The current research examines how positive mood influences consumer evaluat
ions of brand extensions. As a means of addressing this issue, we integrate
findings from prior research on brand extensions with those concerning the
effect of mood on similarity and evaluative judgments. Our results indicat
e that positive mood primarily enhances evaluations of extensions viewed as
moderately similar (as opposed to very similar or dissimilar) to a favorab
ly evaluated core brand. This pattern of effects prevailed in separate stud
ies using two different types of mood manipulations. The evidence supports
a mood process in which the influence of positive mood on extension evaluat
ions is mediated by its effects on perceptions of the similarity between th
e core brand and the extension as well as the perceived competency of the m
arketer in producing the extension. Implications of these findings for mark
eting managers are presented along with suggestions for further research.