Drivers of Brand Extension Success

Abstract

The research presented in this article addresses the issue of the significance and relative importance of the determinants of extension success by simultaneously investigating ten success factors. The empirical analysis considers the direct relationships between success factors and extension success, the structural relationships among investigated factors, and moderating effects. The authors find that fit between the parent brand and an extension product is the most important driver of brand extension success, followed by marketing support, parent-brand conviction, retailer acceptance, and parent-brand experience. The authors also find several important structural relationships among the investigated success factors (e.g., marketing support → fit → retailer acceptance → extension success). Finally, the interaction terms of fit with the quality of the parent brand and with parent-brand conviction are statistically significant, albeit of relatively low importance.