The aim of this research is to examine the effects of congruent and incongruent brand concept extensions on consumer attitudes towards the extended product and feedback effects on the parent brand. Moreover, brand familiarity is proposed as an important moderator variable in determining feedback effects on attitude to the parent brand.
An experimental research design was applied for testing the set of hypotheses put forth. The product category of wrist‐watches was utilized as setting. A total of 205 respondents participated in the study.
The study finds general support for the importance of brand concept congruency when it comes to feedback‐effects, whereas no significant differences between congruent and incongruent extensions are found for attitudes to the extension itself. Brand familiarity is found to be an important moderator on parent brand feedback effects.
Before concluding on the moderating role of brand familiarity in this context, one needs to build a stronger nomological network around this variable. Moreover, the effects observed in this study should be extended and tested for other product categories and preferably also with other methodological approaches.
The study results reemphasize the importance of investigating brand feedback effects when launching category extensions. Also, the research provides new insight into the role of parent brand familiarity when evaluating the potential risks and rewards of conducting brand concept extensions.
