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Derived versus full name brand extensions

Author

Listed:
  • Olavarrieta, Sergio
  • Torres, Eduardo
  • Vásquez-Parraga, Arturo
  • Barra, Cristóbal

Abstract

Most brand extension studies follow the assumption that brand extensions use the full original parent brand name (e.g., Oral-B tooth brush may extend to Oral-B dental floss). However, some companies use derived brand names in their brand extension strategies (e.g. Nestea Iced Tea). This study explores the advantages and disadvantages of derived brand extensions compared to full name extensions. The study examines the importance of target market effects on the evaluation of both brand extension strategies. Findings support the idea that derived brand names leverage parent brand evaluations and protect parent brand from extension failures.

Suggested Citation

  • Olavarrieta, Sergio & Torres, Eduardo & Vásquez-Parraga, Arturo & Barra, Cristóbal, 2009. "Derived versus full name brand extensions," Journal of Business Research, Elsevier, vol. 62(9), pages 899-905, September.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:9:p:899-905
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    References listed on IDEAS

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    1. 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.
    2. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 411-454, March.
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    2. van Rekom, Johan & Go, Frank M. & Calter, Dayenne M., 2014. "Communicating a company's positive impact on society—Can plausible explanations secure authenticity?," Journal of Business Research, Elsevier, vol. 67(9), pages 1831-1838.
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    4. F. Magnoni & Elyette Roux, 2011. "Stretching a luxury brand down: An experimental study of core brand dilution effects," Post-Print halshs-00644899, HAL.
    5. Goedertier, Frank & Dawar, Niraj & Geuens, Maggie & Weijters, Bert, 2015. "Brand typicality and distant novel extension acceptance: How risk-reduction counters low category fit," Journal of Business Research, Elsevier, vol. 68(1), pages 157-165.

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