For example, managers of brands whose existing core products are services should particularly emphasize the equity of the parent brand (and its dimensions) when introducing an extension product.īesides the contextual factors, we also investigate the potential moderating effects of research method factors. Managers should take a broader perspective on brand extension strategies by considering contextual factors related to the parent brand, the extension product, communication, and consumers.If the parent brand does not have high equity, brand extensions can still be a viable strategy for launching new products as long as the extension fits well with the parent brand an extension that does not have a good fit can still be successful as long as the parent brand is strong. Similarly, extension fit exerts a positive (though small) effect on brand extension success even if the extension has a low parent brand equity. We also find that parent brand equity has a positive (though small) effect on brand extension success even if the extension has a poor fit. Therefore, managers should consider parent brand equity and extension fit simultaneously. We find that parent brand equity can strengthen the positive impact of extension fit on brand extension success and vice versa. usage occasions) and images of the parent brand and the extension is more beneficial. For example, when introducing an extension product, creating and highlighting similarities in product features (vs. Managers should pay attention to the differential effects of various dimensions of parent brand equity and extension fit.However, managers should pay more attention to extension fit because it is slightly more influential than parent brand equity. We recommend that managers leverage both parent brand equity and extension fit to enhance brand extension success. Extension fit is defined as consumer perceptions of the similarity and congruity between the parent brand and the extension product.
Similarly, there is a 61.4% probability of a positive response to a brand extension if extension fit improves. There is a 60.6% probability of a more positive response to a brand extension if parent brand equity improves.Our work provides three key findings that will benefit chief marketing officers. Pay Attention to Parent Brand Equity and Extension Fit Drawing on signaling theory, categorization theory, and a large database spanning the years 1990–2020, we address these mixed findings through a meta-analysis to develop empirical generalizations. Prior research has inferred that parent brand equity and extension fit are the two key success drivers.
We explore how companies can devise more successful brand extension strategies in terms of contextual factors (parent brand, extension, communication, and consumer factors) and the research methods used.
#Flickr uploadr pay drivers#
In a new Journal of Marketing study, we offer insights into the drivers of brand extension success.
0 kommentar(er)
