Academic literature on the topic 'Brand vertical extension'

The purpose of this research is to evaluate the impact of the introduction of vertical brand extensions on Consumer-Brand Relationships (CBRs) in the mobile phone market. In particular, we aim at exploring the effect vertical brand extensions that luxury and functional brands have on consumers’ perceptions, as well as the effect the extensions will have on CBRs. This study pursues a quantitative approach, developing and testing four hypotheses on the influence vertical brand extensions have on four CBR-related constructs, namely brand attachment, brand trust, brand commitment and brand identification. The elicited context is the South African market and the selected brands are Apple, to represent luxury brands, and Samsung, representative of functional brands. Results only partially confirm previous research on vertical brand extension. Supporting previous studies, a vertical step-down extension has been found to have a stronger negative impact on brand commitment for the luxury brand than for the functional one. However, findings disconfirm the literature in revealing a stronger negative impact on the functional brand than the luxury brand and a positive effect on the brand attachment of both brands, especially the functional brand.

Purpose Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution. Design/methodology/approach This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis. Findings Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions. Originality/value This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

Purpose Companies often extend brands to higher or lower quality tiers to access different market segments. However, the impact of such extensions on the brand and its subsequent offerings is not yet conclusive. While some studies found an “averaging” pattern (all models contribute equally to the overall perception of the brand: a symmetric effect), others found a “best-of-brand” pattern (the positive impact of an upstream extension is much greater than the negative impact of a downstream extension: an asymmetric effect). This paper aims to reconcile these seemingly conflicting findings by assessing the conditions under which each pattern is likely to emerge. Design/methodology/approach Three experimental studies are presented to test the conditions under which a symmetric or asymmetric pattern of brand evaluation would merge. Study 1 examined the impact of judgment focus (quality vs expertise) on the pattern of brand evaluations. Study 2 tested the impact of having a comparative set on the assessment of specific brand dimensions. Study 3 examined the impact of the informativeness of price positioning on product quality expectations. Findings Brand evaluations and attitudes are determined by the presence of a comparative brand and judgment focus. When brands are evaluated without a comparison, a symmetric pattern emerges, as a low-tier extension hurts a brand as much as a high-tier extension helps it. In contrast, when brands are evaluated with a comparison, focusing the assessment on quality leads to a symmetric pattern, while focusing it on expertise leads to an asymmetric one. Research limitations/implications The present research specifies conditions under which a low-tier model may hurt brand perceptions. We used hypothetical brands to avoid the impact of preexisting attitudes. While we expect our results to generalize to real brands, this may be considered a limitation of the present research. Practical implications The current research delineates the circumstances under which vertical line extensions have positive, neutral or negative impact on brand perceptions and future product expectations. We introduce the presence of a comparison set as a key variable and show how it interacts with assessment focus to affect brand evaluations. When thinking about the impact of extensions on brand perceptions, marketers need to consider which assessment focus is likely to be triggered by environmental cues and whether comparisons are salient. Originality/value Brand extension is an important area of investigation as evidenced by the vast literature dedicated to the subject. The present paper advances knowledge in this area by identifying key factors affecting the impact of vertical extensions on brand perceptions.

Purpose In this paper, the authors aim to propose that status differentiation, the extent to which people differentiate their behaviors or attribute power to others according to perceived status differences, moderates the effect of stretch direction upward or downward and brand image prestige or functional on consumers 2019 responses to line extensions. Design/methodology/approach This study was a 2 (culture: Chinese vs American) × 2 (stretch direction: up vs down) × 2 (brand image: prestige vs functional) experiment design. Study 2 was a 2 (status differentiation: high vs low) × 2 (stretch direction: up vs down) × 2 (brand image: prestige vs functional) experiment design. Findings The results of two studies show that high status differentiation has a positive prestige-enhancement effect on an upward extension but a detrimental effect on a downward extension. This effect is more pronounced for prestige brands than for functional brands. In addition, the authors have found similar patterns for the prestige perceptions of the parent brands after extension. Research limitations/implications This research makes important contributions to the fields of cross-cultural psychology. The status differentiation beliefs could be primed temporarily and had a significant impact on individuals’ responses to line extension. Practical implications The research identifies status differentiation as an important factor for marketers to consider when extending their brands to global markets. Originality/value Past research on vertical extensions has examined numerous factors influencing consumers’ responses. This paper is the only one to examine culture factor.

