Upward vs. downward extensions: How social dominance orientation-egalitarianism moderates brand evaluation

Despite the widespread use of vertical brand extensions, research on how consumers evaluate parent and extension brands remains limited, particularly regarding the influence of consumer characteristics. Grounded in Keller’s brand knowledge model and informed by signal theory, this study examines consumer evaluations of vertical brand extensions and explores the moderating role of Social Dominance Orientation–Egalitarianism (SDO-E), which reflects preferences for unequal social structures. Vertical extensions may serve as implicit signals of brand competence, quality, and status. Data from 326 Taiwanese consumers reveal a negative reciprocal effect, as attitudes toward the parent brand decline following vertical extensions, regardless of direction, and a stronger transfer effect, with consumers generally preferring downward extensions. Findings further demonstrate that SDO-E moderates both effects. Individuals with high SDO-E experience a smaller decline in attitudes toward upward extensions and a greater decline in downward extensions. The preference for downward extensions is stronger among those with high SDO-E. This study advances the understanding of vertical brand extensions and offers managerial insights for marketers.