Strategic Brand Management Chapter 13
42 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What can negatively affect consumer perceptions of a brand extension?

  • Inferred negative associations based on positive relationships (correct)
  • Positive associations from the original product class
  • Clear brand identity in the parent brand
  • Strong marketing campaigns

What is essential for a successful brand extension to positively impact the parent brand image?

  • High production costs
  • Strong basis of fit between the parent brand and the extension (correct)
  • A broad consumer base
  • Clear differentiation from other brands

How can co-branding benefit brand extensions?

  • By eliminating the need for marketing
  • By leveraging the equity of both brands (correct)
  • By limiting the target market
  • By diluting brand identity for both brands

What is a challenge faced with vertical extensions?

<p>They often need sub-branding strategies (C)</p> Signup and view all the answers

What factor can notably influence the effectiveness of an extension's advertising strategy?

<p>Information about the extension itself (D)</p> Signup and view all the answers

What is one potential disadvantage of brand extensions regarding consumer perception?

<p>They can confuse or frustrate consumers. (B)</p> Signup and view all the answers

How can brand extensions negatively impact the image of the parent brand?

<p>Through customer perceptions of inconsistency. (D)</p> Signup and view all the answers

What is a possible result of a successful brand extension in terms of sales?

<p>It can cannibalize sales of the parent brand. (D)</p> Signup and view all the answers

Which of the following is a consequence of brand extensions that might dilute brand meaning?

<p>Gucci expanding into fragrances. (A)</p> Signup and view all the answers

What challenge might retailers face when dealing with brand extensions?

<p>An overwhelming number of product varieties. (C)</p> Signup and view all the answers

What is a line extension?

<p>Adding a different variety, form, or size to an existing brand (A)</p> Signup and view all the answers

What characterizes a category extension in brand management?

<p>Applying an established brand name to a different product category (C)</p> Signup and view all the answers

Which of the following is NOT an approach to branding when introducing a new product?

<p>Apply a brand from a competitor (B)</p> Signup and view all the answers

What is one of the main advantages of brand extensions?

<p>Reduced marketing costs through leveraging existing brand equity (B)</p> Signup and view all the answers

Which factor is crucial for a successful brand extension?

<p>Ensuring the extension aligns with the parent brand's image (C)</p> Signup and view all the answers

How do consumers typically evaluate brand extensions?

<p>Based on the reputation of the parent brand and product fit (B)</p> Signup and view all the answers

Which statement best summarizes brand extension?

<p>Transferring the recognition of an established brand to a new product (D)</p> Signup and view all the answers

What is one potential disadvantage of brand extensions?

<p>They can confuse consumers if not properly aligned with brand values (D)</p> Signup and view all the answers

What is one of the main advantages of extending a brand?

<p>Reduced costs of introductory marketing (B)</p> Signup and view all the answers

Which of the following is a feedback benefit to the parent brand?

<p>Enhanced parent brand image (A)</p> Signup and view all the answers

One disadvantage of brand extensions is:

<p>Confusion among consumers (B)</p> Signup and view all the answers

Which factor is NOT associated with facilitating new product acceptance through brand extension?

<p>Increasing customer service (A)</p> Signup and view all the answers

Brand extensions can help to avoid costs associated with developing a new brand by:

<p>Using existing brand equity (B)</p> Signup and view all the answers

Which of the following is an example of a brand extension?

<p>A cereal brand launching a line of snack bars (A)</p> Signup and view all the answers

What can happen to a parent brand when brand extensions fail?

<p>It can hurt the parent brand image (C)</p> Signup and view all the answers

Which is a potential consequence of successful brand extensions?

<p>Cannibalization of sales from the parent brand (C)</p> Signup and view all the answers

What factors influence the effects of a brand extension on consumer brand knowledge?

<p>Compelling evidence about attribute association (A)</p> Signup and view all the answers

What is the primary goal of a vertical brand extension?

<p>To increase market share among value-conscious consumers (A)</p> Signup and view all the answers

Which of the following is NOT a step in evaluating brand extension opportunities?

