Open AccessBrand Extensions: A Qualitative Meta-Analysis Of 20 Years Of Marketing Research
Author(s) -
Elise K. Prosser,
Melissa St. James
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v2i11.3857
Subject(s) - brand extension , advertising , brand management , brand equity , brand awareness , profitability index , product (mathematics) , marketing , business , qualitative analysis , corporate branding , qualitative research , sociology , mathematics , social science , geometry , finance
Brand extensions, or new product introductions under an existing brand name, have become increasingly popular over the past 20 years. Marketers tout brand extensions as enjoying higher market share and profitability than launching new brand names that require exorbitant advertising expenditures (Smith & Park 1992). According to some estimates, brand extensions account for more than 90% of new product introductions in some categories (Volckner & Sattler 2002). However, one study found that 27% of line extensions failed (Reddy, et al 1994). Furthermore, excessively stretching the brand to various products may risk brand dilution. A brand extension failure is seen as harming the parent brand. The authors provide a qualitative meta-analysis that summarizes sixty-three articles comprising the brand extension research over the past twenty years (1981-2000). They suggest three propositions that represent three major conclusions reached by the studies and present evidence of support for each.