Rips, and Margaret Keane"Combining Prototypes: A Two-Process Contingency Model. In his suggestion, it can be classified into two category of extension; extension of product-related association and non-product related association.
Chocolate is a characteristic ingredient of Hershey. Similarity between core brand and extension is the main concern of consumer perception of fit.
We receive about 30, requests for funding each year - more than ten for every hour of the business day.
Association for Consumer Research, One mistake can damage all brand equity. Brand equity Brand equity is defined as the main concern in brand management and IMC campaign. Leverage can be achieved when extending into areas where this special expertise is deemed important.
Guerilla marketing is a very effective way of connecting with the target market and reaching out to different markets, this extension into the vast demographic while creating brand awareness is highly effective for brands  Categorization theory[ edit ] Researchers tend to use "categorization theory" as their fundamental theory to explore the effects of brand extension.
Advances in Consumer Research, Vol. In addition, brand extension also "diminish[es] consumer's feelings and beliefs about brand name. In spite of Aaker and Keller's research, which reports that prestigious brands are not harmed from failure of extensions, some evidence shows that the dilution effect has great and instant damage to the flagship product and brand family.
We encourage synergies between organizations. Carlson School of Management, University of Minnesota. An example is frozen Snickers Ice Cream Bars identified in our brand extension study.
Shocker University of Minnesota. Brand dilution effect of extension failure - A Taiwan study. He was in such position because he was highly literate. Designer clothing labels have been extended to furniture, jewelry, perfume, cosmetics and a host of other items.
First, the "Complement" refers to consumers taking two product classes extension and parent brand product as complementary in satisfying their specific needs. The "Jaguar sedan by Toyota" concept had significantly higher evaluation in terms of attitude and purchase intention than did the Jaguar sedan alone.
A notable success is Harley Davidson. An-other option is to acquire a firm with a brand name that can provide the platform for future growth via brand extensions. The early works of Aaker and Keller find no significant evidence that brand name can be diluted by unsuccessful brand extensions.
They suggest that if the brand name is strong enough as Nike or Sonythe negative impact has no specific damage on general brand image and "the dilution effect is greater on product brand image than on general brand image".
Their work builds on Farquhar, Han, Herr, and Ijiri They considered several theoretical perspectives making different predictions about the types of products most likely subject to spillover effects. A movie is thus said by McLuhan to be "hot", intensifying one single sense "high definition", demanding a viewer's attention, and a comic book to be "cool" and "low definition", requiring much more conscious participation by the reader to extract value.
Types[ edit ] Brand extension research mainly focuses on consumer evaluation of extension and attitude toward the parent brand.
They presented the results of an experiment in which the method of brand extension and strength of brand in parent category prior to extension were manipulated. When either one of the constituent brands is perceived to perform well on an attribute, the perceived attribute performance level of the composite brand will also be high.
Also, knowing consumers' expectations about the precise nature of the EX might help the firm to develop the product and to emphasize appropriate features in its advertising. Quality of core brand creates a strong position for brand and low impact of fit in consumer evaluation.
Srivastava all of the University of Texas at Austin. The flagship product is a money-spinner to a firm. Studies also suggest that brand extension is a risky strategy to increase sales or brand equity. It does this by demonstrating the relevance of psychological theory which has not previously been applied in marketing the "concept combination" or "attribute inheritance" theory of Hampton  and Smith, et al.Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.
The new product is called a palmolive2day.comzations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).
Part One: Impact of Brand Extensions on Brand Equity In today’s competitive marketplace it is vital to have a strong brand name. When a company develops a strong brand name of a certain product category they start thinking about the brand extensions, which will help the firm to capture new and unexplored market segments.
Clinique High Impact Mascara kicks up the volume and length of each and every lash. Mar 10, · The ground rules for branding are rapidly evolving.
Social media, content marketing, the younger generation, second screening, thought-leadership and the. The Impact of Brand Extension on The Parent Luxury Fashion Brand: The Cases of Giorgio Armani, Calvin Klein and Jimmy Choo ：Giorgio Armani, Calvin Klein and Jimmy Choo Rasa Stankeviciute1), Jonas Hoffmann2) further studies of the impact of brand extensions on the parent luxury brands.
The authors examine the effects of brand strategy (i.e., brand extensions vs. individual brands) on new product market share and advertising efficiency, and the degree to which these effects are.Download