To compete in the current cosmetics market, strategic changes are needed according to the target market. Therefore, in this study, L'Oreal Group, the No. 1 global sales company, was selected as the subject of the study to study vertical brand expansion strategies used within the cosmetics industry. The purpose of the study is to analyze the vertical brand expansion strategy of L'Oreal Group and examine its effectiveness. The method of research is qualitative research that considers degree papers, journals, related books, and accounting materials from 1995 to 2020 by the L'Oreal Group. The results of the study are as follows. First, after examining L'Oreal Group's vertical brand expansion strategy, it was found that it used strategies such as ‘Mergers and Acquisitions of Various Brands’, ‘Brand Management by Business Department’, and ‘Localization’. Second, looking at the vertical brand expansion effect of L'Oreal Group, it was found that it gained the effect of ‘Increasing Sales’, ‘Strengthening Brands’, and ‘Ease Market Access’. Therefore, it can be concluded that the effect of a differentiated vertical brand expansion strategy played a role in L'Oreal Group's growth into the world's No. 1 cosmetics company. This suggests that utilization based on success stories is important, not indiscriminate application of vertical brand expansion strategies. We hope that further research will be conducted on the vertical brand expansion and online business trends of cosmetics companies in the future.

To compete in the current cosmetics market, strategic changes are needed according to the target market. Therefore, in this study, L'Oreal Group, the No. 1 global sales company, was selected as the subject of the study to study vertical brand expansion strategies used within the cosmetics industry. The purpose of the study is to analyze the vertical brand expansion strategy of L'Oreal Group and examine its effectiveness. The method of research is qualitative research that considers degree papers, journals, related books, and accounting materials from 1995 to 2020 by the L'Oreal Group. The results of the study are as follows. First, after examining L'Oreal Group's vertical brand expansion strategy, it was found that it used strategies such as ‘Mergers and Acquisitions of Various Brands’, ‘Brand Management by Business Department’, and ‘Localization’. Second, looking at the vertical brand expansion effect of L'Oreal Group, it was found that it gained the effect of ‘Increasing Sales’, ‘Strengthening Brands’, and ‘Ease Market Access’. Therefore, it can be concluded that the effect of a differentiated vertical brand expansion strategy played a role in L'Oreal Group's growth into the world's No. 1 cosmetics company. This suggests that utilization based on success stories is important, not indiscriminate application of vertical brand expansion strategies. We hope that further research will be conducted on the vertical brand expansion and online business trends of cosmetics companies in the future.

PurposeThe paper examines the cultural differences in consumers' evaluations of vertical brand extensions.Design/methodology/approachA 2 (extension types: upward, downward) × 2 (nationality: USA, China) × 2 (ownership: owner, non-owner) between-subjects design with thinking styles as a covariate was employed to test consumers' evaluations of vertical brand extensions. A total of 228 subjects from the US and 194 from China participated in the two experimental studies.FindingsThe paper finds that consumers prefer downward extensions to upward extensions. Furthermore, Chinese consumers have even more favorable evaluations of downward extension products than do American consumers. In addition, analytic thinkers exhibit a stronger ownership effect than holistic thinkers.Originality/valueThe research contributes to the understanding of culture differences in vertical brand extension evaluations.

This case study illustrates the role of marketing instruments on the success of a vertical brand extension executed by a leading dairy company in Vietnam — Vinamilk. In 2011, the company launched a fortified liquid milk line as a step-down vertical brand extension from its previous and more premium line — 100% fresh milk. The key issue in the study is to understand how Vinamilk used marketing communication and distancing techniques (or differentiation tactics) to influence the performance of the vertical brand extension. The case findings show that despite quite serious cannibalization on the core brand, the vertical brand extension at Vinamilk was deemed a successful launch. The success was attributable to marketing communication that was rooted in profound consumer understanding — the right product offered to the right target at the right price supported with heavy consumer pull and trade push marketing. Vinamilk’s strong umbrella brand and wide distribution network also contributed to the successful launch. The most serious challenge was cannibalization on the previous premium product line — Vinamilk 100% fresh milk. As Vietnamese consumers grew wealthier and more sophisticated, non-reconstituted, fresh milk would likely become the biggest seller in the future, a sector Vinamilk could not afford to lose. Competition in this premium market was already heating up, requiring the company to strengthen this product line. For longer term strategy, Vinamilk had been forced to revisit its liquid milk product portfolio. A more clearly defined role for each product line along with effective differentiation would be required.

One popular strategy for brands to grow outside of their home markets is to use line extensions. Although extensive research has examined how factors such as culture influence product acceptance across markets, far less is known regarding how such factors influence parent brand perceptions in response to an extension. This article investigates the role of one aspect of culture, consumers’ thinking styles, in terms of postextension parent brand spillover effects, and considers potential implications for firms’ global brand strategies, including the extension’s direction (upward or downward) and parent brand concept (functional or prestige). Through two studies, one using consumer panels in the United States and India and the other set in the United States, the authors examine consumer-level differences by measuring thinking styles. Results based on both studies indicate that vertical line extension type affects analytic thinkers’ reactions more than those of holistic thinkers, and parent brand image benefits (suffers) when a vertical line extension is for a functional (prestige) brand, regardless of consumers’ thinking style. The authors find interesting differences in the role of thinking styles based on the particular dimension examined.

