The
negative impact of brand extensions on parent brand image,
Martinez, Eva and Pina, Jose M., Journal of Product
and Brand Management, Vol 12, No 7, 2003
In recent years companies have been using brand extensions
as a strategy for launching new products. The reason why
this strategy has been popular is the fact that it decreases
the risk of failure of new products, because consumers
initially are more willing to accept products marketed
under known brands. Nevertheless, this strategy is not
free from risks, since it is not convenient for all the
brands, and moreover, it may have negative effects on
the image of the extended brand. The main objective of
this article is to analyse the influence that brand extension
have on brand image. An experiment is performed that examines
the most important variables to consider in using the
brand extension strategy after analysing the information
obtained, the article reaches the conclusion that the
brand extension strategies may influence the brand image
after the extension and that variables such as the brand
image prior to the extension, the perceived quality of
the extension and the fit between the parent brand and
the new product also affect the image.
That
Ad is So Entertaining…But Can It Sell? Who Knows,
http://knowledge.wharton.upenn.edu
An entertaining commercial on a prime-time television
show might be a good way to build a brand’s image,
but a straightforward spot with a prominent toll-free
phone number is the best way for a company to move inventory
fast, says the article. Citing the instance of an agency
A. Eicoff & Co, headquartered in Chicago, the author
explains how it pioneered direct response television advertising
in the 1960s with pitches for cosmetics and fishing kits
and worked with AT&T to create the first 800 (toll-free)
number for client Columbia Records. A division of Ogilvy
& Mather since 1981, the agency has evolved from promoting
$19.95 gadgets to making commercials for a growing roster
of Fortune 500 companies, including United Airlines, Visa,
Sears, and Motorola - all of which use direct response
ads with 800 numbers to reach customers. The article explains
how very difficult it is to gauge what effect entertainment-style
commercials have on sales and states that they are valuable
devices to build general brand awareness, but not solid,
measurable sales. The worst examples of entertainment-driven
advertising prevailed in the dot-com era, he noted, describing
those years as “22- and 23-year-olds playing with
billions of dollars.” The author also predicts that
television will become increasingly more interactive and
grow to resemble the Internet. “You will be sitting
there and a commercial will come on and you press a button
and the product will be delivered. Yes, it will happen.
Is it going to happen tomorrow? No. There’s still
a big part of this population that’s afraid of gadgets.”
Going
With Your Gut,
Peter Darke, Amitava Chattopadhyay, Laurence Ashworth,
INSEAD Knowledge, 2002
Marketing research has shown the importance of affective
cues (preferences based on feelings) and informational
cues (preferences based on features) in consumer decision
making processes, suggesting that affective cues have
an impact on judgement primarily when consumers are less
motivated to choose accurately or when they have a diminished
ability to judge products. Further, affectively-based
choices are often perceived as impulse purchases which
consumers ultimately regret. However, in this recent working
paper, the authors argue for a fuller recognition of the
importance of affective experience in consumer judgment
and decision-making. Their research demonstrates how affective
experience can be influential even, when consumers are
highly motivated and fully capable of making decisions
on the basis of tangible features.
This working paper will be of interest both marketing
researchers and students. It adds to the conceptualisation
of the role of affect in consumer decision making and
draws on the improved understanding to offer practical
implications for managers and marketers.
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