Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote
wave

Familiarity with the brand

Discuss about the Impact of brand extension strategy on parent brand.

Brand extension is a very important concept in the world of manufacturing of products and services and in the world of marketing. According to Rastogi (2012), brand extension refers to the marketing strategy of the firms in which, the firms utilize the established brand name or image of a product or service in promoting another product or service of a diverse category. The new type of the product is known as Spin-off. This strategy is used to increase the brand equity and leverage. This strategy is quite helpful in increasing not only the brand awareness among people, but also the profitability from the productions of more than one type of products (Hameed et al. 2014). Personal care industry, where consumer products are produced for beautification and personal hygiene, is one where there is huge scope for brand extensions and through the research paper, the aspects and impact of brand extensions in this industry will be examined.

As stated by Martinez, Polo and de Chernatony (2008), brand extension can add something more to the parent brand image or it may dilute core image. Hence, the impact of the brand extension is often ambiguous. Brand extension is horizontal and vertical. When the existing brand name is utilized to widen the same class of products or add up to the category, it is known as horizontal extension. On the other side, when a new product is launched within the same category with a different level of quality and price, it is known as vertical extension (Liu, Ng and Lim 2015). Inappropriate extension can cause serious harm to the parent brand. Dens and De Pelsmacker (2010) state that, brand extension strategies have good amount of risk as these are not always convenient for all brands. On the other hand, it is seen that in many cases brand extension has helped the parent brand to stay ahead in the industry. For example, Unilever is a big umbrella in personal care industry with a huge number of product categories. Any brand extension under Unilever will always have a good impact on the company as they already have an established customer base.

As stated by Chung and Kim (2014), perceived brand fit refers to the appropriateness of the new brand in the scope of the parent brand. In other words, brand fit represents the idea of how well the new brand will fit into the existing image and if that fits well, the parent brand will going to gain advantage in terms of profit. Customers easily accept the brand extension if that has a high fit with the parent brand in the product category. Dall’Olmo Riley, Hand and Guido (2014) highlight that, this fit depends on the transfer of current assets or skills in making the new product or brand, perceived class complementarity and substitutability. This fit influences the attitude of the customers towards the brand extension. This is shown as H1 (hypothesis 1) in the conceptual framework.

Brand familiarity in short and long run

Brand familiarity is an essential factor that influences the customers’ attitude towards the product and in turn, influences the sales volume of a company. Brand familiarity is created through advertisement in the short run and quality in the long run (Tsai et al. 2014). Any new brand extension must be intimated to the customers and the only way to do it is to promote the product in print and digital media and by putting the product directly on the shelves of the stores. On one hand, this helps in the success of brand extension; on the other hand, it enhances the brand fit. H2 depicts this relationship in the conceptual framework.

Parent brand quality is a determining factor of the brand extension attitude of the product company. It gives a company the confidence to think about brand extension. As stated by Chen and Liu (2004), when a company develops a good brand image for its product quality, it can utilize its reputation to launch a new brand under the same umbrella, as in the case of Unilever. As people are already familiar with the brand due to good quality, they would keep their faith on the new product. The opposite happens in case of a bad quality product. Hence, quality of the parent brand is extremely important for both the manufacturers and customers during brand extension. H3 addresses the impact of parent brand quality on the brand extension attitude.

The attitude towards brand extension comes from the above three factors, namely, perceived fit, brand familiarity and parent brand quality of the product. This is referred to as the overall evaluation of the product or brand by the customers. The attitude that the customers have towards a brand is the determinant of the purchasing decision and if they would accept the brand extension (Czellar 2003). Negative attitude can develop due to many factors, such as, poor quality, poor after sales service, inappropriate price etc. and once it is developed, people will never accept the brand extension under that umbrella. Hence, before the extension of brand, the parent brands must put emphasis on providing a good quality product, create a high fit with the new product and establish a good image. Brand extension attitude has a positive impact on the brand image and it is depicted through H7.

The parent brand image is a determinant as well as determined factor in brand extension. Müge Arslan and Korkut Altuna (2010) highlight that, the initial parent brand image helps in developing a perceived fit for the new brand and familiarity among the customers. This in turn results in creation of brand extension attitude, which contributes in the growth of the parent brand image. Brand extension attitude is appropriate for products with high quality and image and that leads to further growth of the parent brand image (Michel and Donthu 2014). Thus, these factors are interrelated and have strong impact on each other.

All the previous literatures have addressed various important factors that determine the brand extension and its impact. There are other two important factors that have not been addressed by these authors. The direct impact of the perceived fit, brand familiarity and parent brand quality on the parent brand image (shown as H4, H5 and H6 in the conceptual framework) in personal care industry and how ultimately the customers’ focus shifts from fit to quality are not highlighted in the previous literatures. The research proposal aims to find out the direct relationship among the above mentioned factors and the change in brand extension attitude due to quality.

