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How do line extensions impact brand sales? The role of feature similarity and brand architecture

Title	How do line extensions impact brand sales? The role of feature similarity and brand architecture
Author	Sezen, B., Pauwels, K., Ataman, Mehmet Berk
Publication Date:	2023-11
Publication Place	- Springer
Subject	Brand architecture, Branding, Cannibalization, Categorization theory, Line extensions
Type	Periodical
Language	English
Digital	Yes
Manuscript	No
Library:	Özyeğin University
Library Asset ID	2050-3318
Record ID	14efb8fc-4a72-42e8-ad64-cea969e38f85
Library Location	Business Administration
Date	2023-11
Sample Text	Brand architecture decisions have important performance implications but have seen little quantitative research. In particular, there is little empirical evidence on how the strength of the link established among clusters of products within the company’s portfolio impact the sales effects of typical marketing actions such as line extensions. This paper quantifies the effect of different brand architecture choices and product feature similarity in moderating the impact of line extensions on brand sales. Based on categorization theory, the authors hypothesize that brand name similarity and feature similarity, both independently, and in interaction, increase brand cannibalization. The empirical analysis in three consumer packaged-goods categories shows that it is more critical to minimize the feature similarity than brand name similarity to limit cannibalization and generate higher incremental sales from line extensions. Controlling for feature similarity, line extensions introduced under sub-brands cause greater cannibalization.
DOI	10.1057/s41270-023-00265-z

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How do line extensions impact brand sales? The role of feature similarity and brand architecture

Author Sezen, B., Pauwels, K., Ataman, Mehmet Berk

Publication Date 2023-11

Publication Place - Springer

Subject Brand architecture, Branding, Cannibalization, Categorization theory, Line extensions

Type Periodical

Language English

Digital Yes

Manuscript No

Library Özyeğin University

Library Asset ID 2050-3318

Record ID 14efb8fc-4a72-42e8-ad64-cea969e38f85

Library Location Business Administration

Date 2023-11

Sample Text Brand architecture decisions have important performance implications but have seen little quantitative research. In particular, there is little empirical evidence on how the strength of the link established among clusters of products within the company’s portfolio impact the sales effects of typical marketing actions such as line extensions. This paper quantifies the effect of different brand architecture choices and product feature similarity in moderating the impact of line extensions on brand sales. Based on categorization theory, the authors hypothesize that brand name similarity and feature similarity, both independently, and in interaction, increase brand cannibalization. The empirical analysis in three consumer packaged-goods categories shows that it is more critical to minimize the feature similarity than brand name similarity to limit cannibalization and generate higher incremental sales from line extensions. Controlling for feature similarity, line extensions introduced under sub-brands cause greater cannibalization.

DOI 10.1057/s41270-023-00265-z