RATIONAL APPEALS 215The optimal advertising appeal for brand extensions depends, among others, on the fit between the parent brand
and the extension. In an experimental study with 208 participants, the effectiveness of different advertising appeals
was studied for extensions varying in fit with the parent brand. A 2 (parent brand concept: functional, symbolic) × 2
(extension product category: functional, symbolic) × 2 (advertising strategy: parent brand focus, extension focus)
experiment was set up. Eight different ads were created, two for each new brand extension (sunscreen – functional
and champagne – symbolic), introduced by a highly symbolic brand (Louis Vuitton, a French luxury label in handbags
and fashion accessories), or a more functional brand (H&M, a Swedish fashion and accessories brand which is
relatively low budget). For each possible brand extension combination, the ads differed in their focus on either the
parent brand or the new extension. The test brands were chosen based on a pre-test, which showed both brands were
highly familiar. The test brands as well as the product categories used differed significantly in terms of functionality
and symbolism.
The results show that perceived fit positively affects extension evaluation in terms of credibility, attitude and
purchase intention in that these effects are found in case of a match between the parent brand concept and the exten-
sion product category in terms of symbolism and functionality. An incongruent extension also significantly
damages the parent brand, measured as the difference between pre- and post-extension brand attitude. However,
advertising focus moderated the results of matching versus mismatching extension categories. A focus on the
extension mitigated the negative effects of a mismatch on credibility, attitude towards the extension and purchase
intention. When the ad focused prominently on the brand name, mismatching extensions were significantly more
negatively evaluated than a matching counterpart. In other words, a highly fitting extension is most effectively com-
municated with a brand focus. Lowly fitting extensions are best communicated with an extension focus. Advertising
messages that focus on the brand are indeed unlikely to compensate for products that are obviously not congruent.
In line with categorisation theory, a mismatch between the parent brand and the extension in terms of brand concept
should result in more difficult categorisation and more piecemeal processing. Consumers will, in this case, base
their evaluation of the extension more on the core attributes and benefits of the extension itself. Providing this
information in an ad should positively influence evaluation of the extension. Moreover, a mismatching extension
significantly dilutes the parent brand, especially when the ad focuses on attributes of the extension. This will
increase the salience of these attributes, which may be especially incongruent with the parent brand.
In sum, these results suggest that the best advertising strategy is a function of the specific extension situation
(brand extension match or not), and of the main objective the ad wishes to achieve. If the goal is – as with most
extension ads – to induce positive communications effects for the extension, then a matching extension benefits
most from a positioning close to the parent brand, whereas a mismatching extension is better advertised with its
own attributes and features. However, one should keep in mind that the latter situation may strongly dilute the
parent brand attitude in general, as it will link incongruent extension associations with the brand schema. Only a
matching extension, advertised with an extension focus, enhances the parent brand. This is a potential way to build
brand equity. It should be noted that extensions in any case are a risky strategy for the parent brand, and conditions
under which enhancement effects occur should be carefully considered. Whether focusing on the brand or on the
extension, brand managers need to focus on creating extension ads that are well liked, as the attitude towards the
extension ad positively influences evaluation of the extension, and consequently general parent brand attitude.^36RESEARCH INSIGHT
Advertising for brand extensionsTurning to the advertising formats noted in Table 7.2 , a talking head refers to an ad in
which the characters tell a story in their own words: monologue, dialogue or interview
techniques could be used.
In a demonstration , consumers are shown how a product works. It is an easy way to focus
on product attributes, and talk about the benefi ts and product uses while demonstrating theM07_PELS3221_05_SE_C07.indd 215M07_PELS3221_05_SE_C07.indd 215 6/5/13 3:01 PM6/5/13 3:01 PM