<p>Conduct market research on competitors (C)</p> Signup and view all the answers

What is necessary for successful brand extensions according to brand extension guidelines?

<p>Favorable associations of the parent brand (A)</p> Signup and view all the answers

What tends to be more challenging to extend: attribute associations or benefit associations?

<p>Concrete attribute associations (A)</p> Signup and view all the answers

Which statement is true regarding high-quality brands and brand extensions?

<p>They can stretch farther than average-quality brands. (C)</p> Signup and view all the answers

What is a critical aspect of a successful fit between a parent brand and an extension?

<p>Manufacturing similarities (D)</p> Signup and view all the answers

Which basis of fit may be relevant depending on consumer knowledge of product categories?

<p>Technical or manufacturing commonalities (D)</p> Signup and view all the answers

What can happen to positive associations from the original product class when applied to an extension context?

<p>They may become negative. (B)</p> Signup and view all the answers

Which of the following is true regarding unsuccessful brand extensions?

<p>They hurt the parent brand when the fit is strong. (A)</p> Signup and view all the answers

Which advertising strategy is considered most effective for a new brand extension?

<p>Providing detailed information about the extension. (D)</p> Signup and view all the answers

What factors can influence consumers' perception of fit between a parent brand and its extension?

<p>Technical and surface considerations. (B)</p> Signup and view all the answers

What is a characteristic of high-quality brands compared to average-quality brands regarding extensions?

<p>They can extend farther, but still have boundaries. (B)</p> Signup and view all the answers

How do individual differences impact brand extension decisions?

<p>They moderate the effects of extensions. (A)</p> Signup and view all the answers

Which type of attribute associations is typically more difficult to extend?

<p>Concrete attribute associations. (D)</p> Signup and view all the answers

What challenge do vertical extensions often encounter?

<p>They can be difficult and require sub-branding. (B)</p> Signup and view all the answers

Flashcards

Brand Extension

Using an existing brand name to launch a new product.

Line Extension

Adding a new variety, size, or application to an existing brand.

Category Extension

Applying the parent brand to a new product category.

New Brand

Creating a completely new brand for a new product.

Signup and view all the flashcards

Branding Approaches

Methods for introducing new products: new brand, existing brand, or a combination.

Signup and view all the flashcards

Ansoff's Growth Matrix

A framework showing different growth strategies (market penetration, market development, product development, diversification).

Signup and view all the flashcards

Market Penetration

Increasing sales of existing products in existing markets.

Signup and view all the flashcards

Product Development

Developing new products for existing markets.

Signup and view all the flashcards

Brand Extension Advantages

Brand extension advantages involve easier new product acceptance and parent brand feedback benefits.

Signup and view all the flashcards

New Product Acceptance

Extending a brand improves brand image, reduces customer risk, increases distribution, trial, and promotional efficiency, lowers introductory/follow-up marketing costs and avoids new brand development costs.

Signup and view all the flashcards

Feedback Benefits

Brand extension leads to clarifying the brand meaning, enhancing parent brand image, bringing new customers, increasing market coverage, revitalizing the brand, and permitting subsequent extensions.

Signup and view all the flashcards

Brand Extension Example: Weight Watchers

Weight Watchers extended their brand from fitness centers to low-calorie foods, clarifying the brand meaning as weight loss and maintenance.

Signup and view all the flashcards

Brand Extension Example: Sunkist

Sunkist extended their brand from oranges to vitamins and juices, shifting the brand meaning to good health.

Signup and view all the flashcards

Brand Extension Disadvantages

Negative outcomes of brand extension include consumer confusion, retailer resistance, damaging the parent brand image, and cannibalizing parent brand sales.

Signup and view all the flashcards

Dilution of Brand Meaning

Extending a brand too much can make the original brand identity less clear, potentially harming the brand image.

Signup and view all the flashcards

Cannibalization

A brand extension successfully introduces new products, but this can reduce sales of the parent brand's original products.

Signup and view all the flashcards

Consumer Frustration (Brand Extensions)

Too many product options can decrease consumer purchase likelihood, demonstrating a negative effect of over-extension.