Purpose Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand to its extensions. Drawing on the range theory exemplar models of categorization, this paper aims to show the effects of parent brand endpoint prices on consumer judgments of vertical line extensions. Design/methodology/approach Three experiments have been conducted. Experiment 1 tests the hypothesis that consumers rely on the parent brand price range when making judgments of an upscale extension. Experiment 2 tests the hypothesis that the effect of price range on extension evaluation is mediated by perceived risks for upscale extensions but not downscale extensions. The final experiment shows a boundary condition to the product line range effect on upscale extensions. Findings This research shows that upscale extensions are judged more favorably in the context of a wide versus a narrow product line even when the highest endpoints in both product lines are equally close to the extension and that this effect is mediated by perceived consistency and perceived risk. The range effect disappears, however, when consumers have a broad focus in which attention shifts to category endpoint prices, making parent brand prices less diagnostic of upscale extension judgments. Practical implications Managers may display a wider range of products and/or reduce prices of low-end models to expand product line price width. In consequence, low-end products become more competitive in terms of price and at the same time improve favorability ratings of the new upscale product. Originality/value Vertical line extensions and product line pricing are important topics to both academics and practitioners. Nonetheless, this is the first research to demonstrate how product line price width can influence consumer perceptions of vertical line extensions.

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This study has the objective to analyze the effects of vertical brand extension strategies, down and up, in Luxuriousness Perceived in luxury brands. Six hypotheses were tested using a quantitative approach structured questionnaires and carrying three experiments involving a total of 1009 subjects. For data analysis we used Analysis of Variance technique (ANOVA). In Experiment 1, the results suggest decreased Perceived Luxuriousness vertical brand extension down relative to the parent brand and no significant difference in Luxuriousness Perceived vertical brand extension up, in relation to the parent brand. In Experiment 2, it was found that the brand extension strategy vertically down negatively affects Luxuriousness Perceived the parent tag. And in Experiment 3 it was found that consumer attitude towards vertical brand extension down is significantly lower than the Attitude toward the parent brand.
Este estudo apresentou como objetivo analisar os efeitos das estratégias de extensão de marca vertical, para baixo e para cima, na Luxuosidade Percebida em marcas de luxo. Foram testadas seis hipóteses por meio de uma abordagem quantitativa com aplicação de questionários estruturados e realização de três experimentos que envolveram, no total, 1009 indivíduos. Para análise dos dados utilizou-se a técnica de Análise de Variância (ANOVA). No Experimento 1, os resultados encontrados sugerem diminuição da Luxuosidade Percebida na extensão de marca vertical para baixo em relação à marca-mãe e inexistência de diferença significante na Luxuosidade Percebida da extensão de marca vertical para cima, em relação à marca-mãe. No Experimento 2, verificou-se que a estratégia de extensão de marca vertical para baixo afeta negativamente a Luxuosidade Percebida da marca-mãe. E no Experimento 3 constatou-se que a Atitude do consumidor em relação a extensão de marca vertical para baixo é significativamente inferior a Atitude em relação a marca-mãe.

Vertical brand extensions have been used as popular strategies in the lodging industry. Research on brand extension that is related with brand trust and brand loyalty has been useful in making brand extensions successful. However, previous research focused on aggregated relationships among brand trust, brand loyalty, and brand extension. In addition, it has been found that quality and price distance from a core brand of the brand extension has an impact on the success of the brand extension. Therefore, this dissertation proposes a theoretical model with six hypotheses investigating relationships among brand trust, brand loyalty and brand extension simultaneously. Further, the impact of distance from a core brand (brand distance) on the brand extension was examined. Data was collected using an online panel. A final sample of 396 was used for the data analysis. Structural equation modeling (SEM), a Chi-square difference test, and independent t-tests were utilized to test the hypotheses. The data was randomly split in two. One half of the dataset was used to test a measurement model and the other half of the dataset was used to test a structural equation model. The findings suggested there were positive relationships between brand trust and brand loyalty, brand trust and brand extension, and brand loyalty and brand extension. Furthermore, it was found that brand distance plays a significant role not only on brand extension, but also on the relationship between brand trust and brand extension and the relationship between brand loyalty and brand extension. This study contributes to vertical brand extension literature by providing a theoretical model by which simultaneous relationships among brand trust, brand loyalty and brand extension were investigated with a moderating factor: brand distance. The findings of this dissertation have important managerial implications for lodging industry brand managers.
Ph. D.

