Types of Brand Extension
Brand extension research mainly focuses on consumer evaluation of extension and attitude toward the parent brand. In their 1990 model, Aaker and Keller provide a sufficient depth and breadth proposition to examine consumer behaviour and a conceptual framework. The authors use three dimensions to measure the fit of extension. First, the “Complement” refers to consumers taking two product classes (extension and parent brand product) as complementary in satisfying their specific needs. Secondly, the “Substitute” indicates two products have the same user situation and satisfy the same needs, which means the product classes are very similar and that the products can act to replace each other. Lastly, the “Transfer” describes the relationship between extension product and manufacturer which “reflects the perceived ability of any firm operating in the first product class to make a product in the second class” The first two measures focus on the consumer’s demand and the last one focuses on the firm’s perceived ability.
From the line extension to brand extension, however, there are many different types of extension such as "brand alliance", co-branding or “brand franchise extension”. Tauber (1988) suggests seven strategies to identify extension cases such as product with parent brand’s benefit, same product with different price or quality, etc. In his suggestion, it can be classified into two category of extension; extension of product-related association and non-product related association. Another form of brand extension is a licensed brand extension. In this scenario, the brand-owner works with a partner (sometimes a competitor), who takes on the responsibility of manufacturing and sales of the new products, paying a royalty every time a product is sold.
Read more about this topic: Brand Extension
Famous quotes containing the words types of, types, brand and/or extension:
“Our children evaluate themselves based on the opinions we have of them. When we use harsh words, biting comments, and a sarcastic tone of voice, we plant the seeds of self-doubt in their developing minds.... Children who receive a steady diet of these types of messages end up feeling powerless, inadequate, and unimportant. They start to believe that they are bad, and that they can never do enough.”
—Stephanie Martson (20th century)
“If there is nothing new on the earth, still the traveler always has a resource in the skies. They are constantly turning a new page to view. The wind sets the types on this blue ground, and the inquiring may always read a new truth there.”
—Henry David Thoreau (1817–1862)
“Happiness is always a by-product. It is probably a matter of temperament, and for anything I know it may be glandular. But it is not something that can be demanded from life, and if you are not happy you had better stop worrying about it and see what treasures you can pluck from your own brand of unhappiness.”
—Robertson Davies (b. 1913)
“The desert is a natural extension of the inner silence of the body. If humanity’s language, technology, and buildings are an extension of its constructive faculties, the desert alone is an extension of its capacity for absence, the ideal schema of humanity’s disappearance.”
—Jean Baudrillard (b. 1929)