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Brand Extension Evaluation: an experimental research study in the service sector

ABSTRACT

This study analyzed the effects, in consumers’ evaluations, of different brand names (arbitrary, descriptive, and suggestive), of perceived similarities (high vs. low) and of perceived quality regarding brand extension in services. We implemented two experiments involving 1,338 respondents. In Experiment 1, by means of MANOVA, we managed to detect significant effects of brand names and of similarities in Attitude and Intention to Use of consumers. In Experiment 2, we added manipulation of perceived quality to the sample. We identified transfer of perceived quality to extended service, and that perceived quality overweighed effects of similarity and brand names in extensions, which indicates that perceived quality is more relevant in evaluation of brand extension in service when brand names are not recognized by consumers.

Keywords:
Brand extension; Services; Service quality;Perceived similarity

RESUMO

Este estudo tratou da análise dos efeitos, na avaliação dos consumidores, de diferentes nomes de marcas (arbitrária, descritiva e sugestiva), da similaridade (alta versus baixa) e da qualidade percebidas em relação a extensões de marcas em serviços. Foram realizados dois experimentos que envolveram 1.338 respondentes. No Experimento 1, por meio da análise de variância multivariada (Manova), verificaram-se efeitos significantes dos nomes de marcas e da similaridade na atitude e na intenção de uso dos consumidores. No Experimento 2, adicionada a manipulação da qualidade percebida, verificou-se a transferência desta para o serviço estendido e sua sobreposição aos efeitos da similaridade e dos nomes de marcas nas extensões, indicando que esse construto é mais relevante na avaliação das extensões de marcas em serviço quando os nomes das marcas não são reconhecidos pelos consumidores.

Palavras-chave:
Extensão de marcas; Serviços; Qualidade em serviços; Similaridade percebida

RESUMEN

Este estudio trata del análisis de los efectos en la evaluación de los consumidores de distintos nombres de marcas (arbitraria, descriptiva y sugestiva), de la similitud percibida en relación a extensiones de marcas en servicio. Se realizaron dos experimentos que abarcaron 1.338 encuestados. En el Experimento 1, mediante el análisis de MANOVA, se han verificado efectos significativos de los nombres de marcas y la similitud en la actitud y en la intención de uso de los consumidores. En el Experimento 2, sumada a la manipulación de la calidad percibida, se ha verificado la transferencia de esta para el servicio extendido y su sobreposición a los efectos de la similitud y de los nombres de marcas en las extensiones, indicando que este constructo es más relevante en la evaluación de las extensiones de marcas en servicio, cuando los nombres de las marcas no son reconocidos por los consumidores.

Palabras clave:
Extensión de marca; Servicios; Calidad de servicios; Similitud percibida

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  • 4
    Evaluation process: Double Blind Review

APPENDIX A - Manipulation of experiment 1 variables

Dear Consumer,

We are advising a Supermarket Network headquartered in São Paulo, which currently has a large number of stores. This is <brand> SUPERMARKET. The stores of <brand> SUPERMARKET offer a wide range of products suitable for their clientele, with food, dairy, meats, breads, beverages, grocery and frozen food, in addition to hygiene, cleaning and beauty products, among others. It operates with quality and fair pricing practices. It keeps products separated by categories on shelves arranged to provide a flow of customers in their stores, has parking lot and is well located, which ensures convenience to all customers.

To diversify its operation in the market, this retailer plans to open a <RESTAURANT / TRAVEL AGENCY> to be called <BRAND RESTAURANT / BRAND TRAVEL AGENCY>.

[a] In the <brand> TRAVEL AGENCY, you will find a variety of choices of destinations for your trips in a very appropriate environment. The units of <brand> TRAVEL AGENCY are well located and will have common services for travel agencies of its size.

[or b] In <brand> RESTAURANT, you will enjoy a variety of dishes in a very appropriate environment. The units of <brand> RESTAURANT are well located and will have common services to restaurants of its size.

We would like to know your opinion about the <BRAND RESTAURANT / BRAND TRAVEL AGENCY>. All answers are strictly confidential and will be analyzed only in aggregate form. Read the following statements and classify them assigning them grades from 1 (Strongly Disagree) to 7 (Strongly Agree). If your answer is intermediate, please check one of the numbers between 2 and 6. There are no right or wrong answers, we just want to know your opinion about <BRAND RESTAURANT / BRAND TRAVEL AGENCY>.

