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The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands

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  • F. Magnoni

    (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II, IAE Grenoble - Institut d'Administration des Entreprises - Grenoble - Université Pierre Mendès-France - Grenoble II, UPMF Grenoble II - Université Pierre Mendès France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)

  • E. Roux

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - IAE d'Aix-en-Provence - Université Paul Cézanne - Aix-Marseille III : EA4225)

  • P. Valette-Florence

    (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II, IAE Grenoble - Institut d'Administration des Entreprises - Grenoble - Université Pierre Mendès-France - Grenoble II, UPMF Grenoble II - Université Pierre Mendès France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)

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    Abstract

    This 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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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00660296.

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    Date of creation: 2011
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    Handle: RePEc:hal:journl:halshs-00660296

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00660296
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    Related research

    Keywords: vertical line extension; dilution effects; consumer-brand relationships; luxury brands; cars; PSL approach;

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    1. Richins, Marsha L, 1994. " Valuing Things: The Public and Private Meanings of Possessions," Journal of Consumer Research, University of Chicago Press, vol. 21(3), pages 504-21, December.
    2. Fournier, Susan, 1998. " Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, University of Chicago Press, vol. 24(4), pages 343-73, March.
    3. Jennifer Edson Escalas & James R. Bettman, 2005. "Self-Construal, Reference Groups, and Brand Meaning," Journal of Consumer Research, University of Chicago Press, vol. 32(3), pages 378-389, December.
    4. Taylor Randall & Karl Ulrich & David Reibstein, 1998. "Brand Equity and Vertical Product Line Extent," Marketing Science, INFORMS, vol. 17(4), pages 356-379.
    5. Kleine, Susan Schultz & Kleine, Robert E, III & Allen, Chris T, 1995. " How Is a Possession "Me" or "Not Me"? Characterizing Types and an Antecedent of Material Possession Attachment," Journal of Consumer Research, University of Chicago Press, vol. 22(3), pages 327-43, December.
    6. Kim, Chung K. & Lavack, Anne M. & Smith, Margo, 2001. "Consumer evaluation of vertical brand extensions and core brands," Journal of Business Research, Elsevier, vol. 52(3), pages 211-222, June.
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