Brand extensions have become an increasingly popular strategy for firms launching new products in the marketplace. As the financial risk and promotional costs have renewed their efforts to capitalize on the goodwill associated with existing brand name...
Brand extensions have become an increasingly popular strategy for firms launching new products in the marketplace. As the financial risk and promotional costs have renewed their efforts to capitalize on the goodwill associated with existing brand names by launching brand extensions. One of the most comprehensive theories is the category-based processing which has been applied in the past to explain the underlying process by which consumers evaluate brand extensions. But this theory is not omnipotent enough to explain the processes without consumers prior knowledge about the parent brands. So, in this article, we propose an analogical reasoning perspective as an alternative theory for categorical perspective to complement the explanation process without prior knowledge for the parent brands.