Consumer Evaluations of Brand Extensions
David A. Aaker & Kevin Lane Keller
Brand extension is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organisations use this strategy to increase and leverage brand equity An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category.A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals.Apple brand successfully extended from ipod to music store.From 1977 to 1984 aproximately 40% of the 120 to 175 new brands that were introduce into supermarkets annually were extensions.In 1986 more than $ 15 billion in retail sales and mora than % 34 of apparel and accessory sales comprised products that were licenses or trade marks of brand names.
Brand extension are attractive to firms that face the reality of high new product failure rates.It has taken advantage brand name recognition and image to enter new market.Consumer who is knowladge about an established in product.Moreover brand extansion can increase the efficeny of promotional expenditures.
Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it. This means the market is catered for as they are receiving a product from a brand they trust and Coca Cola is catered for as they can increase their product portfolio and they have a larger hold over the market in which they are performing in.
Brand extension depends on some assumptions as consumers have positive think and acceptable attitudes toward the original brand in consumer’s memory,these positive associations facilite the formation of positive think and acceptable attitides toward to brand extantion and negative associations do not effected on brand extention.
This article consist of two studies which name are extension reaction study and extension positioning study.First of all extension reaction study is about explored how an attitude toward a brand extension is formed.
Brand attribute association; this is a great variety of associations with the brand could potentially transferred to the extension.Associations have been created in the minds of many consumers such as; BMW cars and performance Apple and user friendliness.In addition to this a brand can have association with a use situation like Mercedes with wealthy and Toyotta with Japan.In some cases brand association can be harmful to the extension for instance the Betty Croker attribute association might be wieved as negative if the name use on a fashion product design to appeal to young women.
Attitude toward the original brand;brand attitude is based on certain attributes such as durability, incidence of defects, serviceability, features, performance.But it may also contain affect affect which is not reflected in the measured attributes even when a large set of attributes is inclued.Consumers perception of the quality of brand is a very important subject for brand extension.If the brand associated waith high quality the extension will be benefit the other side it is associated with inferrior quality the extendion will be harmed.Higher quality brand towards the original brand are associated with more favorable attitudes toward the extension.
Fit between the original and extension product classes;prior brand extension has explained mainly the role of fit or similarity between the two involved product classes in the formation of brand extansion evaluations.The transfer of a brand’s perceived quality is enhanced when the two product classes in some way fit together.When the fit is weak, the transfer is inhibited.The fit between the two involved product classes has a direct positive association with attitude toward the extension.The relationship between the difficulty of makingthe product class of extension ,difficult, and the attitude toward the extension is positive.
The extension positioning study has two approach.First approach is to provide a cue to consumers on the general quality of the original brand,so that positive aspects of the brand will be more salient and negative elements less salient in the new context.Second approach is to elaborate on a brand extension attribute to inhibit the development of any potentially negative belifs that consumer may infer.
To sum up;the extension reaction study was an exploratory study motivated by hypotheses that brand extension attitudes are influeced by the perceived quality of the brand name and the fit between the two product classes.An important strategic issue is the impact of extension on the original brand.
Tuba Gürsoylu
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