Brand Extensions Threat: Counter Extensions

Among the risks of a brand extension strategy, there is the one to stimulate a reaction of counter extension. This would frustrate any positive result obtained by the brand extension. The literature showed that co branding is one way in which brand extension strategies can reduce the risk of counter extensions. The paper presents the results of a research aimed at analyzing consumers’ evaluation of a new product launched in response to an earlier extension occurred through a co branding agreement between brands with different degrees of perceptual fit.