Article2013

Brand‐extension feedback effects: an Asian branding perspective

22 citations0/0 files storedAsia Pacific Journal of Marketing and Logistics

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Consumer Behavior in Brand Consumption and Identification Marketing and Advertising Strategies Corporate Identity and Reputation

Abstract

Purpose Most of the literature on feedback effects emanates from the West, and is thus relevant to Western brands. The purpose of this paper is to model the impact of brand‐extensions on parent brand‐equity within the Asian (specifically Indian) context. Additionally, parent brand trust is examined as a new antecedent of brand‐extension feedback. Design/methodology/approach Scenario of an Indian product brand hypothetically entering the service sector is chosen as stimulus in the study. A cross‐sectional survey of 327 Generation‐Y respondents is conducted. Structural equation modeling is used for testing the conceptual model. Findings The model of brand‐extension feedback fits the data adequately, and five of the six hypotheses are supported. Brand‐extension attitude significantly impacts change in brand‐equity, which is consistent with the extant Western literature. Parent brand trust has a strong impact on change in brand‐equity of a parent brand. Practical implications The role and impact of parent brand trust is particularly important in the Asian context. Thus, prior to embarking on a brand‐extension decision, an audit of parent brand trust is recommended. Further, this research opens up newer brand‐extension possibilities for brand managers contemplating brand‐extensions. Originality/value This research is a first‐of‐its‐kind from the Asian region (specifically, India) to measure brand‐extension feedback effects on change in brand‐equity of a parent brand. Parent brand trust is introduced as a new antecedent of brand‐extension feedback.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1999Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives 2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1989Structural Equations with Latent Variables 1987Developing Buyer-Seller Relationships 1998Consumers and Their Brands: Developing Relationship Theory in Consumer Research 1994Determinants of Long-Term Orientation in Buyer-Seller Relationships 2001The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty

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2017Evaluating the Feedback Effects of Brand Extension on Parent Brand Equity: A Study on Indian FMCG Industry 2018An Integrated SEM Neural Network Approach to Study Effectiveness of Brand Extension in Indian FMCG Industry 2019Consumer attitudes toward downward extensions: an exploration of Giordano’s extension in Hong Kong 2015Consumer evaluation of brand extensions: Comparing goods to goods brand extensions with goods to services

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