POSITIVE FEEDBACK EFFECTS OF BRAND EXTENSIONS: EXPANDING BRAND MEANING AND THE RANGE OF EXTENDIBILITY

Sandra J. Milberg
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Sandra J. Milberg: Visiting Associate Professor, Escuela de Administración, Pontificia Universidad Católica de Chile.

Abante, 2001, vol. 4, issue 1, pages 3-35

Abstract: The focus of this research is on the positive feedback effects of brand extensions. In particular, this study identifies and examines conditions under which brand extendibility is enhanced by expanding product category associations. This is important as it has been argued that the range of a brand’s extendibility is one measure of brand equity. Thus, developing strategies to modify brand product category associations that stretch brand extension boundaries may increase equity. The results indicate that systematically introducing brand extensions consistent with a broader, more superordinate product category can modify a brand’s product category associations and enhance its ability to accommodate more diverse extensions. More specifically, expansion of a brand’s product category associations and extension boundaries occur when: 1) extensions are perceived to be consistent with the parent brand image and 2) extensions and the current products together become associated with a more abstract, superordinate level product category. Further, under these conditions there is no evidence of adverse affects on either brand attitudes or brand image beliefs. To the contrary, when extensions were perceived to be inconsistent with the brand image or consumers perceived no sensible relationship between current brand products and extensions the brand is adversely affected. Finally, the results demonstrate that using traditional measures of perceived similarity (relatedness) between brand extensions and current parent brand products has important limitations and implications for identifying potential brand extensions.

Keywords: Marketing; Brand Extensions; Experimental Design (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2001
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