José M. Pina

The negative impact of brand extensions on parent brand image

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. Therefore, the main objective of this study is to analyse the influence that brand extensions have on brand image. For this analysis, an experiment is performed that examines the most important variables to consider in using the brand extension strategy. After analysing the information obtained, reaches the conclusion that 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.

The role of bank image for customers versus non‐customers

Purpose – The purpose of this paper is to analyse the corporate image of financial institutions and its impact on consumer behaviour. More specifically, it aims to focus on the differences between customers and non‐customers of banking institutions.Design/methodology/approach – Data were collected through five questionnaires involving five major Spanish commercial banks. The questionnaires were answered by 450 individuals and SEM methodology was used to test the hypotheses of the study.Findings – Corporate image of commercial banks includes dimensions related to the services offered, accessibility, corporate social responsibility, global impression, location and personnel. Two alternative models were validated for customers and non‐customers to explain how corporate associations influence intention to use the banks services. For the case of current customers, satisfaction is a key mediating variable.Research limitations/implications – The study is focused on national commercial banks and corporate image ...

Influence of Corporate Image on Brand Extensions: A Model Applied to the Service Sector

The paper presented here provides a new perspective in the study of service brand extensions, which has become a popular strategy for launching new services. Specifically, the paper proposes and estimates a model that shows how potential consumers evaluate service extensions. The findings show that the corporate image affects both the perceived service quality and the perceived fit between the new service and the parent brand, which in turn affects attitudes towards the extension. In consequence, the service extension is more likely to be successful when the corporate image is reinforced by effective marketing communications. The perception of service quality will be better and consumers will think that the company is more able to offer the new services.

Corporate brand image in retail banking: development and validation of a scale

Recent changes in deregulation and technology have made banking one of the most competitive sectors in the global economy. Within this background, corporate image management has gained importance as a way of differentiating companies. This paper aims to develop a scale to analyse the corporate image in banking. Derived from a review of the literature, a scale with the most cited dimensions of analysis is developed. This scale is then tested by means of an empirical study of 450 individuals, where dimensionality, reliability and validity requirements are confirmed. Both theoretical and managerial implications are presented.

Consumer responses to brand extensions: a comprehensive model

Purpose – This paper aims to understand the reciprocal spill‐over effects of brand extensions by testing a comprehensive model that gathers both the brand extension evaluation process and the later influence on brand image.Design/methodology/approach – Data were obtained from 699 face‐to‐face interviews conducted in Spain. Structural equation modelling was used to test the proposed hypotheses.Findings – The results indicate that brand extensions have feedback effects on brand image depending on the attitude toward the new product and perceived image fit. Consumer attitude depends, in turn, on initial brand associations, perceived category fit, perceived image fit and consumer innovativeness. Brand familiarity also shows indirect effects.Research limitations/implications – The model should be tested with extensions of the same (line extensions) or different categories. It is also necessary to analyse non‐fictitious products, and to take different moderating effects into account.Practical implications – The...

Feedback effects of brand extensions on the brand image of global brands: a comparison between Spain and Norway

Abstract Global brands often attempt to increase their sales through the launch of brand extensions. Such a strategy may, however, dilute existing brand beliefs at an international level, as two sets of data from Norway and Spain indicate. This paper illuminates how the attitude towards a brand extension affects the image of a parent brand. The extension attitude is mainly determined by the degree of perceived fit between the extension and the parent brand image. In the Spanish sample, it is also determined by the degree of familiarity with the parent brand and the perceived fit at the product category level. After analysing these relationships, the paper focuses on the moderating role of two dimensions of consumer innovativeness: hedonist innovativeness (tied to need for stimulation) and social innovativeness (tied to need for uniqueness). Finally, the cultural orientation of the origin country is analysed as a moderating factor.

Corporate brand image of financial institutions: a consumer approach

Purpose – In the banking sector, the importance of consumers perceptions for business success has been underestimated. For this reason, the present work aims to focus on the corporate brand image construct, analysing how the associations of financial brands are generated and the way such associations influence consumer behaviour.Design/methodology/approach – A model is proposed that shows which are the main antecedents and consequences of corporate image of financial institutions. This model was validated through structural equation modelling. Data were collected by means of personal questionnaires addressed to 450 respondents.Findings – Results indicate that consumer perceptions depend on brand familiarity, non‐firm communications and, to a lesser extent, on advertising. The resulting image will be an antecedent of the global attitude to the firm and, directly and indirectly, of the intention to use the branded service.Research limitations/implications – This study has been aimed at consumers in a speci...

The role of perceived value in vertical brand extensions of luxury and premium brands

Abstract This study examines the role of perceived value in the relationship between brand attitude, perceived fit, extension attitude and consumers’ purchase intention of downscale vertical extensions of luxury and premium brands in two product categories: cars and shoes. Results from 236 individuals with different income levels show that extension attitude is positively related to purchase intention both directly and indirectly, via the perceived value of the extension; the latter is more strongly correlated than extension attitude to consumers’ purchase intention. Brand attitude is also positively associated with perceived value. Overall, perceived value partially mediates the relationships of brand attitude and of extension attitude with purchase intention. The product category affects the strength of some of the relationships in the model, including the role of fit.

Extending the brand: controllable drivers of feedback effects

Purpose – The purpose of this paper is to understand how companies can leverage brand image through brand extensions without harming their image. It specifically seeks to analyse the influence of three variables: communication policy, brand breadth and extension‐brand fit.Design/methodology/approach – Data were obtained from 599 individuals who took part in an experiment. The proposed hypotheses were tested by means of ANOVA methodology.Findings – The results show that brand extensions far from the current markets damage the brand associations, although the use of advertising focused on the new product can reduce this negative effect. Moreover, feedback effects are less negative when the brand has not been over‐extended in the past.Research limitations/implications – With the aim of increasing the external validity of results, non‐fictitious products and ads should be analysed. Moreover, the conceptual framework does not consider other communication tools like sponsorship or publicity.Practical implicatio...

Expansion strategies for online brands going offline

Purpose – This paper seeks to examine expansions of online brands into the offline market via brand extensions and via brand alliances. Specifically, it aims to compare the formation of reciprocal spillover effects for both strategies.Design/methodology/approach – Empirical survey data are analyzed through a series of standard and hierarchical multiple regressions. Different combinations of online brands, product categories and offline brands are studied.Findings – The main results indicate that: the attitude towards the new product is determined by fit and by the functional offline brand image for alliances, while it is determined by fit and by the emotional and commitment dimensions of online brand image for extensions. Moreover, the online brand image is more vulnerable in brand alliances than in extensions.Research limitations/implications – This work shows the applicability of commonly used theories in brand extensions and alliances to the online‐offline market expansion. Moreover, these theories all...