Feedback effects of brand extensions on the brand image of global brands: a comparison between Spain and Norway

Abstract

Global brands often attempt to increase their sales through the launch of brand extensions. Such a strategy may, however, dilute existing brand beliefs at an international level, as two sets of data from Norway and Spain indicate. This paper illuminates how the attitude towards a brand extension affects the image of a parent brand. The extension attitude is mainly determined by the degree of perceived fit between the extension and the parent brand image. In the Spanish sample, it is also determined by the degree of familiarity with the parent brand and the perceived fit at the product category level. After analysing these relationships, the paper focuses on the moderating role of two dimensions of consumer innovativeness: hedonist innovativeness (tied to need for stimulation) and social innovativeness (tied to need for uniqueness). Finally, the cultural orientation of the origin country is analysed as a moderating factor.