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

F. Magnoni, E. Roux and Pierre Valette-Florence ()
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F. Magnoni: CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique
E. Roux: CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon
Pierre Valette-Florence: CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National 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.

Keywords: vertical line extension; dilution effects; consumer-brand relationships; luxury brands; cars; PSL approach; extension verticale de gamme; effets de dilution; relation consommateur-marque; marques de luxe; automobile; approche PLS. (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-com and nep-mkt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00660296v1
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Published in 2011, 24 p

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