Text or Pictures? Effectiveness of Verbal Information and Visual Cues in Advertisements for New Brands versus Extensions
Innovation is a key success factor of a company’s growth. Through new product introductions, companies try to satisfy customers and to obtain a significant competitive advantage. However, introducing new brands has major downsides. The total cost of introducing a new product is very high. In addition, a large amount of new product introductions still fail. By introducing extensions (new (versions of) products which make use of existing brand names), companies hope to leverage the reputation and awareness of the existing brand (parent brand) to the new product (line extension) (Aaker and Keller, 1990).
KeywordsConsumer Research Verbal Information Dual Code Line Extension Parent Brand
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