The Role Of Fit In The Feedback Effects Of Laozihao Extenions

In the academic field of brand extension,the feedback effect of brand extension on the parent brand is one of the most important aspects.Extant studies pay more attention to how product level fit affects the feedback effect.In fact,the fit between brand extension and parent brand covers two major levels,product level fit and brand level fit.But few studies have paid attentions to the role of brand level fit in the feedback effects of brand extension.In China,the revitalization and development of Laozihao is a common concern for society.Under the new market environment,it is inevitable for Laozihao to take brand extension strategies to realize its aim of revitalization and development.Whether brand extension will negatively affects Laozihao's already owned brand equity,is another important concern for the Laozihao companies and the whole society.For these reasons,this study focused to investigate how the cultural attribute of Laozihao,which is the most distinct characteristic of Laozihao,is affected if Laozihao extends to different type of products;or,in other words,how cultural fit affects the feedback effects of Laozihao extensions.This study designed a 2-external control conditions of the 2 x 2 x 2 x 2 between subjects experiment,examining what kind of role product fit and cultural fit play in the feedback effects of Laozihao extensions.This study found that,(1)when direct extension strategy is adopted,high cultural fit will not strengthen the associations of cultural heritage attributes of Laozihao;(2)when direct extension strategy is adopted,low cultural fit will weaken consumer's associations of Laozihao cultural attributes;(3)when direct extension strategy is adopted,higher level product fit will lead to better brand attitudes;(4)when direct extension strategy is adopted,lower level of product fit will result in lower level of brand attitudes of Laozihao;(5)in the direct extension,cultural fit has significantinfluences on consumer's associations of Laozihao cultural attributes,but not on the brand attitudes of Laozihao;(6)in the direct extension,the product fit has significant impacts on brand attitudes,but not on consumers associations of Laozihao's cultural attributes;(7)sub-brand strategy,can effectively mitigate the negative effects of product fit on brand attitude and the negative impact of cultural fit on cultural attributes.Based on the results of this study,it is indicated that,sub-branding strategy instead of direct brand extension,is a better choice for Laozihao.