British grocers' brand extension in financial services

Purpose – This study aims to examine consumer fit perception, risks and brand trust in retail brand extension in financial services. Design/methodology/approach – A total of 324 respondents living in Sheffield, UK were involved in the survey. The survey was conducted on three major British supermarkets. Mean scores for each supermarket were compared between four groups of respondents: store loyal vs non-loyal, users vs non-users of the store's financial services, aware vs non-aware and intend-to-buy vs no-intention-to-buy groups on fit, risks, trust dimensions. A factor analysis was performed on the dimensions' items. Discriminant analysis was used to determine the dimension(s) distinguishing the retailers. Findings – The study found that 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. In contrast, retailer C was perceived unfit and risky by the non-users and no-intention-to-buy groups. Age, gender, income influenced fit, risks and trust perception. Existing customers, including those aware and intending to buy the store's financial services, tended to trust the store; whereas those new to the store and its products perceived no fit and lacked confidence in the store's expertise in their brand extensions. Practical implications – The article assists retailers and the like in their brand extension decision making and implementations. Originality/value – The article contributes to retail/brand extension/corporate branding literature, brand extension in high/low-involvement product, perceived fit, risks and trust relationship in brand extension.