Diluting Brand Beliefs: When Do Brand Extensions Have a Negative Impact?

Loken, Barbara; John, Deborah Roedder

doi:10.2307/1251855

Cited by 438 publications

(480 citation statements)

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“…A brand name with strong associations in one product category (e.g., Johnson & Johnson baby shampoo is strongly associated with gentleness) may transfer those associations to others (e.g., bandages, talcum powder) which may be weak complements (Loken and John 1993;Russell and Petersen 2000). Co-branding or branded ingredient strategies have, as part of their rationale, such cross-category associations (Park, Jun, and Shocker 1996).…”

Section: A2 Occasional Substitutes or Whatmentioning

confidence: 99%

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Shocker

Bayus

Kim

2004

Journal of Marketing

146

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Buyers make purchase decisions in a marketplace composed of dynamic and interacting product categories. In such an environment, demand for one product can depend directly and indirectly upon the marketing efforts involving "other products," i.e., products in different categories. Hence, buyer (and seller) decision-making can be influenced by what sellers of these other products are and are not doing, as well as by actions of direct competitors. In this paper, we argue for the relevance of these "other products" by considering a wide range of possible inter-category relationships. We offer a behavioral rationale for the existence of these effects and propose a taxonomy of inter-category relationships that do not fit neatly into the conventional product complement/substitute framework. This discussion allows us to identify a number of promising new research questions.*We thank David Stewart, former editor, and three anonymous reviewers for their many helpful and constructive comments. They have served to substantially improve this paper. Errors of commission and omission remain the responsibility of the authors.

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Section: A2 Occasional Substitutes or Whatmentioning

confidence: 99%

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Shocker

Bayus

Kim

2004

Journal of Marketing

146

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“…After all, strong brands become more profi table when they are successfully leveraged into other categories. 92 Of course, surprise and broadness must be created without compromising repetition and specifi city (ie coherence), which is precisely what Van der Vorst, 93,94 Loken and Roedder 95 and others have shown.…”

Section: Lawmentioning

confidence: 87%

Three laws of branding: Neuroscientific foundations of effective brand building

Walvis¹

2007

J Brand Manag

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“…However, there is one important hitch to this solution, which offers so many tempting benefits: brand extensions involve a high risk for the company, because frequent examples of failed new product introductions using existing brand names illustrate how these flops can severely hurt the mother brand (Loken/John, 1993). Against this background, there is a mounting pressure on brand managers to be able to develop strategies on how to forecast the brand extension potential (BEP) in a given case and prevent malinvestments and damages to the existing brand (Aaker/Keller, 1990;Sattler, 1997a;Zatloukal, 2002).…”

Section: Introductionmentioning

confidence: 99%

Identification and stereotypes as determinants of brand extension potential

Schons

Thöne

2017

Innovative Marketing

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Current research suggests that social identification processes play an important role in markets. In this study, the authors propose that marketing research has neglected one important factor, which influences the success of a brand extension, namely the group processes between social groups and brand communities framing the new product introduction. Based on social identification theory, the authors derive a framework integrating identification and stereotyping processes, simultaneously testing for drivers of brand extension potential, which have been found to be important in past empirical studies. Using a structural equation modeling approach, the authors test for in-group and out-group effects in two hypothetical brand extension scenarios of one snowboard brand (Burton), and a surf brand (Billabong) into the ski market. They find that the social identification processes underlying the new product introduction significantly drive the potential success of the brand extension. By being the first study to explore the role of identification and stereotype effects in brand extension, the authors make an important contribution to research in this area. Moreover, our study provides important implications for brand managers planning to extend their brands into new product categories.

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Diluting Brand Beliefs: When Do Brand Extensions Have a Negative Impact?

Cited by 438 publications

References 0 publications

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Three laws of branding: Neuroscientific foundations of effective brand building

Identification and stereotypes as determinants of brand extension potential

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