The inevitable choice by enterprises making attempts at entering new product markets of elements of resemblance to the mother brand has led to a new environment that is not characterized any more by simple product differentiation strategies (Ahn Kwan...
The inevitable choice by enterprises making attempts at entering new product markets of elements of resemblance to the mother brand has led to a new environment that is not characterized any more by simple product differentiation strategies (Ahn Kwang Ho and Lee jin Yong, 1997; McAlexander, Schouten, and Koeing, 2002). This requires marketing strategists to pay a more careful attention to what type of strategy to brand extension should be taken. In this respect, the fact that the relationship with customers is very influential factor in determining the success in entering a new product market should be reflected into their mapping out brand extension strategies. In particular, in a society where the development of information technology facilitates the transition from mass marketing to relationship marketing which is oriented towards target consumers, marketing experts need to spend more efforts in research on the consumer-brand relationships in order to meet customer needs (Kim Yoo Kyoung, 2002).
Accordingly, this study examines the effects of consumer-brand relationship quality on consumer attitudes and behavior according to the degree of concept conformity and adjustment of resemblance between product attributes, with the intent of providing useful guidelines in setting up an effective strategy of the enhancement of customer relationships and brand extensions.
In this study, prior to the main analysis, a pilot survey was conducted, where two notebook computer brands, Apple-Macbook and TG Sambo, were selected from among 5 brands as the ones representing the high-level and low-level brand in quality of consumer brand relationships, respectively, by the criterion of the low hierarchy in BRQ as mentioned in Fournier (1998). For seeing the adjustment effects according to the type of brand extension, the digital camera and the air conditioner were chosen.
In the main research, the change in the consumer attitudes towards brands resulting from the degree of concept conformity and adjustment of resemblance between product attributes was explored when brand extensions of Apple-Macbook and TG Sambo into digital camera and air conditioner take place. The results gained from analysis of difference by the brand extension type using each measurement variable shows that Apple-Macbook was higher in all the categories. Specifically, Apple digital camera, a daughter brand of the high consumer brand relationship quality mother brand, was found to have the highest scores in both categories of conformity and resemblance. In addition, Apple air conditioner was found to have about the same mean scores as TG digital camera, albeit its weaker degree of conformity and resemblance than TG digital camera. Further, consumer attitudes showed little or no difference between the scores of TG digital camera and Apple air conditioner.
In contrast, in the product showing weak consumer brand relationships, it was found that as the degree of conformity and resemblance increases, consumers tend to give more positive evaluations. This accords with the results of the extant researches on brand extensions.
As such, these findings draw upon the social relationship metaphor which suggests that relationships carry with them norms of behavior that guide people's evaluations of their relationship partner.
Using this framework, the current study proposes that when people form relationships with brands that mirror their social relationships, norms of social relationships are used as guiding principles in their interactions with brands. In other words, they tend to evaluate positively the extended brands regardless of the varying degree of conformity and resemblance. This suggests that brands with strong consumer brand relationship can more easily extend into a variety of other arenas than brands with weak consumer brand relationship. Furthermore, this endorses the necessity of forming good relations with consumers on the part of enterprises in order to attain effective implementation of their brand extension strategy later on. That is, a strong relationship with consumers lay foundation for new marketing opportunities through brand extensions.
This study is significant in the sense that it demonstrates that the concept of consumer-brand relationship is strongly involved with the development of new products via brand extensions. In particular, it is significant that it attempts to make distinctions between the high-level quality and low-level quality brands in terms of the existing consumer brand relationships in exploring the effects of consumer brand relationship quality on consumer attitudes.