Retail brand extensions: Unpacking the link between brand extension attitude and change in parent brand equity

The brand extension literature outlines a pivotal role of consumers’ brand extension attitudes in explaining change in parent brand equity. However, there remains little understanding of how such feedback effects actually materialize on parent brand equity. The present study proposes and examines change in relationship equity as a mediator of the effect of brand extension attitude on change in parent brand equity, thereby explicating a process of conversion of brand extension attitudes into reciprocal brand equity evaluations. A store-based retailing context adds an interesting dimension to the study. A conceptual model is developed around the focal mediated effects. Key hypotheses are supported and the research model achieves acceptable predictive validity in estimating change in brand equity. Importantly, change in relationship equity fully mediates the effect of extension attitude on change in brand equity. Overall, a novel perspective is offered to the literature. Implications for theory and practice are discussed.

► The path from brand extension attitude and change in brand equity is re-examined.
► A mediated process of extension attitude on change in brand equity is explicated.
► Change in relationship equity perceptions is proposed as the key mediator.
► The result supports the hypothesized mediation along with additional effects.
► Change in relationship equity is offered as a novel outcome feedback effects.