The times of following a ‘one brand – one product’ strategy have long past. Nowadays, firms are increasingly recognizing the true value of their brands and are starting to use these as a source of competitive advantage. By introducing new products under an existing brand name, firms leverage the power of their brands and thus, aim at benefiting from the success of the parent brand. Brands are amongst the most valuable assets owned by a company, which encourages them to engage in brand extensions. The authors mainly distinguish between three brand extension strategy types: line extension, vertical line extension and category extension.             Previous quantitative studies have identified that particularly brand equity and brand identity stand out as significantly influencing brand extension strategies. Therefore, this qualitative case study further explores how these two branding constructs affect firms’ brand extension decisions. While most past studies investigated the potential success of fictitious brands, this study performs qualitative interviews with brand and product managers of eight real case firms operating in the FMCG industry in Germany.             The empirical data indicates that the pressure to innovate rises, as more and more new extension products are being introduced to the market in recent years. Nevertheless, the majority of firms opt for line extension strategies, while only few dare to enter a further distanced market segment. Hence, the condition of a “fit” between the parent brand and extension product is mostly accounted for. The study further suggests that a brand without strong brand equity will not be able to perform brand extensions at any level. However, even if brands do benefit from strong brand equity, firms may adopt divergent strategies, which is mainly dependent on the brand’s identity. The research results show that narrowly defined brands, predominantly distinguishable by concrete product features and physical facets, restrict the firms’ capability to extend a brand beyond its original product line. Contrarily, brands with a more abstract or value based identity provide more opportunities to stretch further from the parent brand. An emotional brand that succeeds in building a relationship to the customer, in representing a distinct personality or telling a story, is able to extend to a new product category. The study concludes that certain brands may be under-exploited, as they do not leverage their high equity and identity capabilities in terms of extending the brand to a further distanced market segment.             As a result of the findings, two Brand Extension Strategy Matrices are constructed, setting the brand identity abstraction level (product or value based identity) into relation to (1) brand equity and (2) the identity “fit” of an extension product and the parent brand. Each of these two matrices explains the strategic consequences of a given set of brand equity and brand identity.

Em um mundo cada vez mais competitivo, onde a produção aponta para uma tendência de mobilidade global – aproveitando as oportunidades de eficácia produtiva, como os países asiáticos, e no Brasil, em regiões que oferecem incentivos fiscais e mão de obra barata, conforme Troiano (2006), o tema “valor de marca” é muito relevante para o posicionamento de uma organização no mercado,que queira buscar o reconhecimento pelos seus consumidores. Atualmente, marca é uma questão sempre discutida e o desafio de escolher a melhor estratégia para gerenciá-la, dentre marca única e arquitetura de marca, esta dissertação visa compreender e analisar a estratégia da marca como extensão vertical, analisando cases de organizações que a praticam, aplicando uma pesquisa qualitativa com profissionais e acadêmicos da área. O DNA das marcas poderosas fazem parte do DNA dos seus consumidores, uma relação de afinidade, uma questão de conforto emocional, que transcendem a relação simples do negócio sobre a ótica econômica-financeira. Por isso, além de uma análise sobre a marca, escrevemos sobre o comportamento do consumidor, para termos como embasamento dos seus desejos e necessidade, e como a marca desempenha um papel social, aproximando as pessoas do eu idealizado. O estudo visa auxiliar aos estudiosos e profissionais em marketing, que no dia a dia convivem com o desafio da gestão da marca e seus impactos no mercado e na organização. Com o estudo foi possível observar algumas características de uma marca de sucesso, entre elas: diferenciação, relevância, estima e conhecimento. Como também a importância de uma excelente gestão de marca de forma profissional e que esta tenha uma história que faça a diferença e seja admirada pelos consumidores.
In an increasingly competitive world, where production signalizes a global mobility trend – taking advantage of productive efficacy opportunities, such as the ones in Asian countries, and Brazil, in regions which offer fiscal incentives and cheap labor, according to Troiano (2006), the topic “brand value” is quite relevant for the positioning of an organization which seeks recognition on the part of its consumers, in the market. Currently, brand is an invariably discussed issue, and the challenge to choose the best strategy to manage it, among unique brand and brand architecture. This thesis aims at understanding and analyzing brand strategy as a vertical extension, by analyzing cases of organizations which practice it, through a qualitative research with professional and academic people of the area. The DNA of powerful brands is part of the DNA of their consumers, a relation of affinity, a question of emotional comfort, which transcends the simple business relationship under the economic-financial viewpoint. On account of this, in addition to analyzing the brand, we write about consumer behavior in order to understand their needs and wishes, as well as, the social role of the brand, by drawing people near to their idealized “I”. The study seeks to help the marketing professional and academic people, who in their daily lives face the challenge of brand management and its impacts on the market as well as in the organization. Through this study it will be possible to notice some features of a successful brand, being among them: differentiation, relevance, appreciation, and knowledge. In addition, there is the importance of an excellent professional brand management, in a way in which it has a history that makes a difference and that is admired by consumers.

