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Looking to introduce a new brand extension? Be sure to leverage brand equity of parent brand as well as extension fit

Managers expect that introducing a new product under an existing brand name can reduce introduction costs, lower the risk of failure, and increase firm profit. However, only 30% of all brand extensions in the US consumer packaged goods market survive the first two years.

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Researchers from University of International Business and Economics, University of Groningen, University of Cologne, and University of Chinese Academy of Sciences published a new Journal of Marketing article that examines the drivers of brand extension success.

The study, forthcoming in the Journal of Marketing, is titled “A Meta-Analysis of Brand Extension Success: The Effects of Parent Brand Equity and Extension Fit” and is authored by Chenming Peng, Tammo H.A. Bijmolt, Franziska Völckner, and Hong Zhao.

When a company uses one of its established brand names on a new product or category, it is introducing a brand extension. For example, Google began as a search engine and that continues to be its core focus, but it also has a variety of products such as Google Cloud and Google Play. Almost 70% of new products in the consumer-packaged goods market in the U.S. are brand extensions.

Managers expect that introducing a new product under an existing brand name can reduce introduction costs, lower the risk of failure, and increase firm profit. However, only 30% of all brand extensions in the US consumer packaged goods market survive the first two years, a success rate similar to new brands. Given this unexpectedly high failure rate of brand extensions, it is vital for marketers to understand what drives the success of brand extensions.

This new study offers insights into the drivers of brand extension success. It explores how companies can devise more successful brand extension strategies in terms of contextual factors (parent brand, extension, communication, and consumer factors) and the research methods used.

Pay Attention to Parent Brand Equity and Extension Fit

The study provides three key findings that will benefit chief marketing officers.

  1. There is a 60.6% probability of a more positive response to a brand extension if parent brand equity improves. Similarly, there is a 61.4% probability of a positive response to a brand extension if extension fit improves.

    Peng says “Managers should leverage both parent brand equity and extension fit to enhance brand extension success. However, pay more attention to extension fit because it is slightly more influential than parent brand equity.”
     
  2. Managers should pay attention to the differential effects of various dimensions of parent brand equity and extension fit. For example, when introducing an extension product, creating and highlighting similarities in product features and images of the parent brand and the extension is beneficial.

    “We find that parent brand equity can strengthen the positive impact of extension fit on brand extension success and vice versa. Therefore, managers should consider parent brand equity and extension fit simultaneously,” explains Bijmolt. Parent brand equity has a positive (though small) effect on brand extension success even if the extension has a poor fit. Similarly, extension fit exerts a positive (though small) effect on brand extension success even if the extension has a low parent brand equity. “If the parent brand does not have high equity, brand extensions can still be a viable strategy for launching new products as long as the extension fits well with the parent brand. Likewise, an extension that does not have a good fit can still be successful as long as the parent brand is strong,” Völckner adds.
     
  3. Managers should take a broader perspective on brand extension strategies by considering contextual factors related to the parent brand, the extension product, communication, and consumers. For example, managers of brands whose existing core products are services should particularly emphasize the equity of the parent brand (and its dimensions) when introducing an extension product.

    Besides the contextual factors, the research team also investigates the potential moderating effects of research method factors. Zhao says, “For example, in our large database covering 26 countries, we do not find evidence of a moderating role of the region in which the data were collected, thereby contributing to the debate on whether Eastern cultures have a different way of evaluating brand extensions than Western cultures.”

In summary, this study develops empirical generalizations and findings about the main effects, relative importance, and interaction effect of the two key drivers of brand extension success – parent brand equity and extension fit. It suggests how to devise more successful brand extension strategies in terms of five groups of moderators: contextual factors (parent brand, extension, communication, and consumer factors) and research method factors.

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Retail therapy fail? Online shopping linked to stress, says study

Online shopping is more strongly linked to stress than reading the news, checking your inbox or watching adult entertainment. This is something online businesses should know and consider.

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Planning to save time by doing your shopping online? If so, it’s possible you’re not doing your well-being any favours. A study from Aalto University in Finland has found that online shopping is more strongly linked to stress than reading the news, checking your inbox or watching adult entertainment. The internet can be both a source and a reliever of stress though, according to research –– so do we scroll because we’re stressed, or are we stressed because we scroll?

It’s a complex problem to unravel, according to doctoral researcher Mohammed Belal.

‘Previous studies have shown that social media and online shopping are often used to relieve stress. However, our results show that a rise in social media use or online shopping is linked to an increase in self-reported stress across multiple user groups and across devices,’ he says.

The study found that users of YouTube and streaming services, as well as online gamers, also reported increased stress levels. For people experiencing high-stress, time spent on social media was twice more likely to be linked to stress as compared to time spent on gaming. Meanwhile, across many user groups, those who spent more time reading emails and news, or watching adult entertainment, reported lower stress-levels –– although the researchers note that they looked only at the time spent on news sites, not their content.

