An investigation of consumer reactions to the use of different brand names

Abstract

We examined consumer reactions to new products introduced under four different brand naming scenarios. The results suggest that when consumers see a high degree of fit between the new product and the existing brand, brand extensions, sub‐brands, and nested brands are about equally preferred. But when consumers perceive little fit, a new brand name is the most preferred, followed by nested brands, sub‐brands, and extensions, in that order.