Research insights of brand extensions:
Academics have studied brand extensions closely. Here is a summary of some of their research findings.
- Successful brand extensions occur when parent brand is seen having favorable associations and there is a perception fit between parent brand and the extension product.
- There are many bases of fit : product related attributes,and benefits as well as non product related attributes an benefits related to common usage situations and user type.
- Depending on consumer knowledge of the categories ,perceptions of fit may be based on technical or manufacturing commanalities or more surface considerations such as necessary or situational complementarity.
- High quality brands stretch farther than average quality brands.although both the types of brands have boundaries .
- Concrete attribute associations tend to be more difficult to extend than abstract benefit associations.
- It can be difficult to extend into a product class that is seen easy to make.
- A successful brand extension cannot only contribute to the parent brand image but also enables a brand to extend even further.
- An unsuccessful extension hurts the parent brand only when there is strong basis of fit between the two.
- An unsuccessful extension doesnot prevent a firm from backtracking and introducing similar extensions.
- Vertical extensions could be difficult and may require sub branding strategies.
- The most effective advertising strategies for an extension emphasies information about extensions rather than reminders about parent brand.
- And most importantly,consumers may transfer associations that are positive in original product class but becomes negative in extension context.
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