ABSTRACT
This chapter aims to understand the concepts of brand architecture and brand hierarchy. It explores the characteristics of the two types of brand extensions: line and category extensions. The chapter discusses the advantages and disadvantages of brand extensions and their impact on the parent brand. It examines the psychological processes consumers follow in evaluating brand extensions. The chapter provides a thorough discussion of the consumer-, brand-, culture-, and competitor-related factors which moderate brand extension evaluations. Many empirical research studies have delved deeper into the impact of brand extensions on the parent brand. C. Hayran and Z. Gurhan-Canli explain that although some scholars have identified an immunity of parent brands to spillover effects, others argue that spillover effects can considerably enhance or weaken attributes of the parent brand. Consumer processes for evaluating brand extensions can be organised under three overarching themes: categorisation processes, motivational processes, and thinking styles.
