A Model of Consumer Evaluation of Brand Extensions

Current research has shown that consumers’ attitudes towards brand extensions is a function of brand affect, and similarity between parent and extension product categories. Research has also stressed on the importance of the brand specific association in the evaluation of the extension. We develop a model of evaluation of brand extensions with the variables of relevance of the brand’s specific association in the extension category and typicality of the brand in its original category. We find that consumers’ attitudes are mainly a function of brand affect, relevance of parent brand specific association in extension, and similarity of parent and extension categories by physical features. Relevance of association is found to be more important than similarity between parent and extension categories in the evaluation of extensions by consumers. However, we find no evidence that the presence of a relevant association helps a brand to extend to dissimilar categories. Brand affect is moderated by similarity between parent and extension categories and typicality of the parent brand. Similarity between parent and extension categories helps in transfer of affect from parent brand to extension. However high typicality of brands seem to deter transfer of affect to extensions.