Building a multi-category brand: when should distant brand extensions be introduced?

Parker, Jeffrey R.; Lehmann, Donald R.; Keller, Kevin Lane; Schleicher, Martin

doi:10.1007/s11747-017-0552-7

Cited by 43 publications

(44 citation statements)

References 30 publications

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“…Thus, high brand equity induces conflict between what is expected from the brand and what is associated with the design (e.g., “It is a BMW, but it also looks like other competitors”). This argument is in line with recent research on brand extensions by Parker et al (2018), which shows that when brand categorization is difficult, brand evaluation decreases. Therefore, P 2 : Both RS and ED reduce the impact of segment typicality on demand such that higher levels of RS and ED result in a less positive impact of segment typicality. …”

Section: Theoretical Backgroundsupporting

confidence: 90%

Leveraging Brand Equity for Effective Visual Product Design

Heitmann¹,

Landwehr²,

Schreiner³

et al. 2020

Journal of Marketing Research

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For many consumer goods, the visual appearance is a vital determinant of market success. Although there is an emerging literature on how objective design characteristics drive consumer preferences, this literature has not yet taken into account that product design happens in the context of a brand’s equity. This research addresses the question of how to leverage brand equity when designing the visual appearance of a product. Specifically, it investigates the role of two key strategic visual design decisions: brand typicality (similarity within the brand’s range) and segment typicality (similarity to the competitive set). Drawing on fluency theory, the authors argue that high-equity brands benefit more from brand typicality but less from segment typicality than low-equity brands. Using data from the U.S. car market tracking market shares of 456 car models of 39 major brands operating in seven market segments across 13 years, the study provides empirical evidence for this conjecture and, thereby, implications for strategic product design and visual design theory.

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Section: Theoretical Backgroundsupporting

confidence: 90%

Leveraging Brand Equity for Effective Visual Product Design

Heitmann¹,

Landwehr²,

Schreiner³

et al. 2020

Journal of Marketing Research

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“…Our findings contribute to a better understanding of brand extension evaluations by showing that life-role transition, a seemingly unrelated life event that consumers undergo when evaluating a brand extension, plays a critical role in determining responses toward distant brand extensions. In so doing, our research contributes to an emerging body of research that calls for a better understanding of how consumers evaluate brand extensions, especially distant brand extensions, in realistic marketplace conditions (Cutright, Bettman, and Fitzsimons 2013;Johnson et al 2019;Klink and Smith 2001;Meyvis, Goldsmith, and Dhar 2012;Parker et al 2018), and it reveals that consumers' product preferences can be grounded in their life dynamics. Last, our findings provide practical suggestions for brand managers.…”

mentioning

confidence: 82%

“…Brand extension occurs when an established brand uses its name to enter a different product category (Keller and Aaker 1992). This is a popular way to introduce new products into the market because companies can leverage their existing brand equity, and it has therefore gained a lot of attention (e.g., Chun et al 2015;Meyvis, Goldsmith, and Dhar 2012;Monga and Gurhan-Canli 2012;Parker et al 2018). The most important factor that influences brand extension evaluation is perceived fit, which is the overall similarity between a brand extension and the parent brand (Keller and Aaker 1992;Völckner and Sattler 2006).…”

Section: Brand Extensionsmentioning

confidence: 99%

“…Consider, for example, Capital One cafés, Ferrari theme parks, Huggies day care centers, and NASCAR romance novels. Reflecting this trend, academic research has focused its attention on distant brand extensions (i.e., extensions that are perceived to have low or moderate fit with the brand's existing core line of products; Chun et al 2015;Cutright, Bettman, and Fitzsimons 2013;Johnson et al 2019;Meyvis, Goldsmith, and Dhar 2012;Monga and John 2007;Parker et al 2018) and has highlighted multiple benefits that such extensions offer, such as allowing consumers to variety-seek within the brand, maintaining relevance among consumers, expanding revenue streams, and diversifying sales risk (Chun et al 2015;Parker et al 2018). Indeed, the launch of the Dyson Supersonic hair dryer in 2016 allowed the Dyson brand, which until then mostly focused on vacuum cleaners, to diversify sales risk and dramatically increase its revenue by 28% to £4.4 billion (Chandler 2019).…”

mentioning

confidence: 99%

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How Life-Role Transitions Shape Consumer Responses to Brand Extensions

Su¹,

Monga²,

Jiang³

2021

Journal of Marketing Research

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Life-role transition is a state when people pass through different life stages that involves changes in identities, roles, and responsibilities. Across six studies, the current research shows that consumers under life-role transition have more favorable attitudes towards distant (i.e., low- or moderate-fit) brand extensions compared to consumers who are not under life-role transition. The effect is driven by a sense of self-concept ambiguity associated with life-role transition, which subsequently prompts dialectical thinking that helps to improve perceived fit between a parent brand and its extension, and finally results in more favorable brand extension evaluation. This effect diminishes for (1) near (i.e., high-fit) brand extensions that do not require dialectical thinking for perceiving fit, (2) for sub-brand (vs. direct brand) architecture, for which there is less of a need to use dialectical thinking to reconcile the inconsistencies between a parent brand and its extension, and (3) when consumers perceive they have resources to cope with the life-role transition which attenuates self-concept ambiguity. This research offers important theoretical and managerial insights by focusing on life-role transition—an important aspect of consumers’ lives that has been largely under-researched, and by demonstrating how and why it elicits more favorable attitudes toward brand extensions.

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“…Another important area of research within this theme relates to brand extensions (e.g. Parker et al 2018). This includes issue related to how mental associations are created in consumers' minds, and how they affect brand extension evaluations based on the parent brandextension fit (Miniard et al 2018).…”

Section: Text Mining Analysismentioning

confidence: 99%

Journal of the Academy of Marketing Science 1973–2018: an analytical retrospective

Calma

Martí-Parreño²,

Davies

2019

Scientometrics

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This paper analyses the entire publication history of the Journal of the Academy of Marketing Science (JAMS) by analyzing 1,747 documents from 1973 to June 2018. Citation networks were examined from available metadata such as author and index keywords, and institutional affiliations, and abstracts were analyzed using network analysis and text mining techniques. The analysis is supported by the use of data visualization tools and community detection algorithms. Results suggest three main communities addressed throughout JAMS' publication history (firm capability and performance, brand and value co-creation and customer service) and nine main themes (brands' strategic value, firms' strategy and financial performance, customer service, sales, marketing communications, retailing, distribution channel, global markets, and corporate social responsibility). Although empirical quantitative studies account the larger type of research published by JAMS, results also highlight JAMS contribution to marketing theory building and methodological issues in the shape of both conceptual/theoretical papers and scale development papers.

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Building a multi-category brand: when should distant brand extensions be introduced?

Cited by 43 publications

References 30 publications

Leveraging Brand Equity for Effective Visual Product Design

Leveraging Brand Equity for Effective Visual Product Design

How Life-Role Transitions Shape Consumer Responses to Brand Extensions

Journal of the Academy of Marketing Science 1973–2018: an analytical retrospective

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