Thesis (MComm)--Stellenbosch University, 2014.
ENGLISH ABSTRACT: In the financial service sector, specifically the banking sector, the competition for market share has become fierce. South Africas‟ Big Four banks (Absa, FNB, Standard Bank and Nedbank) are currently threatened by Capitec‟s simplified business strategy. Capitec is not just retaining customers, but also attracting new-to-bank customers and customers from other banks. Capitec‟s strategy has led to an increase in competitive rivalry among the banks. The Big Four banks are struggling to retaliate against Capitec‟s innovation, creating a situation where only the strongest will survive. The reason for this competition is Capitec‟s move to target the higher-income market, since they are changing the profile of their original customer base. On the other hand, Absa is counter-attacking by targeting Capitec‟s primary market that consists of lower-income groups. Both Capitec and Absa are initiating vertical service line extensions (VSLE). The difference between the two banks‟ strategies is the direction of the vertical extension, where Capitec is utilising an upward VSLE, and Absa is utilising a downward VSLE. Not enough attention has been given to service line extensions compared to extensions of tangible products. In this study the focus is on vertical line extensions within the service sector and more specifically the banking sector. The primary objective is to investigate the influence attitudes towards a vertical service line extension (VSLE) have on current customers‟ perceived brand image. Furthermore, the difference between customers‟ attitudes towards a bank pursuing an upward vertical service line extension and one pursuing a downward vertical service line extension, is investigated. The secondary objectives of the study are to assess whether or not (1) perceived quality influence customers‟ attitudes towards a VSLE; (2) perceived status fit influence customers‟ attitudes towards a VSLE; (3) customers‟ perceived fit between their self-image and the communication, influence attitudes towards a VSLE; (4) attitudes towards a VSLE influence brand image; (5) there is a difference between customers‟ brand image, perceived quality, perceived fit, and self-brand communication fit of a bank that introduced an upward extension and one that introduced a downward extension. In the case of an upward VSLE (Capitec), the results suggest that perceived quality was the only variable that significantly influenced attitudes towards the VLSE. On the other hand, in the case of a downward VSLE (Absa), perceived quality and communication fit significantly influenced attitudes towards a VSLE. Furthermore, attitudes towards the VSLE did significantly influence brand image in both an upward and downward extension. Perceived status fit was the only variable that did not significantly influence attitudes towards a VSLE in both an upward and a downward extension. It emerged that the attitudes of customers from a bank initiating an upward extension (Capitec) differ from customers from a bank initiating a downward extension (Absa). Capitec and Absa customers differ in their evaluation of perceived quality, status fit, communication fit and brand image. The greatest difference among the two customer groups were caused by communication fit and perceived brand image. In this study Capitec customers evaluated their bank more favourably than Absa customers did. This result can be attributed to the direction of the extension and customers feelings towards it. It was advised that managers should thoroughly investigate the benefits and risks in implementing an upward or downward VSLE, since this study concludes that in either case brand image will be influenced.
AFRIKAANSE OPSOMMING: In die Suid-Afrikaanse mark het die kompitiese tussen banke geweldig gestyg soos die banke meeding om mark aandeel. Die Groot Vier banke (Absa, FNB, Standard Bank en Nedbank) word tans uitgedaag deur Capitec se eenvoudige dienslewering strategieë. Capitec is besig om dienste te lewer aan hul huidige kliënte, asook die gedeelte in die mark wat nog nooit voorheen van bankdiense gebruik gemaak het nie. Verder, is Capitec besig om kliënte van ander banke af te rokkel. Die Groot Vier sukkel om mee te ding met Capitec se innovasie rondom algemene bankdienste. Dus, word daar nou 'n situasie in die finansiële sektor geskep waar net die sterkstes sal oorleef. Die rede vir hierdie mededinging in die mark is as gevolg van Capitec se beweging na 'n hoër-inkomste mark. Die oorspronklike kliënte-profiel van Capitec word nou op ʼn prominente wyse verander. Absa, daarteenoor is besig om Capitec teë te werk deurdat hul laer-inkomste markte infiltreer. In beide gevalle is Capitec en Absa besig om 'n "vertical service line extension (VSLE" te implementeer. Die verskil tussen die twee banke is die rigting van die VSLE, waar Capitec 'n opwaartse VSLE implementeer het en Absa 'n afwaardse VSLE implementeer het. In die huidige literatuur word daar nie genoeg aandag gegee aan "service line extension" in vergelyking met "product line extensions" nie. Dus, die fokus van hierdie studie is op VSLE in die bankdienste sektor. Die primêre doelwit is om te bepaal of huidige kliënte se houdings teenoor die VSLE 'n beduidende invloed het op die handelsmerk. Verder, is ondersoek ingestel om te bepaal of daar 'n verskil is tussen 'n bank se kliënte wat 'n opwaartse VSLE implementeer en een wat 'n afwaartse VSLE implementeer. Die sekondêre doelwitte was om vas te stel of (1) kliënte se gehalte persepsie 'n effek het op hul houding teenoor 'n VSLE; (2) status ooreenstemming 'n effek het op kliënte se houding teenoor 'n VSLE; (3) ooreenstemming tussen kliënte se self-persepsie en die bank se kommunikasie 'n effek het op hul houding teenoor die VSLE; (4) kliënte se houding teenoor die VSLE 'n effek het op die handelsmerk; (5) daar 'n verskil is tussen kliënte van 'n bank wat 'n opwaarse VSLE implementeer en een wat 'n afwaarste VSLE implementeer interme van, gehalte persepsie, status ooreenstemming en hul ooreenstemming tussen self-persepsie en kommunikasie. In die geval van 'n opwaartse VSLE (Capitec) is dit bevind dat net kliënte se gehalte persepsie 'n beduidende invloed het op hul houdings teenoor die VSLE. In die geval van 'n afwaartse VSLE (Absa) is daar bevind dat kliënte se gehalte persepsie en kommunikasie „n beduidene invloed het op hul houdings teenoor die VSLE. In beide 'n opwaarste en afwaarste VSLE het kliënte se houdings teenoor die VSLE „n beduidende effek op die handelsmerkbeeld gehad. Status ooreenstemming tussen die huidige kliëntebasis en die kliëntebasis wat bereik wil word deur die VSLE, het geen effek gehad op kliënte se houding teenoor die VSLE nie. Verder, was dit bevind dat kliënte wat betrokke is by 'n bank wat 'n opwaarste VSLE implementeer (Capitec) verskil van die kliënte wat betrokke is by 'n bank wat 'n afwaarste VSLE implementeer (Absa). Capitec en Absa kliënte verskil in hul evaluasie van die betrokke bank se gehalte persepsie, status ooreenstemming, kommunikasie en handelsmerk evaluasie. Die grootste verskil tussen die twee steekproewe is by kommunikasie evaluasie en handelsmerk evaluasie. Daar is onder andere bevind dat Capitec kliënte hul bank beter evalueer as Absa kliënte. Hierdie bevinding kan verduidelik word deur die rigting van die twee banke se VSLE. Die gevolgtrekking is dat handelsmerkbeeld, ongeag die rigitng van die VSLE, beïnvloed word deur huidige kliënte se houdings teenoor die VSLE. Dus, moet bestuurders al die voordele en nadele in verband met 'n VSLE opgeweeg voordat 'n VSLE strategie geïmplemteer word.

