Consumer Evaluations of Brand Extension: the Roles of Case-based Reminding on Brand-to-brand Similarity

Abstract

Utilizing the case-based reminding theory in analogical reasoning, this research proposes that the evaluation of a brand extension can be improved by reminding consumers of a similar brand in the extension category. This effect is derived from a brand-to-brand similarity, in addition to the product-to-product and brand-to-product similarity identified in prior literature. Experiment 1 explores the idea that the effect of similar case reminders is most pronounced in moderately similar extensions than in highly similar or highly dissimilar extensions due to schema congruity. Experiments 2 and 3 distinguish the levels of similarity (i.e., product-to-product, brand-to-product, and brand-to-brand similarity) as a source of consumers` evaluations on a brand extension and further eliminate an alternative explanation of instantaneous learning in the advertisement setup of Experiment 1.