The effect of service brand extensions on corporate image: An empirical model

Purpose – The main objective of this study is to analyse the influence that service brand extensions have on corporate image.Design/methodology/approach – After reviewing the previous literature, a model is proposed and tested that shows how extending a services brand affects the overall corporate image. Statistical analysis of data from a market survey involving actual services brands and hypothetical extensions was undertaken. Structural equation modelling was the main methodology employed.Findings – It was found that the extent of perceived fit between the corporate brand and the service extension influences the perceived quality of the extension, which in turn affects corporate image, especially for corporate brands that originally had highly rated images.Research limitations/implications – Given that the study was done with hypothetical brand extensions, the proposed model is not tested in a real situation.Practical implications – The results offer important implications, both for academics and manag...

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