Study On Spillover Effects Of Brand Extensions

The brand has been the basic element of market economy beyond product and name. The products can be produced more and more and the name is only symbol system, but the brand is the guiding factor to product and brand name. As to the companies, the value of building brand accelerates very fast compared with the value created by products. So we can say that the market competence is the competence of brand power, which has been the "atomic nucleus" of capital value and market economy.Brand plays an important role in our lives, which is bought and consumed. We acknowledge and acquire more brand knowledge and upgrade it from sensibility to rationality to building brand loyalty and brand value concepts. The producers provide more brands for consumers to distinguish and choose. Lynn·Upshaw named brand as "atomic nucleus" of economy. He defined brand as "beyond name,symbol and obvious sign", to some extent, it is the "contracts" with consumers ,"promises" to consumers and "believes" of consumers.In the view of essential action of brand in economy development, we can take market economy as brand economy, which is guided by market, based on the consumers' brand preconception, urged by companies' brand management. Brand management is not simple economy mechanism, but complex economy integration. The brand economy chain is consist of brand products,brand services,brand companies,brand industries,brand market,brand management and brand marketing etc. The brand economy chain will produce "centralizing effects" or "brand community effects" and realize scope economy to improve its competence.With retrospect on the papers about brand extensions, we analyze the relations between brand consumption,brand loyalty and brand extensions. Further more, we dwell on the theory basis and spillover effects of brand extensions to enrich our knowledge on brand asset and management and give references to the management of brand community.The dissertation consists of five parts, including introduction and four chapters. In the introduction part, we show the sense and practical value of research on spillover effects of brand extensions. In the first chapter, we analyze the process transmit brand bias to brand value on the basis of three-psychology factors. In the second parts, we analyze the essential factors from three aspects: the brand benefits apperceived by consumers,the information economy of companies' brand and the spillover effects of brand extensions. In the third part, we analyze the competitive spillover effects and reciprocal spillover effects of brand extensions and draw three conclusions:(1)brand advertising begets between brands;(2)strategic transform of brand;(3)the centralizing spillover effects of brand extensions. In the fourth part, we analyze the negative spillover effects of brand extensions.