Extending Service Brands into Products Versus Services: Multilevel Analyses of Key Success Drivers

Author(s)
Christina Sichtmann, Klaus Schöfer, Markus Blut, Charles Jurgen Kemp
Abstract

Purpose
This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (service–service extensions) and to products (service–product extensions), and the extension category’s influence on brand/consumer-level success drivers, as well as the perceived quality of the extension.
Design/methodology/approach
This study included an empirical testing of a conceptual framework using a hierarchical linear modeling approach and testing of hypotheses with a multilevel regression analysis. The data set consisted of 216 respondents reporting on both product and service extensions. Data were collected on three levels, namely, consumer level, parent brand level and extension level.

Findings
The findings indicate a general and consistent extension category-dependent effect that moderates the importance of brand extension success drivers. The influence of parent brand reliance and perceived parent brand quality were found to have stronger effects, whereas parent brand conviction was weaker in the context of service-to-service extensions.

Research limitations/implications
The study focuses on two brands with four extensions. Further research could replicate the study with a broader range of brands and extensions.

Practical implications
The study provides guidance to service managers to enhance consumers’ extension evaluations through better-positioned communication efforts when extending to different categories.

Originality/value
The study is one of the first empirical investigations into category-extension effects and its moderating role regarding brand and consumer level success drivers. Sparse research has been dedicated to a real-world occurrence of services extending between extension categories; this study thus furthers service brand research in terms of brand management decisions.

Organisation(s)
Department of Accounting, Innovation and Strategy
External organisation(s)
Newcastle University
Journal
European Journal of Marketing
Volume
51
Pages
200-218
No. of pages
19
ISSN
0309-0566
DOI
https://doi.org/10.1108/EJM-08-2013-0460
Publication date
2016
Peer reviewed
Yes
Austrian Fields of Science 2012
502052 Business administration
Keywords
ASJC Scopus subject areas
Marketing
Portal url
https://ucris.univie.ac.at/portal/en/publications/extending-service-brands-into-products-versus-services-multilevel-analyses-of-key-success-drivers(50b720b2-fb0c-4df5-b750-f0884446ac2c).html