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Adolescent Evaluations of Brand Extensions: The Influence of Reference Group

✍ Scribed by Xin Liu; Jing Hu

Publisher
John Wiley and Sons
Year
2012
Tongue
English
Weight
483 KB
Volume
29
Category
Article
ISSN
0742-6046

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✦ Synopsis

ABSTRACT

This study examines the reference group effect on adolescent evaluations of brand extension. Three factors are important to this process: the product fit between parent and extension category (similar vs. dissimilar), the consumption type of the extension product (public vs. private), and the parent brand image (prestige‐oriented vs. functional‐oriented). An experiment with 217 teenagers generally supports the hypotheses. Results suggest that adolescents are willing to pay a higher price premium to publicly consumed brand extension product than a privately consumed. In addition, the level of category similarity enhances the consumption type effect. Managerial implications on brand extension strategy in adolescent's market are discussed.

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