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New brand extensions: Patterns of success and failure

New brand extensions: Patterns of success and failure
New brand extensions: Patterns of success and failure
The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions. The analysis framework consists of purchase data for 47 extensions across 30 consumer packaged-goods categories in a large-scale U.K.-based consumer panel. The results show that the performance of successful new extensions is comparable to that of established ones by the second quarter following their launch. Successful extensions continue to gain customers from that point forward. Failing extensions, however, show declines in both the number of customers and the repeat-purchase rate from the third quarter onwards. The study suggests a diagnostic framework to assess the performance of new brand extensions.
0021-8499
234-242
Singh, J.
db6316ed-e404-4c5a-873c-6e97c94fe531
Scriven, J.
20c7a59a-5f04-42b8-bc29-bd5d69088d36
Clemente, M.
6b3e9d9b-472e-4a47-9df5-58cf805baff7
Lomax, W.
fcae90c1-ace7-4b82-8f1b-470f41bd856a
Wright, M.
b08f43d4-70f7-4e7d-9784-68f01d2b4909
Singh, J.
db6316ed-e404-4c5a-873c-6e97c94fe531
Scriven, J.
20c7a59a-5f04-42b8-bc29-bd5d69088d36
Clemente, M.
6b3e9d9b-472e-4a47-9df5-58cf805baff7
Lomax, W.
fcae90c1-ace7-4b82-8f1b-470f41bd856a
Wright, M.
b08f43d4-70f7-4e7d-9784-68f01d2b4909

Singh, J., Scriven, J., Clemente, M., Lomax, W. and Wright, M. (2012) New brand extensions: Patterns of success and failure. Journal of Advertising Research, 52 (2), 234-242. (doi:10.2501/JAR-52-2-234-242).

Record type: Article

Abstract

The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions. The analysis framework consists of purchase data for 47 extensions across 30 consumer packaged-goods categories in a large-scale U.K.-based consumer panel. The results show that the performance of successful new extensions is comparable to that of established ones by the second quarter following their launch. Successful extensions continue to gain customers from that point forward. Failing extensions, however, show declines in both the number of customers and the repeat-purchase rate from the third quarter onwards. The study suggests a diagnostic framework to assess the performance of new brand extensions.

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More information

Published date: 1 June 2012

Identifiers

Local EPrints ID: 435957
URI: http://eprints.soton.ac.uk/id/eprint/435957
ISSN: 0021-8499
PURE UUID: d84424ff-51c9-4f49-9d86-5124e78d03bc
ORCID for J. Singh: ORCID iD orcid.org/0000-0002-0766-0162

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Date deposited: 25 Nov 2019 17:30
Last modified: 26 Nov 2019 01:20

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