A mediation analysis on the potential determinants of brand extension success Online publication date: Mon, 06-Nov-2017
by Nithya Murugan; Jayanth Jacob
International Journal of Business Innovation and Research (IJBIR), Vol. 14, No. 4, 2017
Abstract: Even though many studies on the potential determinants of brand extension success have been conducted, in those studies, only direct relationship between brand extension success and potential determinants of success have been tested, disregarding the fact that some success factors may constitute extension success on other relationships. In this paper, the proposed model considers the indirect relationships between the success factors, offering various managerial implications that helps in reducing the fear of launching dissimilar extensions and expanding the boundary of extension products. To test this possibility, a survey about ten national FMCG brands and their real extensions was conducted with a sample of 425 adult consumers. This study shows that judgments on fit perceptions are dynamic; even moderate and incongruent extensions can benefit from repetitive and consistent advertising and intense distribution, indicating that extensions can stretch beyond the original boundaries suggested.
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