Brand Stretch: Why 1 in 2 Extensions fail, and how to beat the odds
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State Library Victoria. The University of Melbourne. The University of Queensland. However, neither study tests brand extension in the context of alternative factors that others have proposed could explain extension success, those being similarity of fit Aaker and Keller , parent brand prototypicality Farquar and Herr and the relevance of brand specific associations in the extension category Broniarczyk and Alba Also included in our model is a factor hypothesized to mediate the effect of parent brand attitude, that being parent brand prototypicality.
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We test a model of extension efficacy whose scope, design, method, and means of analysis take it past the limitations of prior studies. Specifically, we: 1 review the literature on brand extension; 2 present a theoretical framework which identifies the main factors that determine attitude toward a brand extension, including those factors that represent alternative explanations for brand extension, and limiting factors to brand extension; 3 provide a methodology that allows the researcher to decompose and estimate the relative effects of each of these factors within and across brands, as well as the special case of distant extensions; 4 provide an empirical test of the framework's predictions; 5 extend these findings to India; and, 6 discuss managerial implications.
Alternative explanations for brand extension success have been put forward. Van Osselaer and Alba argue that parent brand attribute beliefs ie. An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.
Read preview. Introduction Though there have been many successful launches of new products as brand extensions in the last 30 years, there have also been many failures Reddy, Holak and Bhat ; Taylor ; Trout and Ries , a record that should call into question the efficacy of brand extension far more than it has. Parent brand attitude and brand specific associations relevant to the extension category Alternative explanations for brand extension success have been put forward.