| In the progression of evolving research on the phenomenon of brand equity extensions, this study focused on the net effect, if any, on the image of a brand when an established brand is extended to a new product. In a business climate where brand equity extensions are quite commonplace, the potential for positive or, worst yet, negative changes in existing beliefs and attitudes toward a brand requires a better understanding of the factors which may contribute to such changes.; To facilitate this research, a model was presented which proposed that feature- and concept-based attributes in the new product affect changes in an established brand's image. A set of propositions were developed utilizing the model and literature to investigate which factors affect change and the direction of change in consumers' attitudes toward an established brand. Of particular interest was the potential for negative reciprocal effects when the new product was perceived as being incongruent with the brand based on feature- or concept-based attribute comparisons.; The perceived similarity of a new brand extension to existing products (representing feature fit) and the level of prestige associated with the new product (representing concept fit) were manipulated in a two-phase field experiment. In the study, 126 meeting planners, governmental personnel promoting travel and tourism, and travel agents participated in a telephone survey which initially measured their attitude towards an established target brand, Hyatt. Of the above respondents, 86 fully completed a mailed questionnaire in which they evaluated one of four new product concepts, and then repeated the measure of their attitude towards Hyatt.; Neither a difference in the similarity or prestige associated with the new product concepts nor their interaction was found to have a significant effect on change in attitude toward the brand. As such, the evidence does not support either positive or negative reciprocal effects in brand equity extensions with established brands and experienced consumers. This suggests that firms may have some latitude in extending their established brands with the ability to contain or control brand dilution effects. |
