Skip to main content
SpringerLink
Log in

The choice of brand extension: the moderating role of brand loyalty on fit and brand familiarity

  • Original Article
  • Published:
Journal of Marketing Analytics Aims and scope Submit manuscript

Abstract

The purpose of this study is to investigate the role of loyalty in consumers’ selection of brand extensions in the presence of familiar competitors. The findings show that fit may not have a linear relationship with the choice of an extension when loyalty and brand familiarity are considered. Loyal consumers’ likelihood to choose high-fit and moderate-fit extensions is not much lower than their likelihood to choose products from familiar competitors. We also find an inverted-U-shaped relationship between choice behavior and degree of perceived fit for loyal and moderately loyal consumers. Moreover, brand concepts can make a brand more elastic and extendable, increasing loyal and moderately loyal consumers’ likelihood to choose moderate- and even low-fit extensions. However, disloyal consumers are highly unlikely to choose extensions over products from familiar competitors regardless of fit and types of similarity. Finally, the effect of similarity on consumers’ choice of extensions is fully mediated by loyalty and perceived risks.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

References

  • Aaker, D.A. 1991. Managing brand equity. New York: Maxweel Macmillan-Canada.

    Google Scholar 

  • Aaker, D.A., and K.L. Keller. 1990. Consumer evaluations of brand extensions. The Journal of Marketing 54: 27–41.

    Article  Google Scholar 

  • Aaker, J., S. Fournier, and S.A. Brasel. 2004. When good brands do bad. Journal of Consumer Research 31 (1): 1–16.

    Article  Google Scholar 

  • Algesheimer, R., U.M. Dholakia, and A. Herrmann. 2005. The social influence of brand community: Evidence from European car clubs. Journal of Marketing 6 (3): 19–34.

    Article  Google Scholar 

  • Athanasopoulou, P., A.N. Giovanis, and G.J. Avlonitis. 2015. Marketing strategy decisions for brand extension success. Journal of Brand Management 22 (6): 487–514.

    Article  Google Scholar 

  • Bagozzi, R.P., and Y. Yi. 1988. On the evaluation of structural equation models. Journal of the Academy of Marketing Science 16 (1): 74–94.

    Article  Google Scholar 

  • Bambauer-Sachse, S., V. Hüttl, and H. Gierl. 2011. Can advertising elements improve consumer evaluations of brand extensions with a moderate or low fit? Psychology & Marketing 28 (2): 205–218.

    Article  Google Scholar 

  • Barone, M.J., P.W. Miniard, and J.B. Romeo. 2000. The influence of positive mood on brand extension evaluations. Journal of Consumer Research 26 (4): 386–400.

    Article  Google Scholar 

  • Batra, R., A. Ahuvia, and R.P. Bagozzi. 2012. Brand love. Journal of Marketing 76 (2): 1–16.

    Article  Google Scholar 

  • Benedicktus, R.L., M.K. Brady, P.R. Darke, and C.M. Voorhees. 2010. Conveying trustworthiness to online consumers: Reactions to consensus, physical store presence, brand familiarity, and generalized suspicion. Journal of Retailing 86 (4): 322–335.

    Article  Google Scholar 

  • Bhat, S., and S.K. Reddy. 2001. The impact of parent brand attribute associations and affect on brand extension evaluation. Journal of Business Research 53 (3): 111–122.

    Article  Google Scholar 

  • Boush, D.M., and B. Loken. 1991. A process-tracing study of brand extension evaluation. Journal of Marketing Research 28: 16–28.

    Article  Google Scholar 

  • Boush, D., S. Shipp, B. Loken, E. Gencturk, S. Crockett, E. Kennedy, B. Minshall, D. Misurell, L. Rochford, and J. Strobel. 1987. Affect generalization to similar and dissimilar brand extensions. Psychology & Marketing 4 (3): 225–237.

    Article  Google Scholar 

  • Brakus, J.J., B.H. Schmitt, and L. Zarantonello. 2009. Brand experience: what is it? How is it measured? Does it affect loyalty? Journal of Marketing 73 (3): 52–68.

    Article  Google Scholar 

  • Breivik, E., and H. Thorbjørnsen. 2008. Consumer brand relationships: an investigation of two alternative models. Journal of the Academy of Marketing Science 36 (4): 443–472.

    Article  Google Scholar 

  • Broniarczyk, S.M., and J.W. Alba. 1994. The importance of the brand in brand extension. Journal of Marketing Research 31: 214–228.

    Article  Google Scholar 

  • Bruwer, J., M. Fong, and A. Saliba. 2013. Perceived risk, risk-reduction strategies (RRS) and consumption occasions: Roles in the wine consumer’s purchase decision. Asia Pacific Journal of Marketing and Logistics 25 (3): 369–390.

