The relative advantages of benefit overlap versus category similarity in brand extension evaluation: The moderating role of self-regulatory focus |
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Authors: | Chung-Chau Chang Bo-Chi Lin Shin-Shin Chang |
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Affiliation: | 1. Department and Graduate Institute of Business Administration, College of Management, National Taiwan University, No 1, Sec?4, Roosevelt Rd, Taipei, 106, Taiwan 2. Market Intelligence and Consulting Institute, Institute for Information Industry, 19F, No 216, Sec?2, Dunhua S. Rd, Taipei, 106, Taiwan 3. Department of Business Administration, College of Business, Chung Yuan Christian University, No 200, Chung Pei Rd, Chung Li, Taoyuan, 320, Taiwan
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Abstract: | 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. |
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