Journal
JOURNAL OF MARKETING
Volume 87, Issue 1, Pages 114-132Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/00222429221076840
Keywords
brand equity; advertising; consumer cognitive psychology
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This research identifies the conditions in which low-fit brand extensions can succeed. The study shows that consumers who are context-dependent form their evaluations based on the type of information provided, while context-independent consumers focus on extension fit. Acceptance of high-fit extensions is not affected by context-dependence and type of information.
Low-fit brand extensions, while often presenting profitable opportunities for existing brands, are known to meet with varying levels of consumer acceptance. This research identifies conditions in which low-fit extensions can succeed. Specifically, the authors show that the extent to which consumers consider the context in forming judgments (i.e., they are context dependent) determines their acceptance of low-fit extensions. Across four studies, the authors examine the combined effects of context (in)dependence and type of information. Context-dependent consumers form their evaluations on the basis of the type of brand extension information provided, such that providing benefit-based information enhances the evaluations of low-fit extensions, whereas providing attribute-based information leads to a reliance on extension fit and subsequent unfavorable evaluations of low fit extensions. In contrast, context-independent consumers are more likely to base their judgments on extension fit regardless of whether they receive attribute- or benefit-based information. Acceptance of high-fit extensions is unaffected by context (in)dependence and type of information. These findings provide a two-step strategy (i.e., sensitize consumers to context and providing benefit-based extension information) to managers for launching low-fit extensions and leveraging existing parent brand equity.
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