ABSTRACT

Much of the literature examining brand equity has focused on the bases for its transfer to brand extensions, and the underlying question is how the brand can capitalize on existing equity (e.g., Aaker & Keller, 1990). Although there is some uncertainty regarding the detailed process, one requirement for successful transfer is some linkage between the two product categories—a reason other than brand name for consumers to suppose that their liking for the brand's existing products should apply to the brand extension (Boush et al., 1987; Chakravarti, Maclnnis, & Nakamoto, 1990; Farquhar, Herr, & Fazio, 1989; Maclnnis & Nakamoto, 1991; Park, Jaworski, & Maclnnis, 1986). In particular, given the competitive setting of product evaluation, it seems that the connection between the two categories should be relevant to the basis for competitive advantage enjoyed by the brand's existing products (cf. Tauber, 1988).