Service Intensiveness and Brand Extension Evaluations

Abstract

The authors have performed an experimental study to assess whether an extension with relatively low service intensiveness compared to the parent product is evaluated differently from an extension with higher service intensiveness. The empirical evidence from this article indicates that the quality of an extension product will be evaluated more favorably when it involves lower service intensiveness than higher service intensiveness. Furthermore, the results reveal that the difference in extension evaluations, due to the varying levels of service intensiveness involved in the extension products, is positively affected by the perceived similarity between an extension and its parent product. Finally, it is also found that consumers have different postevaluations on the parent brand due to different degrees of service intensiveness involved in the extension products. Meanwhile, the perceived similarity will reinforce this difference in consumers’postevaluations.