Brand extension feedback effects: What do we know and where should we go?
| DOI | https://doi.org/10.1108/JPBM-01-2016-1087 |
| Pages | 671-689 |
| Date | 20 November 2017 |
| Published date | 20 November 2017 |
| Author | Michelle Childs |
| Subject Matter | Marketing,Product management,Brand management/equity |
Brand extension feedback effects: What do we
know and where should we go?
Michelle Childs
Department of Retail, Hospitality and Tourism Management, University of Tennessee, Knoxville, Tennessee, USA
Abstract
Purpose –The purpose of this study is to review and summarise the current body of literature on brand extension feedback effects and to identify
which research issues are inhibiting advancement in this stream of literature. Based on this analysis, suggestions for future research are provided.
Design/methodology/approach –In a systematic literature review, criteria were used to identify relevant journal publication s that have
specifically investigated brand extension feedback effects (n= 53). Research articles were subsequently evaluated for further analysis.
Findings –Several issues may inhibit advancement in the literature on brand extension feedback effects. These include issues related the
conceptual, methodological and context of research, as well as related to the consumer, product, brand and marketing. Specific research questions
are provided which address issues found in this literature stream.
Research limitations/implications –This paper aims to resolve issues in research on brand extension feedback effects to facilitate more rapid
advancement in this stream of literature.
Originality/value –This research fills a need to summarise the current state of the literature and identifies research is sues that need to be
addressed in the future.
Keywords Brand image, Systematic literature review, Brand extension, Feedback effects, Parent brand dilution
Paper type Literature review
Introduction
The high costs associated with developing and launching new
products make brand extensions appear particularly attractive
to marketers (Kapoor, 2005;Keller, 1993). These brand
extensions enable companies to capitalise on the brand equity
that they have developed over the years by entering a new
product category or offering a new product class under the
parent brand (Keller and Aaker, 1992). For example, Ralph
Lauren, an apparel brand, has extended into home goods and
apparel lines at different price points. Launching a brand
extension might yield a number of potential advantages. A
brand extension promotes consumer awareness because
consumers are already familiarwith the parent brand (Kapferer
and Bastien, 2009;Magnoni and Roux, 2008;Phau and
Cheong, 2009;Vukasovi
c, 2009) and may even enhance the
image of the parent brand (Zimmer and Bhat, 2004).
Moreover, brand extensions often have high potential for
survival in the marketplace(Martinez and Pina, 2003;Sullivan,
1992). However, there also exists high potential for a brand
extension to harm the parent brand’s image through brand
dilution (Martinez and Pina, 2003). This has emerged as a
major concern because the parent brand often generates the
most revenue for a company (Thorbjørnsen, 2005). For
example, Pierre Cardin, a once respected high-end brand,
overextended its brand name into too many product categories
(over 800), and the brand became diluted among its regular
customers (Albrechtet al., 2013;Reddy et al.,2009).
Because there are a number of benefits and pitfalls to the
parent brand associated with offering brand extensions,
research in this sector has been abundant. However, despite
this large body of research on brandextension feedback effects,
the current state of the relevant literature has not yet been
investigated, even though knowledge of the literature’s current
state is necessary to facilitate knowledge advancement in the
future (Cooper, 2010). Specifically, a systematic review of
previous literature is needed to identify particular issues to be
addresses in future research that otherwise could hamper the
growth and accuracy of research (Keränen et al.,2012). Thus,
the purpose of this research is to conduct a systematic and
comprehensive literature review on brand extension feedback
effects, which are defined as the reciprocal effects of brand
extensions on their parent brands (Dwivediet al., 2010). In this
review, the literature is examined to identify issues that may
slow the advancement of research related to brand extension
feedback effects. With these issues in mind, suggestions for
future researchare presented.
The remainder of this paper is structuredas follows. First, to
introduce this stream of research,literature is presented to offer
an overview of brand extensions and the potential positive and
negative feedback effects on their parent brands. Second, the
research methodology is described, followed by an outline of
the database search protocol. Based on the obtained articles, a
The current issue and full text archive of this journal is available on
Emerald Insight at: www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
26/7 (2017) 671–689
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-01-2016-1087]
Received 27 January 2016
Revised 23 June 2016
8 December 2016
17 March 2017
24 May 2017
Accepted 24 May 2017
671
discussion of publication activity is presented. Lastly, a
summary of the literature is offered by outlining the primary
findings and issues identified in previous research. Finally,
some potentiallyfruitful research opportunities are suggested.
