Extending a brand beyond its original product category is a major strategy for long-term profitability. A brand owner … can internalize the development of the extension product, or license the brand to an external partner in order to exploit … the licensee’s better capabilities and higher efficiency on the targeted market. Brand extension is characterized by the …

A key precept of brand extension theory is that brand extension, as opposed to new brand, reduces the risk of new … the dynamics of sales. In particular, in the movie industry—where brand extension takes the form of sequels—sequels' sales … confirming that new brand extensions are indeed less risky to consumers than new brands, our results also suggest that signaling …