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The key of a brand extension success is the perceived fit between the brand extension with its parent brand. The brand extension success itself will usually result in a high consumer acceptance and a low introduction cost for the marketer. However, understanding of this perceived is still dominated by the need to have a product feature similarity between brand extension and its parent brand. This study, on the other hand, confirms few findings that the brand effect is a stronger influenced to perceived fit than product feature similarity. Using 4 consumer package brands, the experiment conducted in this study shows that brand effect measured through brand specific associations is a far more realible determinant in increasing the probability of success for a brand extension. In addition, this study also tested the impact of different brand extension strategy (direct and associative/indirect) to find that the both strategy will provide similar positive consumer evaluation if the brand specific associations are consistent, but the associative brand extension strategy may be a better choice undera lack of brand specific associations consistency but still with similarity in the product features. |
