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Consumer Reactions to Brand Extensions in a Competitive Context: Does Fit Still Matter?

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  • Sandra J. Milberg
  • Francisca Sinn
  • Ronald C. Goodstein

Abstract

Research indicates that reactions to brand extensions are influenced by the fit between the parent brand and the extension product category. The normative nature of this effect is limited because assessments of brand extensions are typically obtained in the absence of competition. The boundaries of prior research are investigated by testing whether the fit-extension relationship generalizes to scenarios that include relatively more or less familiar competitor brands. Support is found for this relationship in noncompetitive scenarios but is diminished by competitors' relative brand familiarity. Perceived risk mediates the effects of fit in noncompetitive settings and competitor brand familiarity in competitive settings. (c) 2010 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Sandra J. Milberg & Francisca Sinn & Ronald C. Goodstein, 2010. "Consumer Reactions to Brand Extensions in a Competitive Context: Does Fit Still Matter?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(3), pages 543-553, October.
    • Handle: RePEc:oup:jconrs:v:37:y:2010:i:3:p:543-553
    DOI: 10.1086/653099
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    Cited by:

    1. Zheng, Xiaoying & Baskin, Ernest & Dhar, Ravi, 2019. "By-Brand or By-Category? The Effect of Display Format on Brand Extension Evaluation," Journal of Retailing, Elsevier, vol. 95(3), pages 76-85.
    2. Nicolas Pontes & Vivian Pontes, 2021. "Spillover effects of competitive rivalry on brand extensions," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 402-412, July.
    3. Deng, Qian (Claire) & Messinger, Paul R., 2022. "Dimensions of brand-extension fit," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 764-787.
    4. Pontes, Nicolas & Palmeira, Mauricio & Jevons, Colin, 2017. "Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 209-218.
    5. Beichen Liang & Wei Fu, 2021. "The choice of brand extension: the moderating role of brand loyalty on fit and brand familiarity," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(1), pages 17-32, March.
    6. Bernhard Swoboda & Carolina Sinning, 2021. "Endorsement of Global Product Brands by Global Corporate Brands – A Consumer Perspective Across Nations," Management International Review, Springer, vol. 61(4), pages 563-598, August.
    7. Chung-Yu Wang & Li-Wei Wu & Chen-Yu Lin & Ruei-Jie Chen, 2017. "Purchase Intention toward the Extension and Parent Brand: The Role of Brand Commitment," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(1), pages 83-103, February.
    8. Vibhuti Tripathi & Pooja Rastogi & Suresh Kumar, 2018. "Direct and Moderating Influence of Perceived Fit, Risk and Parent Brand Trust on Brand Extension Success of a Personal Care Brand in India," Global Business Review, International Management Institute, vol. 19(6), pages 1681-1692, December.
    9. Chandan A. Chavadi & Monika Sirothiya & Sindhu R. Menon & Vishwanatha M R, 2023. "Modelling the Effects of Social Media–based Brand Communities on Brand Trust, Brand Equity and Consumer Response," Vikalpa: The Journal for Decision Makers, , vol. 48(2), pages 114-141, June.
    10. Wang, Haizhong & Liu, Di, 2020. "The differentiated impact of perceived brand competence type on brand extension evaluation," Journal of Business Research, Elsevier, vol. 117(C), pages 400-410.
    11. Celedon, Paulina & Milberg, Sandra & Sinn, Francisca, 2013. "Attraction and superiority effects in the Chilean marketplace: Do they exist with real brands?," Journal of Business Research, Elsevier, vol. 66(10), pages 1780-1786.
    12. Felix Eggers & Fabian Eggers, 2022. "Drivers of autonomous vehicles—analyzing consumer preferences for self-driving car brand extensions," Marketing Letters, Springer, vol. 33(1), pages 89-112, March.
    13. Deborah Roedder John, 2016. "Customer-based strategic brand management: past progress and future challenges," AMS Review, Springer;Academy of Marketing Science, vol. 6(1), pages 17-22, June.
    14. Henkel, Laura & Toporowski, Waldemar, 2021. "Hurry up! The effect of pop-up stores’ ephemerality on consumers’ intention to visit," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    15. Jewell, Robert D. & Saenger, Christina, 2014. "Associative and dissociative comparative advertising strategies in broadening brand positioning," Journal of Business Research, Elsevier, vol. 67(7), pages 1559-1566.
    16. Scott Motyka & Dhruv Grewal & Elizabeth Aguirre & Dominik Mahr & Ko Ruyter & Martin Wetzels, 2018. "The emotional review–reward effect: how do reviews increase impulsivity?," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1032-1051, November.
    17. Kevin Lane Keller, 2016. "Reflections on customer-based brand equity: perspectives, progress, and priorities," AMS Review, Springer;Academy of Marketing Science, vol. 6(1), pages 1-16, June.
    18. Riganelli, Chiara & Marchini, Andrea & Polenzani, Bianca & Martino, Gaetano, 2018. "Strategies of Diversification and Brand Extension in SME Food Companies: Which Factors Might Affect the Impact of Consumers’ Preferences," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(2), March.
    19. 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.
    20. Andreas Hesse & Karolin Bündgen & Saskia Claren & Sarah Frank, 2022. "Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts," Journal of Brand Management, Palgrave Macmillan, vol. 29(6), pages 520-537, November.
    21. Mameno, Kota & Kubo, Takahiro & Ujiie, Kiyokazu & Shoji, Yasushi, 2023. "Flagship species and certification types affect consumer preferences for wildlife-friendly rice labels," Ecological Economics, Elsevier, vol. 204(PB).
    22. Klein, Jan F. & Falk, Tomas & Esch, Franz-Rudolf & Gloukhovtsev, Alexei, 2016. "Linking pop-up brand stores to brand experience and word of mouth: The case of luxury retail," Journal of Business Research, Elsevier, vol. 69(12), pages 5761-5767.
    23. Kronrod, Ann & Lowrey, Tina M., 2016. "Tastlé-Nestlé, Toogle-Google: The effects of similarity to familiar brand names in brand name innovation," Journal of Business Research, Elsevier, vol. 69(3), pages 1182-1189.

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