    Article  Google Scholar 

  • Campbell, M.C., and R.C. Goodstein. 2001. The moderating effect of perceived risk on consumers’ evaluations of product incongruity: Preference for the norm. Journal of Consumer Research 28 (3): 439–449.

    Article  Google Scholar 

  • Chakravarti, D., D.J. MacInnis, and K. Nakamoto. 1990. Product category perceptions, elaborative processing and brand new extension strategies. In Advances in consumer research, vol. 17, ed. M.E. Goldberg, G. Gorn, and R.W. Pollay, 910–916. Provo UT: Association for Consumer Research.

    Google Scholar 

  • Chaudhuri, A., and M.B. Holbrook. 2001. The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing 65 (2): 81–93.

    Article  Google Scholar 

  • Choi, T.M., N. Liu, S.C. Liu, J. Mak, and Y.T. To. 2010. Fast fashion brand extensions: An empirical study of consumer preferences. Journal of Brand Management 17 (7): 472–487.

    Article  Google Scholar 

  • Cox, D., and A.D. Cox. 2001. Communicating the consequences of early detection: The role of evidence and framing. Journal of Marketing 65 (3): 91–103.

    Article  Google Scholar 

  • Cox, A.D., D. Cox, and G. Zimet. 2006. Understanding consumer responses to product risk information. Journal of Marketing 70 (1): 79–91.

    Article  Google Scholar 

  • Cutright, K.M., J.R. Bettman, and G.J. Fitzsimons. 2013. Putting brands in their place: How a lack of control keeps brands contained. Journal of Marketing Research 50 (3): 365–377.

    Article  Google Scholar 

  • De Wulf, K., G. Odekerken-Schröder, and D. Iacobucci. 2001. Investments in consumer relationships: A cross-country and cross-industry exploration. Journal of Marketing 65 (4): 33–50.

    Article  Google Scholar 

  • DeWitt, T., D.T. Nguyen, and R. Marshall. 2008. Exploring customer loyalty following service recovery: The mediating effects of trust and emotions. Journal of Service Research 10 (3): 269–281.

    Article  Google Scholar 

  • Dick, A.S., and K. Basu. 1994. Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science 22 (2): 99–113.

    Article  Google Scholar 

  • Eelen, J., P. Özturan, and P.W. Verlegh. 2017. The differential impact of brand loyalty on traditional and online word of mouth: The moderating roles of self-brand connection and the desire to help the brand. International Journal of Research in Marketing 34 (4): 872–891.

    Article  Google Scholar 

  • Evanschitzky, H., B. Ramaseshan, D.M. Woisetschläger, V. Richelsen, M. Blut, and C. Backhaus. 2012. Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science 40 (5): 625–638.

    Article  Google Scholar 

  • Favaro, K., T. Romberger, and D. Meer. 2009. Five rules for retailing in a recession. Harvard Business Review 87 (4): 64–72.

    Google Scholar 

  • Fedorikhin, A., C.W. Park, and M. Thomson. 2008. Beyond fit and attitude: The effect of emotional attachment on consumer responses to brand extensions. Journal of Consumer Psychology 18 (4): 281–291.

    Article  Google Scholar 

  • Fornell, C., and D.F. Larcker. 1981. Structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (3): 382–388.

    Article  Google Scholar 

  • Foroudi, P., Z. Jin, S. Gupta, M.M. Foroudi, and P.J. Kitchen. 2018. Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention. Journal of Business Research 89: 462–474.

    Article  Google Scholar 

  • Fuller, C.M., M.J. Simmering, G. Atinc, Y. Atinc, and B.J. Babin. 2016. Common methods variance detection in business research. Journal of Business Research 69 (8): 3192–3198.

    Article  Google Scholar 

  • Garbarino, E., and M.S. Johnson. 1999. The different roles of satisfaction, trust, and commitment in customer relationships. The Journal of Marketing 63: 70–87.

    Article  Google Scholar 

  • Han, J.K. 1998. Brand extensions in a competitive context: Effects of competitive targets and product attribute typicality on perceived quality. Academy of Marketing Science Review 1 (1): 1–13.

    Google Scholar 

  • Hariharan, V.G., K.K. Desai, D. Talukdar, and J.J. Inman. 2018. Shopper marketing moderators of the brand equity–behavioral loyalty relationship. Journal of Business Research 85: 91–104.

    Article  Google Scholar 

  • Heilman, C.M., D. Bowman, and G.P. Wright. 2000. The evolution of brand preferences and choice behaviors of consumers new to a market. Journal of Marketing Research 37 (2): 139–155.

