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The impact of perceived brand globalness, brand origin image, and brand origin–extension fit on brand extension success

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Abstract

This research investigates perceived brand globalness, brand origin image, and brand origin–extension fit as drivers of brand extension success that are mediated through parent brand quality and brand–extension fit. The authors present two complementary studies based on consumer samples from a mature and an emerging market respectively. In both studies, out of all drivers examined, the brand origin–extension fit has the strongest effect on brand extension success both in terms of quality evaluations and purchase intentions. The findings further indicate that extension success is more influenced by consumers’ perceptions of the country from which the focal brand originates than by their perceptions of the brand’s global availability and reach. Implications of the findings for theory and practice are considered and future research directions identified.

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Notes

  1. Beyond these two variables, several other brand extension success factors such as the parent brand experience (e.g., Swaminathan et al. 2001), consumer innovativeness (Hem et al. 2003), and marketing support (Reddy et al. 1994) have been identified in the literature. However, compared to the quality of the parent brand and the parent brand-extension fit, their effect sizes were relatively small (Ellis 2011) and are thus not considered further.

  2. We thank an anonymous reviewer for this observation.

  3. Martin and Stewart (2001) and Martin et al. (2005) also identify goal congruency, that is “the degree to which [two objects] are associated with common goals” (Martin et al. 2005, p. 277) as a basis for similarity judgments. However, the goal congruency notion may be difficult to apply to the brand origin-extension fit construct as countries may be associated with very different product categories which lack a “common thread” (e.g., Switzerland is simultaneously associated with chocolate and banking).

  4. We also tested for an interaction effect of QUALBrand and FITBrand by applying the single-indicator technique proposed by Ping (1995). However, model fit did not significantly improve and the interaction coefficient was not statistically significant. Therefore, we do not report the results of the moderator analysis in Figure 2 and Table 2A.

  5. We also estimated a model that controlled for possible confounds with sociodemographics (age and sex). No significant effects were found and, therefore, these variables were not further considered in the analysis.

  6. We would like to thank two anonymous reviewers for encouraging us to replicate our model in an emerging market context.

  7. We did not find an equivalent local brand in the category “online auctions” and instead used the product category “banking services” with “internet providers” as high fit and “travel agency” as low fit extensions respectively (selection is based on the study by Völckner et al. 2010).

  8. Controlling for demographics, we also found a negative and significant effect of sex on QUALExt (β = −.077, p < .05; women coded as 1). As the significance of the other path coefficients did not change and their estimated values changed only minimally, we decided—in the interest of parsimony—not to include this path in the final model.

  9. While the differences in the results obtained in the mature and the emergent markets could, in principle, also be (partly) attributed to differences in the survey methods used, the psychometric properties of the measurement scales for all constructs (including the ones on which differences were observed) were highly satisfactory in both samples (see Appendix 1 and 2). Thus, there is little evidence to suggest that method-specific differences were responsible for the diverging results in the two study settings.

  10. No such effect was observed in the emerging market (Bulgaria).

  11. Note, however, that our dependent variable is not identical to that used by Steenkamp et al. (2003). Whereas Steenkamp et al. (2003) focus on brand purchase intention, our focus is on the purchase intentions of the extension. The negative direct effect of perceived brand globalness seems to suggest that consumers do not want to support a global brand in even getting bigger through successful brand extensions.

  12. Indeed, running the model separately for foreign and domestic (Austrian) brands revealed that the negative direct effect of perceived brand globalness on purchase intention is driven by foreign brands while being insignificant for domestic brands.

  13. We would like to thank an anonymous reviewer for highlighting this issue.

  14. For example, on a seven-point scale, Iversen and Hem (2011) report a mean value of 6.18 and a standard deviation of 1.38 for perceived brand globalness. In contrast, the corresponding values for our study are 4.49 and 1.82 respectively.

  15. We would like to thank an anonymous reviewer for this suggestion.

  16. Consumers in an emerging market have been exposed to foreign brands for a shorter period of time. This is particularly so in the case of Bulgaria which, as a member of the (then) Eastern Bloc, was “isolated” from Western product influences for many years.

  17. Indeed, in our particular sample, consumers that associated the brand with the wrong origin evaluated brand origin–extension fit as significantly lower (M = 3.63; SD = 1.73) than consumers that identified the correct brand origin (M = 4.07; SD = 1.75).

  18. We would like to thank an anonymous reviewer for highlighting this issue.

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Acknowledgments

The authors would like to thank the JAMS editor and four anonymous reviewers for their helpful comments and suggestions on a previous draft of this article.

Author information

Authors and Affiliations

  1. Department of International Marketing, University of Vienna, Bruenner Strasse 72, 1210, Vienna, Austria

    Christina Sichtmann

  2. Department of International Marketing, University of Vienna, Bruenner Strasse 72, 1210, Vienna, Austria

    Adamantios Diamantopoulos

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  1. Christina Sichtmann
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  2. Adamantios Diamantopoulos
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Correspondence to Christina Sichtmann.

Appendices

Appendix 1 Construct measurement

Table 3
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Appendix 2 Discriminant validity assessment

Table 4
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Sichtmann, C., Diamantopoulos, A. The impact of perceived brand globalness, brand origin image, and brand origin–extension fit on brand extension success. J. of the Acad. Mark. Sci. 41, 567–585 (2013). https://doi.org/10.1007/s11747-013-0328-7

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  • DOI: https://doi.org/10.1007/s11747-013-0328-7

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