The Importance of Brand and Retailer Associations in Evaluating a Product Category Extension

  • Received : 2018.09.29
  • Accepted : 2018.11.25
  • Published : 2018.12.30


This study investigates the importance of brand and retailer associations when consumers evaluate a product category extension in the context of brand and retailer collaborations. Although brand extensions are considered to reduce costs for introducing a new product category, limited study has focused on the role of brand and retailer associations in the context of brand and retailer collaborations. Using a total of 440 participants, a hypothesized model was tested using a structural equation modeling (SEM). The results show that brand and retailer associations influence the perceived fit between a brand and a retailer. In addition, the image fit and quality fit are significantly related to brand and retailer attitudes as well as brand extension evaluation. Since consumers may use their associations with brands or retailers when they perceive product differentiation, market position, and brand extensions, the role of brand or retailer associations is important to marketers, retailers, and consumers. Given the importance of brand and retailer collaborations as a brand positioning strategy in the global branding and retail setting, the findings of this study contribute to brand and retail management by providing empirical evidence on how consumers perceive new products from extended brands in the marketplace when a brand collaborates with a retailer.

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Figure 1. The structural equation model for the conceptual framework of the hypothesized relationships

Table 1. Reliability statistics for all variables

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Table 2. Correlation matrix of model constructs for a high-end brand and a low-end retailer case

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Table 3. Correlation matrix of model constructs for a low-end brand and a high-end retailer case

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Table 4. A summary of SEM results

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