Brand extension has been popularly used in the marketing field. It is because, when a firm extends their brand, they have a purpose to introduce their new brand/product without any challenge by connecting with the parent brand. Thus, between the parent brand and extension brand are not apart from association and similarity. Brand image has a part in the ability of consumers to make association to the parent brand and its extension. So, brand image and extension similarity is considered to be important when evaluating brand extension. Brand extension evaluation also will affect consumers’ purchase intention. In this study, the effect of eWOM through social media was also tested to the brand extension evaluation. In this research we use Starbucks and Starbucks Reserve as an object of the study with a within subject experiment. The first study was done using 2x2 (Brand image fit: Utilitarian/Symbolic, Brand extension similarity: High Similarity/Low Similarity), tested the effect of purchase intention and the second study was 2x2 (Brand image fit: Utilitarian/Symbolic, Brand extension similarity: High Similarity/Low Similarity) to measure the effect of eWOM. The findings in the first study shows the positive effect of purchase intention on extension similarity. If brand extension similarity and brand image are combined there will be interaction. The second study only shows the main effect, both on image and similarity. In the second study there is no interaction.
This study investigates the effects of gaze and product salience in visual content, which can build engagement on social media. The variables used were visual social semiotics, digital visual engagement, attitude, and the purchase intention. Two hundred participants were recruited using Amazon Mechanical Turk. To see the interaction between gaze and product salience, a 2x2 experimental design was used. Regression was used to see the relationship between digital visual engagement with attitude and purchase intention. This study offers empirical evidence that there is an interaction between gaze and product salience on digital visual engagement, with a positive effect on digital visual engagement from the direct gaze and high product salience condition. Furthermore, this study found a relationship between digital visual engagement with attitude and purchase intention. The results show that digital visual engagement positively influences attitude and purchase intention. This hypothesis is tested on a single product category. Further studies might replicate this experiment with other products, visual content, online platforms, and factors based on visual social semiotics theory. This study offers managers knowledge on making visual content that will produce more engagement, especially in social media ads, which can influence the attitude and purchase intention of their audience.
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