Leveraging Online Communities to Launch Green Brand Extensions

Abstract

Purpose - This research examines loyal and non-loyal consumer perceptions, purchase intent and parent brand evaluation due to green brand – line and category extensions by marketers of established (non-green) brands for products with high versus low perceived environmental impact.

Design/Methodology/Approach - Response to online surveys by 602 pet-owners at social networking websites. The quasi-experiment considered perceived environmental impact of core product, parent-brand loyalty and green extension type (line versus category). Brand extension evaluation, purchase intent and parent brand evaluation were then measured.

Findings – Results suggest that consumers are more likely to purchase green extensions of products with high perceived environmental impact and that consumers prefer green line extensions to green category extensions. Both have similar reciprocal impact on parent brand evaluation among loyal consumers.

Originality/Value – This paper examines managerial implications of line versus category extension strategies for green brand extensions of established brands. Research Limitations/Implications – The data has external validity however it lacks the control possible in laboratory experiments. Future research should replicate the study in other product categories.

Practical Limitations – Managers of established brands should consider brand extensions of products associated with high environmental impact only.

Keywords: brand extension, categorization, green branding, perceived fit