Development of brand extension theory and empirical results with meta-analysis

As companies enter different markets or market segments, they often prefer the "brand extension" strategy due to its various advantages. A review of the relevant literature reveals that perceived overall fit is the most frequently examined determinant of extension success, and there are sufficient studies investigating the relationship between them. However, these studies exhibit some variations in how they address the perceived fit variable. Sometimes it is treated as a single dimensional, while sometimes it is considered as multidimensional. This inconsistency indicates a lack of clarity in this aspect of the theory. To address this literature gap, a meta-analysis approach was employed in this study. Meta-analyses are known to provide more comprehensive and strong results compared to individual studies. For this purpose, findings from numerous studies were synthesized, and the overall effect sizes were determined. The meta-analysis of the included individual studies revealed the general effect size of the relationship between perceived overall fit and extension success. Additionally, the general effect sizes of the relationships between the sub-dimensions "fit" and "similarity" and extension success, which were proposed as separate dimensions, were also determined. According to the study's findings, the average effect size indicated that perceived overall fit has a positive and moderate effect on brand extension success [r=0.486], similarity has a positive and moderate effect on brand extension success [r=0.419] and fit has a positive and strong effect on brand extension success [r=0.579]. Additionally, factors such as scale, study type, participant culture, sample structure, extension reality, sector similarity, and data collection approach were evaluated as potential moderators in these relationships using analog ANOVA. Moreover, the scale variable was further examined through meta-regression analysis as well.