The effect of brand equity on brand knowledge: An empirical and comparative analysis

This study analyses the reciprocal effects of brand extensions on brand knowledge and its effect on the parent brand. The study utilizes categorization theory to help account for the method of determining category fit of brand extensions compared to their parent brands. The study utilizes actual luxury brands with a fictitious brand extension. Survey methodology was utilized with a final sample size of 343 students from an Historically Black College/University (HBCU) and a satellite campus of a Predominately White Institution (PWI) n = 178 and n = 166 respectively.; The sample utilized enabled comparisons of the two groups to determine if image associations of the parent brand prior to and following an unrelated brand extension, varied between the two sample populations.; Conclusions supported previous findings that luxury brands appear to be able to extend into unrelated categories. The findings also suggest that students that attend a HBCU perceive brand extensions differently than students that attend a PWI. Conclusions suggest that companies desiring to make an unrelated brand extension should take into consideration their target population prior to launching a brand extension.