Brand extensions via complements or substitutes: The moderating role of manufacturing transferability

This research investigates how consumer evaluations of brand extensions that either complement or substitute the original parent brand vary depending on the level of manufacturing transferability (i.e., the extent to which the parent brand's existing resources and skills can be used to make the...

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Bibliographic Details
Published in:Marketing letters 2012-03, Vol.23 (1), p.279-292
Main Authors: Mao, Huifang, Mariadoss, Babu John, Echambadi, Raj, Chennamaneni, Pavan Rao
Format: Article
Language:English
Subjects:
Brand extensions
Brands
Business and Management
Complementary goods
Concretes
Consumer research
Consumers
Consumption
Hypotheses
Manufactured products
Manufacturing
Manufacturing processes
Marketing
Marketing research
Perception
Perceptions
Process engineering
Production engineering
Skis
Taxonomy
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Summary:This research investigates how consumer evaluations of brand extensions that either complement or substitute the original parent brand vary depending on the level of manufacturing transferability (i.e., the extent to which the parent brand's existing resources and skills can be used to make the extension). We propose that a complement extension is processed by consumers at a higher, more abstract level whereas a substitute extension is processed at a lower, more concrete level. Since manufacturing transferability activates concrete cognitions of the production process, an increase in manufacturing transferability tends to result in more favorable evaluations toward substitute extensions than complement extensions. Empirical tests using a multi-method approach reveal support both for the underlying theoretical mechanism and the proposed hypotheses.
ISSN:0923-0645
1573-059X
DOI:10.1007/s11002-011-9153-2