Understanding brand equity for successful brand extension

The turbulent 1990s typified by increased product development and marketing costs as well as increasing international competition, focussed marketing managers on cost‐saving tactics to increase competitiveness. One of the most important effects was to make brand extensions more compelling and frequent. While leveraging the brand equity of a successful brand promises to make introduction of a new entry less costly, success depends on the underlying brand knowledge and image among consumers. Explores the consumer dimensions of brand equity, the benefits and dangers of brand extension, and culminates in a series of implications and recommendations for successful brand extensions.