Date of Award
Open Access Dissertation
Moore School of Business
Thomas J Madden
The results from prior research regarding the effectiveness of product line extension strategies on market-level brand performance are equivocal. Some studies show that brands benefit from horizontal line extensions while other studies show vertical line extensions as being a preferable approach to brand leveraging within a product category. This research proposes that the brand assortment size at time t, can moderate the effectiveness of vertical versus horizontal extensions in time t on quarterly market-level brand performance. Aggregated scanner data of twelve toothpaste brands sold for six years at a major Midwestern U.S. retailer were used as input to a panel data regression analysis. The results suggest interactive effects among brand assortment size and line extensions with regard to dollar and volume sales brand performance metrics. Implications for optimal line proliferation strategies given the existing assortment size within a retailing planogram are discussed.
Allman, H. F.(2013). Vertical Versus Horizontal Line Extension Strategies: When Do Brands Prosper?. (Doctoral dissertation). Retrieved from http://scholarcommons.sc.edu/etd/2435