Consumer fanaticism and brand extensions in the video games market
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The use of brand extensions in entering new markets is shown to decrease the risk of failure of a new product in comparison to products introduced by lesser established brands as the new product will benefit from the existing brand equity and awareness associated with the ‘parent brand’. ‘Perceptual fit’ (whether a consumer perceives the new item to be consistent with the parent brand) is a key element in predicting brand extension success. The level of fanaticism among consumers is expected to also influence their response to brand extensions. This empirical study explores the influence of fanaticism on perceptions of Image fit, Complexity, Transfer, Complement, Extension quality, Category fit, and Intent to Purchase brand extensions with differing levels of parent brand congruency among 111 video game fans. Results show the tested measures of perceived fit are significantly different between most comparisons of brand extensions with varying congruency dependent on whether a respondent falls into the high or low level of fanaticism. This provides some insight into the importance of fanaticism and provides insights for retailers and manufactures of video games in how extension may be viewed by differing members of the video game community. This research is significant as there has been little empirical research conducted among this fast growing consumer group in relation to fanatics and extension into categories with varying perceptual fit despite retailers consistently using branded items as incentives for purchase or pre-purchase orders of video games.
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Young, Joshua; Marchegiani, Chris (2011)When entering new markets, brand extension are often used in an attempt to leverage the positive association with the parent brand. Whether consumers perceive the new product as consistent with the parent brand is shown ...
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