Det är idag vanligt med företag som använder sitt befintliga varumärke för att nå nya målgrupper för att öka sin lönsamhet. Ett sätt att göra detta är att introducera produkter i en ny prisklass, en så kallad vertikal brand extension. Problemet är det att det är oklart exakt hur detta påverkar konsumenternas uppfattning om varumärket och vilka faktorer som spelar roll. Denna uppsats behandlar prestigens påverkan på konsumenternas uppfattning av varumärket vid en vertikal brand extension för företag inom den högteknologiska sektorn. Anledningen bakom att vi har begränsat oss till den högteknologiska sektorn är att det saknas empiriska undersökningar som behandlat denna bransch. All föregående datainsamling och analysering har tidigare behandlat för många branscher samtidigt vilket lett till ett resultat som inte nödvändigtvis är rättvisande för den högteknologiska. Det finns teori som hävdar att det bör vara skillnad på branscherna men det saknas relevant data för att bekräfta detta. Vi har samlat in egen primärdata genom att hålla öppna gruppintervjuer med två fokusgrupper uppdelade i två ålderssegment. Vi har valt att utgå ifrån två välkända märken som uppfattas har olika hög prestige; Apple och Asus. Vår undersökning kommer fram till att varumärken som är uppfattade att ha hög prestige har lättare att gå upp i prisklass än ett företag som uppfattas ha lägre prestige. Omvänt så har ett företag som har låg prestige lättare att gå ner i prisklass än ett företag som har hög. Dessutom finner vi att fler och fler konsumenter köper datorer baserat på funktion vilket minskar vikten av prestige inom den högteknologiska sektorn.
Every so often companies take use of their brand equity to expand to new markets and target audiences. A common strategy to do so is to introduce products in a different price class, also known as vertical brand extensions. The problem is that it is unknown how this affects the consumer’s evaluation of the brand and which factors that contributes to this effect. This thesis deals with the effects of prestige on consumer’s evaluation of vertical brand extensions in the high-technology sector. The reason for choosing the high-technology sector is that there is a lack of empirical research dealing with it separately. All recent data and analysis includes a wide variety of sectors which has resulted in conclusions that may not be relevant for the sector of our interest. Theory exists that argue that there should be a difference between these sectors but there is no evidence to prove this. We have collected our own primary data by conducting two open group interviews with two focus groups divided into two age segments. The research and questions have been formed around a couple of well-known brands; Apple and Asus. Our conclusion is that highly prestigious brands have a higher probability to succeed at introducing more expensive products than a brand with lower prestige. Brands with lower perceived prestige may likewise have a higher probability to succeed at introducing a cheaper product than their higher-prestige counterparts. Furthermore we find that more consumers base their buying decision on function rather than prestige which reduces prestige’ relevance within the high-technology sector.

