The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands
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authors
keywords
- Vertical line extension
- Dilution effects
- Consumer-brand relationships
- Luxury brands
- Cars
- PSL approach
document type
OTHERabstract
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.
