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Strategic benefits of low fit brand extensions: When and why?
Author(s) -
Chun HaeEun Helen,
Park C. Whan,
Eisingerich Andreas B.,
MacInnis Deborah J.
Publication year - 2015
Publication title -
journal of consumer psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.433
H-Index - 110
eISSN - 1532-7663
pISSN - 1057-7408
DOI - 10.1016/j.jcps.2014.12.003
Subject(s) - brand extension , reputation , brand awareness , business , brand management , spillover effect , marketing , extension (predicate logic) , dual (grammatical number) , advertising , brand equity , economics , microeconomics , computer science , political science , art , programming language , literature , law
Brand extensions have the potential to both enhance liking of the brand extension and induce positive spillover effects on the parent brand. Such dual outcomes enhance the brand's growth potential. We propose and empirically demonstrate that three variables endemic to any brand extension decision (brand reputation, brand extension fit, brand extension benefit innovativeness) jointly impact these positive outcomes. For strong reputation brands, these dual outcomes are maximized when the brand extension is low in fit and offers innovative benefits because low fit motivates consumers to process innovative brand extension information more deeply. For weak reputation brands, these effects are maximized when the brand extension is high in fit and offers innovative benefits because high fit strengthens consumers' trust in the weak brand's ability to deliver promoted benefits. The results suggest two distinct brand growth strategies for strong and weak reputation brands respectively.