碩士
東海大學
國際經營與貿易學系
104
Abstract This study was designed to examine how the parent brand and diffusion brand reciprocally affect their images each other in vertical brand extension. By investigating and analysizing the young people to understand the extent of brand image, brand trust and brand love from main observation items; and using perceived fit and diffusion’s satistifaction to be the moderators for examining whether the avantage can be maximined after it launched the diffusion brand. 　　This study posted questionnaire on internet and asked for the customer of two department stores, college students from Tunghai unniversity and in Taiwan, Taichung to do it, then used SPSS process to analyses for subsequent empirical analysis. Empirical results verify that strengthen the parent brand love and brand trust would enhance the parent brand image, and the parent brand image can positive affect diffusion brand’s image directly; and the diffusion brand image can positive influence parent brand’s image through the diffusion brand trust. This paper also highlights practical implications for fast-fashion managers and policy makers. Key words: Vrtical brand extension, brand image, brand trust, brand love, perceived fit, satisfaction

The purpose of this study was to examine the effects on the original brand name image and that of the extension when a vertical extension of the brand is introduced. Three variables were examined in the context of step-up and step-down extensions to determine their effect on the evaluation of the core brand and extension: brand concepts, distancing techniques and the presence of an information or attribute elaboration cue. An experiment was conducted using four well-known brand names (Rolex, Timex, Lexus and Toyota) from two product categories. The differences in evaluations between the three types of vertical extensions (prestige-oriented downscale, function-oriented upscale and function-oriented downscale) were examined. The findings indicate that introducing the step-down Rolex, Lexus and Toyota, and an upscale Toyota and Timex lower brand name evaluations. The downscale extensions for Rolex and Timex and upscale extensions for Timex and Toyota received favourable evaluations. Both the step-down Timex and Toyota extensions received unfavourable evaluations. Distancing the step-down extension name from Rolex led to a significantly more favourable evaluation of the Rolex name than when the extension name was closely tied to Rolex. Having the Toyota name closely associated with the downscale extension was also found to significantly improve the evaluation of the brand name than when the Toyota name was not salient. Further experimental findings showed that extension evaluations can be significantly improved, for all types of vertical extensions, by introducing an attribute elaboration cue which is designed to reduce concerns consumers may have about the extension.

碩士
長榮大學
企業管理學系碩士班
101
Nowadays, introducing new products to marketplace using brand extensions to satisfy consumers’ needs becomes one of the critical and essential brand strategies for firms. However, consumers may have different evalations towards vertical brand extensions. Heath, DelVecchio, & McCarthy (2011) demonstrated asymmetric effects exist when brands are extended to different levels of qualities. Based on the findings of the above research, the current study not only confirms similar asymmetric effects exist in high tech products, but also examines whether the effects of different stages of product life cycle (PLC) on brand evaluations exist. This study conducted two experiments. The first one was a 4 qualities (lowest /second low /second high /highest) x 4 PLC stages (introduction /growth /maturity /decline) between subjects design. In total 410 college studnets were chosen from three different universities as subjects to give their evaluations to 16 different treatments and three different product categoris, moble phones, cameras and televisions, respectively. The second experiment was a 2 qualities (lowest/highest) x 4 PLC states within subjects design. There were 47 college students randomly selected from an university in southern Taiwan. They were asked to give their evaluations to only one product category- moble phones. All brand names were virtual names and named by the researcher. Combinations of the findings from the two experiments reveal (1) asymmetric effects do exist when brand names were entended to high and low qualities in high tech product categories. Subjects gave higher brand evaluations to high quality-names and rated lower to low quality-names. (2), as expected, different stages of PLC have asymmetric effects on the evaluations of vertical brand extensions. Product life cycle may play an intervining role on brand evaluations. As a result, firms should be aware of the influences of brand extension strategies. Firms should choose brand names carefully during different stages of PLC, leading higher brand evaluations.

