5.2 Dwivedi, Merrilees&Sweeney (2010), Brand extension feedback effects: a holistic framework,

Question 1

Feedback effect

Answer 1

Feedback effect are the reciprocal impact of the brand extension on the parent brand, it can be either positive or negative.

Question 2

From a consumer perspective the existing brand extension feedback model consists of two processes:

Answer 2

1. Process one: Evaluation of the brand extension
   A function to the extent of which consumers know & like the parent brand and the level of perceived fit between the parent brand and extension.
2. Process two: Re-evaluation of the parent brand, post-extension launch

Question 3

A brand extension can change the customer’s existing mental schema of the parent brand.

Answer 3

Each new piece of information, regardless to the similarity of the information leads to an incremental modification in the customer’s mental brand knowledge structure.

Question 4

4 new major contributions

Answer 4

• Presenting inter-relationships among the major determinants of brand extension feedback.
• Presenting a rank order of major determinants of brand extension feedback effects: Ranking
  :- Emphasising a special focus on the importance and integrating role of fit.
• Modelling the effects on the change in parent brand attitude.

Question 5

• Presenting a rank order of major determinants of brand extension feedback effects: Ranking 3

Answer 5

o Perceived fit
o Parent Brand Image
o Brand extension attitude

Question 6

• Emphasising a special focus on the importance and integrating role of fit.
  o Fit strongly affected both

Answer 6

o Fit strongly affected both extension evaluation and the change in parent brand attitude. Once consumers perceive a fi t between the parent and the extension, there is a transfer of positive attitude to the extension via the categorisation process. In turn, the good fit leads to the creation of positive associations that positively enhance the mental schema of the parent brand.

Question 7

4 principles for brand extensions:

Answer 7

1. Principle 1: The ‘ go –no go ’decision for a brand extension. 2. Principle 2: Designing the brand extension. 3. Principle 3: Promoting the brand extension.4. Principle 4: Designing a total brand extension design and communication strategy

Question 8

1. Principle 1: The ‘ go –no go ’decision for a brand extension.

Answer 8

a. Weak parent brands should not be extended until they have been strengthened and refreshed.

Question 9

2. Principle 2: Designing the brand extension.

Answer 9

a. Design should be a close fit with the parent brand. This is achieved through choosing appropriate brand elements that are consistent with the parent brand.

Question 10

3. Principle 3: Promoting the brand extension

Answer 10

a. All communications designed for the brand extension should focus on enhancing links with the parent brand’s core values. This necessitates communicating the fit between the parent brand and the extension through appropriate positioning of the extension.

Question 11

4. Principle 4: Designing a total brand extension design and communication strategy.

Answer 11

a. A potential risk for managers is launching a successful brand extension that diminishes the parent brand equity. — A good fit with the parent brand ensures a double return, that is, brand extension acceptance as well as contribution to overall brand equity (or feedback)

Question 12

Two key take-outs from article:

Answer 12

• Fit and parent brand perception decisive for brand extension success
• Brand extension faillure can cause brand dilution towards parent brand