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- Title
DOES COMPARATIVE OR NON-COMPARATIVE ADVERTISING RESULT IN MORE FAVORABLE OUTCOMES? THE CASE OF NEW U.S. ICONIC BRAND EXTENSIONS IN GERMANY.
- Authors
Merz, Miwa Y.; Merz, Michael A.
- Abstract
Existing research has extensively examined antecedents and consequences of brand extension success. It also has recognized that advertising constitutes an important brand building tool. However, only few studies have identified advertising strategies that increase the likelihood of success of a new brand extension. The objective of this research is to contribute to the existing literature by examining how to best promote new extensions of U.S. brand icons in a different culture, Germany. Specifically, we hypothesized that Germans will evaluate an indirect positive national myth comparative advertising format (H1) more favorable than a non-comparative advertising format (H1) and a direct national brand icon comparative advertising format (H3), but that they will evaluate a direct national brand icon comparative advertising format less favorable than a non-comparative advertising format (H2). We also hypothesize that the relationship between advertising type format and US brand icon extension success is mediated by perceived similarity (H4) and moderated by country belief (H5). The results show that an indirect comparative advertising claim highlighting a country brand image (e.g., German tradition of engineering excellence) is the most effective advertising format for a new U.S. brand icon extension. The results are driven by people with a positive country believe about Germany. The results further show that perceived similarity between the parent brand and the new U.S. brand icon extension mediates the relationship between advertising format and U.S. brand icon extension success. Managerial implications along with future research opportunities are discussed.
- Subjects
GERMANY; BRAND extension; BRANDING (Marketing); BRAND image; ADVERTISING; NATIONAL emblems; PLACE marketing
- Publication
Journal of Business & Educational Leadership, 2022, Vol 12, Issue 1, p19
- ISSN
1948-6413
- Publication type
Article