APPENDIX B - Variables of the scale to measure brand extension assessment in services - breakdown by attitude and intent.

Construct Code Statements Attitude A1 The <SERVICE FORMAT+ BRAND> will be feasible. A2 The <SERVICE FORMAT+ BRAND> will be excellent. A3 The <SERVICE FORMAT+ BRAND> will be successful. A4 The <SERVICE FORMAT+ BRAND> will be well accepted by consumers. A5 I am very favorable to the launching of the <SERVICE FORMAT+ BRAND>. A6 I would certainly recommend the <SERVICE FORMAT+ BRAND> to relatives and friends. A7 I would love to go to the <SERVICE FORMAT+ BRAND>. A8 I would certainly consider the <SERVICE FORMAT+ BRAND> interesting. Intention I1 I would surely go more to the <SERVICE FORMAT+ BRAND> than the <SERVICE FORMAT> I currently go to. I2 I will undoubtedly no longer go to the <SERVICE FORMAT> I currently go to go to the <SERVICE FORMAT+ BRAND>. I3 I would certainly spend most of my <SERVICE FORMAT> budget in the <SERVICE FORMAT+ BRAND>. I4 It will definitely be worth using the <SERVICE FORMAT+ BRAND> instead of the one I currently use, even if prices are the same.

APPENDIX C - Variables to check stimuli manipulation

Stimulus Statements Arbitrary brand I surely know the <ARBITRARY BRAND NAME> brand. Descriptive brand The <DESCRIPTIVE BRAND NAME> brand surely describes the services rendered by a <PARENT BRAND SERVICE FORMAT>. Suggestive brand The <SUGGESTIVE BRAND NAME> brand surely suggests benefits of the services rendered by a <PARENT BRAND SERVICE FORMAT>. Similarity of the extended service The activity of an <EXTENDED SERVICE FORMAT> is certainly very similar to the activity of a <PARENT BRAND SERVICE FORMAT>. Perceived quality The quality of the <EXTENDED SERVICE FORMAT + BRAND NAME> is excellent.

APPENDIX D - Manipulation of experiment 2 variables

Dear Consumer,

We are advising a Network of Petrol Stations headquartered in São Paulo, which currently has a large number of stores. This is the <brand> PETROL STATION. The <brand> PETROL STATION have great facilities, equipment for serving vehicles are the latest generation, the placement of fuel pumps provides optimum circulation for consumers and their vehicles. The <brand> PETROL STATION have effective systems to ensure total safety for all customers as to forms of payment, avoiding any kind of fraud. The Stations have closed circuit TV, and also provide a direct channel of communication with the management of the stations. They offer loyalty card to customers and keep records up to date, allowing the customer a customized service. They always keep in touch with their customers to communicate new services and, increasingly, to understand the preferences of their audience. Employees are encouraged to give special attention to all customers; they are trained to ensure complete safety when handling products sold, and are trained to adverse situations. The <brand> PETROL STATIONS have all licenses and certifications required for their operation. Everyone who works in <brand> PETROL STATIONS are always uniformed and have skills to carry out the services with agility and excellence.

To diversify its operations in the market, this retailer plans to open a <CARWASH / BOOKSHOP> to be called <BRAND CARWASH / BRAND BOOKSHOP>. Using all the knowledge in the automotive service petrol station network, we intend to offer a service with the same quality to which the customer is already used. Just as PETROL STATIONS, you will always find <BRAND CARWASH / BRAND BOOKSHOP> near you.

We would like to know your opinion about <the BRAND CARWASH / BRAND BOOKSHOP>. All answers are strictly confidential and will be analyzed only in aggregate form. Read the following statements and classify them assigning them grades from 1 (Strongly Disagree) to 7 (Strongly Agree). If your answer is intermediate, please check one of the numbers between 2 and 6. There are no right or wrong answers, we just want to know your opinion about <BRAND CARWASH / BRAND BOOKSHOP>.

Publication Dates

  • Publication in this collection
    Apr-Jun 2014

History

  • Received
    07 Jan 2013
  • Accepted
    30 June 2014
Fundação Escola de Comércio Álvares Penteado Fundação Escola de Comércio Álvares Penteado, Av. da Liberdade, 532, 01.502-001 , São Paulo, SP, Brasil , (+55 11) 3272-2340 , (+55 11) 3272-2302, (+55 11) 3272-2302 - São Paulo - SP - Brazil
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