The nature of consumers' inferences about conceptual combinations is e
xamined in this article. Specifically, brand extensions are posited as
representing the unique combination of two knowledge categories or co
ncepts-the brand and the new product class-and inferences about the co
mbination as representing conjunctive inferences that consumers form o
n line to comprehend the combination. Predictions of what consumers mi
ght infer about brand extensions and of the possible sources of these
inferences were tested in a concurrent verbalization study that utiliz
ed an idiographic coding scheme. The study results indicate that consu
mers frequently and spontaneously formed inferences when evaluating br
and (extensions. Both the presence of attributes and the valences of a
ttributes were inferred. Consumers appeared to construct these inferen
ces on line rather than retrieving them from brand, product-class, sub
category, superordinate category, or exemplar knowledge. As such, infe
rences about conceptual combinations appear to be distinct from those
previously found in the consumer inference literature. (C) 1996 John W
iley & Sons, Inc.