Formation of Price Expectation in Brand Extensions and Impact on Brand Extension Evaluation

Sung Youl Jun, Sogang University
Deborah J. MacInnis, University of Southern California
C. Whan Park, University of Southern California.
ABSTRACT - The current research examines the effect of several price-related variables on consumers’ judgments of brand extensions. We find consumers’ price expectations of a brand extension are affected by the price of the parent brand (i.e., a brand-specific price factor), the relative price of the parent category in relation to the extension category (i.e., a category-specific price factor), and the heterogeneity of prices in the extension category. We also find the impact of price expectation of the extension is stronger when they are confronted with the actual price of the extension than when they are not.
[ to cite ]:
Sung Youl Jun, Deborah J. MacInnis, and C. Whan Park (2005) ,"Formation of Price Expectation in Brand Extensions and Impact on Brand Extension Evaluation", in NA - Advances in Consumer Research Volume 32, eds. Geeta Menon and Akshay R. Rao, Duluth, MN : Association for Consumer Research, Pages: 137-142.