Brand Name Effects on Interproduct Similarity Judgments

Data are presented demonstrating that similarity judgments between pairs of product categories can be asymmetrical and that brand name associations can reverse the direction of asymmetry. Brand name associations can, but do not necessarily, increase perceived similarity between product categories. The results support the view that similarity judgments between product categories are highly relative and context dependent. Because similarity plays a key role in models of affect transfer between branded products, similarity asymmetry has direct implications for brand extension strategy. Companies may be able to minimize the risk of brand extension to core products by accentuating the variant status of the extensions.