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Recipient: Byeng-Hee Chang
Title: Factors affecting evaluation of cable network brand extension: Focusing on parent network, fit, consumer characteristics, and viewing habits.


Cable networks as media products are differentiated from other products in that media products are experience goods that are difficult for consumers to calculate utility expected from consuming products beforehand. Therefore, viewers are supposed to indulge in information seeking behaviors before consuming cable networks. A brand is one of the most available pieces of information which viewers can depend on. Especially in case of introducing new cable networks, it would be useful to leverage the existing brand so that viewers evaluate the new cable network based on the existing brand. If the existing brand is perceived to be positive by viewers, then the extended new cable network may also be evaluated more positively than other generic new networks. In spite of the importance of this brand extension strategy, little research has investigated factors affecting the success of brand extensions of media products (including cable networks) so far. Depending on the consumer-based brand equity model commonly used in brand-related research, this study applies the concept of brand extension in the context of the cable industry. Especially, this study empirically tests what factors affect television viewers' evaluation of brand extensions by cable networks.
Based on previous empirical literature, this study finds that seven independent variables, which are included in four categories, may effect the success of cable network brand extensions: brand equity of parent brand (parent brand evaluation, brand portfolio quality variance), perceived fit (perceived fit), viewer characteristics (age, viewer innovativeness), and viewing behaviors (parent cable network consumption, channel repertoire). Using the theoretical framework, this study devises two empirical models. In model 1 (regression model), the seven independent variables are assumed to simultaneously effect viewers' brand extension evaluation. In model 2 (structural equation model), it is assumed that the effect of parent brand evaluation on brand extension evaluation is partially mediated by perceived fit.
Two pretests will be conducted prior to the main survey. The main mail survey will be administered nationwide in the United States based on the outcomes of the pretests. Statistical procedures of multiple regression and structural equation modeling will be the main tools for analyzing the collected data. |