Expanding the boundary of brand extensions through brand relationship quality

Abstract

Research on brand extensions identifies the concept of perceived fit as the prime determinant of success. Yet, it is not difficult to find examples of brands that have been extended successfully into “perceptually distant” domains. In an attempt to resolve this discrepancy between research insights and practical experiences, the study investigates the role of Brand Relationship Quality (BRQ) as a critical factor determining consumer responses to brand extensions. The proposed model is tested separately in the context of three different fit scenarios (high, moderate, and low) with data from 502 consumers. The results indicate that BRQ and perceived fit exert independent effects on consumer responses and complement each other as they jointly influence evaluations of brand extensions. The study therefore extends existing theory by providing evidence that the brand extension phenomenon cannot be explained justly without including constructs that portray personal relationships consumers develop with brands and provides insights for marketers and researchers as to how such relationships can be integrated in formulations of successful brand extension strategies.

Keywords:

• brand extension
• brand relationship quality
• perceived fit
• consumer behaviour
• consumer responses
• brand management

JEL Classification:

• M31

Additional information

Notes on contributors

Esra Arikan

Esra ARIKAN, PhD, is an Assistant Professor of marketing at Istanbul Bilgi University, Turkey. She received her PhD in marketing from Bogazici University in 2010. Her research interests focus on consumer-brand relationships, brand extensions and services encounters.

Cengiz Yilmaz

Cengiz YILMAZ, PhD, is a Professor of marketing at Middle East Technical University, Turkey. He received his PhD in marketing from Texas Tech University in 1999. His research interests focus on distribution channels and relationship marketing, emerging technologies and their impacts on marketing applications, strategic issues concerning intra and inter-firm aspects in marketing systems and their links with business performance. His research has been published in several scholarly journals including Journal of the Academy of Marketing Science, European Journal of Marketing, Journal of Business Research, Industrial Marketing Management and Journal of World Business.

Muzaffer Bodur

Muzaffer BODUR, PhD, is a Professor of marketing and international business at Bogazici University, Turkey. She received her PhD from Indiana University. Her publications focus on business cultures and internationalization of firms and marketing strategies of multinational firms in emerging markets. Her research has been published in several scholarly journals including European Journal of Marketing, Journal of World Business, International Journal of Advertising, Journal of International Business Studies and Journal of International Management.