Why Garlic Ice Cream? Innovative Line Extensions Can Increase Choice of a Brand's Pre-existing Products

• Main Authors: Stephenson, Brittney L, Cryder, Cynthia E, Nowlis, Stephen M, LeBoeuf, Robyn A
• Format: Conference Proceeding
• Language: English
• Subjects: Consumer behavior; Consumers; Product returns
• ISSN: 0098-9258

A common marketing strategy, especially recently, is to offer product line extensions that are innovative and unusual. Crest toothpaste recently introduced Mint Chocolate, Vanilla Mint and Lime Spearmint flavors. A serious concern with this strategy is that line extensions might cannibalize the sales of the original items in the line. Prior research has found that introducing new extensions often leads to cannibalization (Mason & Milne, 1994, Kerin, Harvey & Rothe, 1978, Copulsky, 1976). We examine the effect of introducing innovative line extensions on the choice of existing items in the line. Prior work on attribute transfer has found that perceptions of specific attributes can flow between a brand and its extensions (Keller and Aaker 1992; Park, Milberg, and Lawson 1991). Furthermore, research on fit would suggest that line extensions should also transfer perceptions of attributes between the brand and its line extensions (Aaker and Keller 1990). We specifically focus on whether an innovative line extension can transfer the perception of innovativeness back to the parent brand, making the brand more appealing. Previous work has found that higher perceived innovativeness is often related with more positive brand attitudes (Heath, DelVecchio, and McCarthy 2011). Thus, innovative brands are likely to be more positively evaluated and may increase purchase intent. We predict that introducing an innovative line extension will lead consumers to purchase a greater number of the brands existing items, ultimately reversing cannibalization. Four experiments test our hypothesis. We first show that when a brand introduces innovative line extensions (versus non-innovative extensions), people choose to purchase more existing items (Studies 1A and 1B). We then show the effect replicates across various product categories and is mediated by perceived brand innovativeness (Study 2). Our last two studies rule out alternative explanations that 1) the effect is driven by disgust (Study 3) and 2) the effect is due to a contrast effect (Study 4). In studies 1A (n=150) and 1B (n=601), participants were randomly assigned in a 3-cell (Extension: None, Non-innovative, Innovative) between-subjects design. All participants saw three existing items offered by a hypothetical brand (Study 1A: Emmi's) or a national brand (Study 1B: Breyer's): Vanilla, Chocolate, and Strawberry. In addition to the existing items, participants saw three extension flavors based on their condition. Non-inno