Transfer of brand equity in brand extensions: The importance of brand loyalty

In this article, the authors explore the effects of different dimensions of brand loyalty towards the original brand on the evaluation of brand extensions Recent research on consumer reactions to brand extension has not investigated this relationship. We find that a high affective relationship towards the parent brand may reduce the evaluation of brand extensions. Second, loyal behavioral intention towards the parent brand is important for reaching a positive evaluation of extensions. Finally, self-image relationship towards the parent brand is found to increase the evaluation of brand extensions.