Strategic Benefits of Low Fit Brand Extensions: When and Why?
Chun, HaeEun Helen; Par, C. Whan; Eisingerich, Andreas B.; MacInnis, Deborah J.
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.
brand extensions; spillover effects; brand management; brand schema; brand associations
Required Publisher Statement: © Elsevier. Final version published as: Chun, H., Park, C. W., Eisingerich, A. B., & MacInnis, D. J. (2015). Strategic benefits of low fit brand extensions: When and why? Journal of Consumer Psychology, 25(4), 577-595. doi:10.1016/j.jcps.2014.12.003This version of the work is released under at Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Reprinted with permission. All rights reserved.
Showing items related by title, author, creator and subject.
To Brand or Not to Brand? An Empirical Analysis of the Advantages and Disadvantages of Hotel Branding Sheinberg, Joshua (2021-05)Using a dataset with over 40,000 property-year observations of hotels in the United States from 2000-2019, we answer the question of whether or not branding a hotel is worth the extra costs incurred. Using a multivariate ...
Sovina, Jacob; Collins, Christopher J. (2003-01-01)[Excerpt] Despite the importance of the first stage of recruitment, there has been limited research regarding the factors that influence job seekers’ decisions during this stage or how firms can systematically impact those ...
Morgan, Michael S.; Dev, Chekitan (1994-01-01)Identification of a lodging brand's competitive set is a necessary prerequisite to the formulation of effective marketing strategies. The authors use analytical techniques established in empirical studies of consumer ...