1. Brand equity and line extension: how low can you go?
- Author
-
Reibstein, David, Ulrich, Karl, and Randall, Taylor
- Subjects
Product lines -- Quality management ,Brand name products -- Marketing ,Marketing management -- Methods ,Banking, finance and accounting industries ,Business ,Business, international - Abstract
Companies that make lower-quality products as part of their product range will generally have lower brand premiums than a competitor that produces items of higher quality. Research suggests customers will opt to purchase a product from a firm with the higher product line extension when choosing between products with identical specifications. Some companies may seek to market an unprofitable premium model to improve their overall brand image, while others may try to benefit from their premium brand image by marketing a higher-volume economy product.
- Published
- 1998