zondag 21 november 2010

Differences in acceptance of brand extensions

Obviously every person reacts on a different way to a brand extension, but scientists found some determining factors that characterize people that are open towards brand extensions.

The way people behave is influenced by our cultural back ground. Hispanics for example usually have a “connected-to-others self-view”. This means they are more sensible too what others feel and think. Experiments show that people with a connected-to-others self-view will be more open to accept brand extensions. They would be better at seeing the connection between the brand’s values and the extension. On the opposite, a person with an “independent self-view” will mostly be more critical towards an extension. Mostly men and Westerners are categorized as independent self-viewed. They often think more analytically, which makes it more difficult for them to accept a brand extension. So before a company launches its product, it should consider in what category their target audience is mainly situated in order to lower the chances that the connection will be overseen.

I think local research about the self-view is necessary. It would have saved BiC a lot of money and effort if they had known how people saw their perfume.

Reaction to entry about Digibox: I totally agree. I think this market is too dominated by Telenet and Belgacom, which also makes it more expensive. 
Alexandre Van Laere

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