Diminishing effects of perceived fit on vertical extensions

Pontes, Nicolas, Palmeira, Mauricio, & Jevons, Colin (2012) Diminishing effects of perceived fit on vertical extensions. In American Marketing Association Summer Educators’ Conference, 17-19 August 2012, Chicago, IL.

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A common finding in brand extension literature is that extension’s favorability is a function of the perceived fit between the parent brand and its extension (Aaker and Keller 1990; Park, Milberg, and Lawson 1991; Volckner and Sattler 2006) that is partially mediated by perceptions of risk (Milberg, Sinn, and Goodstein 2010; Smith and Andrews 1995). In other words, as fit between the parent brand and its extension increases, parent brand beliefs become more readily available, thus increasing consumer certainty and confidence about the new extension, which results in more positive evaluations. On the other hand, as perceived fit decreases, consumer certainty about the parent brand’s ability to introduce the extension is reduced, leading to more negative evaluations. Building on the notion that perceived fit of vertical line extensions is a function of the price/quality distance between parent brand and its extension (Lei, de Ruyter, and Wetzels 2008), traditional brand extension knowledge predicts a directionally consistent impact of perceived fit on evaluations of vertical extensions. Hence, vertical (upscale or downscale) extensions that are placed closer to the parent brand in the price/quality spectrum should lead to higher favorability ratings compared to more distant ones.

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ID Code: 79689
Item Type: Conference Item (Other)
Refereed: Yes
Additional URLs:
ISBN: 9781622765393
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Advertising, Marketing & Public Relations
Copyright Owner: Copyright 2012 [Please consult the author]
Deposited On: 21 Jan 2016 02:40
Last Modified: 24 Jan 2016 06:06

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