Identifying and testing success factors for brand extensions in the Video Game Industry : The differences between segments of players and a model for predicting success in the Tomb Raider Series

Abstract: Background Brand managers often use brand extension as a “lower” risk alternative when introducing new products. A lot of research has been conducted about brand extensions but mostly focusing on fast moving consumer goods, therefore ignoring the impact that this strategy carries on experience goods and more precisely, the video game industry. Video games have turned from a niche product to a global billion dollar market in which brand extensions are a common marketing strategy. There are several examples of both successful and failed brand extensions in the video game industry. Purpose The purpose of this thesis is to identify brand extension success factors in the videogame industry  and how important these factors are for the consumers, a model will be created to test the obtained results; further on the authors will look at different segment of gamers and how the importance of the identified factors differ among them. Method In order to analyze the level of importance that video game users give to the brand extension success factors, an online questionnaire was created with Likert Scale questions to measure each factor. Descriptive statistics, linear regression analysis, Kruskal-Wallis and Mann-Whitney U test were utilized to analyze the results of the questionnaire and to identify differences between the responses of different type of video game users. A second identical questionnaire was distributed only to Tomb Raider users in order to create a model which gave each factor a score depending on the results of the questionnaire and weighted their positive or negative influence into the likelihood of success of each of the Tomb Raider games; the purpose of the model is to predict if each game could be considered a success or not and then compare the prediction with the real outcome of each game in the Tomb Raider series. Conclusion The most important factors for the success of a brand extension in the video game industry are the factors game-play, the brand extension quality as perceived by the users and the factor storyline. On a lower level of importance, the gamers classified the parent brand quality by users and the factors audio, graphics, developer and genre. The lowest category of importance includes the quality as perceived by the critics of the parent brand and the brand extension, the parent brand awareness and the factor multiplayer mode. Finally the survey showed that the cultural familiarity, the factors publisher and rating, and the marketing campaign for the brand extension are not important for the gamers. A second survey was conducted exclusively with Tomb Raider users in order to create the model and the results for this second survey were the same as the one targeted to general gamers, which allows the possibility to generalize the results of the model. The findings of this thesis can help members of the video game industry to better allocate resources towards the factors that most influence the brand extension success.