On SAGE Insight: Exploring the Mediating Effect of Parent Brand Reputation on Brand Equity 


From Paradigm

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A ‘brand’ is an important concept for marketers as it acts as a tool to observe the differentiation of products for the consumers; it increases trust and confidence of consumers and facilitates the consumer decision-making process.  The brand provides meaning to the product and helps in identification of the product in both time and space. It alleviates the dissonance and decision conflicts during purchase.

After having realized that the benefits of a parent brand can be reaped in the form of second dividend from an existing investment, the concept of brand extension observed its full swing. It is empirically proved the fact that there exists a strong relationship between brand equity and brand extensions.

Brand equity is the value which consumer attaches to the brand. It is the confidence which a consumer displays in a particular brand as compared to competing brands. Companies incur huge amount of investment to introduce a brand into a consumer market with a hope that leveraging the brand equity of a successful parent brand somehow promises to reduce costs of a new entrant by trading-on the image of the parent brand.

The article helps to understand the influence of several variables on brand equity. It clarifies that brand equity is not only explained with the help of brand awareness, brand association, brand loyalty and perceived quality but also depends on brand extension. Parent brand reputation mediates the relationship of brand extension and brand equity. The chief contribution of the study is to develop a comprehensive model to explain brand equity.  

Abstract

Companies with product line consisting of multiple brands very well understand the weightage of parent brand reputation as a seal of approval to consumers. This understanding not only helps them bolstering the reputation of other products but also creates a powerful brand voice and resulting brand equity. Brand equity is understood with the help of multiple dimensions in the existing literature. In addition to this, many researches on brand extension have traced the pivotal change in brand equity owing to the variation in brand extension attitude of consumers. However, very little amount of significant contribution has been observed with respect to the mediating role of parentbrand reputation. Specifically, the article proposes to test the role of parent brand reputation in mediating the relationship of brand extension with brand equity.

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Article details
Exploring the Mediating Effect of Parent Brand Reputation on Brand Equity
Richa Joshi, Rajan Yadav
First Published September 20, 2018 Research Article
DOI: 10.1177/0971890718787903
Paradigm


     
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