Sequential brand extensions and brand choice behavior Vanitha Swaminathan * Department of Marketing, Isenberg School of Management, University of Massachusetts, Amherst, MA 01002, USA Received 26 April 2000; accepted 21 December 2000 Abstract This paper focuses on the impact of sequential brand extensions on brand choice. With few exceptions, past research has primarily examined single brand extensions associated with a unique parent brand. In reality, a single brand name may be extended into multiple product categories. This research uses scanner panel data on two sequential brand extensions to examine the effect of experience with a parent brand and a successful previous brand extension on trial and repeat of a subsequent brand extension. The reciprocal effect of extension on brand choice in multiple parent categories is also examined. D 2003 Elsevier Science Inc. All rights reserved. Keywords: Brand extensions; Brand equity; Branding strategy; Sequential brand extensions 1. Introduction Brand extensions, or the use of an existing brand name to enter into a new product category, is a popular branding strategy. Brand extension strategies are advantageous because they reduce the costs of brand name introduction and enhance the probability of success in a new category. The use of brand extensions across multiple product cate- gories is also common. For example, Oil of Olay, a skin care brand, extended its brand name into beauty soaps, and later extended its brand name into cosmetics. Brand names like Healthy Choice and Snackwells have been extended into multiple product categories. One report suggests that the Healthy Choice name appears on more than 300 products (Investor’s Business Daily, 1994). This paper focuses on the impact of these sequential brand extension strategies on brand choice. Although multiple brand extensions may be associated with a single brand name, for the sake of simplicity, the focus is on those situations where a brand name has three products, i.e., an original brand, an interven- ing extension and a subsequent brand extension. There is considerable debate surrounding the extension of a brand into multiple categories. One concern that has been expressed is that overextending a brand may dilute the meaning of the core brand and weaken its associations (Aaker, 1991). Another perspective is that multiple brand extensions actually help build brand equity (Dacin and Smith, 1994). With few exceptions, e.g., Keller and Aaker, 1992, most of the research to date has focused on the effects of brand extension strategies in the context of a single brand name extending into another product category (Aaker and Keller, 1990; Loken and Roedder-John, 1993; Morrin, 1999; Swaminathan et al., 2001). Very little research that examines the costs and benefits of multiple brand extensions in an actual marketplace setting exists. This research has the following objectives: (1) To exam- ine the relative role of the core parent brand and intervening extension on trial and repeat purchase behavior of a sub- sequent brand extension. In this paper, an intervening extension is defined as an ‘‘intermediate’’ extension, which may facilitate acceptance of a subsequent extension. An intervening extension is also introduced prior to a sub- sequent brand extension. (2) To investigate the reciprocal effects of trial and repeat of a subsequent brand extension on brand choice of the parent category and the intervening brand extension category. In other words, in the case of the Oil of Olay extensions, the relative impact of the Oil of Olay skin care brand and the Oil of Olay moisturizing beauty soap on trial and repeat of the subsequent brand extension, i.e., Oil of Olay cosmetics needs to be examined. Similarly, 0148-2963/03/$ – see front matter D 2003 Elsevier Science Inc. All rights reserved. doi:10.1016/S0148-2963(01)00242-9 * Tel.: +1-413-545-5665; fax: +1-413-545-3858. E-mail address: vanitha@mktg.umass.edu (V. Swaminathan). Journal of Business Research 56 (2003) 431 – 442