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Three Essays: Affect Transfer, Network Effects and Market Valuation of Brand Extensions

Liu, Xin
http://rave.ohiolink.edu/etdc/view?acc_num=kent1189136426

Abstract Details

2007, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Marketing and Entrepreneurship.
Brand extension allows a firm to leverage its current brand equity in its new product introduction. This study addresses three key issues in brand extensions: consumer affect transfer process, the impact of extension products on the parent brand equity and the stock market valuation of brand extensions. Essay 1 examines how brand affect is transferred from the parent product to the extension product. The congruency framework (expectancy and relevancy) is used to explain the affect transfer process. Results of three experimental studies suggest that both factors positively influence this process and the largest amount of affect is transferred when both conditions are met. Essay 2 addresses the network effects in brand extensions. The theory of network externalities from economics is used to explain the reciprocal network effects from the extension products to the umbrella brand. The study posits that three characteristics of the extension products’ portfolio influence the parent brand equity: the portfolio size, the similarity among products in a portfolio and the presence of the attribute compatibility. Experimental findings firmly support these prescribed effects. Essay 3 assesses the stock market responses to the brand extension announcements and compares with two related strategies: line extension and brand alliances. The magnitude of the responses is the largest for brand alliances, moderate for brand extensions and the minimal for line extensions.
Michael Hu (Advisor)
Business Administration, Marketing
brand extensions; network effect; brand management

Recommended Citations

Citations

  • Liu, X. (2007). Three Essays: Affect Transfer, Network Effects and Market Valuation of Brand Extensions [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1189136426

    APA Style (7th edition)

  • Liu, Xin. Three Essays: Affect Transfer, Network Effects and Market Valuation of Brand Extensions. 2007. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1189136426.

    MLA Style (8th edition)

  • Liu, Xin. "Three Essays: Affect Transfer, Network Effects and Market Valuation of Brand Extensions." Doctoral dissertation, Kent State University, 2007. http://rave.ohiolink.edu/etdc/view?acc_num=kent1189136426

    Chicago Manual of Style (17th edition)

kent1189136426
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© 2007, all rights reserved.
This open access ETD is published by Kent State University and OhioLINK.