brand extension strategy literature review and conceptual model development

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Brand extension in the upscale hotel industry; conceptual model, industry trends and consumer perceptions

JungKook Lee , Purdue University

The purpose of this dissertation is to explore three autonomous but interrelated areas of brand extension in the hospitality industry. While brand extension strategies are widely used, relatively few studies have focused on how consumers evaluate brand extensions in the hospitality industry. The initial study provided insight into the scholarly support available to academic professionals by conducting a comprehensive contents analysis of brand extension literature. It also developed a conceptual model about brand extension. The second study's purpose was to explore the perception toward brand extension from the industry perspective. The third study sampled 414 consumers to test a model from study 1 and revised the model. The first study examined current brand extension research via content analysis. That methodology provided seven subjects used in the literature. A conceptual model of brand extension evaluation was suggested by using four subjects (variables) among those seven subjects. In the second study, current marketing trends and brand extension techniques in hospitality industry were examined. From this qualitative study, telephone interview was conducted for 21 hotel managers. The third study then examined consumers perception toward brand extension in the hospitality industry. The model developed from study 1 was tested and confirmed.

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Consumer evaluation of brand extensions: Comparing goods to goods brand extensions with goods to services

• Original Article
• Published: 06 November 2015
• Volume 22 , pages 778–801, ( 2015 )

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• Jayasankar Ramanathan 1 &
• Sanal Kumar Velayudhan  

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Studies in literature on consumer attitude toward the brand extension, and revision of attitude toward parent brand have focused on the influence of a variety of factors concerning parent brand, fit between the parent brand and extension, extension product category and consumer characteristics. In all such studies, the brand that is extended and the extension product category are both either goods-intensive offerings (GG brand extension) or services-intensive offerings (SS brand extension), and researchers have observed paucity of studies on brand extension from goods-intensive offerings to services-intensive offerings (GS brand extension), and services-intensive offerings to goods-intensive offerings (SG brand extension). In this study, the influence of factors concerning parent brand and fit between the parent brand and extension are contrasted between GG and GS brand extensions. Using survey design, data was collected from individual consumers recruited from households in two Indian cities, and analysis of the data was performed using a structural equation modeling approach. The findings from this study suggest that brand extensions from goods to goods is preferable to brand extensions from goods to services under some conditions, such as when quality variance across brand portfolio is high and when product category fit is present.

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The Interplay of Brand Attachment and Brand Extension Success

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Acknowledgements

The funding received from Reckitt & Benckiser India Limited toward the field work for this study is gratefully acknowledged. The first author would like to gratefully acknowledge the following academics for their inputs during various stages of this study: Keyoor Purani, Unnikrishnan K. Nair, Shubhasis Dey, Kausik Gangopadhyay, Suram Balasubrahmanyam, Sridhar Guda, Ashok Pratap Arora and one anonymous dissertation examiner.

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Department of Marketing, Indian Institute of Management Indore, Office Room A211, IIM Indore Campus, Prabandh Shikhar, Rau-Pithampur Road, Indore, 453556, Madhya Pradesh, India

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2 Fellow IIM (Ahmedabad), Professor of Marketing at IIMK. Industry experience of 8 years prior to teaching at XLRI, ASCI and visiting assignments at IIMA, IIM Ranchi, MDI and BITS Pilani. Handled consultancy assignments in marketing for manufacturing and service sector. Publications are in Journal of Small Business Economics, Asian Case Research Journal, Energy Policy, Asia Pacific Journal of Marketing and Logistics and IJRDM . Couple of cases hosted by Ivey. Published book on Rural Marketing by Sage and two readings in Rural Marketing.

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Ramanathan, J., Velayudhan, S. Consumer evaluation of brand extensions: Comparing goods to goods brand extensions with goods to services. J Brand Manag 22 , 778–801 (2015). https://doi.org/10.1057/bm.2015.37

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Received : 09 October 2015

Revised : 09 October 2015

Published : 06 November 2015

Issue Date : 01 December 2015

DOI : https://doi.org/10.1057/bm.2015.37

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In-Branding: Development of a Conceptual Model

• C. Luczak , Waldemar Pfoertsch , +1 author Jennifer Chandler
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