Positive brand extension trial and choice of parent brand

Abstract

This article focuses on the possible relationship between the parent brand and a new brand extension. In particular, the study focuses on the impact of a parent brand on the trial of the extension and the reciprocal effect of a successful trial of new brand extensions positioned horizontally and vertically on the parent brand. Results show positive influence of the parent brand on the trial of the extension. Successful trial also helped the parent brand on a reciprocal basis, particularly among the non‐loyal users and non‐users of the parent brand. Another finding is the moderating effect of category positioning on the magnitude of the reciprocal effect of the brand extension on the parent brand. There is also an indication that prior parent brand experience acts as a moderator of reciprocal effects.