Consumer generated brand extensions: definition and response strategies

Abstract

Purpose-Sometimes consumers express their enthusiasm for a brand by creating brand extensions, products or services in new categories that are closely affiliated with the "parent" brand. This paper aims to examine the positive or negative impact that consumer-generated brand extensions (CGBEs) can have on brand image and revenue, and the options that companies have available to deal with them. Design/methodology/approach-The paper presents a case study of the collectible strategy card game-Magic: The Gathering-and discusses how the company responded to five different brand extensions that were created by players. This case study was used to develop a framework that allows managers to evaluate CGBEs based on their benefits and risks and to select an appropriate response. Findings-Four possible responses were identified: challenge, criticize, commend and catalyze. Which of these responses is appropriate for companies depends on whether the CGBE has a positive or negative impact on the brand image and revenue and whether this impact is large enough to merit an active response. Originality/value-This study shows that it is essential for managers to understand how to evaluate CGBEs. Managed properly, they can improve product usage, help generate new customers and have a positive impact on revenue and brand image. However, CGBEs can also have a negative effect, in particular if they are substitutes for the original product.

Mediatization of a card game: Magic: The Gathering, esports, and streaming

“…Among Constructed formats, a further variety can be introduced by limiting the card pool to specific sets. While formats were initially introduced by WotC, grassroots initiatives soon followed and spawned even more ways to play MTG (Author removed, 2016b; Boon et al, 2016). For example, the communitycreated Elder Dragon Highlander (EDH), whose first iterations can be traced back to the early 2000s, had become so popular that it was co-opted by WotC, renamed to Commander, and turned into an official product line in 2011.…”

“…However, this monetization model has been paradoxically accepted by many players, even to such an extent that its obvious structural bias, which advantages rich consumers, is largely ignored in favor of a meritocratic ethos. Reportedly, WotC has in the past taken legal action against completely free-to-play digital versions such as Cockatrice (Boon et al, 2016), which subvert the official pay-to-win model.…”

“…As part of the esports strategy, the main tournaments, which have been rebranded from Pro Tour to Mythic Championship, are no longer held exclusively as tabletop events, but now also use Arena (Chase, 2018. introduced an annual salary for its 32 participants (Chase, 2018) akin to esports industry standards (Taylor, 2012(Taylor, , 2018 Beside the official WotC competitive events, other parties can also legally organize tournaments in MTG, MTGO, and Arena (see Boon et al, 2016;Trammell, 2010Trammell, , 2013.…”

“…Beside the official WotC competitive events, other parties can also legally organize tournaments in MTG, MTGO, and Arena (see Boon et al, 2016;Trammell, 2010Trammell, , 2013. However, these unaffiliated competitions rarely have any direct impact on the official organized play and thus can be considered autonomous entities with their own standings, prize money, and sponsors.…”

Bridging the gap between design and behavioral research: (Re)searching the optimum design strategy for brands and new product innovations

“…In other words, designing a brand extension can bridge the gap between the areas of brand management (existing brand taking care of established knowledge) and innovation management (launching a new product in a new category) converging in the physical “form” of new product (product aesthetics). The current literature is quite clear that brand extensions provides for more certainty and can even cause a spillover effect (Degraba & Sullivan, 1995), but also come with risks of failure in the marketplace (Boon, Grant, & Kietzmann, 2016; Loken & John, 1993). However, as mentioned by Brexendorf et al (2015), the interplay between these areas is really complex and there is still too little knowledge on how to effectively combine all research areas in the most effective way.…”