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There is still very little study on the impact of brand extension toward its parent brand. In general, if the brand extension is successful, positive impact is perceived to occur toward the parent brand. But what happens on the other way around, if a brand extension fails in the market does a negative reciprocity toward the parent brand occur? This study tries to answer this phenomenon by an experiment that creates manipulation of partial fit and low perceived fit of the brand extension. The results how's that an associative brand extension strategy is able to create la lower negative reciprocity effect compared to a direct brand extension strategy under both partial fit and low perceived fit condition. This implies that the under the partial fit and low perceived fit condition of a brand extension, an associative brand strategy is better choice of decision for marketers. |
