How Consumers Evaluate Brand Extension………………………
Consumer, while evaluating brand extension,
either adopts category based process or a piece meal process…
CATEGORIZATION THEORY
Categorization theories state that consumer attitude would be positive for
those extensions that are closer to the parent brand category. If there is a
similarity between the extension and the schema (previous perception), then
according to categorization theory the consumer judgment would be based on
family resemblance. If there is a mismatch between the parent brand and
extension in terms of category then according to piece meal process the
consumer judgment is based on the specific attribute of the extension. Aaker and Keller extension study was based on the categorization theory. This study was carried out to study the consumer perception and reactions on brand extensions. For this purpose, Aaker and Kelly used six non-durable consumer goods and twenty hypothetical
brand extensions for ascertaining how the consumers evaluate brand
extension. The consumer evaluation for the product extension was positive for
those extensions that have a certain level of fit between core brand and
extended . The subject in the study had positive attitude
towards the core brand (crest) and hypothetical extension (crest mouth wash).
In view of the similarity between the core brand and extension, some of the
respondents were of the opinion that the crest mouthwash not only tastes like
tooth paste but would also fight cavities. Comparatively, the respondents’opinion on the extension of Heineken beer to Heineken wine and popcorn was poor, despite the positive opinions on the two brands. Thus, this example supports the premise of categorization theory that positive attitude would only transfer to the extension, when there is a certain level of fitness between two product classes. Respondents felt that the beer and wine is a bad combination and also beer and popcorn does not mix .
CONGRUITY THEORY
Schema congruity theories propose that cues (e.g., brand names) state that some degree of congruity has a relationship with the level of processing used by the consumers. If there is some degree of incongruity than the consumer will process brand extension more positively. However, the
consumer evaluation will not be that positive if the (1) cues are congruent or extremely incongruent . How consumer makes judgment depends on structural congruity between event and schema. If new events are similar to the existing schema it would have a positive evaluation familiarity, acceptability, and liking. On the other hand if the new events are “incongruent”, then it would lead to evaluation
process that may have positive or negative results . In this context, when one sees a Pierre Cardin clothing on display with no price tag he will assume that the displayed clothing is expensive. In this case, the consumer has drawn the conclusion from schema (past experience) that
Pierre Cardin products are expensive and prestigious.
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