The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands
AbstractThis paper analyzes the role of the brand concept (luxury vs. non-luxury) in the impact of step-down line extension on consumer-brand relationships. A before-and-after pseudo-experimental study conducted on the Internet among BMW and Peugeot buyers shows that step-down line extension negatively influences the main variables of consumer-brand relationships (e.g., self-brand connections, brand attachment, brand trust and brand commitment) only for the luxury brand BMW. On the contrary, no dilution effects are found for the non-luxury brand Peugeot.
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Date of creation: 2011
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vertical line extension; dilution effects; consumer-brand relationships; luxury brands; cars; PSL approach;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-COM-2012-01-25 (Industrial Competition)
- NEP-MKT-2012-01-25 (Marketing)
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