However, the unknown aspect is that if far brand extensions
are favored only by interdependent consumers (Ahluwalia, 2008), how can those cross-category extensions succeed in market segments that consist of consumers ranked high on independent self-construal?
The research on brand extensions
provides evidence regarding situations where this commercialization strategy works in an assertive manner.
This empirical study intends to provide knowledge concerning consumer acceptance of fashion apparel extensions, which may facilitate functional mass-market brands to identify the direction for cross-category brand extensions
and to compete for a share of consumer identity.
Margins in the used-vehicle business have been temporarily pressured from AutoNation's "One Price" strategy rollout, and the company has incurred elevated selling, general and administrative (SG&A) costs as it implements its brand extension
In a similar study in Taiwan it was found that using professional baseball teams as brand extensions
could have an impact on the parent brand's image (Walsh, Chien, & Ross, 2012).
are very popular in branding strategy.
They include three musicians: Beyonce (#17, with fashion and fragrance), Shakira (#58, fragrance), and Lady Gaga (#67, fragrance and Barney's tie-in); two talk-show hosts: Oprah (#14, chai tea with Starbucks) and Ellen DeGeneres (#46, pet products); one actress: Sofia Vergara (Kmart tiein); three fashion designers: Diane Von Furstenberg (#68), Miuccia Prada (#75), and Tory Burch (#79), all tied to brand extensions
of one kind or another; and one model: Giselle Bundchen (#89, with apparel, footwear, and cosmetics).
Generally, two main advantages of brand extensions
could be underlined: the ability to facilitate new-product acceptance; and provide positive feedback to the parent brand and company (1).
There were brand introductions, brand extensions
and brand reinventions from many well-known players in the industry.
help in increasing recognition and enhancing acceptance of the product.
During the past decade, net new food and beverage introductions yielded an average 9% more in year-one sales versus brand extensions
. In 2012, the difference is +32%, with net new brands commanding $54.3 million dollars across the multi-outlet geography versus $41.0 for new brand extensions
IRI notes that, for the most part, the bulk of the new products were brand extensions
, with 82% of the new food and beverage items launched last year adding to an established line and 91% of the nonfood products debuting being brand extensions