Signup and view all the flashcards

Retailer Resistance (Brand Extensions)

Retailers struggle to stock all variations across various brands in a category, creating a challenge for brand extensions.

Signup and view all the flashcards

Brand Extension Failure

A brand extension that underperforms can harm the perception and overall image of the brand. It is possible to fail in the marketplace.

Signup and view all the flashcards

Brand Meaning Dilution

Brand extensions can lead to a weakening or blurring of the core identity of a brand. This weakens the meaning associated with the brand.

Signup and view all the flashcards

Brand Extension Effect

How a new product launch using an existing brand name impacts consumer perception of the original brand.

Signup and view all the flashcards

Compelling Evidence

Strong and convincing proof that a brand extension offers similar benefits or attributes as the original product.

Signup and view all the flashcards

Relevant Extension Evidence

Proof that the new product shares important features with the original product, aligning with consumers' expectations.

Signup and view all the flashcards

Consistent Extension Evidence

Continuous proof that reinforces the original brand's reputation for quality and benefits across all extensions.

Signup and view all the flashcards

Vertical Brand Extension

Expanding a brand into higher or lower priced product categories, attracting new consumer segments.

Signup and view all the flashcards

Brand Extension Evaluation

A systematic process to determine the potential success of a new product launch under an existing brand.

Signup and view all the flashcards

Product Fit

The perceived connection between a brand extension and the original product, based on attributes, benefits, or usage scenarios.

Signup and view all the flashcards

Prototypical Brand

A brand that's strongly associated with a specific product category, making it harder to extend outside that category.

Signup and view all the flashcards

Negative Association Transfer

When positive associations from the original product class become negative in the extension context.

Signup and view all the flashcards

Inferring Negative Associations

Consumers might assume negative qualities about an extension based on other, even positive, associations.

Signup and view all the flashcards

Difficult Extension

Extending into a product category that consumers perceive as easy to make can be challenging.

Signup and view all the flashcards

Successful Extension Benefits

A successful extension strengthens the parent brand image and allows for further brand extensions.

Signup and view all the flashcards

Unsuccessful Extension Impact

An unsuccessful extension only harms the parent brand if there is a strong connection between the two products.

Signup and view all the flashcards

Extension Fit

The perceived relationship between the original brand and the new product, based on shared attributes or benefits.

Signup and view all the flashcards

Positive Associations Transfer

Positive associations with the original brand may not apply to the new product and could even become negative in the new context.

Signup and view all the flashcards

Inferred Negative Associations

Consumers may assume negative qualities about the new product even if they haven't experienced it directly, potentially based on other positive associations.

Signup and view all the flashcards

Easy-to-Make Extension

Extending into a product category that is perceived as simple to manufacture can be challenging for a brand.

Signup and view all the flashcards

Vertical Extension Challenges

Extending to a different price point or quality level often requires additional branding strategies.

Signup and view all the flashcards

Extension Promotion Emphasis

Effective advertising for an extension focuses on the new product's features instead of simply reminding consumers about the parent brand.

Signup and view all the flashcards

Study Notes

Strategic Brand Management: Building, Measuring, and Managing Brand Equity

  • Chapter 13: Introducing and Naming New Products and Brand Extensions

  • Learning Objectives

    • Define the different types of brand extensions
    • List the main advantages and disadvantages of brand extensions
    • Summarize how consumers evaluate extensions and how they contribute to parent brand equity
    • Outline the key assumptions and success criteria for brand extensions

  • New Products and Brand Extensions

    • Three approaches when introducing a new product:
      • Develop a new brand
      • Apply an existing brand
      • Use a combination of new and existing brands
    • A brand extension is when a firm uses an established brand name to introduce a new product
      • Line extension: Adds a different variety, form, size, or application
      • Category extension: Marketers apply the parent brand to enter a different product category

  • Ansoff's Growth Matrix (Figure 13-1)

    • Visual representation of strategic growth options based on existing and new products and markets
    • Strategies include: Market penetration, product development, market development, and diversification