‘Somewhat surprisingly, people who spent a lot of time on news sites reported less stress than others. On the other hand, those who already experienced a lot of stress didn’t spend much time on news sites –– and that’s consistent with previous research that shows that stress can reduce news consumption,’ Belal says.

Overall, the study found a strong connection between internet use, in general, and heightened stress, especially among those who already experienced a lot of stress in daily life. Women reported more stress than men, and the older and wealthier the participant, the less stress they experienced. The de-stressing effect of adult entertainment may be explained by the fact that it was usually consumed in small doses, acting as a short-term stress or boredom reliever.

The study, to be published in the Journal of Medical Internet Research on 9 January 2026, recorded the internet usage of nearly 1,500 adults over a seven-month period. After that, data from nearly 47 million web visits and 14 million app usages was combined with users’ self-reported stress.

Issues commonly discussed, yet not well understood

The research comes at a time when the effects of social media on well-being are under increasing scrutiny. For example, a recent ban in Australia on social media for children has the rest of the world watching closely. Yet despite the increasing influence of the internet on our lives, our scientific understanding of the impacts of its use on well-being is remarkably limited, says Belal.

‘It leaves a huge critical gap in understanding how online behaviors impact stress and well-being,’ Belal points out.

With the aim of closing this gap, the study is among the first to use a tracking programme installed on users’ devices, rather than asking subjects to self-report their usage, explains assistant professor Juhi Kulshrestha. The long duration and large sample size of the research also make the findings particularly significant.

However, she points out that further research is needed to disentangle the relationship between stress and well-being and internet usage.

‘Are people more stressed because they are spending more time online shopping or on social media, or are such sites offering them an important support in times of duress? It’s really crucial that we study these issues further so we can solve that chicken and egg problem,’ says Kulshrestha. ‘Putting a blanket ban or upper limits on certain kinds of internet usage may not actually end up solving the issues, and could even take away a vital support for people who are struggling.’

Either way, the researchers see practical applications for the results in the development of well-being and online services. In future, they plan to examine the consumption of different types of news, such as political, entertainment, or sports news, and how it relates to stress and other well-being variables. The hope is that better data will lead to helping internet users maintain a healthy balance.

‘As we gain increasingly accurate information about people’s internet usage, it will be possible to design new kinds of tools that people can use to regulate their browsing and improve their well-being,’ says Kulshrestha.

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For those marketing contents, weekly episode releases drive higher viewer engagement and subscriptions on platforms

Marketing people, pay attention: the drip-style release schedule boosts both engagement and subscription revenue.

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Gradually releasing TV show episodes, rather than offering full seasons all at once for binge-watchers, significantly increases engagement on subscription video-on-demand (SVoD) platforms, leading to substantially higher subscription rates.

This is according to a study that provides the first large-scale causal evidence from a real-world randomized field experiment showing how release strategies shape viewing patterns, content discovery and retention across 84,000 viewers over a five-week randomized trial.

The study, “When Less Is More: Content Strategies for Subscription Video on Demand,” was authored by Miguel Godinho de Matos of Católica Lisbon School of Business and Economics, Samir Mamadehussene of the University of Texas at Dallas and Pedro Ferreira of Carnegie Mellon University.

To conduct their study, researchers made sure that across a five-week randomized field trial conducted with a major multinational telecommunications provider, viewers were assigned to a gradual (drip) release schedule. As a result, they found these viewers were 48% more likely to continue using the platform. They were more likely to return on a weekly basis to explore additional content.

When the researchers studied the all-at-once release of episodes, they found that while this approach initially attracted more binge-watchers who were eager to start a new series immediately after launch, those platform users did not engage with the platform over time in a more sustained way.

“The moment all-at-once viewers finish a fully released show, they often leave the platform,” de Matos said. “A drip schedule keeps viewers engaged for weeks, giving them time to search, browse, and find other shows they enjoy.”

“Releasing episodes slowly creates natural touchpoints that bring viewers back each week,” said Mamadehussene. “Those repeated visits dramatically expand content discovery and strengthen retention.”

When given all-at-once access, drip-release viewers tended to watch fewer episodes the first week, but they did watch significantly more episodes in later weeks. They increased exploration of the platform catalog, and ultimately consumed more total content than those given all episodes upfront.

At the end of the free trial, drip-release users were 1.7% more likely to subscribe, a 48% increase over the all-at-once group’s baseline subscription rate of 3.48%.

To be sure, the study found that this effect varied based on binge-watching preferences. For heavy binge watchers, the lack of immediate access to full seasons reduced engagement, lowering subscription likelihood. These findings help explain why major streamers which popularized binge releases, such as Netflix, have increasingly adopted weekly or hybrid release models.

“Our results show that the drip-style release schedule boosts both engagement and subscription revenue,” said Ferreira. “When it comes to sustaining audience interest, sometimes less really is more.”

