Of Old Cultural Attributes Affect Its Extension Evaluation? ,

To date Few normative scientific studies have been focused on Laozihao (China's Laozihao also is called as China-time-honored brand) from a managerial perspective, especially on Laozihao's special attributes to discover its managerial implications. In last20years, brand extension studies have found about20predictor variables of consumer's brand extension evaluations, but lack of researches about brand cultural attributes'impact on extension evaluations. This study is an exploration of this area.Laozihao"s cultural attributes, take China's Laozihao as an example, means Laozihao are historical heritages with Chinese national characteristics. This study aims to discover whether Laozihao's cultural attributes'impact exist on Lazihao's extension evaluations, and if exist, how cultural attributes affect Laozihao's extension evaluations. Correspondently, this study consists of two parts, qualitative studies and quantitative studies. This study is a survey research. A survey of9Laozihao with37brand extensions was conducted across15provinces and directly-governed cities in China mainland. Structural equation modeling is applied to analyze9644cases.In qualitative studies, the data was acquired through semi-structured questionaries. Through a procedure of coding, two variables in terms of brand'cultural attributes, i.e. cultural stickiness and cultural fit, were discovered. Cultural stickiness refers to the strength of consumers" associations about Laozihao's cultural attributes. Cultural fit refers to consumers'perception of fit between brand extension and Laozihao in terms of Laozihao's cultural attributes. Qualitative research results show that there may be no significant correlation between cultural stickiness and Laozihao's extension evalutions, and there may be significant positive correlation between cultural fit and Laozihao's extension evaluations.Qualitative research results also show that, although there may be many factors that affect consumer's Laozihao extension evaluations, but the coding results uncovered not more than twelve ones. Among these factors, except cultural fits, the most important six ones are parent brand trust, product fit, consumer innovation, purchase risk, the existence of competitor brands, and the need of extension product. These six factors may have to be controlled when examining how cultural factors affect Laozihao extension evaluations.In extant brand extension literatures, university stutents are usually recruited as subjects. Hence, in this study, questionair surveys were started among university students, while also were conducted amony household consumers.In this study, university students only refer to the full-time schooling system undergraduates who know the Laozihaos well, who major in economics or management, who have no job experience, and who have learned the course of marketing. With strict control, the structural equation modeling analyses illustrate that, cultural stickiness's total effect on Laozihao's extension attitudes is significantly positive, which is incosisttant with the theorectical prediction; while cultural fit's total effect on Laozihao's extension attitudes is significantly positive, which is cosisttant with the theorectical prediction.Household consumers here refer to those who know Laozihaos well and who have job experiences. With strict control, the structural equation modeling analyses illustrate that, cultural stickiness's total effect on Laozihao's extension attitudes is nonsignificant, which is incosisttant with the theorectical prediction; while cultural fit's total effect on Laozihao's extension attitudes is significantly positive, which is cosisttant with the theorectical prediction.Comprehensively, this study arrived at the following seven conclusions.(1) Laozihao's cultural attributes'impact on its extension evaluations include two aspects, cultural stickiness and cultural fit.(2) Overall, cultural stickiness's negative impact on Laozihao extension evaluations is nonsignificant. Cultural stickiness'impact on Laozihao's extension attitude is not big, or rather, there is a weak correlation between Laozihao's cultural stickiness and it extension evaluations. Cutural stickiness'effect mainly is a result of the mediation of parent brand trust and purchase risk.(3) Cultural fit's impact on Laozihao's extension attitude is significantly positive. Cultural fit is one of the most important factors in Laozihao extension evaluations. Purchase risk mediates the effect of cultural fit on Laozihao extension attitude. Cultural fit moderates the effect of other factors' impact on Laozihao extension evaluations, typically the effect of product fit's impact on Laozihao extension attitudes. The effect of cultural fit on Laozihao extension attitudes mainly is a direct effect.(4) Different extension factors have significantly different effects on Laozihao extension attitudes. From the results of this study, the Laozihao extension factors can be divided into three groups in terms of the importance that they play in brand extensions. By and large, the first group of factors include cultural fit and product fit, which are the most important factors in Laozihao extension. The second group of factors incude purchase risk and parent brand trust, which are the second important factors in Laozihao extensions. The third group of factors include marketing competence, cultural stickiness, the parent brand experience, consumer innovation, and the moderation effect, which are the third important factors in Laozihao extensions.(5) University student samples have quite good external validity in brand extension evaluations. Thence university students by and large could play the role of normal consumer sample, if only the university students know the brand or Laozihao and the extension product well. But after all university students are different from the normal consumers, and the procedure of sampling typical normal consumers is prerequisite for a serious brand extensions study.(6) Common non-Laozihao brand extension factors also play its role in Laozihao extensions, which illustrates that Laozihao first of all is a brand phenomenon.(7) Laozihao has its unique extension factors. In contrast with non-Laozihao brands, this study demonstrates that cultural stickiness and cultural fit are two unique factors in Laozihao extensions.The results of this study provide some implications for the adminstrations of Laozihao extensions, two of which are the most important ones. Fisrt, Laozihao should protect and cultivate it cultural characteristics in the process of brand extensions. Second, in order to enhance its extension success, its is critical to construct good cultural fit between Laoziahao and its extension product.