The relationship between advertising effort and consumer evaluation of brand extension: A mediator analysis

This paper investigates how perceived advertising effort can trigger positive evaluation of extension by improving fit perceptions and distribution support. Using a variance based structural equation model (Partial Least Squares), the authors research the influence of advertising effort on extension evaluation via perceived fit and distribution support with a sample of 425 Indian housewives. The results confirm that perceived fit and distribution support fully mediate the relationship between advertising effort and extension evaluation. The findings indicate that judgments on fit perceptions are dynamic; repeated exposure to advertising evokes brand associations, helps consumer understand how the extension fits with the brand thus leading to favorable evaluation of extensions. The study also highlights the importance of extension availability in the distribution channel. Mere availability not only creates awareness effects, but also utilizes the advertising effort to positively influence the extension success. The findings emphasize the importance of advertising effort on extension success. Therefore, brand managers should not assume that extensions need less advertising and promotion as they come from strong parents.