The Effects of Brand Name Structure and Product Experience on Brand Extension Evaluations and Parent Brand Dilution

Sanjay Sood, Anderson School of Management, University of California, Los Angeles
Kevin Keller, Amos Tuck School, Dartmouth College
Five laboratory experiments explore how alternative brand name structures (i.e., family branded or sub-branded) and varying degrees of category similarity (i.e., similar or dissimilar) influence the effects of product experience on extension evaluations and parent brand dilution. Response latencies provided evidence for category-based processing with family branded extensions and piecemeal processing for sub-branded extensions. These processing differences subsequently led to differences in extension evaluations and dilution effects. Specifically, category similarity affected extension evaluations when the extension was family branded but not when it was sub-branded. Additionally, dilution effects were only evident when consumers had a negative experience (vs. no experience or negative product ratings) with a similar family branded extension. Sub-branding offers two key benefits to marketers by both enhancing extension evaluations and protecting the parent brand from any unwanted negative feedback.
[ to cite ]:
Sanjay Sood and Kevin Keller (2007) ,"The Effects of Brand Name Structure and Product Experience on Brand Extension Evaluations and Parent Brand Dilution", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 580-582.