Some brand strategists have distinguished between symbolic and functional brands, i.e. brands that basically satisfy consumers’ functional or product‐related needs and brands bought to enhance self‐ or social esteem. It has been suggested that brands should be positioned as either functional or symbolic but not both. However, empirical research on the dimensionality of brand symbolism/functionality has been lacking. In this study, scales were developed to assess a brand’s symbolic or functional association with consumers. Subsequent data analysis suggests that brand symbolism and functionality are separate phenomena and, further, that symbolism comprises two dimensions, termed prestige and personality expression. Thus, contrary to current thinking, it seems that brands can be successfully positioned as both symbolic and functional and, if a symbolic brand concept is desired, prestige or upscaleness is just one of the possible positioning options available.
The authors study the determinants of line extension success using data on 75 line extensions of 34 cigarette brands over a 20-year period to investigate the relative effects of brand, extension, and firm characteristics on the incremental market share of brand line extensions. The econometric model also captures the extent of cannibalization of parent brand sales that may have occurred due to the line extension's introduction. The authors also explore the role of a brand's symbolic value as a factor in line extension success. Results indicate that parent brand strength and its symbolic value, early entry timing, a firm's size, and distinctive marketing competencies, as well as the advertising support allocated to line extensions, contribute positively to the success of line extensions. Their findings suggest that, in this industry, cannibalization effects of line extension activity may have been limited and line extensions into earlier subcategories actually may have helped the parent brand. Even with cannibalization, the incremental sales generated by the extension seem to be reason enough to make a line extension strategy viable.
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