Brand counter-extensions for fight-back and appeal strategies
Purpose: Faced with the aggressive and invasive behavior of a competitor, it is necessary for a firm to adopt strategies to protect its market share. This study aims to examine brand counter‐extension strategy as a means of fighting back against strong competitors. Design/methodology/approach: The s...
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| Veröffentlicht in: | Management decision |
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| Format: | UnknownFormat |
| Sprache: | eng |
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2013
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Tag hinzufügen | Zusammenfassung: | Purpose: Faced with the aggressive and invasive behavior of a competitor, it is necessary for a firm to adopt strategies to protect its market share. This study aims to examine brand counter‐extension strategy as a means of fighting back against strong competitors. Design/methodology/approach: The study applies a measure of conditions among competitors, namely market position and extension outcome, as well a firm's own technological capability, in order to develop the fight‐back strategy of brand counter‐extensions. Findings: The results verify that utilizing a competitor's market position does not help in the firm's brand counter‐extension, although the outcome of the competitor's previous successful extension could facilitate it. Practical implications: Two practical implications could be addressed to enable firms to utilize their competitors' conditions: first, to utilize the competitor's market position to enter a new market at the introduction stage of a product's life cycle; second, to utilize the outcome of a competitor's brand extension to build support for a new product at the growth stage of its life cycle; a two‐step appeal strategy with the aim of learning the degree of support and purchase intention of consumers. Originality/value: This study proposes that the strength of the firm's technological capability is critical for a successful counter‐extension. Moreover, the combination of successful experience and technological capability could enhance a customer's intention to purchase. |
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| Beschreibung: | Diagramme |
| ISSN: | 0025-1747 |