  • Advantages of Extensions

    • Facilitate new-product acceptance: Improve brand image, reduce perceived risk for customers, increase efficiency of promotional expenditures, reduce introductory marketing costs, avoid new brand development costs, improve packaging/labeling, and account for variety-seeking by consumers
    • Provide feedback benefits to the parent brand: Clarify brand meaning, enhance parent brand image, bring new customers into the brand franchise and increase market coverage, revitalize the brand, and permit subsequent extensions

  • Figure 13-4: Expanding Brand Meaning Through Extensions (examples)

    • Provides examples of brands and their original products, extension products, and new brand meanings
    • Illustrates how extending a brand can expand its perceived meaning

  • Disadvantages of Brand Extensions

    • Confuse or frustrate consumers
    • Encounter retailer resistance (e.g., difficulty offering various product varieties)
    • Hurt parent brand image (e.g., Audi)
    • Cannibalize the sales of the parent brand (e.g., Diet Coke vs. Regular Coke)
    • Diminish identification with a particular category (e.g., Gillette Venus)
    • Dilute brand meaning (e.g., Gucci)
    • Cause companies to forgo the chance to develop new brands (e.g., Amazon Kindle)

  • Understanding How Consumers Evaluate Brand Extensions

    • Managerial assumptions: Consumers have awareness of, and positive associations with, the parent brand. These positive associations transfer to the extension
    • Brand extensions and brand equity: the positive image of an extension is dependent on the salience, favorability, and uniqueness of the associations inferred from the parent brand.
    • Vertical brand extensions: Extending a brand up (more premium segments) or down (value-conscious segments) to attract new consumer groups

  • Evaluating Brand Extension Opportunities

    • Steps to evaluate potential extensions: Defining customer knowledge, identifying potential products, evaluating potential, designing marketing plans, evaluating success and impact on parent brand equity

  • Figure 13-9: Brand Extension Guidelines Based on Academic Research

    • Offers guidelines for successful brand extensions based on research findings. Provides considerations for favorable associations, perception of fit, and various bases of fit.
    • Explains how high-quality brands can stretch further compared to average brands, difficulty in extending concrete attributes, the possible transfer of positive to negative associations, and how associations can differ across markets.

  • Extension Guidelines (further points about successful brand extensions)

  • Brand fit is critical for consumers, and perceived fit is important.

  • High quality brands can extend further than average brands, despite limitations.

  • A brand recognized as a prototype in a category may face challenges extending outside that category.

  • Concrete attribute associations are harder to extend than abstract benefit associations.

  • Consumers may transfer positive associations to an extension as negative.

  • Unfavorable associations can harm the parent brand only when fit is strong.

  • Difficult to extend into an easily consumable product category.

  • Vertical extensions often require sub-branding to succeed.

  • Most effective advertising strategy: Emphasize information about the extension instead of reminding customers about the parent brand. -Individual differences influence extension decisions and affect outcomes.

  • Cultural differences influence success/failure.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Strategic Brand Management: Building, Measuring, and Managing Brand Equity PDF

Description

Explore Chapter 13 of Strategic Brand Management, focusing on the introduction and naming of new products and brand extensions. You'll learn about different types of brand extensions, their advantages and disadvantages, and how consumers evaluate them in relation to parent brand equity.

More Like This

Brand Extension Quiz
11 questions

Brand Extension Quiz

WorthDream avatar
WorthDream
Brand Extensions and Flanker Brands Quiz
18 questions

Brand Extensions and Flanker Brands Quiz

SupremeEuphemism avatar
SupremeEuphemism
Prentice Hall: Brand Extensions and New Products
25 questions

Prentice Hall: Brand Extensions and New Products

ExpansiveGreekArt avatar
ExpansiveGreekArt
Impact of Tourism and Brand Extensions
48 questions

Impact of Tourism and Brand Extensions

EnviousNephrite3555 avatar
EnviousNephrite3555
Use Quizgecko on...
Browser
Open
Browser
Browser