Publication Type

Journal Article

Version

publishedVersion

Publication Date

5-1994

Abstract

The authors study the determinants of line extension success using data on 75 line extensions of 34 cigarette brands over a 20-year period to investigate the relative effects of brand, extension, and firm characteristics on the incremental market share of brand line extensions. The econometric model also captures the extent of cannibalization of parent brand sales that may have occurred due to the line extension's introduction. The authors also explore the role of a brand's symbolic value as a factor in line extension success. Results indicate that parent brand strength and its symbolic value, early entry timing, a firm's size, and distinctive marketing competencies, as well as the advertising support allocated to line extensions, contribute positively to the success of line extensions. Their findings suggest that, in this industry, cannibalization effects of line extension activity may have been limited and line extensions into earlier subcategories actually may have helped the parent brand. Even with cannibalization, the incremental sales generated by the extension seem to be reason enough to make a line extension strategy viable.

Discipline

Marketing | Sales and Merchandising

Research Areas

Marketing

Publication

Journal of Marketing Research

Volume

31

Issue

2

First Page

243

Last Page

262

ISSN

0022-2437

Identifier

10.2307/3152197

Publisher

AMA

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.2307/3152197

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