The purpose of this paper is to explore how the strength of brand associations, different brand breadths, and the similarity between a parent brand's product categories and its…
Abstract
Purpose
The purpose of this paper is to explore how the strength of brand associations, different brand breadths, and the similarity between a parent brand's product categories and its extension product categories influence consumers' attitudes toward brand extensions.
Design/methodology/approach
An experimental research design was applied to testing the set of hypotheses. A total of 384 respondents participated in the main study. This study analyzed experimental results using analysis of variance (ANOVA).
Findings
The paper finds that when a brand is extended to similar product categories, only when the association is strong (trust or affect) will consumers prefer the extension of the narrow brand to that of the broad brand. Conversely, when a brand is extended to dissimilar product categories, regardless of the brand associations (trust or affect), consumers prefer the extension of the favorable broad brand to that of the narrow brand.
Practical implications
For corporations that operate within a narrow brand, brand extension strategies must be based on parent brand associations (trust or affect) that are very strong. In addition, the extension must only be to extremely similar product categories. In contrast, for corporations operating a broad brand, although the chance of brand extension success is better, favorability of consumer brand association (trust or affect) must never be ignored.
Originality/value
The study results reemphasize the importance of brand breadth effects when launching category extensions. Also, the research provides new insight into the strength of parent brand associations when evaluating consumers' brand attitude on brand extension.
Details
Keywords
Mei‐Ying Wu, Yung‐Chien Weng and I‐Chiao Huang
The purpose of this paper is to use high‐tech companies in Taiwan as research subjects to verify the fit of the commitment‐trust theory and explore the supply chain relationships…
Abstract
Purpose
The purpose of this paper is to use high‐tech companies in Taiwan as research subjects to verify the fit of the commitment‐trust theory and explore the supply chain relationships among research variables.
Design/methodology/approach
The key mediating variables model (KMV) proposed by Morgan and Hunt is applied to construct the research structure, hypotheses, and questionnaire. The research hypotheses are validated through structural equation modelling and confirmatory factor analysis.
Findings
Research results show that for two parties of an exchange relationship, higher levels of trust can lead to better interactions and trust is an important factor affecting their supply chain partnerships. It helps increase interests of both parties, facilitate constant co‐operation and communication, and reduce uncertainties. Higher levels of commitment can also help increase value benefits, reduce a partner's propensity to leave, and enhance supply chain co‐operation efficiency.
Originality/value
Empirical results indicate that relationship marketing is a strategy that promotes trust and commitment of partners in high‐tech industries. While information sharing and communication can increase partners' intention of long‐term co‐operation, functional conflicts can facilitate positive interactions and reduce uncertainties. Through relationship marketing, high‐tech companies can create win‐win strategic alliances to develop their competitive advantages in the market.