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

authors

  • Magnoni F.
  • Roux E.
  • Valette-Florence P.

keywords

  • Vertical line extension
  • Dilution effects
  • Consumer-brand relationships
  • Luxury brands
  • Cars
  • PSL approach

document type

OTHER

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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