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3 Filipino MSME owners share how to enter your easy era of business

When presented with the opportunity to use solutions, more business owners are discovering the advantages of adopting new tech innovations — especially when it comes to payments.

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Many of today’s MSMEs are born from a passion: a recipe that’s been passed down for generations, a love of coffee and pastries, or a vision to showcase local fashion and design to the global stage. But turning that passion into a sustainable business is another thing on its own. Day-to-day challenges like managing orders and keeping payments on track can be overwhelming.

As businesses grow, so does the need for better tools. While there’s no shortage of tech in the market, many MSMEs often steer away due to cost and complexity. However, when presented with the opportunity to use solutions from GCash for Business, more business owners are discovering the advantages of adopting new tech innovations — especially when it comes to payments.

One innovation is GCash SoundPay. This device provides instant voice confirmation for every successful QR payment made. It’s easy to carry, affordable, and simple to use – requiring only a fully verified GCash account of at least 12 months to get started.

For Nikko Mendoza of Smthn Smthn Cafe in Davao, Michael Chan of Mom Rose Chicken Lechon in Bacolod, and Emgee Po of Get Spotted in Bacolod, embracing digital tools has helped them grow their brands while allowing them to enter a new era of ease.

Here’s what they’ve learned:

1. Faster checkouts make everyday transactions feel hassle-free Michael Chan, Mom Rose Chicken Lechon

Mom Rose Chicken Lechon was born from both necessity and memory. When the pandemic shut down their carinderia in 2021, the Chan family shifted to making their signature Spicy Chicken Lechon, a dish inspired by their late mother, Rosemarie.

To this day, the business honors her wish for “a happy family,” and GCash SoundPay helps them keep that promise by ensuring this joy extends to their customers by making everyday payments stress-free.

“Most of our customers prefer GCash now. With GCash SoundPay, payments are faster and more reliable, so we can focus on serving food that makes people happy,” Michael shares.

In store, each team member carries their own GCash SoundPay device, worn with a lanyard and ready to use. This allows them to accept and confirm payments anytime, anywhere. No need for long waiting lines and just one payment acceptance device at the counter. Because of the real-time audio alerts, transactions move quicker, and the team can focus fully on serving their customers more efficiently.

2. Tech is a driver of growth. – Emgee Po, EMGEE by Get Spotted

A thesis project in 2011, EMGEE by Get Spotted is a local fashion brand from Bacolod that is now making waves internationally. Its founder, Emgee Po, partners with Negros weavers and Angono seamstresses to create one-off designs that are proudly Filipino. From a mall location in Ayala Malls Capitol Central to pop-ups in Paris and soon New York, EMGEE continues to expand its reach.

GCash played a role in how Emgee connected with customers. She first used her personal GCash account for payments, where cashless transactions made it easier to keep up with multiple customers paying at the same time.

“Most [of] our sales for the shop would be [through] credit cards and GCash. It’s very easy and it’s very convenient [to go cashless],” Emgee shares. But as the business grew, the confusion of mixing personal and business transactions and manually checking her phones to confirm payments started becoming a challenge.

That’s why she moved to GCash for Business. With GCash for Business, she now has everything to confidently grow her business such as an easy-to-use business wallet, no limits, no transaction fees. Now, there’s no more mixing personal and business payments.

3. Businesses benefit from an easy-to-use platform  – Nikko Mendoza, Smthn Smthn Cafe

What started as seasonal pastries grew into a full-fledged garden café in 2024. Since day one, Smthn Smthn Cafe in Davao has accepted GCash payments to serve its customers better. But as the café expanded, owner Nikko Mendoza realized he needed more than just a way to receive payments.

With the new GCash for Business Portal, businesses get access to an easy-to-use platform to track and manage all online transactions in one place. It includes a simple, , easy-to-use payments tracker and management system, no wallet limit when receiving cashless payments from customers, and no transaction fees when paying suppliers through GCash. Additionally, the portal allows merchants to pay their suppliers directly through bank transfer or even to their GCash accounts with no fees, reducing the need to use multiple platforms and pay multiple fees.

For Nikko and his team, utilizing a system like the GCash for Business Portal means more time to focus on running the café, and less time worrying about payment limits, fees, or keeping track of scattered transactions.

Tech Made for Business’ Easy Era

From Manila to Bacolod to Davao, these small business owners show how digital solutions are helping them experience ease everyday in their operations. With GCash SoundPay and an upcoming new device that enables merchants to accept credit card payments through their phone, GCash for Business continues to provide MSMEs a selection of tools tailored to their specific needs per industry.

Utilizing these solutions also comes with a dedicated business account in the new GCash for Business Portal, providing a dedicated dashboard where business owners can order devices and manage their business transactions in a simple, easy-to-use business portal with no limits and no fees.

Learn more about how GCash for Business can empower your business and sign up today with just a GCash verified account of at least 12 months.

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