MKTG 556 | Session 4 | A Meta-Analysis of Brand Extension Success

MKTG 556 | Session 4 | A Meta-Analysis of Brand Extension Success: The Effects of Parent Brand Equity and Extension Fit - 2023 Chenming Peng, Tammo H.A. Bijmolt , Franziska Völckner , and Hong Zhao Introduction: Given the high failure rates of brand extensions, understanding the key factors that drive successful brand extensions is essential for marketers and researchers. Previous studies have suggested that parent brand equity and extension fit are main success factors, but findings have been inconsistent. Using signaling theory, categorization theory, and a large dataset of 2,134 effect sizes from research conducted between 1990 and 2020, the authors perform a meta-analysis to generate general insights. The results indicate that both parent brand equity and extension fit positively impact extension success. However, these two drivers have various dimensions that influence their effects differently. For instance, among the fit dimensions, usage fit has the weakest impact. While overall, there is a positive interaction between the two drivers, examining their specific dimensions reveals differences. For example, brand familiarity shows a lower interaction effect with extension fit compared to other aspects of parent brand equity. Additionally, the authors analyze five groups of moderators: contextual factors (such as parent brand, extension, communication, and consumer factors) and research method factors. They offer practical advice for managing and researching brand extension strategies.