This study proposed signal type (parent brands cue and brand extension information) as a moderator and perceived fit as an intervening variable to explore the relationship between extension similarity and brand extension evaluation. The study employed the experimental method, including two steps of pretests and a final experiment. The experiment was a 4(signal types) × 2(similarity) between subject factor design. The results revealed that signal type affected perceived fit and the parent cue had the highest impact. The interactions between signal type and similarity did not influence perceived fit. Finally perceived fit was an intervening variable between the similarity and brand extension evaluation. The authors discussed the implications for theory and practices.
