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The Role of Corporate Image and Extension Similarity in Service Brand Extensions

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  • Ruyter,Ko,de
  • Wetzels,Martin

    (METEOR)

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    Abstract

    In this article we examine the role of corporate image in extending service brands to new and traditional markets in the telecommunications sector. With regards to corporate image, service brand extensions are primarily associated with innovation-related attributes, such as order of entry (i.e., pioneers versus followers). Increasingly, firms are extending their services to markets that are beyond the markets that they traditionally have been active in. The results of an experimental study show that consumers evaluate service extensions by providers with an innovative late mover image more favourably that service extensions by companies with a pioneer image in terms of perceived corporate credibility and expected service quality. With regards to these evaluation criteria, it was also found that consumers prefer service brand extensions to related rather than unrelated markets. In addition we find that the relative distance between service providers with an innovative late mover image and pioneers is larger in related markets.

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    File URL: http://edocs.ub.unimaas.nl/loader/file.asp?id=354
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    Bibliographic Info

    Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 005.

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    Date of creation: 2000
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    Handle: RePEc:dgr:umamet:2000005

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    Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

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    Keywords: marketing ;

    References

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    1. Sternthal, Brian & Tybout, Alice M & Calder, Bobby J, 1987. " Confirmatory versus Comparative Approaches to Judging Theory Tests," Journal of Consumer Research, University of Chicago Press, vol. 14(1), pages 114-25, June.
    2. Douglas Bowman & Hubert Gatignon, 1996. "Order of Entry as a Moderator of the Effect of the Marketing Mix on Market Share," Marketing Science, INFORMS, vol. 15(3), pages 222-242.
    3. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. " Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, University of Chicago Press, vol. 18(2), pages 185-93, September.
    4. Raymond Hubbard & JS Armstrong, 2005. "Replications and Extensions in Marketing – Rarely Published But Quite Contrary," General Economics and Teaching 0502051, EconWPA.
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    Cited by:
    1. Martínez, Eva & Montaner, Teresa & Pina, José M., 2009. "Brand extension feedback: The role of advertising," Journal of Business Research, Elsevier, vol. 62(3), pages 305-313, March.
    2. Dens, Nathalie & De Pelsmacker, Patrick, 2010. "Attitudes toward the extension and parent brand in response to extension advertising," Journal of Business Research, Elsevier, vol. 63(11), pages 1237-1244, November.
    3. James Liou & Mei-Ling Chuang, 2010. "Evaluating corporate image and reputation using fuzzy MCDM approach in airline market," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(6), pages 1079-1091, October.

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