Business Administration, Management, and Operations Commons^™

Vertical Versus Horizontal Line Extension Strategies: When Do Brands Prosper?, Helena F. Allman

Theses and Dissertations

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 …