Brand Extension Evaluation: an experimental research study in the service sector

Abstract

This study analyzed the effects, in consumers’
evaluations, of different brand names (arbitrary,
descriptive, and suggestive), of perceived
similarities (high vs. low) and of perceived
quality regarding brand extension in services.
We implemented two experiments involving
1,338 respondents. In Experiment 1, by means
of MANOVA, we managed to detect significant
effects of brand names and of similarities in
Attitude and Intention to Use of consumers.
In Experiment 2, we added manipulation of
perceived quality to the sample. We identified
transfer of perceived quality to extended service,
and that perceived quality overweighed effects of
similarity and brand names in extensions, which
indicates that perceived quality is more relevant
in evaluation of brand extension in service when
brand names are not recognized by consumers.