Downward price-based luxury brand line extension: Effects on premium luxury buyer’s perception and consequences on buying intention and brand loyalty
Dublin Core
Title
Downward price-based luxury brand line extension: Effects on premium luxury buyer’s perception and consequences on buying intention and brand loyalty
Subject
Luxury brand perception
Luxury consumer self-image congruency
Brand concept consistency
Brand personality
Downward price-based brand extension
Purchase intention
Brand loyalty
Luxury consumer self-image congruency
Brand concept consistency
Brand personality
Downward price-based brand extension
Purchase intention
Brand loyalty
Description
This research was carried out from the perspective of downward price-based brand extensions with the aim to discover its effects on customer perceptions regarding luxury brands and brand extensions and consequences on buying intention and luxury brand loyalty. The conceptual framework is based on both previous qualitative and quantitative research. A five factors model is tested in a judgemental sample of 158 premium luxury brands consumers using Partial Least Squares (PLS). Findings confirm that extension in new segments
could negatively affect the brand concept perception of the parent luxury brand. These results indicate that (a) the brand concept consistency is affected by down-price brand extension, (b) due to brand concept changes then brand personality also changes, (c) this variations affect the fit between brand personality and consumer self-image and, (d), as a consequence, the purchase intention and brand loyalty are affected in a negative way. From a managerial point of view, this type of brand extension can be less positive than expected, generating negative effects against the extension and the parent brand itself. This work contributes to rethink the use of downward price-based brand extensions as an strategic alternative for brand managers.
could negatively affect the brand concept perception of the parent luxury brand. These results indicate that (a) the brand concept consistency is affected by down-price brand extension, (b) due to brand concept changes then brand personality also changes, (c) this variations affect the fit between brand personality and consumer self-image and, (d), as a consequence, the purchase intention and brand loyalty are affected in a negative way. From a managerial point of view, this type of brand extension can be less positive than expected, generating negative effects against the extension and the parent brand itself. This work contributes to rethink the use of downward price-based brand extensions as an strategic alternative for brand managers.
Creator
Marcelo Royo-Vela, Monica Perez Sanchez
Source
https://www.sciencedirect.com/journal/european-research-on-management-and-business-economics/vol/28/issue/3
Publisher
Elsevier Espana, S.L.U
Date
12 June 2022
Contributor
Sri Wahyuni
Rights
ISSN: 2444-8834
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Internasional European Research on Management and Business Economics 2022
Files
Collection
Citation
Marcelo Royo-Vela, Monica Perez Sanchez, “Downward price-based luxury brand line extension: Effects on premium luxury buyer’s perception and consequences on buying intention and brand loyalty,” Repository Horizon University Indonesia, accessed February 5, 2025, https://repository.horizon.ac.id/items/show/6826.