碩士
國立雲林科技大學
企業管理系碩士班
100
Brands have an incentive to extend their vertical line extensions in order to extract more consumer surplus. However, the brands may benefit from increasing sales, but also risk diluting brand image. Previous studies on the brand evaluations of vertical line extensions had a mixed effect, which are not consistent. Moreover, brands launching new extending products will produce a wealth of diversity, and also raise brand innovation. However, previous studies on vertical line extensions only increase or decrease the function/quality. In this study, we examine how product innovation information affects the core brand evaluation of extensions. The main purpose of this study is to identify the relationship between product innovations and brand evaluations. The study explored whether the vertical line extensions and then different extension levels have a moderating effect on product innovations and brand evaluations. 　　This study was designed to be a 2*2*2*2 between-subject factorial design. The independent variable was product innovations, and the moderate variable in the study was vertical line extensions and different extension degrees. Then, the dependent variable was brand evaluations. The research was adopted by repeated experiment. Two products, TV game player, motor and scooter, were chosen to represent the different price products. College students in Taiwan were chosen to be subjects in Questionnaire survey. Then, Convenience sampling method was adopted. The researcher sent out 900 questionnaires with 758 valid questionnaires. 　　The results showed five key points. First, in no product innovation information, the upward extension of the brand will have positive impacts on brand evaluations, while the downward extension will have negative impacts on brand evaluations. Second, The greater the degrees of extension are deep, the more positive (negative) impacts on brand evaluations cause. Third,The brands added product innovation information to extension products can increases the core brand evaluations of upward or downward extensions, which means product innovation information will not only increase positive brand evaluations of upward extensions, but also change negative brand evaluations of down negative brand evaluation into positive evaluations. Fouth, Regardless of the different prices, product innovation information will increase positive evaluations as the degrees of the extension reinforce. Fifth, as the degrees of downward extension increase, Product innovation information will produce more different positive evaluation.

In modern aero engines the lubrication system plays a key role due to the demand for high reliability. Oil is used not only for the lubrication of bearings, gears or seals, but it also removes large amounts of the generated heat. Also, air from the compressor at elevated temperature is used for sealing the bearing chambers and additional heat is introduced into the oil through radiation, conduction and convection from the surroundings. The impact of excessive heat on the oil may lead to severe engine safety and reliability problems which can range from oil coking (carbon formation) to oil fires. Coking may lead to a gradual blockage of the oil tubes and subsequently increase the internal bearing chamber pressure. As a consequence, oil may migrate through the seals into the turbo machinery and cause contamination of the cabin air or ignite and cause failure of the engine. It is therefore very important for the oil system designer to be capable to predict the system’s functionality. Coking or oil ignition may occur not only inside the bearing chamber but also in the oil pipes which carry away the air and oil mixture from the bearing chamber. Bearing chambers usually have one pipe (vent pipe) at the top of the chamber and also one pipe (scavenge pipe) at the bottom which is attached to a scavenge pump. The vent pipe enables most of the sealing air to escape thus avoid over-pressurization in the bearing compartment. In a bearing chamber sealing air is the dominant medium in terms of volume occupation and also the in terms of causing expansion phenomena. The scavenge pipe carries away most of the oil from the bearing chamber but some air is also carried away. The heat transfer in vent pipes was investigated by Busam [1], [2]. Busam has experimentally developed a Nusselt number correlation for an annular flow in a vent pipe. For the heat transfer predictions in scavenge pipes no particular Nusselt number correlation exist. This paper intends to close the gap in this area. As part of the European Union funded research programme ELUBSYS (Engine LUBrication System TechnologieS), an attempt was done to simplify the oil system’s architecture. In order to better understand the flow in scavenge pipes, high speed video was taken in two sections of the pipe (vertical and horizontal). In the vertical section the flow was a wavy annular falling film whereas the flow in the horizontal section was a an unsteady wavy stratified/slug flow. Heat transfer has been investigated in the horizontal section of the scavenge pipe, leaving the investigation on the vertical section for later. Thanks to the provided extensive instrumentation, the thermal field in, on and around the pipe was recorded, evaluated and also numerically modeled using ANSYS CFX version 14 [23]. Brand new correlations for two-phase flow heat transfer (Nusselt number) and for pressure drop (friction coefficient) in horizontal scavenge pipes are the result of this work. The Nusselt number correlation has been developed in such a way that smooth transition (i.e. no discontinuity) from two-phase into single phase flow is observed. This work was funded and conducted within the 7th EU Frame Programme for Aeronautics and Transport (AAT.2008.4.2.3).