RT Journal Article
SR Electronic
T1 New Brand Extensions
JF Journal of Advertising Research
JO J Advert Res
FD WARC
SP 234
OP 242
DO 10.2501/JAR-52-2-234-242
VO 52
IS 2
A1 Jaywant Singh
A1 John Scriven
A1 Maria Clemente
A1 Wendy Lomax
A1 Malcolm Wright
YR 2012
UL http://www.journalofadvertisingresearch.com/content/52/2/234.abstract
AB 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.