Brand Dilution Effects on Franchises
Research on brand dilution has shown that extensions which are similar to the parent brand are better liked than dissimilar extensions. This research has focused on situations in which the parent brand has complete control over the extension. We examine dilution effects in the context of franchises. Franchisees make decisions for new stores that dilute the parent brand, even though the parent brand does not dictate the decisions. We show that new dissimilar franchise stores are negatively evaluated and negatively impact the parent brand. This effect occurs even occurs when participants are reminded that the company is a franchise.
Citation:
Noelle Nelson, Barbara Loken, and Christine Bennett (2009) ,"Brand Dilution Effects on Franchises", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 951-951.
Authors
Noelle Nelson, University of Minnesota, USA
Barbara Loken, University of Minnesota, USA
Christine Bennett, University of Minnesota, USA
Volume
NA - Advances in Consumer Research Volume 36 | 2009
Share Proceeding
Featured papers
See MoreFeatured
Is CSR for Sale? Investigating the Effects of Acquisition of Socially Responsible Brands on CSR Perceptions
Bianca Grohmann, Concordia University, Canada
Argiro Kliamenakis, Concordia University, Canada
H. Onur Bodur, Concordia University, Canada
Featured
C2. The Bad Taste of Healthy Food Discounts
Iina Ikonen, Vrije Universiteit Amsterdam
Aylin Aydinli, Vrije Universiteit Amsterdam
Peeter Verlegh, Vrije Universiteit Amsterdam
Featured
G7. The Presence of Dividing Line Decrease Perceived Quantity
Jun Ouyang, Xiamen University
Yanli Jia, Xiamen University
Zhaoyang Guo, Xiamen University