The Reciprocal Effects of a Previous Brand Extension and Follower Brand Extension's Market Performance on a Parent Brand of a Follower Brand's Extension Product

Abstract

The present research investigates the reciprocal effects of a previous brand extension and follower brand extension's market performance on a parent brand of a follower brand's extension product using 2(previous brand extension's market performance: success vs. failure) × 2(follower brand extension's market performance: success vs. failure) between-subjects factorial design.The verification of the hypothesis is composed through 2-way ANOVA. As a result, the consumers' evaluation of the parent brand of a follower brand's extension product when the follower brand's extension succeed was more positive when the previous brand's extension has failed. However, when the follower brand's extension has failed, the consumers' evaluation of the parent brand of a follower brand's extension product was more negative when the previous brand's extension has succeeded.