The reciprocal impact of vertical service line extensions on parent brands: The roles of innovativeness, quality, and involvement

Purpose – The purpose of this paper is to examine the extent to which perceived extension innovativeness, extension quality, and consumer involvement affect reciprocal attitudes toward a newly launched vertical service line extension and the parent brand.Design/methodology/approach – An empirical investigation using a survey methodology was conducted with a sample of 664 respondents representative of the target population. Three pre‐tests were conducted. Partial least squares structural equation modeling and analysis of variance helped test the complex paths of nominal, mediating, and moderating variables.Findings – Extension innovativeness, extension quality, and consumer involvement positively mediate the relationship between the new extension and the parent brand. In addition, parent brand perceived innovativeness negatively moderates the impact of extension innovativeness on attitudes toward the parent brand. Perceived quality of the extension does not solely mediate a reciprocal attitude but is parti...