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The overall purpose of the study is to enrich our understanding of the impact of brand extensions on the parent core brand concept and brand equity in the context of apparel. This study also further examines whether brand extensions have an effect on consumers' post extension evaluations of parent core brand concept and brand equity. Using an experimental study, the results indicate that, regardless of the types of brand extension, consumers are less likely to evaluate parent core brand concept and brand equity favorably after the extension as compared to their initial evaluation of parent core brand concept and brand equity. When further examining whether a vertical extension strategy would create greater dilution effect on the parent core brand concept as compared to a horizontal extension strategy, our results showed that a vertical brand extension tends to produce a negative impact on the parent core brand concept and brand equity.

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Nov 9th, 12:00 AM

Assessing the Impact of Brand Extensions on Brand Concept and Brand Equity

The overall purpose of the study is to enrich our understanding of the impact of brand extensions on the parent core brand concept and brand equity in the context of apparel. This study also further examines whether brand extensions have an effect on consumers' post extension evaluations of parent core brand concept and brand equity. Using an experimental study, the results indicate that, regardless of the types of brand extension, consumers are less likely to evaluate parent core brand concept and brand equity favorably after the extension as compared to their initial evaluation of parent core brand concept and brand equity. When further examining whether a vertical extension strategy would create greater dilution effect on the parent core brand concept as compared to a horizontal extension strategy, our results showed that a vertical brand extension tends to produce a negative impact on the parent core brand concept and brand equity.

 

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