Article ID Journal Published Year Pages File Type
1017321 Journal of Business Research 2015 9 Pages PDF
Abstract

To increase consumer acceptance of novel products, firms often employ extension strategies, that is, launching new products under familiar brand names. Prototypical brands are among the most familiar in any product category, and, therefore, seem attractive candidates for extension efforts. But, by definition, prototypical brands and their product category show a strong association. Starting from a categorization theory perspective, prior research suggests that this association may hinder the extendibility of prototypical brands to products that belong to distant categories. Yet counter-intuitively, results from two studies focusing on novel extensions demonstrate that brand prototypicality increases rather than decreases consumer acceptance of novel extensions, in “close” as well as “distant” product categories. A mediation analysis provides evidence for the underlying mechanism by indicating that the risk-reducing advantage of prototypical brands outweighs their category-anchored rigidity.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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