Extend Brand a tightrope?
SM Research Team

Attribute dissonance
Consumers often experience some dissonance between the original brand’s attributes and the extended brand’s attributes.
For example, the softness attribute of facial tissue would be difficult to transfer into bread with the same meaning because the feeling found in facial tissue will not be soft inside the mouth. Also the softness attribute of bread will result in a dissonance, i.e. the feeling of being greasy on the face, not soft like tissue.

In psychology, dissonance is generally defined as psychological discomfort and can occur when people try to form an opinion or make a decision when cognition and opinions pull or direct them in different directions.
Thus, in the brand extension situations, consumers would have two conflicting or commingled directions of approach (e.g. “one of my favourite brand names”) or withdraw (e.g. “unfitting extension category with the brand name” or “product-attribute concept seems consistent but felt meaning is very different such as the case of softness in (box)your mouth”. Although, it appears to be minor, the extra word “tasty” can be a dissonance reducer to address the softness attribute dissonance situation by assuring consumers that the bread is indeed very soft in mouth. Thus, a consumer’s attitude towards a brand extension can be improved by adding attribute dissonance reducers in the extension communication context.

Box A consumer’s ... communication context.
Negative effects of brand extension on brand image

• lThe extension strategy is apt to dilute the brand image when launching new products, creating new associations or confusing the current ones.
  The extension that create new associations in the mind of the consumer and confuse the current feelings and beliefs about the brand, often bring irreversible damages to the image of the core brand which is an asset built over the long-term as a result of many a marketing effort.
• The brand image before the extension will influence to a great extent the perceived image after the extension
  The mechanism that explains this psychological process is the associative network theory, a theory which postulates that semantic information is stored in the mind of the consumer as hierarchical networks that contain nodes (or concepts) connected by links or associations and that may be recovered through a stimulus. For instance, if a consumer has the asset of associations or perceptions in his or her memory that link the Sony brand with the various categories of products that make up the brand portfolio (nodes), when this brand is observed on the container or announcement of a potential extension, it will facilitate the recall of all the associations that exist in their mind about Sony.
• The lesser the perceived fit between the extension and the parent brand, the more probable it is that the brand image will deteriorate.
  The lesser the fit, the greater the negative consequences suffered by the image, although if the fit is minimal, the extension may be perceived as a subtype distanced from the brand, and the dilution effect of the associations would be less than expected or even null.
• The lesser the perceived quality of the extension, the more probable it is that the brand image deteriorates
  The perceived quality of the extension appears to be another element with relevant influence. When evaluating extensions, the perceived quality of the brand tends to be examined; whereas by analysing the retroactive effects, the variable that is worked with is the perceived quality of the extension, given that in this case the quality of the brand has a more prominent role as a variable to be explained rather than as an explanatory variable.
• l The lesser the perceived difficulty of the manufacturing process, the more probable it is that an extension deteriorates the brand image
  If a company markets a product subject to hardly any innovation, consumers may think that this action corresponds to an opportunistic behaviour by the company that tries to increase their benefits manufacturing simple products carrying a low value. Consequently, it is feasible that these negative perceptions are translated into the dimension of the organisation and therefore the brand image.
• l The lesser the awareness of the parent brand, the more probable it is that an extension deteriorates the image
  The extension of non-dominant brands have a greater effect on the memory of the consumers than the extension of brands that are recognised first, or dominant brands, given that in the former case the associations that configure the beliefs about the brand are weaker. In other words, the consumers tend to forgive strong brands when they trip up in the market.

Different dilution effects for different equity sources
The nature and impact of the backlash of failed brand extension depends very much on the distance of the extended brand from the original brand and the elements of brand equity taken from the old brand and imbued in the new, extended brand. (insert table)

Dilution effects do occur across three types of high equity-source brands for both close and distant extension failures. The sources of brand equity are the key contributing factors of differences in dilution effect.
An extension failure can damage the original brand by creating undesirable attribute associations or by damaging the brand’s perceived quality - a phenomenon that can be regarded as brand dilution. Dilution effect depends a lot on the elements of brand equity shared by the parent and extended brands. Four types of brand equity source, based on the degree of customer perception for the functional attributes and non-functional attributes of the brand, are constructed.

• A brand of low non-functional attribute perception and a low functional attribute perception is considered a low equity type brand. For e.g.: Mekelon, Yueloong, Puma
• A brand of low non-functional attribute perception and a high functional attribute perception is considered a functional attribute oriented brand. For e.g.: Nike, Darlie
• A brand of high non-functional attribute perception and a low functional attribute perception is considered a non-functional attribute oriented brand. For e.g.: Liato
• A brand of high non-functional attribute perception and a high functional attribute perception is considered an integrated oriented brand. For eg.: Sassoon, Proton, Levi.
• Out of these four types, three types are of high equity-source brand: integrated oriented brand, non-functional attribute oriented brand and functional attribute oriented brand. The type with low non-functional attribute perception and a low functional attribute perception is a low equity type brand.
• If the extended brand draws on non-functional elements of brand equity in a non-functional attribute oriented brand, it is the non-functional aspect of the parent brand’s equity that will be damaged by extension brand failure.
• If the extended brand draws on functional attribute elements of brand equity in a functional attribute oriented brand, it is the functional aspect of the parent brand’s equity that will be damaged by extension brand failure.
• If the extended brand draws on and functional and non-functional elements of brand equity in an integrated oriented brand, it is both the functional and non-functional aspects of the parent brand’s equity that will be damaged by extension brand failure.

Thus an unsuccessful brand extension will have negative dilution effects on the original brand and the effect will depend upon the sources contributing to its brand equity.

Factors that moderate brand dilution
Four factors have been identified to pull the parent brand back from the brink. And to have a positive effect on the general brand image and on the product brand image after extension. They are as follows:

The perceived quality of the brand
Believes or attitudes regarding the original brand will be transmitted to the extension and a greater perceived quality in the original brand will have a positive effect on acceptance of the extension. Recent studies have demonstrated a relationship between greater brand quality and the success of an extension. For eg: Dettol soap was an immediate success.

Consumers’ brand familiarity or relationship with the brand
The knowledge or familiarity that consumers have with the brand is likely to influence all of their perceptions of the brand. And brand image may change depending on consumers’ level of familiarity with the brand. The consumers’ relationship with the brand affect intentions of purchasing the extension, for similar or different extensions, and their experience with the brand influences the trial of extended products. For instance: Horlicks biscuits became a runaway hit while Kellogg biscuits bombed in the Indian market.

The fit perceived by the consumer
When analysing the effect of an extension on a brand’s image, the fit or similarity between the parent brand and the extended brand are likely to affect the brand’s image. Many studies have found a direct effect between the fit perceived by the consumers and the acceptance of the extension. The two components that matter are the similarity between the new product and the typical products of the company, and the consistency between the new product and the parent brand. For e.g.: Maggi two-minute noodles and tomato ketchup; Kissan jam and Mr. Fruit.

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