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New Brand Extensions

Patterns of Success and Failure

Jaywant Singh, John Scriven, Maria Clemente, Wendy Lomax, Malcolm Wright
DOI: 10.2501/JAR-52-2-234-242 Published 1 June 2012
Jaywant Singh
Kingston Business School, Kingston University,
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  • For correspondence: j.singh@kingston.ac.uk
John Scriven
London South Bank University,
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  • For correspondence: john.scriven@lsbu.ac.uk
Maria Clemente
London South Bank University,
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  • For correspondence: clemenma@lsbu.ac.uk
Wendy Lomax
Kingston Business School, Kingston University,
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  • For correspondence: w.lomax@kingston.ac.uk
Malcolm Wright
Massey University and Ehrenberg-Bass Institute,
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  • For correspondence: m.j.wright@massey.ac.uk
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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.

  • © Copyright 2012 The ARF. All rights reserved.

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Vol 52 Issue 2

Journal of Advertising Research: 52 (2)
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New Brand Extensions
Jaywant Singh, John Scriven, Maria Clemente, Wendy Lomax, Malcolm Wright
Journal of Advertising Research Jun 2012, 52 (2) 234-242; DOI: 10.2501/JAR-52-2-234-242

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New Brand Extensions
Jaywant Singh, John Scriven, Maria Clemente, Wendy Lomax, Malcolm Wright
Journal of Advertising Research Jun 2012, 52 (2) 234-242; DOI: 10.2501/JAR-52-2-234-242
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