The effect of multiple hotel brand extensions

Abstract

The purpose of this study is to develop and test a theoretical model explaining the effects of previous hotel brand extensions on customer attitudes toward new extensions, customer perceptions of core brand reputation, and loyalty. An online survey was conducted to collect data. A total of 511 responses were analyzed using confirmatory factor analysis and structural equation modeling. The results revealed that for a hotel brand that has launched more than one extension, the performance of any previous hotel brand extensions had positive effects on a new hotel brand extension as well as the core brand. These findings contribute to the body of knowledge on brand extension, especially in hotel context. More detail findings and implication are provided in the manuscript.

Brand extension feedback effects: What do we know and where should we go?

“…Despite these potential negative feedback effects, researchers have discovered factors that can improve perceptions of the parent brand following an extension. For instance, if the quality of a brand extension is high, more positive feedback effects on the parent brand will result (Boisvert, 2012b; Mahasuweerachai and Qu, 2015; Völckner et al ., 2008; Zimmer and Bhat, 2004). Interpreting these findings may indicate that introducing a brand extension with lower quality than the parent brand may be harmful to the parent brand (Kim et al ., 2001).…”

Branding the hotel industry: The effect of step-up versus step-down brand extensions

“…Large fullservice hotel brands can often not apply a one-size-fits-all brand strategy, as consumers are constantly seeking targeted and specialized products and services. Therefore, major hotel brands, in an effort to differentiate, have undertaken extensions to influence consumers' brand choices by catering to specific needs (Jiang et al, 2002;Mahasuweerachai & Qu, 2015).…”

Examining the Step-Up Brand Extensions of Budget Hotels: The Reciprocal Spillover Effects

“…Kwun and Oh (2007) and Lei, Dawar and Lemmink (2008) confirmed the impacts of parent brands on perceived risk and customer attitude toward extended brands. Mahasuweerachai and Qu (2015) examined the effects of multiple hotel brand extensions. Recent studies have begun focusing on the role of brand extensions in the era of the sharing economy (Richard & Cleveland, 2016).…”