What affects transfer of brand association from a parent brand to new line extension

Despite substantial research interest into brand extensions, the factors underlying transfer of brand associations between parent brands and line extensions are not well understood. This study tests and models the effect of parent brand associations' salience, branding strategy and extension positioning (low or high innovativeness) on the extent of transfer of associations from the parent brand to a line extension. The results show that all three factors jointly influence the extent of transfer, suggesting that an extension launch strategy can be designed to either maximise or minimise transfer of associations from a parent brand to an extension.