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Determining the order and direction of multiple brand extensions

Author: Dawar, Niraj ; Anderson, Paul F.INSEAD Area: Marketing Series: Working Paper ; 92/36/MKT Publisher: Fontainebleau : INSEAD, 1992.Language: EnglishDescription: 38 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Successful brand management involves exercising the brand's equity to profitable ends. Brand extension provides a means of leveraging such equity. Distant brand extensions may be achieved through the introduction of intermediate brand extensions (Keller and Aaker 1992). Given a set of potential extensions a brand manager may wish to determine the order in which they are introduced. The direction of these extensions may also have to be considered. Two experiments provide evidence for the importance of considering order and direction of extension. Recent categorization theory provides the conceptual background for the study. Thus, brands are taken to be categories and extensions are evaluated in terms of the coherence of the extension product(s) with the brand category. Direction of extensions is arrived at by locating a brand in the multidimensional product/brand space.
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Successful brand management involves exercising the brand's equity to profitable ends. Brand extension provides a means of leveraging such equity. Distant brand extensions may be achieved through the introduction of intermediate brand extensions (Keller and Aaker 1992). Given a set of potential extensions a brand manager may wish to determine the order in which they are introduced. The direction of these extensions may also have to be considered. Two experiments provide evidence for the importance of considering order and direction of extension. Recent categorization theory provides the conceptual background for the study. Thus, brands are taken to be categories and extensions are evaluated in terms of the coherence of the extension product(s) with the brand category. Direction of extensions is arrived at by locating a brand in the multidimensional product/brand space.

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