    Article  Google Scholar 

  • Hem, L.E., and N.M. Iversen. 2003. Transfer of brand equity in brand extensions: The importance of brand loyalty. In Advances in consumer research, vol. 30, ed. P.A. Keller and D.W. Rook, 72–79. Valdosta, GA: Association for Consumer Research.

    Google Scholar 

  • Hem, L.E., N.M. Iversen, and L.E. Olsen. 2014. Category characteristics’ effects on brand extension attitudes: A research note. Journal of Business Research 67 (8): 1589–1594.

    Article  Google Scholar 

  • Herr, P.M., P.H. Farquhar, and R.H. Fazio. 1996. Impact of dominance and relatedness on brand extensions. Journal of Consumer Psychology 5 (2): 135–159.

    Article  Google Scholar 

  • Hoch, S.J. 2002. Product experience is seductive. Journal of Consumer Research 29 (3): 448–454.

    Article  Google Scholar 

  • Holbrook, M.B. 1978. Beyond attitude structure: Toward the informational determinants of attitude. Journal of Marketing Research 15 (4): 545–556.

    Article  Google Scholar 

  • Hoskins, J.D., and A. Griffin. 2019. New product performance advantages for extending large, established fast moving consumer goods (FMCG) brands. Journal of Product & Brand Management 28 (7): 812–829.

    Article  Google Scholar 

  • Johnson, D.J., and C.E. Rusbult. 1989. Resisting temptation: Devaluation of alternative partners as a means of maintaining commitment in close relationships. Journal of Personality and Social Psychology 57 (6): 967.

    Article  Google Scholar 

  • Johnson, Z.S., H. Mao, S. Lefebvre, and J. Ganesh. 2019. Good guys can finish first: How brand reputation affects extension evaluations. Journal of Consumer Psychology 29 (4): 565–583.

    Article  Google Scholar 

  • Kapoor, H., and L.A. Heslop. 2009. Brand positivity and competitive effects on the evaluation of brand extensions. International Journal of Research in Marketing 26 (3): 228–237.

    Article  Google Scholar 

  • Keller, K.L., M.G. Parameswaran, and I. Jacob. 2011. Strategic brand management: Building, measuring, and managing brand equity. New Delhi: Pearson Education India.

    Google Scholar 

  • Khamitov, M., X. Wang, and M. Thomson. 2019. How well do consumer-brand relationships drive customer brand loyalty? Generalizations from a meta-analysis of brand relationship elasticities. Journal of Consumer Research 46 (3): 435–459.

    Article  Google Scholar 

  • Kim, K., J. Park, and J. Kim. 2014. Consumer–brand relationship quality: When and how it helps brand extensions. Journal of Business Research 67 (4): 591–597.

    Article  Google Scholar 

  • Kovacs, M., S. Farias, F. Moura, and A. Souza. 2011. Relations between consumer effort, risk reduction strategies, and satisfaction with the e-commerce buying process: The development of a conceptual framework. International Journal of Management 28 (1): 316.

    Google Scholar 

  • Kumar, V., and A. Pansari. 2016. Competitive advantage through engagement. Journal of Marketing Research 53 (4): 497–514.

    Article  Google Scholar 

  • Kumar, V., I. Dalla Pozza, and J. Ganesh. 2013. Revisiting the satisfaction–loyalty relationship: Empirical generalizations and directions for future research. Journal of Retailing 89 (3): 246–262.

    Article  Google Scholar 

  • Lanseng, E.J., and L.E. Olsen. 2012. Brand alliances: The role of brand concept consistency. European Journal of Marketing 46 (9): 1108–1126.

    Article  Google Scholar 

  • Lau, K.C., and I. Phau. 2007. Extending symbolic brands using their personality: Examining antecedents and implications towards brand image fit and brand dilution. Psychology & Marketing 24 (5): 421–444.

    Article  Google Scholar 

  • Liu-Thompkins, Y., and L. Tam. 2013. Not all repeat customers are the same: Designing effective cross-selling promotion on the basis of attitudinal loyalty and habit. Journal of Marketing 77 (5): 21–36.

    Article  Google Scholar 

  • Loken, B., and D.R. John. 1993. Diluting brand beliefs: When do brand extensions have a negative impact? Journal of Marketing 57: 71–84.

    Article  Google Scholar 

  • Mandel, N. 2003. Shifting selves and decision making: The effects of self-construal priming on consumer risk-taking. Journal of Consumer Research 30 (1): 30–40.

