Product-Category Dynamics and Corporate Identity in Brand Extensions: A Comparison of Hong Kong and U.S. Consumers

• Main Authors: Han, Jin K., Bernd H., Schmitt
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 1997
• Subjects: Business
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2235; https://proquest.umi.com/pqdlink?did=45063889&sid=8&Fmt=2&clientId=44274&RQT=309&VName=PQD
• Institution: Singapore Management University

Whether or not the focus of a brand-extension strategy should be on product-category related factors or the characteristics of the company providing the extension is discussed. Examining this issue experimentally in Hong Kong and in the US with samples of students and working professionals, it is found that for US consumers, perceived fit is much more important than company size; for Hong Kong consumers, company size does not matter for high fit extensions but does matter for low fit extensions. The value of collectivism may explain the relative higher importance of corporate identity for East Asian consumers.