With or without you: consumer acceptance of two national brand portfolio extension options

Diederich Bakker, Magda Nenycz-Thiel

Research output: Chapter in Book/Report/Conference proceedingContribution to conference proceedingAcademicpeer-review

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Abstract

The aim of this paper is to investigate which portfolio extension option: either a cheaper subbrand or a private label endorsed by the national brand is better from the consumer perspective. Two hypothetical product concepts from a leading beer brand were tested among Dutch consumers. The findings show that consumers are equally likely to try the options and form a positive or negative opinion about the manufacturer after the extension. However, when looking at the ability for a brand to cover a price conscious segment and therefore
increase penetration, the cheaper national sub-brand performs better. Given that the manufacturer will be not restricted in distribution of such a brand, our findings are in favour of a cheaper sub-brand rather than an endorsed private label.
Original languageEnglish
Title of host publicationAnzmac Proceedings
Number of pages7
Publication statusPublished - 2011

Keywords

  • marketing
  • brands

Cite this

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title = "With or without you: consumer acceptance of two national brand portfolio extension options",
abstract = "The aim of this paper is to investigate which portfolio extension option: either a cheaper subbrand or a private label endorsed by the national brand is better from the consumer perspective. Two hypothetical product concepts from a leading beer brand were tested among Dutch consumers. The findings show that consumers are equally likely to try the options and form a positive or negative opinion about the manufacturer after the extension. However, when looking at the ability for a brand to cover a price conscious segment and thereforeincrease penetration, the cheaper national sub-brand performs better. Given that the manufacturer will be not restricted in distribution of such a brand, our findings are in favour of a cheaper sub-brand rather than an endorsed private label.",
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With or without you: consumer acceptance of two national brand portfolio extension options. / Bakker, Diederich; Nenycz-Thiel, Magda.

Anzmac Proceedings. 2011.

Research output: Chapter in Book/Report/Conference proceedingContribution to conference proceedingAcademicpeer-review

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AB - The aim of this paper is to investigate which portfolio extension option: either a cheaper subbrand or a private label endorsed by the national brand is better from the consumer perspective. Two hypothetical product concepts from a leading beer brand were tested among Dutch consumers. The findings show that consumers are equally likely to try the options and form a positive or negative opinion about the manufacturer after the extension. However, when looking at the ability for a brand to cover a price conscious segment and thereforeincrease penetration, the cheaper national sub-brand performs better. Given that the manufacturer will be not restricted in distribution of such a brand, our findings are in favour of a cheaper sub-brand rather than an endorsed private label.

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