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Previous research has led to mixed findings regarding the effect of extensions on the family brand name. This research identifies "accessibility of extension information" as a factor that moderates the effects of the valence of extension information and extension category on brand evaluations. Under higher accessibility, negative information about the extension led to dilution and positive information led to enhancement of the family brand regardless of extension category. Under lower accessibility, extension information affected evaluations based on category diagnosticity. Negative information about a close (vs. far) extension led to dilution and positive information about a far (vs. close) extension led to enhancement. Copyright 2000 by the University of Chicago.
Ahluwalia et al. (Fri,) studied this question.