Online Brand Expansion Towards the Offline Setting

Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.


2015 ◽  
Vol 10 (4) ◽  
pp. 270-283 ◽  
Author(s):  
Debra Riley ◽  
Nathalie Charlton ◽  
Hillary Wason

AbstractCo-branding has become an increasingly popular strategy over recent decades. Studies have found that the pre-existing attitudes to the parent brands, fit between their product categories and perceived fit in the brands themselves as important drivers of a co-brand success. Despite its importance, most studies have treated brand fit as a simple measure of complementarily and consistency. Recently, a few papers have challenged this view, suggesting that a broader range of brand attributes (such as personality, functional and hedonic characteristics, cultural meaning) should also be considered when investigating brand alliances. The current study draws on these findings, exploring the fit between partners’ brand images and how they influence perceptions of a brand alliance. We treat brand image as a multi-dimensional construct, consisting of economic, symbolic, sensory, futuristic and utilitarian elements. Using an experimental design with nine hypothetical brand pairings with 221 respondents, we find brand image fit provides greater explanatory power over a traditional unidimensional measure of brand fit, with economic, futuristic and utilitarian dimensions having a significant influence on co-brand perceptions.


2018 ◽  
Vol 19 (6) ◽  
pp. 1681-1692 ◽  
Author(s):  
Vibhuti Tripathi ◽  
Pooja Rastogi ◽  
Suresh Kumar

The shifting market dynamics and harsh rivalry of the worldwide economy have augmented the role of brands to an incomparable level. Brand extension has emerged as a popular strategy in the marketing area. While it brings brands closer to success, it is also imperative and important to understand how consumers evaluate and presume similar or dissimilar extensions and what is the substantial influence of risk and subsistence of parent brand on extension success? Identifying and analysing such relationships could be helpful and important for personal care brands in India to gain an edge over competitors. Data were collected from 500 consumers who were proverbial with the brand extensions of Dettol in similar or dissimilar product categories. Regression analysis showed that though perceived fit and risk directly influence the success of brand extension, nevertheless on incorporating parent brand conviction as a moderator the relationships between perceived fit and brand extension success and risk and brand extension success are strengthened. Limitations and future scope have also been mentioned.


2012 ◽  
Vol 8 (1) ◽  
pp. 17-34 ◽  
Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina

This paper studies the expansion of an online brand towards an offline product category through brand extensions and alliances. Specifically, it analyses the effects on the online brand image as a consequence of this expansion, and it analyses them under different conditions of image and fit. An empirical study was conducted to 407 undergraduates in a Spanish University, and data are analyzed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image (3) The effect is more negative for online brands with high image than for online brands with low image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension.


2016 ◽  
Vol 8 (1) ◽  
pp. 72
Author(s):  
Nilay Sahin ◽  
Elif Akagun Ergin

<p>Brand extensions refer to use an established brand name in new product or product categories and are extensively applied as a marketing strategy. Brand extension success factors vary according to cultures. Consumers’ attitude towards extensions is modified on the basis of their cognitional reactions and relations between the parent brand and extended product and/ or product categories. This study aims at conducting an exploratory research and revealing the relationship between the parent brand and the extended brand. More specifically, the impact of parent brand loyalty on the extension is explored. Therefore, the main objective is to evaluate the attitudes of consumers towards brand extensions through brand loyalty. The study analyzes consumers’ attitudes towards brand extensions specifically in food and textile industries. This is in particular to portray that consumers respond positively to brand extensions in various industries due to different motivations. During the methodology application process, in-depth interviews were carried out with 16 participants who were selected from employees working for public and private institutions in Ankara, the capital of Turkey. The interviews were conducted in two stages. During the first stage, the interviews lasted approximately 45 minutes and consisted of open-ended questions about participants’ brand choices, reasons for choosing the brands they use. The goal was to evaluate their brand loyalty levels. In addition, the participants were provided with the definition of brand extension and their reactions towards extension were noted. In the second stage, the participants were asked to evaluate their attitudes towards brand extensions in food and textile industries along with the factors that have impact on their evaluations. The participants were specifically observed in terms of their approach to brand extensions where the extension was in a totally different sector from the parent brand. The results indicate that brand awareness has a significant impact on brand extensions with regards to quality and trust. However, this impact is at the highest level when the extension is within the same sector with the parent brand. Whenever the extension is in a different sector, consumers not only have negative attitudes toward that extension but also become suspicious about the parent brand. Thus, quality and trust are pivotal factors influencing consumers’ positive attitudes towards brand extensions.</p>


Author(s):  
Nigar Muhammad ◽  
Shabeeb Ahmad Gill ◽  
Majid Murad

The purpose of this research study is to identify the impact of the brand category on brand extension attitude. The concept of brand extension is used for the marketing of any brand which is associated with the firm. Most of the large industries are using well-known names to launch a new product range to earn more profile for the organization as well as to make new position rather than other brands. This study especially identified that those brand who want to extend the product range of brands. Data was collected from a convenience sample of different brand buyers in the Faisalabad via surveys. The final sample consisted of 200 responses. Correlation, Linear regressions and ANOVA were used to test the hypotheses Results revealed that initial parent brand image has a positive relationship toward the brand extension attitude. Parent brand quality has a positive effect on brand extension attitude. Brand extension information toward the brand extension attitude is significantly impacted. The results provide some suggestion to marketers who want to expand their parent brand or launch fashion extension products.


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