    Article  Google Scholar 

  • Mandler, G. 1982. The structure of value: Accounting for taste. In Affect and cognition: The 17th annual Carnegie symposium, ed. M.S. Clark and S.T. Fiske, 3–36. Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Martin, I.M., and D.W. Stewart. 2001. The differential impact of goal congruency on attitudes, intentions, and the transfer of brand equity. Journal of Marketing Research 38 (4): 471–484.

    Article  Google Scholar 

  • Martin, I.M., D.W. Stewart, and S. Matta. 2005. Branding strategies, marketing communication, and perceived brand meaning: The transfer of purposive, goal–oriented brand meaning to brand extensions. Journal of the Academy of Marketing Science 33 (3): 275–294.

    Article  Google Scholar 

  • Martinelli, E., A. Belli, and G. Marchi. 2015. The role of customer loyalty as a brand extension purchase predictor. The International Review of Retail, Distribution and Consumer Research 25 (2): 105–119.

    Article  Google Scholar 

  • Meyers-Levy, J., T.A. Louie, and M.T. Curren. 1994. How does the congruity of brand names affect evaluations of brand name extensions? Journal of Applied Psychology 79 (1): 46–53.

    Article  Google Scholar 

  • Meyers-Levy, J., and A.M. Tybout. 1989. Schema congruity as a basis for product evaluation. Journal of Consumer Research 16 (1): 39–54.

    Article  Google Scholar 

  • Milberg, S.J., C. Whan Park, and M.S. McCarthy. 1997. Managing negative feedback effects associated with brand extensions: The impact of alternative branding strategies. Journal of Consumer Psychology 6 (2): 119–140.

    Article  Google Scholar 

  • Milberg, S.J., F. Sinn, and R.C. Goodstein. 2010. Consumer reactions to brand extensions in a competitive context: does fit still matter? Journal of Consumer Research 37 (3): 543–553.

    Article  Google Scholar 

  • Miniard, P.W., C.M. Alvarez, and S.M. Mohammed. 2020. Consumer acceptance of brand extensions: Is parental fit preeminent? Journal of Business Research 118: 335–345.

    Article  Google Scholar 

  • Mitchell, V.W. 1999. Consumer perceived risk: Conceptualisations and models. European Journal of Marketing 33 (1/2): 163–195.

    Article  Google Scholar 

  • Mitchell, V.W., and M. Greatorex. 1989. Risk reducing strategies used in the purchase of wine in the UK. European Journal of Marketing 23 (9): 31–46.

    Article  Google Scholar 

  • Miyazaki, A.D., D. Grewal, and R.C. Goodstein. 2005. The effect of multiple extrinsic cues on quality perceptions: A matter of consistency. Journal of Consumer Research 32 (1): 146–153.

    Article  Google Scholar 

  • Moore, W.L., and D.R. Lehmann. 1980. Individual differences in search behavior for a nondurable. Journal of Consumer Research 7 (3): 296–307.

    Article  Google Scholar 

  • Muniz, A.M., and T.C. O’guinn. 2001. Brand community. Journal of Consumer Research 27 (4): 412–432.

    Article  Google Scholar 

  • Nepomuceno, M.V., M. Laroche, and M.O. Richard. 2014. How to reduce perceived risk when buying online: The interactions between intangibility, product knowledge, brand familiarity, privacy and security concerns. Journal of Retailing and Consumer Services 21 (4): 619–629.

    Article  Google Scholar 

  • Nyadzayo, M.W., M.J. Matanda, and R. Rajaguru. 2018. The determinants of franchise brand loyalty in B2B markets: An emerging market perspective. Journal of Business Research 86: 435–445.

    Article  Google Scholar 

  • Odin, Y., N. Odin, and P. Valette-Florence. 2001. Conceptual and operational aspects of brand loyalty: An empirical investigation. Journal of Business Research 53 (2): 75–84.

    Article  Google Scholar 

  • Oliver, R.L. 1999. Whence consumer loyalty? Journal of Marketing 33: 33–44.

    Article  Google Scholar 

  • Palmatier, R.W., R.P. Dant, D. Grewal, and K.R. Evans. 2006. Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing 70 (4): 136–153.

    Article  Google Scholar 

  • Park, C.W., D.J. MacInnis, J. Priester, A.B. Eisingerich, and D. Iacobucci. 2010. Brand attachment and brand attitude strength: Conceptual and empirical differentiation of two critical brand equity drivers. Journal of Marketing 74 (6): 1–17.

    Article  Google Scholar 

  • Park, C.W., S. Milberg, and R. Lawson. 1991. Evaluation of brand extensions: The role of product feature similarity and brand concept consistency. Journal of Consumer Research 18 (2): 185–193.

