The influence of eclectic brand extension strategy on extension performance

• Main Authors: Hsiao-Li Huang, 黃曉莉
• Other Authors: Cheng-Hsui Chen
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/39860867320706948459

碩士 === 國立雲林科技大學 === 企業管理系碩士班 === 93 === In the plural market with keen competition, the companies offer the various product lines in order to meet customer''s demand. But the companies want to reduce the cost of the new products, they often put new product to enter market through the brand extension or the product line extension. However, they use the same brand to make extension strategy that could be caused the dilution effect to the original brand because of the different product positions or the different product classifications. So, the purpose of the research is attempted to study the eclectic brand extension strategy of two kinds of brand extension strategies. The study is not only examined the performance of new product but also investigated the dilute result to the original brand form the new products in vertical extending of product line and horizontal extending of product classification. Regarding NIKE and MOTOROLA brand as the original brand, the study used three between group surveys to prove. In the first experiment, the study adopts 2*6 design to probe the various brand strategies effect of upwards extension and downwards extension. In the second experiment, the study adopts 2*6 design to probe the various brand strategies effect of near classification and far extension. In the third experiment, the study is mentioned four kinds of extending directions in case of extending success or failure and discussed how the feedback result to the original brand that various kinds brand strategies use. The target of the study is focus on university students by using convenience sampling. Through experiment design, there are 2052 response and 1755 of them were effective. The result of study finds that the eclectic brand extension strategy could be used to contribute to raise the brand equity of extension product. Besides reducing the negative diluting effect, the eclectic brand extension strategy can increase positive feedback to original brand. In extending upwards and downwards, the extension performance of the eclectic brand extension strategy are between and direct extend strategy and new brand strategy. The application of the eclectic brand extension strategy can impact original brand that improve positive feedback and reduce negative feedback. While extending in near product classification, the extension performance of the application of brand strategy isn’t conspicuous but extending in far product classification reach conspicuous. Whether extend success or failure, the application of the eclectic brand extension strategy can get more positive feedback and avoid more negative feedback than direct extension strategy. In above four extending direction, the study find the application performance of sub-brands also better, too. The sub-brand strategy not only cant transfer the relevant knowledge, technology and emotion of the original brand to the new brand but also add a new brand name to segment the market and reduce customer’s different cognitive. The study take notice that brands application of direct extending strategy may cause negative effect of original brand while extending downwards or the far product classification. So the study confirms the eclectic brand extension strategy suitable in product line extension or brand extension.