Reciprocity effects of brand extensions: Dilution, fortification, expansion

This research examines situations in which brand extension strategies have either a positive or negative impact on the beliefs and attitudes toward the originating brand. In particular, this research explores the role of perceived category coherence, i.e., when a grouping of objects makes sense to a perceiver, in understanding when extensions dilute, fortify or expand existing brand attitudes and beliefs.; It is argued that perceptions of category coherence are based on consumers' ability to recognize commonalities among existing products and extensions (product linkages) and perceptions of how consistent extensions are with consumers' understanding of the brand image (image linkages). Further, it is argued that product links can be based on perceived feature-based similarities between the brand products (e.g. shared physical attributes) or on more abstract higher-order concepts.; The results revealed that dilution of brand attitudes occurred when either (1) an extension was inconsistent with the brand image (no image linkage) or (2) consumers perceived no sensible product linkages. Dilution of brand beliefs occurred only when extensions were inconsistent with the image of the originating brand. Further, the results revealed that a brand's product category associations can be expanded, when both (1) extensions are perceived to be consistent with the existing brand image and (2) extensions and the existing products together become associated with a more abstract, higher-order product link. There was no evidence that brand attitudes or beliefs were strengthened, when extensions shared a product link with the existing brand product and/or when they were image-consistent. However, under these conditions attitudes and beliefs were maintained, i.e., they were not diluted.