Three laboratory experiments explore how alternative brand name structures (i.e., family branded or subbranded) and varying degrees of category similarity (i.e., similar or dissimilar) influence extension evaluations and parent brand dilution. The results indicate that subbranded extensions (e.g., Quencher by Tropicana cola) evoke a slower, more thoughtful subtyping processing strategy than family branded extensions (e.g., Tropicana cola), which evoke a faster, category-based processing strategy. As a result, category similarity affects extension evaluations when the extension is family branded but not when it is subbranded. In addition, dilution effects are only evident when consumers have a negative experience with a similar family branded extension. Subbranding thus offers two key benefits to marketers: It both enhances extension evaluations and protects the parent brand from any unwanted negative feedback.

The authors propose that attempts to increase consumers’ objective knowledge (OK) regarding financial instruments can deter willingness to invest when such attempts diminish consumers’ subjective knowledge (SK). In four studies, the authors use different SK manipulations and investment products to show that investment decisions are influenced by SK, independent of OK. Specifically, they find that (1) willingness to pursue a risky investment increases when SK is high (vs. low) relative to a prior investment choice (Study 1); (2) willingness to enroll in a retirement saving program is enhanced by asking consumers an easy (vs. difficult) question about finance, thereby increasing SK (Study 2); (3) technically elaborating information about a mutual fund diminishes SK regarding that investment and decreases choice of that fund (Study 3); and (4) consumers invest less money in funds when missing information is made salient, holding the objective investment information constant (Study 4). Furthermore, the effects in Studies 2–4 are mediated by participants’ self-rated SK. The authors propose that effective financial education must focus not only on imparting relevant information and enhancing OK but also on promoting higher levels of SK.