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An executive summary for managers and executive readers can be found at the end of this article.
1. Introduction
Brand extension is the use of an established brand name to enter a new product category ([2] Aaker and Keller, 1990). Since the early 1980s, an increasing number of firms are following this strategy, extending their brands into different product categories. Brand extensions were attractive to firms because they were supposed to reduce high new-product failure rates and because they provided a way to take advantage of brand name awareness and image ([2] Aaker and Keller, 1990; [50] Keller, 2003; [6] Batra et al. , 2010). More recently, brand extensions were considered as an effective way to leverage brand equity. However, the success of brand extensions is uncertain. Failure rates are approximately 80 percent ([42] Völkner and Sattler, 2006), suggesting the need for methodologies that allow better predictions of success or failure of new products launched with a well-known brand name. Marketing researchers were thus encouraged to explore the determinants of brand extensions' success or failure. In previous literature, two main determinants were identified: the first is the similarity between product categories and the second is a more symbolic fit between the new product and the parent brand. However, this symbolic fit, sometimes called "the brand concept" ([34] Park et al. , 1991) remains vague. Although the fit between the extended brand and the brand extension is now considered as one of the most important determinants of brand extensions' success or failure ([42] Völckner and Sattler, 2006), managers need methodologies that make this symbolic fit more useful to them.
Our research aims at providing a theoretical foundation to this symbolic fit derived from Kapferer's brand identity prism ([24] Kapferer, 1997). In this model, brand identity results from several dimensions including brand personality, brand values, relationships and user image ([24] Kapferer, 1997). Some of these facets could be useful to managers in defining brand extensions.
The brand extension literature and the brand identity concept are first developed: they form the theoretical background of this research. A conceptual model of brand extensions evaluation, based on Kapferer's brand identity prism, and research hypothesis are then presented. In a first study, the structure of Kapferer's brand identity prism is confirmed....