The Retrospective Influence Study Of Luxury Brand Extension On Parent Brand Image

In the fierce market competition, the luxury companies often have to take the brand extension strategy in order to maintain the status of the parent brand, or to increase business profits. Domestic and international research shows that, on the one hand, the luxury brands have a strong ability to extend the brand and extension of the luxury brands will enhance the parent brand image; On the other hand, the failure of luxury brand extension are frequent and have made damage to the parent brand image. How to maximize using of existing luxury brand resources, and using the successful brand extension strategy, make the transition from the strong influence of the parent brand to the extension brand, that's what luxury companies often faces.Therefore, this study aimed at understanding the factors of luxury brand extension on parent brand image, and measure the size of various factors, and thus choose the most effective brand extension path. This paper reviews the theory of brand extension, the theory of luxury brand extension, the research of brand extension on parent brand image, and think that the retrospective process of luxury brand extension on parent brand image is combined influenced by five factors: the original mother brand image, the perceived fit between extension brand and the parent brand, the perceived degree of parent brand awareness, the perceived quality and the perceived manufacture difficulty of the extension brand. Then making an establishment retrospective model including nine assumptions.Finally, the results demonstrate: the luxury brand extension would have diluted the role of parent brand image. If the evaluation of the brand awareness, the perceived fit, the perceived quality of the extension brand, the original parent brand image and the perceived difficulty of the brand extension are higher, the dilution effect on the parent brand image will be smaller. Meanwhile, the article also further validate the differences between luxury brand and non-luxury brand images after brand extension. Conclusions of this study provide some guidance to the luxury brand when they use the brand extension strategy, they need to consider the various factors and measure the various factors suggested first.