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Online Brand Expansion towards the Offline Setting: Which Way to Go?

Online Brand Expansion towards the Offline Setting: Which Way to Go?
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Author(s): Rafael Bravo (Universidad de Zaragoza, Spain), Leif E. Hem (Norwegian School of Economics, Norway)and José M. Pina (Universidad de Zaragoza, Spain)
Copyright: 2014
Pages: 21
Source title: Trends in E-Business, E-Services, and E-Commerce: Impact of Technology on Goods, Services, and Business Transactions
Source Author(s)/Editor(s): In Lee (Western Illinois University, USA)
DOI: 10.4018/978-1-4666-4510-3.ch004

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Abstract

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

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