Extending the brand: controllable drivers of feedback effects

Abstract

Purpose The purpose of this paper is to understand how companies can leverage brand image through brand extensions without harming their image. It specifically seeks to analyse the influence of three variables: communication policy, brand breadth and extension‐brand fit. Design/methodology/approach Data were obtained from 599 individuals who took part in an experiment. The proposed hypotheses were tested by means of ANOVA methodology. Findings The results show that brand extensions far from the current markets damage the brand associations, although the use of advertising focused on the new product can reduce this negative effect. Moreover, feedback effects are less negative when the brand has not been over‐extended in the past. Research limitations/implications With the aim of increasing the external validity of results, non‐fictitious products and ads should be analysed. Moreover, the conceptual framework does not consider other communication tools like sponsorship or publicity. Practical implications The results suggest how to manage the launching of brand extensions in order to protect the extended brand image. It shows what kind of advertising is more appropriate for marketing extensions as well as role of brand breadth and perceived fit. Originality/value The paper examines the effect of different strategies in the consumer response toward extended brands. It focuses on variables that can be controlled by companies.

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