Article2008

Retail brand extension—perceived fit, risks and trust

33 citations0/0 files storedJournal of Consumer Behaviour

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Consumer Behavior in Brand Consumption and Identification Customer Service Quality and Loyalty Consumer Market Behavior and Pricing

Abstract

Abstract This study examines consumer fit perception, risks and trust in retail brand extension in financial services. Respondents (324) living in Sheffield were involved in the consumer survey, conducted on three major British supermarkets. Mean scores were compared between four groups of respondents. Discriminant analysis was used to determine the factor(s) distinguishing the retailers. Retailers A and B were perceived as trusted brands with respect to financial services. Retailer A was perceived as a trusted brand regardless of the product category. Retailer B was seen as a trusted brand when product performance and financial risks were low while Retailer C was perceived unfit and risky by non‐users and the non‐intend‐to‐buy groups. Age, gender and income influenced fit, risks and trust perception. When consumers knew the store or were store loyal, they tended to trust the store brand extension whereas when consumers did not know or were new to the store, fit and risks were perceived. Implications for corporate branding, brand extension decision‐making and implementations are sought. Copyright © 2008 John Wiley & Sons, Ltd.

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References

1990Consumer Evaluations of Brand Extensions 1994A Model of Perceived Risk and Intended Risk-Handling Activity 1992The Effects of Sequential Introduction of Brand Extensions 1994Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality 1998Antecedents and consequences of trust and satisfaction in buyer‐seller relationships 1994Marketing Universals: Consumers' Use of Brand Name, Price, Physical Appearance, and Retailer Reputation as Signals of Product Quality 2005Does brand trust matter to brand equity?2000Consumer-level factors moderating the success of private label brands

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