Dilution of brand extensions: a study

Abstract

Purpose

The purpose of this paper is to examine situations in which brand extensions are likely to dilute beliefs associated with family brands.

Design/methodology/approach

Hypotheses are developed and tested in a consumer survey that included experimental and control groups.

Findings

The findings show the congruity of the extension with the family brand is an important factor, the absence of which increases the chances of dilution of the family brand. Perceived success/failure of the extension is a more important factor that also enhances or dilutes the image of the family brand.

Research limitations/implications

Brand names can be hurt by brand extensions, which contain attributes incompatible with or negating favorable family brand beliefs.

Practical implications

If managers feel the dilution is occurring because of an extension, they can increase perceptions that the extension is atypical of the family brand.

Originality/value

This paper identifies certain key attributes of extensions that, if ignored, may dilute the image of the family brand.

Citation

Lahiri, I. and Gupta, A. (2009), "Dilution of brand extensions: a study", International Journal of Commerce and Management, Vol. 19 No. 1, pp. 45-57. https://doi.org/10.1108/10569210910939663