A poorly fitting or unsuccessful extension weakens the associations that made the parent brand valuable.
The finding qualifies the case for extensions, which are attractive because they borrow existing awareness. Where the extension fits badly or performs poorly, the borrowing runs both ways and the parent's specific associations blur. Dilution is strongest where the parent's value rested on a narrow and specific claim.
In practice
- A premium marque that launches a budget line finds its premium line harder to price.
- A consultancy known for one thing that offers everything is known for nothing within five years.
- Subject
- Economics & Incentives
- Essay
- The regularities money obeys