Extension-Based versus Creation-Based Strategies in Tangiblizing e-Brands: A Preliminary Study

Abstract

Purpose of this research was to explore how a brand-equity could be leveraged in establishing the customer equity in the online environment. Existing research has not yet explored how the tangibilization affects various branding and e-branding approaches. We seek to identify the possible effects of tangibilization in firms’ attempts in gaining customer equity through efforts of branding online. Findings of this study include highlighting both types of e-branding approaches, extension-based (e-EBA) and creation-based (e-CBA); have distinctive power in gaining respective equities in the virtual world in which the brand extension may have superior position by leveraging brand equity offline whereas new brand is free to fully utilized Internet technology. Both e-EBA and e-CBA shall seek to tangibilize their services to well categorized customers, since service tangibilization would significantly mediate the relationship between brands and customer equity. This paper would bring managers several implications. The key to the success in online expansion is the brand used online and the associated tangibilize activities in building customer relationship and gaining customer equity.