Brand is one of the most important assets for corporations and influences consumers’ product choices dramatically. Corporations usually introduce new products under the name of an existing brand with good image. This practice applies the so called positive “spillover effect”, hoping that consumers will project their goodwill and preference of an existing brand or product to another products in the same brand family. Conversely, negative spillover effects occur when consumers project their bad thoughts about an existing brand to another product using the same brand name. Line extension refers to that the brand name of an existing product (i.e., the parent) is extended to new products (i.e., the extensions) within the same product category (for example, Canon extends its brand name used for laser printers into inkjet printers). The products under the same brand name within the same category compose of a product line. 89% new products are introduced through line extensions (Aaker 1991). Scholars divide product lines into vertical product lines and horizontal product lines. Researchers refer to variation in the quality and price levels of products within a category as a “vertical product line”, whereas they refer to variation in the functions, sizes, flavors, or subcategories of the products as a “horizontal product line” (Randall, Ulrich, and Reibstein 1998). For example, the Nokia N-series is a vertical product line because its high-end product (N95) includes better functions, such as GPS and PDA capabilities, that its low-end product (N93) does not have. On the other hand, Coca-Cola has three products with different flavors: Classic, Diet, and Zero Coke. These three products are differentiated by flavor rather than quality and price, which compose of a horizontal product line.
Weitere Kapitel dieses Buchs durch Wischen aufrufen
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
- Exploring the Influences of Communication Strategies and Message Types on Advertising Spillover Effects in Product Lines