Cultural congruity and extensions of corporate heritage brands: An empirical analysis of time-honored brands in China

This article furthers the understanding of cultural congruity in relation to extension evaluations of corporate heritage brands. The extension of corporate heritage brands remains challenging, due to their unique identities around heritage-typically fostering a narrow spectrum of product-cultural domain. Drawing on the concept of cultural congruity, this paper puts forward the notion that one effective way to break the deadlock of a brand's heritage is to expand into product categories that share the unique cultural heritage in ways that are meaningful, not merely symbolic. Based on data from a large survey on time-honored brands in China, this paper demonstrates that cultural congruity does not only influence extension evaluations directly, but also indirectly through perceived fit. The findings further indicate that brand cultural heritage positively moderates both direct and indirect effects. This study enhances the concept of product fit from the lens of cultural congruity and opens up a new avenue for managing corporate heritage brands in the marketplace.