Moving beyond fit: the role of brand portfolio characteristics in consumer evaluations of brand reliability

Brand extensions allow consumers to use past experiences with the brand in order to assess the extension and thereby reduce the risk associated with purchasing a new product. In considering the ability of a brand to mitigate the risk associated with an extension (a construct herein referred to as brand reliability), prior research has focused on the role of fit between the brand and the extension category. In the present study, results indicate that in addition to fit, characteristics of the brand portfolio (number of products affiliated with the brand and the quality variance of these products) play an important role in affecting consumer impressions of brand reliability. In contrast to prior research that forwards that brands become diluted by offering extensions, the present results suggest that having a greater number of products affiliated with the brand has positive consequences when consumers evaluate a new extension.