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Honda's introduction of a walk-behind lawnmower in 1978 is an instance of brand extension-the company leveraged its brand recognition as an automobile manufacturer to enter a product category where it had not previously competed. To determine if perceived category similarity predicts consumers' likelihood of purchasing brand extensions, Alicia Grasby et al. identified 30 extended-brand pairs (e.g., the same brand of hand lotion and mouthwash) in 52 weeks of purchases by approximately 60,000 households; for each pair, Grasby et al. had consumers rate the similarity of the product categories and calculated the change in probability of a brand in one category being purchased if the same brand was purchased in the other category.

Which finding, if true, would provide evidence that the possibility Grasby et al.

Consumers' ratings and the changes in probability calculated by the researchers were both affected by level of brand recognition.

There was a strong positive correlation between consumers' ratings and the changes in probability calculated by the researchers.

Consumers' ratings varied substantially by category pair, whereas the changes in probability calculated by the researchers were broadly similar for each pair.

Consumers tended to purchase more products in categories in which extended-brand pairs are found than in categories in which extended-brand pairs are not found.