Brand Extension of Automobile in Indian Market 69p

 Brand Extension of Automobile in Indian Market 69p


Abstract

Brand extension authenticity (BEA) is introduced as a new determinant of brand extension success in this article. Brand extension legitimacy and cultural contiguity are captured by BEA along four interrelated but distinct dimensions: maintaining brand standards and style, honoring brand heritage, maintaining brand essence, and avoiding brand exploitation, according to the authors. In particular, consumers with strong self-brand connections benefit from BEA's ability to predict their reactions to brand extensions.

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Introduction

In order to successfully manage a brand over time, managers need to strike a balance between stability and change, while also preserving the brand's core meaning (Beverland 2005; Fournier 1996). Due to the fact that the value of brand equity is increasing (Gerzema and Lebar 2008; Madden, Fehle, and Fournier 2006; Simon & Sullivan 1993), brand managers must select growth opportunities that will increase brand equity while preserving the cultural, semiotic, and symbolic value of the brand.

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Conclusion

BEA adds cultural perspective to brand extension research, increasing predictive power and improving understanding of parent brand enhancement (dilution). Because of its cultural consistency and self-relevance, we suggest that BEA operates differently than fit. While cognitive processes drive similarity and relevance, they lack the social, cultural, and moral embedding that characterizes BEA. A rationale for the inclusion of a cultural component, a mechanism for doing so, and findings that support this view have been provided.

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