Communication Strategies for Brand Extensions: Enhancing Perceived Fit by Establishing Explanatory Links

Abstract

This research examines the proposition that high perceived fit of a brand extension results when consumers can establish explanatory links that connect the parent brand and the extension. Explanatory links are created when salient parent brand associations are seen as relevant in the extension context. The salience and relevance of associations depends, in part, upon the dominant parent brand associations, the brand-to-extension relationship, and the communication strategy used to introduce the extension. Results indicated that extensions were poorly rated when the parent brand's dominant association was inconsistent with the extension's dominant association. Specifically, brands with dominant attribute-based associations (e.g., physical features) received lower evaluations than brands with dominant non-attribute-based associations (e.g., brand users) when extended to a category with no physical attributes in common. In this case, evaluations were improved with an elaborational communication strategy that provided information about worrisome extension attributes. On the other hand, brands with dominant non-attribute-based associations received lower evaluations than brands with dominant attribute-based associations when extended to a category with physical attributes in common. In this case, extension evaluations were improved with a relational communication strategy that raised the salience of the physical relationship between the categories.