Research On The Impact Of Old Brand Extension On Brand Loyalty In Liquor Industry

As an important force in China’s economic development,old Chinese brands not only carry a profound Chinese culture,but also have a high historical and economic value.However,in the current process of social development,many of China’s old brands are facing ageing due to their own poor management and changing consumer needs,and many of them have even disappeared from public view.The issue of how to re-establish the vitality of old brands has become a common concern in academia,so many old brands are using brand extension strategies to activate and develop their businesses.However,brand extension is a double-edged sword,if the extension strategy can be used wisely can make the old brand bigger and stronger,once the extension failure may bring the old brand incalculable losses.This paper therefore selects the old brands of the liquor industry,an industry with Chinese cultural characteristics,as the research object,and constructs a theoretical model of the impact of brand extension on brand loyalty in the liquor industry based on extensive literature analysis.Seven established brands in the liquor industryMoutai,Wuliangye,Jiannanchun,Luzhou Laojiao,Fenjiu,Langjiu and Yanghe-were selected as the parent brands for the study through a pretest.Through the use of scenario simulation,two virtual extensions were designed with varying degrees of fit with the parent brands,namely medicinal wine,representing a high degree of fit,and red wine,representing a low degree of fit.A total of seven versions of the questionnaire were designed to investigate the mechanisms of the impact of brand extension on brand loyalty in the old brand name of the liquor category.The main conclusion drawn from the empirical analysis is that in the process of brand extension,high perceived fit brand extension increases brand loyalty and low perceived fit brand extension decreases brand loyalty.In addition,perceived fit positively influences brand loyalty;brand attachment mediates the relationship between perceived fit and brand loyalty.In high fit extensions,consumer innovativeness and brand image positively moderate the relationship between perceived fit and brand loyalty and brand attachment;in low fit extensions,consumer innovativeness negatively moderates the relationship between perceived fit and brand loyalty,product fit and brand attachment,and brand image negatively moderates the relationship between cultural fit and brand loyalty.The study concludes with the following three insights:firstly,it is important to pass on the cultural connotations of old brands while also focusing on innovation;secondly,it is important to establish and maintain a good brand image of old brands;and thirdly,it is important to precisely categorise and promote them to consumers with different characteristics.