Effects of different types of perceived similarity and subjective knowledge in evaluations of brand extensions
Leif E. Hem and Nina M. Iversen
Norwegian School of Economics and Business Administration
Introduction
Firms often try to exploit their present, well-established brands by extending them into new product categories (Aaker & Keller 1990). Estimates vary, but as many as eight out of ten new products are introduced as a brand extension (Simms 2005; Keller 2008). The advantage of extensions compared to new brand names is that extensions borrow awareness and positive associationsfrom...