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Locus of Equity and Brand Extension

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  • van Osselaer, Stijn M J
  • Alba, Joseph W

Abstract

Prevailing wisdom assumes that brand equity increases when a brand touts its desirable attributes. We report conditions under which the use of attribute information to promote a product can shift the locus of equity from brand to attribute, thereby reducing the attractiveness of extension products. This effect is moderated by the degree of ambiguity in the learning environment, such that prevailing wisdom is refuted when ambiguity is low but is supported when ambiguity is high. Copyright 2003 by the University of Chicago.

Suggested Citation

  • van Osselaer, Stijn M J & Alba, Joseph W, 2003. "Locus of Equity and Brand Extension," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 539-550, March.
    • Handle: RePEc:oup:jconrs:v:29:y:2003:i:4:p:539-50
    DOI: 10.1086/346249
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    Cited by:

    1. Xin Xu & James Y. L. Thong & Viswanath Venkatesh, 2014. "Effects of ICT Service Innovation and Complementary Strategies on Brand Equity and Customer Loyalty in a Consumer Technology Market," Information Systems Research, INFORMS, vol. 25(4), pages 710-729, December.
    2. van Osselaer, S.M.J., 2004. "Of Rats and Brands: A Learning-and-Memory Perspective on Consumer Decisions," ERIM Inaugural Address Series Research in Management EIA-2004-023-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
    3. Mathew B. Chylinski & John H. Roberts & Bruce G. S. Hardie, 2012. "Consumer Learning of New Binary Attribute Importance Accounting for Priors, Bias, and Order Effects," Marketing Science, INFORMS, vol. 31(4), pages 549-566, July.
    4. Oxoby, Robert J & Finnigan, Hugh, 2005. "Developing Heuristic-Based Quality Judgements: Attention Blocking in Consumer Choice," MPRA Paper 1523, University Library of Munich, Germany.
    5. Goedertier, Frank & Dawar, Niraj & Geuens, Maggie & Weijters, Bert, 2015. "Brand typicality and distant novel extension acceptance: How risk-reduction counters low category fit," Journal of Business Research, Elsevier, vol. 68(1), pages 157-165.
    6. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    7. Lars Bergkvist & Martin Eisend, 2021. "The dynamic nature of marketing constructs," Journal of the Academy of Marketing Science, Springer, vol. 49(3), pages 521-541, May.

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