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EJM forty-four, 7/8
Client responses to brand exts: a comprehensive style ´ ´ Eva Martınez and Jose M. Levantarse
´ Capacidad de Ciencias Economicas con Empresariales, The University of Zaragoza, Zaragoza, Spain Fuzy
Purpose – This newspaper aims to understand the reciprocal spill-over effects of company extensions by simply testing a thorough model that gathers both brand expansion evaluation method and the later on inﬂuence on brand graphic. Design/methodology/approach – Data had been obtained from 699 face-to-face interviews conducted in Spain. Structural formula modelling utilized to test the proposed ideas. Findings – The results indicate that brand extensions have feedback effects on brand photo depending on the frame of mind toward the newest product and perceived picture ﬁt. Buyer attitude is dependent, in turn, about initial manufacturer associations, identified category ﬁt, perceived picture ﬁt and consumer innovations. Brand familiarity also shows indirect effects. Research limitations/implications – The model ought to be tested with extensions of the identical (line extensions) or diverse categories. Also, it is necessary to examine non-ﬁctitious goods, and to have different moderating effects into consideration. Practical ramifications – The results advise how to protect the brand image from improper extension approaches. The conventional paper shows what style of identified ﬁt much more important for customers as well as the direct and indirect role of several factors. Originality/value – The conventional paper extends prior research simply by proposing a complete framework that considers the factors that inﬂuence possibly the frame of mind to the extension or the attitude to the prolonged brand. Keywords Brand extensions, Brand graphic, Brand equity, Consumer actions, Spain Daily news type Study paper
Received January 2008 Revised October 08 January 2009 Accepted Feb . 2009
Introduction Brand extendable is a strategy that many businesses follow with all the aim of beneﬁting from the brand knowledge achieved in the current market segments (Aaker and Keller, 1990; Milberg ainsi que al., 1997). When a new product is promoted under a well-known brand name, inability rates and marketing costs are reduced (Milewicz and Herbig, 1994; Keller, 2003). Keller (2003) states more than eighty per cent of ﬁrms use brand extensions as a way of marketing goods and services. The support the brand provides to the cool product often brings about a change from the brand image organizations. Both the passion and the speciﬁc knowledge linked to the brand as well as the new product happen to be interchanged inside the consumers' brain (Czellar, 2003). European Record of Marketing Vol. 44 No . 7/8, 2010 pp. 1182-1205 q Emerald green Group Publishing Limited 0309-0566 DOI 15. 1108/03090561011047580
The authors would like to thank the next sources for his or her ﬁnancial support: CICYT (Ref: ´ SEJ2005-02315) and Government of Aragon (" GENERES”, Ref. S-09; " PM0262/2006”). They also gratefully acknowledge the constructive feedback of the three anonymous EJM reviewers.
This feedback process can boost the memory and strength of brand name associations (Morrin, 1999; Aaker, 2002) and, thus, increase the positioning of the trademark (Park et al., 1986). Nevertheless, a lot of authors suggest that the dilution of current beliefs is likely (Tauber, 1988; Ries and Trout, 93; John ou al., 1998). This dilution effect may take place however the extension can be not related to negative information (Morrin, 1999; ´ Ahluwalia and Gurhan-Canli, 2000; Martınez and Levantarse, 2003). Virgin, for instance, a well-known company, that has expanded through exts into the audiovisual sector, selling, alcoholic beverages, passenger transportation (by train and air) and space tourism, and others. However , market research studies suggest that customers' perceptions of the Virgin brand generally depend on the performance with the airline, which will implies a consistent threat...