This paper seeks to examine whether the follower extensions with superior alignable differences can overcome the pioneer extensions with regard to brands.
Three laboratory experiments were conducted to test hypotheses.
Findings suggest that the effect of superior alignable differences on consumer evaluations of followers vs pioneers is moderated by two factors – the perceived fit between the parent brand and extensions, and order of market entry. High fit followers with superior alignable differences easily overcome pioneers; however, such alignable differences do not help low fit followers to overcome pioneers. Although the low fit followers with better quality and superior alignable differences can overcome the low fit pioneer, they cannot overcome the high fit pioneer.
The limitation of the study is that it does not explore how low fit followers can overcome high fit pioneers.
Managers can better determine whether and how to introduce brand extensions as a pioneer or follower.
The originality and value lie in first examining whether follower extensions can overcome pioneer extensions.
