The effect of a branded ingredient strategy on overall attitudes toward a brand extension
Branded ingredient strategies, as a method of brand extension, became more common during the 1980s. While a branded ingredient strategy can provide potential benefits, there are also significant potential disadvantages. Yet little research has been conducted to date as to how consumers evaluate the end-product of a branded ingredient strategy. This research evaluated the impact of using a branded ingredient strategy on consumer attitudes toward a new product. It investigated whether or not consumers are more likely to select a new product which has a branded ingredient, whether a branded ingredient enhances the perceptions of overall quality of a brand extension, and whether a branded ingredient allows a brand to be extended into a less similar product category. Results of this research show some evidence that a branded ingredient strategy can enhance quality perceptions of a brand extension or compensate for perceptions that the extension is not a good fit with the parent brand. However, this appears to be limited to brand extensions that contain high quality ingredient brands extended into product categories more similar to the parent category. Findings also indicate that the effectiveness of a branded ingredient strategy can vary by product category and, in some cases, be detrimental to interest in the new product or to perceptions of its overall quality.
Brownell, Mary Evan, "The effect of a branded ingredient strategy on overall attitudes toward a brand extension" (1994). ETD Collection for Pace University. AAI9502519.
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