand image consistency is the most influential factor for parent brand owners while product similarity is more important factor for non-users in attitude formation towards the extension. The owners of competitive brands favor low image consistency extension more than high image consistency extension. Furthermore, there is an interaction effect between brand image consistency and product similarity for brand owners, whereas this effect is non-existent for non-owners and non-users. This again shows that brand owners care much more about brand image consistency than other consumer groups do. In evaluating a parent brand, owners and non-owners differ. The authors draw the conclusion that consumers’ brand extension evaluation is more like a “benefit oriented” process rather than a “pure affect transfer” process.     

Vulnerability of global brands to negative feedback effects

Going global is a successful strategy to leverage a brand's equity, in part, because global is synonymous of quality for consumers. This research examines the impact of competitor brand familiarity on the quality perceptions of global brands in Chile when the brand extends into new product categories. The results indicate that there is a negative impact on the quality perceptions of brand extensions when an extension competes with well-known and well-liked competitor brands. However, brand extension quality beliefs seem to produce negative feedback effects on parent brand quality beliefs only for narrowly extended parent brands but not for broadly extended ones.     

The Effect of Consumer Multifactorial Gender and Biological Sex on the Evaluation of Cross‐Gender Brand Extensions

Introducing cross‐gender brand extensions—masculine or feminine brands that extend to the opposite gender—is a growing trend on the marketplace, though not always a successful one. This research examines the effect of consumer multifactorial gender and biological sex on consumers’ evaluation of cross‐gender brand extensions. The influence of gender role attitudes is demonstrated: consumers with traditional gender attitudes are significantly more reluctant to accept these extensions than consumers with more liberal attitudes. Hence the extensions have a negative impact on the subsequent attitude of the former group toward the parent brand, contrary to their effect on more egalitarian consumers. No significant impact of the consumer's biological sex, gender identity, or sexual orientation is identified. The theoretical and managerial implications of these findings for the development of cross‐gender brand extensions are discussed.     

The effects of between‐partner congruity on consumer evaluation of co‐branded products

Branding studies, especially those focusing on brand extension, have often centered on establishing the relationship between consumer evaluation and the match between a product concept and the brand (concept congruity). This study introduces an additional type of congruity that arises in the evaluation of co‐branded products, the congruity between brand partners (between‐partner congruity). Between‐partner congruity has not previously been explicitly considered in the co‐branding literature, but is potentially an important influence on consumer perceptions of a brand partnership. Thus, this study represents an initial attempt to understand how the level of between‐partner congruity will affect consumer response to cobranded products. Several findings in the marketing literature have suggested that when respondents have the motivation to resolve incongruity, the relationship between congruity level and evaluation is nonmonotonic. In other words, moderately incongruent concepts are preferred to congruent or highly incongruent concepts to form an “inverted‐U” data function. Yet, when motivation to process is low, evaluation becomes less favorable in a linear fashion as incongruity increases. This study examines whether these findings can be extended to co‐branding. When concept congruity is controlled across brand pairs, the nonmonotonic relationship between between‐partner congruity level and product evaluation is observed when consumers are encouraged to elaborate on the rationale for the partnership (high involvement). However, when consumers attend to the global similarity of the partners (low involvement), product evaluation becomes less favorable as between‐partner incongruity increases. © 2007 Wiley Periodicals, Inc.     

The importance of advertising skepticism for brand extension appeals

According to existing research, ad persuasiveness decreases as advertising skepticism (i.e., the tendency to disbelieve advertising claims) increases. What remains unclear, however, is whether or not this effect extends to brand extension appeals. We suggest that the effect may vary according to brand extension similarity. Three studies test this assertion while providing process evidence and boundary conditions for the proposed effect. According to the findings, consumers automatically transfer associations from parent brands to highly similar extensions or automatically block these associations in the case of highly dissimilar extensions—reducing the impact of advertising skepticism on ad persuasiveness. At moderate levels, however, extension similarity is less predictive of the transfer process, increasing the negative effect of advertising skepticism on persuasion. Consistent with this account, the results identify brand transfer (i.e., the ability of the parent brand to make the extension) as the underlying mechanism explaining the advertising skepticism effect for moderately similar brand extension appeals. Furthermore, the results show how marketers can reduce these effects, and increase extension success, by emphasizing extension attributes that are shared with the parent brand. Collectively, these results provide a unique theoretical view, improving our understanding of advertising skepticism and the drivers of brand extension success.     

An investigation of consumer evaluation of brand extensions

This paper deals with the effects of perceived quality, perceived fit and perceived difficulty, and interaction between perceived quality and fit on consumer evaluations of brand extension. We used multi‐item scales to measure these constructs. Data were analysed via structural equation models. Results show that both perceived quality and perceived fit have direct positive effects on consumer evaluation of extensions. We find support for the chance of transferring the positive values of a brand to an extension is greater when consumers see the extension as a good fit with the original brand and the original brand is considered as of high quality.     

