THEME ARTICLES: Brand-extension feedback effects: an Asian branding perspective

Purpose: Most of the literature on feedback effects emanates from the West, and is thus relevant to Western brands. The purpose of this paper is to model the impact of brand-extensions on parent brand-equity within the Asian (specifically Indian) context. Additionally, parent brand trust is examined as a new antecedent of brand-extension feedback. Design/methodology/approach ' Scenario of an Indian product brand hypothetically entering the service sector is chosen as stimulus in the study. A cross-sectional survey of 327 Generation-Y respondents is conducted. Structural equation modeling is used for testing the conceptual model.Findings ' The model of brand-extension feedback fits the data adequately, and five of the six hypotheses are supported. Brand-extension attitude significantly impacts change in brand-equity, which is consistent with the extant Western literature. Parent brand trust has a strong impact on change in brand-equity of a parent brand.Practical implications ' The role and impact of parent brand trust is particularly important in the Asian context. Thus, prior to embarking on a brand-extension decision, an audit of parent brand trust is recommended. Further, this research opens up newer brand-extension possibilities for brand managers contemplating brand-extensions.Originality/value ' This research is a first-of-its-kind from the Asian region (specifically, India) to measure brand-extension feedback effects on change in brand-equity of a parent brand. Parent brand trust is introduced as a new antecedent of brand-extension feedback.