Retail brand extension—perceived fit,risks and trust

• This study examines consumer fit perception, risks and trust in retail brand extension in financial services. Respondents (324) living in Sheffield were involved in the consumer survey, conducted on three major British supermarkets. Mean scores were compared between four groups of respondents. Discriminant analysis was used to determine the factor(s) distinguishing the retailers. Retailers A and B were perceived as trusted brands with respect to financial services. Retailer A was perceived as a trusted brand regardless of the product category. Retailer B was seen as a trusted brand when product performance and financial risks were low while Retailer C was perceived unfit and risky by non‐users and the non‐intend‐to‐buy groups. Age, gender and income influenced fit, risks and trust perception. When consumers knew the store or were store loyal, they tended to trust the store brand extension whereas when consumers did not know or were new to the store, fit and risks were perceived. Implications for corporate branding, brand extension decision‐making and implementations are sought.

Copyright © 2008 John Wiley & Sons, Ltd.