    Article  Google Scholar 

  • Park, J.W., and K.H. Kim. 2001. Role of consumer relationships with a brand in brand extensions: Some exploratory findings. In Advances in Consumer Research, vol. 28, ed. Mary C. Gilly and Joan Meyers-Levy, 179–185. Valdosta, GA: Association for Consumer Research.

    Google Scholar 

  • Park, J.W., K.H. Kim, and J.K. Kim. 2002. Acceptance of brand extensions: Interactive influences of product category similarity, typicality of claimed benefits, and brand relationship quality. Advances in Consumer Research 29 (1): 190.

    Google Scholar 

  • Picón, A., I. Castro, and J.L. Roldán. 2014. The relationship between satisfaction and loyalty: A mediator analysis. Journal of Business Research 67 (5): 746–751.

    Article  Google Scholar 

  • Ramaseshan, B., and A. Stein. 2014. Connecting the dots between brand experience and brand loyalty: The mediating role of brand personality and brand relationships. Journal of Brand Management 21 (7–8): 664–683.

    Article  Google Scholar 

  • Ratneshwar, S., and A.D. Shocker. 1991. Substitution in use and the role of usage context in product category structures. Journal of Marketing Research 28 (3): 281–295.

    Article  Google Scholar 

  • Rosch, E., and C.B. Mervis. 1975. Family resemblances: Studies in the internal structure of categories. Cognitive Psychology 7 (4): 573–605.

    Article  Google Scholar 

  • Shankar, V., G.S. Carpenter, and L. Krishnamurthi. 1998. Late mover advantage: How innovative late entrants outsell pioneers. Journal of Marketing Research 35 (1): 54–70.

    Article  Google Scholar 

  • Swaminathan, V. 2003. Sequential brand extensions and brand choice behavior. Journal of Business Research 56 (6): 431–442.

    Article  Google Scholar 

  • Thomson, M., D.J. MacInnis, and C. Whan Park. 2005. The ties that bind: Measuring the strength of consumers’ emotional attachments to brands. Journal of Consumer Psychology 15 (1): 77–91.

    Article  Google Scholar 

  • Vahdat, A., H. Hafezniya, Y. Jabarzadeh, and P. Thaichon. 2020. Emotional brand attachment and attitude toward brand extension. Services Marketing Quarterly 41: 1–20.

    Article  Google Scholar 

  • Völckner, F., and H. Sattler. 2006. Drivers of brand extension success. Journal of Marketing 70 (2): 18–34.

    Article  Google Scholar 

  • Wang, H., and D. Liu. 2020. The differentiated impact of perceived brand competence type on brand extension evaluation. Journal of Business Research 117: 400–410.

    Article  Google Scholar 

  • Watson, G.F., J.T. Beck, C.M. Henderson, and R.W. Palmatier. 2015. Building, measuring, and profiting from customer loyalty. Journal of the Academy of Marketing Science 43 (6): 790–825.

    Article  Google Scholar 

  • Yeo, J., and J. Park. 2006. Effects of parent-extension similarity and self regulatory focus on evaluations of brand extensions. Journal of Consumer Psychology 16 (3): 272–282.

    Article  Google Scholar 

  • Yeung, C.W., and R.S. Wyer Jr. 2005. Does loving a brand mean loving its products? The role of brand-elicited affect in brand extension evaluations. Journal of Marketing Research 42 (4): 495–506.

    Article  Google Scholar 

  • Zeithaml, V.A., L.L. Berry, and A. Parasuraman. 1996. The behavioral consequences of service quality. Journal of Marketing 60 (2): 31–46.

    Article  Google Scholar 

  • Zhang, S., and A.B. Markman. 1998. Overcoming the early entrant advantage: The role of alignable and nonalignable differences. Journal of Marketing Research 35: 413–426.

    Article  Google Scholar 

  • Zhang, S., and S. Sood. 2002. “Deep” and “surface” cues: Brand extension evaluations by children and adults. Journal of Consumer Research 29 (1): 129–141.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management and Marketing, East Tennessee State University, PO Box 70625, Johnson City, TN, 37614-1266, USA

    Beichen Liang

  2. Maryville College, Maryville, TN, USA

    Wei Fu

Authors
  1. Beichen Liang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Wei Fu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Beichen Liang.

Ethics declarations

Conflict of interest

On behalf of all authors, the corresponding author states that there is no conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Liang, B., Fu, W. The choice of brand extension: the moderating role of brand loyalty on fit and brand familiarity. J Market Anal 9, 17–32 (2021). https://doi.org/10.1057/s41270-020-00100-9

Download citation

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41270-020-00100-9

Keywords

Search

Navigation