Brand extensions and feedback effects
Brand extensions are created when an existing parent brand
name is applied in new product categories or product classes
(Keller and Aaker, 1992). Applying an established parent
brand name to brand extension products has become a
commonly used strategy to capitalise on a parent brand’s
established image (Keller, 1993;Thorbjørnsen, 2005). Brand
equity often is a company’s largest and most valuable asset
(Farquhar, 1989;Tauber,1988). To leverage the brand equity
that has been built over several years, firms use parent brand
names when entering new productcategories or classes (Keller
and Aaker, 1992;Park et al., 1986). For example, the Ivory
brand was extended from soap to shampoo, Harley Davidson
now makes bike accessories (e.g. seats, travel bags and racks),
and Ralph Lauren, originally a women’s apparel brand, now
offers products for the home (e.g. bedding,bath and furniture)
and apparel forthe rest of the family (i.e. men and children).
Launching new products under a parent brand often yields
several advantages (Thorbjørnsen, 2005). Because consumers
are already familiar with the parent brand name, brand
extensions often gain additional market share (Kapferer and
Bastien, 2009;Magnoni and Roux, 2008;Phau and Cheong,
2009) by moving into different product categories or new
market segments (Tauber, 1988). For example, Toyota
introduced Lexus into certain markets to target more affluent
customers who wanted higher quality and were willing to pay
more for it; likewise, Toyota introducedScion to accommodate
more price-conscious consumers. Brand extensions may also
boost sales of theparent brand because consumers’perceptions
of the parent brand may be strengthened through increased
advertising communication (Tauber, 1988). Because they are
connected to established brand names, extensions often enjoy
higher chances of market survival compared to new products
that are not associated with established parent brand names
(Sullivan, 1992). This is especially advantageous, given the
high cost of new product development (Kapoor, 2005;Keller,
1993).
Although brand extensions can aid consumer acceptance by
linking a new productwith an established brand name, they can
also be risky for brands (Ries and Trout, 1986). Brand
extensions can causefeedback effects that may potentially harm
the parent brand’s image (Grime et al., 2002) by creating
negative connotations about quality (Tauber, 1988)and
diluting brand equity (Aaker, 1990;Grimeet al., 2002). Brand
dilution occurs when positive beliefs about specific attributes
(e.g. quality, performance) of a parent brand decrease (Loken
and Roedder John, 1993). Thus, it is possible that brand
extensions can cause negative feedback effects on their parent
brands and sabotage the equity thatthese brands have built up
over several years. Such losses in equity can be devastating for
parent brands (Aaker, 1990;Grime et al., 2002;Loken and
Roedder John, 1993); for this reason, researchers have sought
to understand the factors that cause brand dilution. Despite
this large body of research, the current literature on brand
extension feedbackeffects has not yet been reviewed.
Methodology
To address a crucial need to synthesise research on brand
extension feedback effects and to identify research issues that
can hamper progress and future research on the topic, a
systematic literature review was performed. The review was
intended to provide a reliable and efficient way to assess
foundations of various studies (Cook, 1997) while also
highlighting shortcomings in current research to direct further
research (McKibbon, 2006). Thus, a systematic literature
review was deemed appropriate based on the purpose of the
research, which is to identify issues that may slow the
advancement of research on brand extension feedback effects
and to offer suggestionsfor future research.
To identify and synthesise studies that have investigated
brand extension feedback effects, a three-step literature search
process was undertaken (Figure 1). First, a search was
conducted using databases to ensure exposure to a diverse
range of journals with publications on the topic (Stage 1).
Based on previous systematic reviews (Keränen et al., 2012;
Mingione, 2015), EBSCO (which indexes nearly 20,000peer-
previewed publications) and Web of Science (which indexes
over 12,000 peer reviewed publications) were selected as the
databases to be searched. Keywordswere selected based on the
Figure 1 Systematic literaturereview method
Brand extension feedback effects
Michelle Childs
Journal of Product & Brand Management
Volume 26 · Number 7 · 2017 · 671–689
672
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