The Effects Of Attribute Consistency And Marketing Strategy On Brand Extension Dilution Effect

Brand extension is the main brand strategy most companies would like to choosein the process of brand management, in addition to more quickly to new productsuccessfully, companies also want to control or minimize the potential risk of newproduct failure. However, from the existing brand extension practice, there are quite anumber of brand extension is not successful, even result in different degree of damageto the brand and the product, and the dilution effect is one of the main factors ofnegative effect. And even the successful brand extension (extended product approved),is also a certain degree of brand dilution problem.At present, the study on brand extension mainly focused on the consistency, froma large number of literatures and summarizing we introduce two variables includingattribute consistency and marketing strategyand explore the effect of attributeconsistency on brand extension and the mediation effect of marketing strategy on thedilution effect.Firstly we classify the parent brand into four types, including integrated orientedbrand, symbolic attribute oriented brand, functional attribute oriented brand and lowequity brand, and the former three types collectively refer to as high equity brandwhich further classifies the parent brand into two levels, namely high equity brandand low equity brand, and we choose functional and symbolic extension products foreach parent brand. And then we design product instructions, rational appealadvertising and emotional appeal advertising for each inconsistent extension product.The results show that the attribute inconsistency of extension product and parentbrand will produce dilution effect, and this effect is caused by the dominant attributeof parent brand; advertising can be used to mediate dilution effect, and the productinstruction shows nothing prominent effect on the dilution, advertising appealsconsistent with parent brand dominant attributes will weaken the dilution moresignificantly; the advertising appeals of low equity brands also need to be consistentwith brand equity types.