  1. Brand Extension Strategies
  2. Perceived Brand Fit
  3. Familiarity with the Brand
  4. Parent Brand Quality

Mediating variable : Attitude towards Brand Extension

Dependent variables : Parent Brand Image

References

Chen, K. and Liu, C., 2004. Positive brand extension trial and choice of parent brand. Journal of Product & Brand Management, [online] 13(1), pp.25-36. Available at: https://doi.org/10.1108/10610420410523821 [Accessed 3 Mar. 2018].

Chung, H. and Kim, S., 2014. Effects of brand trust, perceived fit and consumer innovativeness on fashion brand extension evaluation. Atlantic Marketing Journal, [online] 3(1), pp.91-113. Available at: https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?referer=https://www.google.co.in/&httpsredir=1&article=1047&context=amj [Accessed 3 Mar. 2018].

Czellar, S., 2003. Consumer attitude toward brand extensions: an integrative model and research propositions. International Journal of Research in Marketing, [online] 20(1), pp.97-115. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0167811602001246 [Accessed 3 Mar. 2018].

Dall’Olmo Riley, F., Hand, C. and Guido, F., 2014. Evaluating brand extensions, fit perceptions and post-extension brand image: does size matter?. Journal of Marketing Management, 30(9-10), pp.904-924.

Dens, N. and De Pelsmacker, P., 2010. Attitudes toward the extension and parent brand in response to extension advertising. Journal of Business Research, 63, pp.1237–1244.

Hameed, A., Saleem, S., Rashid, M. and Aslam, R., 2014. The Impact of Brand Extension on Parent Brand Image. International Journal of Humanities and Social Science, [online] 4(2). Available at: https://www.ijhssnet.com/journals/Vol_4_No_2_Special_Issue_January_2014/24.pdf [Accessed 3 Mar. 2018].

Liu, J., Ng, S. and Lim, E., 2015. Moving Up Or Down: Power Distance Belief and the Asymmetric Effect of Vertical Brand Extension. ACR Asia-Pacific Advances.

Martínez Salinas, E., Miguel, J. and Pérez, P., 2009. Modeling the brand extensions' influence on brand image. Journal of Business Research, 62, pp.50-60.

Martinez, E., Polo, Y. and de Chernatony, L., 2008. Effect of brand extension strategies on brand image: A comparative study of the UK and Spanish markets. International Marketing Review, [online] 25(1), pp.107-137. Available at: https://doi.org/10.1108/02651330810851908 [Accessed 3 Mar. 2018].

Michel, G. and Donthu, N., 2014. Why negative brand extension evaluations do not always negatively affect the brand: The role of central and peripheral brand associations. Journal of Business Research, 67(12), pp.2611-2619.

Müge Arslan, F. and Korkut Altuna, O., 2010. The effect of brand extensions on product brand image. Journal of Product & Brand Management, [online] 19(3), pp.170-180. Available at: https://doi.org/10.1108/10610421011046157 [Accessed 3 Mar. 2018].

Rastogi, P., 2012. Effect of Brand Extensions on Parent Brand. Global Journal of Commerce and Management Perspective, [online] 1(1), pp.29-33. Available at: https://gifre.org/library/upload/volume/29-33-vol-1-1-12-gjcmp.pdf [Accessed 3 Mar. 2018].

Tsai, M.C., Lou, Y.C., Bei, L.T. and Monroe, K.B., 2014. Position matters when we stand together: a linguistic perspective on composite brand extensions. Journal of the Academy of Marketing Science, 42(6), pp.680-701

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Perceived Brand Fit. Retrieved from https://myassignmenthelp.com/free-samples/impact-of-brand-extension-strategy-on-parent-brand.

My Assignment Help (2019) Perceived Brand Fit [Online]. Available from: https://myassignmenthelp.com/free-samples/impact-of-brand-extension-strategy-on-parent-brand
[Accessed 17 July 2024].

My Assignment Help. 'Perceived Brand Fit' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/impact-of-brand-extension-strategy-on-parent-brand> accessed 17 July 2024.

My Assignment Help. Perceived Brand Fit [Internet]. My Assignment Help. 2019 [cited 17 July 2024]. Available from: https://myassignmenthelp.com/free-samples/impact-of-brand-extension-strategy-on-parent-brand.

Get instant help from 5000+ experts for
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing: Proofread your work by experts and improve grade at Lowest cost

loader
250 words
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Plagiarism checker
Verify originality of an essay
essay
Generate unique essays in a jiffy
Plagiarism checker
Cite sources with ease
support
Whatsapp
callback
sales
sales chat
Whatsapp
callback
sales chat
close