• Information cues: What impact do information cues have on how consumers evaluate the vertical brand extension? 

The following sections will examine each of the above four variables in detail. The results of a study which we conducted are presented along with relevant findings from the brand extension literature. Based on these findings, we discuss the implications for brand management, and outline some recommendations regarding the introduction and management of vertical brand extensions.

Brand concept

Brand concept refers to the image of a particular brand as it is commonly understood by consumers. The management of brand concept or brand image is an activity that is strategically undertaken by firms in order to strengthen and build equity in brands, and to achieve long-run competitive advantage (Park et al., 1986). While there are many possible types of brand concepts, two common brand concept categories are function-oriented brands and prestige-oriented brands. A function-oriented brand concept emphasizes those aspects of the brand which are associated with sustained product performance, such as reliability and durability. A prestige-oriented brand concept, on the other hand, is associated with images of luxury and status (Park et al., 1991). A key question with regard to vertical brand extensions is whether the type of brand concept held by the core brand (e.g. prestige-oriented or function-oriented) has an impact on how consumers evaluate the vertical brand extension.

Consumers’ evaluations

It seems likely that function-oriented and prestige-oriented brands might be differently affected by vertical brand extension introductions. After all, a vertical brand extension involves introducing the extension at a higher or lower quality/price level than the core brand. If quality is an integral characteristic of the core brand, as it is in function-oriented and prestigeoriented brands, then one would expect that introducing higher or lower quality brand extensions would have an impact on how consumers subsequently evaluate the core brand.

In our experiment (see Appendix) we introduced step-down extensions for both a prestige-oriented brand and a function-oriented brand. (A step-down extension is a brand extension that is introduced at a lower price and lower quality level than the core brand.) Judging by the effect size, it appeared that the prestige-oriented core brand was hurt much more by its step-down brand extension than was the function-oriented core brand. We believe that this is due to the greater possibility for a large quality difference between the prestige-oriented brand and its step-down extension, compared to the smaller quality difference between the function-oriented brand and its corresponding step-down extension. There is more room for downward positioning when introducing an extension of a prestige-oriented brand than there is for a function-oriented brand. A prestige-oriented core brand occupies a lofty position on the quality scale and has plenty of room in which to introduce a step-down extension. This may result in brand extension introductions which are so far down the quality continuum that they damage the quality reputation of the core brand.

A function-oriented core brand usually occupies an intermediate position on the quality scale, and thus has less room in which it can position a step-down brand extension. Therefore, the step-down extension of a function-oriented core brand is usually perceived to be somewhat more similar to the core brand than is the case for a prestige-oriented brand extension. A functionoriented brand tends to be associated with traits such as reliability and durability, rather than social status or prestige; therefore, introducing a stepdown extension will inflict less damage on its core brand image. The larger the difference in quality levels between a core brand and its step-down brand extension, the greater is the potential for dilution of the core brand image. 垂直品牌延伸英文文献和中文翻译(2):http://www.youerw.com/fanyi/lunwen_45084.html