Evolution Of The Modern Competitive Environment

1635 Words Sep 17th, 2016 7 Pages
Introduction
In order to succeed in the modern competitive environment, many large corporations must strive to extend the reach of their brands and build on this intangible resource as a long term asset. Because an extension has an already established brand position to utilise, its chance of success is increased (Aaker and Keller, 1990; Boush and Loken, 1991). As such, brand extension is now quite popular and frequently used strategy in brand management. It involves the use of an established brand name to enter a new product category (Aaker and Keller, 1990). This paper aims to analyse the evolution of the literature over the period 1990 to 2012, namely regarding the similarities and differences between ideas of perceived fit, brand breadth, and consumer attitude on the success of brand extensions. The literature has shown that extensions into categories not dissimilar to the original brand tend to be more readily accepted, so long as the ‘fit’ is applied consistently (Park, Milberg, & Lawson, 1991). Over time however, the focus has shifted to analysing the competitive contexts related to the extension category and the ability of the original brand to influence consumer attitude and affect. As such, this essay will explore several articles in detail, justifying their relevance to international businesses and the evolution of the literature over time. This literature review identifies three areas important to brand extensions; perceived fit, competitive context, and consumer…
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