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Title: Brand extensions in a competitive context : effects of competitive targets and product attribute typicality on perceived quality
Authors: Han, Jin Kyung
Schmitt, Bernd H.
Keywords: Brand-extension strategy
Brand name products
Product management
Issue Date: 23-May-1994
Series/Report no.: Marketing Working Paper Series ; MKTG 94.014
Abstract: Brand-extension strategy in a competitive context includes two key decisions: (1) whether the brand should be compared against the prototypical brand of the extension category, against a nonprototypical brand, or whether a comparison should be avoided; and (2) whether typical attributes of the extension category or atypical ones should be highlighted. Using comparative and noncomparative ads, results of two experiments show that noncomparative advertising results in higher perceived brand quality than comparative advertising when the brand is perceived to fit with the category; however, comparative ads with a focus on prototypical competitive brands are preferable in low-fit cases. Moreover, associating the brand extension with atypical product attributes is more desirable when comparisons are made with the prototype than when no such comparisions are made.
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