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Empirical generalizations from brand extension research: how sure are we?

Author: Echambadi, R. ; Arroniz, Inigo ; Reinartz, Werner ; Lee, J.INSEAD Area: MarketingIn: International Journal of Research in Marketing, vol. 23, no. 3, September 2006 Language: EnglishDescription: p. 253-262.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: Bottomley and Holden (2001) conducted a secondary analysis of Aaker and Keller's (1990) seminal brand extension study and seven other close replications, generated several empirical generalizations, and hence called for a revision of the extant understanding of brand extension evaluations. We re-examine Bottomley and Holden's conclusions. We prove analytically that the residual-centering approach used by them to alleviate collinearity problems is inappropriate, thereby rendering their generalizations suspect. We re-analyze the same data, and our new results clarify the understanding of how consumers indeed evaluate extensions. Specifically, we find that, although the simple effects of neither parent brand quality nor measures of fit affect evaluations of brand extensions, the interaction effects of parent brand quality with fit are important determinants of brand extension evaluations. We discuss the substantive implications of our findings and offer directions for future research.
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Bottomley and Holden (2001) conducted a secondary analysis of Aaker and Keller's (1990) seminal brand extension study and seven other close replications, generated several empirical generalizations, and hence called for a revision of the extant understanding of brand extension evaluations. We re-examine Bottomley and Holden's conclusions. We prove analytically that the residual-centering approach used by them to alleviate collinearity problems is inappropriate, thereby rendering their generalizations suspect. We re-analyze the same data, and our new results clarify the understanding of how consumers indeed evaluate extensions. Specifically, we find that, although the simple effects of neither parent brand quality nor measures of fit affect evaluations of brand extensions, the interaction effects of parent brand quality with fit are important determinants of brand extension evaluations. We discuss the substantive implications of our findings and offer directions for future research.

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