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Brand Extension Acceptability in Food and Beverage Product Categories

Author

Listed:
  • Maria Cristiana MARTINI

    (University of Modena and Reggio Emilia, Department od Communication and Economics)

  • Giovanna GALLI

    (University of Modena and Reggio Emilia, Department of Communication and Economics)

  • Marcello TEDESCHI

    (University of Modena and Reggio Emilia, Department of Communication and Economics)

Abstract

Brand extension is a powerful marketing strategy that allows firms to offer new product categories, taking advantage from the original brand name and its positive associations (Evangeline and Ragel, 2016). It helps firms to launch new products without the risks connected to the introduction of a new brand in the market. Firms have repeatedly adopted this marketing strategy, not always with success (De Chernatony et al., 2003). Moreover, a bad brand extension performance might have negative consequences on the original brand/product, both in terms of brand reputation and market positioning. Indeed, consumers perceived fit, namely the perceived similarity between the core brand product and its extension, has a crucial impact on brand extension acceptability by the market (Aaker and Keller, 1990; Bottomley and Doyle, 1996). Because of the important role of consumers’ judgment, the identification of constructs that might support a good similarity perception can help firms to choose appropriate brand extension strategies. This paper presents an exploratory study focused on three products hypothetically introduced on the market by Coca Cola with the same core brand, in order to investigate the role trust might have to foster consumer perceived brand extension acceptability. The experimental set is based on an energy drink, that can be considered as part of the same product category, chips and a chocolate bar, belonging to food category. For each product, consumers acceptability depends on product category fit and brand level fit, both these last two constructs depending in turn on brand trust (Martini et al., 2016; Tedeschi et al., 2017). The results show that cognitive brand trust can sustain a high product category perceived fit, whereas affective brand trust supports high brand level fit.

Suggested Citation

  • Maria Cristiana MARTINI & Giovanna GALLI & Marcello TEDESCHI, 2018. "Brand Extension Acceptability in Food and Beverage Product Categories," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 166-175, November.
  • Handle: RePEc:aes:jetimm:v:1:y:2018:i:1:p:166-175
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    References listed on IDEAS

    as
    1. Bloemer, JoseM. M. & Kasper, Hans D. P., 1995. "The complex relationship between consumer satisfaction and brand loyalty," Journal of Economic Psychology, Elsevier, vol. 16(2), pages 311-329, July.
    2. Marcello Tedeschi & Giovanna Galli & Maria Cristiana Martini, 2017. "On and Off-line Purchase Intention: the Role of Brand Trust as Moderator of Risk Perception," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 194-203, October.
    3. Geyskens, I. & Steenkamp, J.E.B.M. & Scheer, L.K. & Kumar, N., 1996. "The effects of trust and interdependence on relationship commitment : A trans-Atlantic study," Other publications TiSEM ef7c8d6c-963d-4ee7-8576-9, Tilburg University, School of Economics and Management.
    4. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. "Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 185-193, September.
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    More about this item

    Keywords

    Brand trust; Brand extension; Food and beverage; Structural equation models.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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