The Effect of Parent Brand Experience on Line Extension Trial and Repeat Purchase

This research analyzes how consumer experience with a parent brand affects trial and repurchase probabilities for a line extension. We develop and test the uncertainty hypothesis which is based on the premise that consumers use experience with the parent brand to infer the quality of the extension. Experience with the parent-brand increases consumers' expectation that the extension quality is high. Therefore, consumers with more parent-brand experience will be more likely to try the extension. However, they will be less likely to repurchase the extension because of the selection bias.We test the hypothesis with scanner panel data from three product categories. The results are consistent with our hypothesis. We also discuss the implications of our results on how to design market programs for new line extensions.     

Factors Influencing Successful Brand Extensions

Organisations frequently follow brand extension strategies. This paper investigates the impact of category similarity, brand reputation, perceived risk and consumer innovativeness on the success of brand extensions in FMCG, durable goods and services sectors. A set of hypotheses were developed and tested in a study amongst 701 consumers. The findings show that extensions into categories more similar to the original brand tend to be more readily accepted. Likewise, the reputation of the original brand is an important factor influencing the success of the extension. These findings are consistent across FMCG, durable goods and services brands. However, perceived risk about the extension category was only found to enhance acceptability of extensions for durable goods and services brands. Innovative consumers are more positively disposed towards service brand extensions than FMCG and durable goods brand extensions.     

Advertising for extensions: Moderating effects of extension type,advertising strategy,and product category involvement on extension evaluation

This paper investigates how advertisements for extensions contribute to consumers’ attitudes towards new line and brand extensions of highly familiar brands. We investigate the relative importance of attitude toward the advertisement (Aad), parent brand quality, and fit between the extension and the parent brand for extension evaluations with a sample of 754 Belgians. Hierarchical regressions showed that Aad is the major influencer of extension evaluation. The importance of Aad, quality, and fit on extension evaluation is moderated by extension type (line or brand extension), advertising strategy (informational, positive emotional, negative emotional), and product involvement (low or high involvement). Quality transfer from the parent brand was more outspoken for line than for brand extensions; Aad was relatively more important for low product involvement and fit for high involvement conditions. Informational appeals, compared to emotional appeals, reduced the effects of parent brand quality and fit, but Aad was all the more important.     

Brand extensions via complements or substitutes: The moderating role of manufacturing transferability

This research investigates how consumer evaluations of brand extensions that either complement or substitute the original parent brand vary depending on the level of manufacturing transferability (i.e., the extent to which the parent brand??s existing resources and skills can be used to make the extension). We propose that a complement extension is processed by consumers at a higher, more abstract level whereas a substitute extension is processed at a lower, more concrete level. Since manufacturing transferability activates concrete cognitions of the production process, an increase in manufacturing transferability tends to result in more favorable evaluations toward substitute extensions than complement extensions. Empirical tests using a multi-method approach reveal support both for the underlying theoretical mechanism and the proposed hypotheses.     

Influence of Corporate Image on Brand Extensions: A Model Applied to the Service Sector

The paper presented here provides a new perspective in the study of service brand extensions, which has become a popular strategy for launching new services. Specifically, the paper proposes and estimates a model that shows how potential consumers evaluate service extensions. The findings show that the corporate image affects both the perceived service quality and the perceived fit between the new service and the parent brand, which in turn affects attitudes towards the extension. In consequence, the service extension is more likely to be successful when the corporate image is reinforced by effective marketing communications. The perception of service quality will be better and consumers will think that the company is more able to offer the new services.     

Consumer evaluations of brand extension: The roles of case‐based reminding on brand‐to‐brand similarity

Utilizing the case‐based reminding theory in analogical reasoning, this research proposes that the evaluation of a brand extension can be improved by reminding consumers of a similar brand in the extension category. This effect is derived from a brand‐to‐brand similarity, in addition to the product‐to‐product and brand‐to‐product similarity identified in prior literature. Experiment 1 explores the idea that the effect of similar case reminders is most pronounced in moderately similar extensions than in highly similar or highly dissimilar extensions due to schema congruity. Experiments 2 and 3 distinguish the levels of similarity (i.e., product‐to‐product, brand‐to‐product, and brand‐to‐brand similarity) as a source of consumers' evaluations on a brand extension and further eliminate an alternative explanation of instantaneous learning in the advertisement setup of Experiment 1. © 2010 Wiley Periodicals, Inc.     

Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction

Vertical line extensions are a valuable growth strategy for many retail service sectors. Correctly positioning a new vertical line extension in the price/quality spectrum is an important decision that has considerable implications for bottom line profits. This paper examines the moderating role of extension direction on the effect of perceived consistency on vertical extension evaluations. In two studies, we show that a lack of perceived consistency acts as a reminder to consumers that the brand may be stretching beyond its expertise, increasing perceived performance and financial risks for upscale extensions but not for downscale extensions. As a consequence, higher consistency results in higher upscale extension favourability whereas evaluations of downscale extensions are similar regardless of their perceived consistency with the parent brand.