Brand extension: using parent brand personality as leverage

Purpose – The purpose of this paper is to investigate the predicting roles of extension naming strategies and categorical fit on the transfer of brand personality from a parent brand to its extension brand. Extension naming strategies include direct and indirect naming, while categorical fit is the similarity between an extended product and its parent brand's cognitive category. Further, the interaction effect and the relative effectiveness of various combinations of the two predictors when determining brand personality transfer are also explored. Design/methodology/approach – A 2×2 factorial between‐subject experimental design with one covariate is used to test the proposed hypotheses. The experiment involves 242 participants from a university in Taiwan. Findings – The findings show that consumers perceive higher brand personality transfer when a direct naming strategy is applied or when the parent brand extends to a high perceived fit product. The former is the dominant predictor of brand personality transfer. There also exists an interaction effect between extension naming strategies and categorical fit. Specifically, consumers perceive the highest brand personality transfer when a direct naming strategy is applied for a high fit extended product. Moreover, the use of a direct naming strategy for an extended product with a low categorical fit still leads to a higher degree of parent brand personality than both the other cases in which an indirect naming strategy is applied for either high or low fit extended products. Furthermore, irrespective of the degree of categorical fit, the transfer of brand personality is low when an indirect naming strategy is applied. Originality/value – The current research is pioneer work in identifying the determinants of brand personality transfer. It also notes the interaction effect and the relative effectiveness of the determinants.