Brand‐extension feedback effects: an Asian branding perspective

In: Asia Pacific journal of marketing and logistics, Band 25, Heft 2, S. 321-340

Abstract

PurposeMost of the literature on feedback effects emanates from the West, and is thus relevant to Western brands. The purpose of this paper is to model the impact of brand‐extensions on parent brand‐equity within the Asian (specifically Indian) context. Additionally, parent brand trust is examined as a new antecedent of brand‐extension feedback.Design/methodology/approachScenario of an Indian product brand hypothetically entering the service sector is chosen as stimulus in the study. A cross‐sectional survey of 327 Generation‐Y respondents is conducted. Structural equation modeling is used for testing the conceptual model.FindingsThe model of brand‐extension feedback fits the data adequately, and five of the six hypotheses are supported. Brand‐extension attitude significantly impacts change in brand‐equity, which is consistent with the extant Western literature. Parent brand trust has a strong impact on change in brand‐equity of a parent brand.Practical implicationsThe role and impact of parent brand trust is particularly important in the Asian context. Thus, prior to embarking on a brand‐extension decision, an audit of parent brand trust is recommended. Further, this research opens up newer brand‐extension possibilities for brand managers contemplating brand‐extensions.Originality/valueThis research is a first‐of‐its‐kind from the Asian region (specifically, India) to measure brand‐extension feedback effects on change in brand‐equity of a parent brand. Parent brand trust is introduced as a new antecedent of brand‐extension feedback.