Consumer Evaluations of Brand Extension : The Impact of Brand Relationship Quality andNaming Strategy

This study explores the impact of brand relationship quality and brand naming strategies on the success of brand extensions. The authors present the results of an experiment based on a 2x2x2 between-subjects design, where the following three independent variables are considered: the category fit between the products involved in the extension decision (high vs. low), the naming strategy chosen for the new product (parent brand vs. sub-brand prominence), and the level of brand relationship quality (high vs. low). The dependent variable is the consumers' evaluation of brand extension. The findings suggest that when brand relationship quality is high consumers evaluate the extension more favourably, no matter the level of category fit. When category fit is high (low) and brand relationship quality is high, however, evaluations of the extension are enhanced if the parentbrand name (sub-brand) is more prominent. If brand relationship quality is low, brand naming strategy does not affect consumers' evaluation