The dilemma of luxury brand extensions

Margariti, Kostoula; Boutsouki, Christina; Hatzithomas, Leonidas

doi:10.1080/20932685.2019.1649167

Cited by 14 publications

(10 citation statements)

References 62 publications

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“…Many respondents have mentioned exclusivity and originality attributes as an important criterion to choose a fragrance. This brings us to the need-for-uniqueness for individuals Fragrances' luxury brand extension trying to communicate a distinctive self-image to others (Neave et al, 2020;Margariti et al, 2019). The relationship between a luxury brand and its fragrance extension is appropriate according to the views analysed in this research.…”

Section: Discussion and Conceptualizationmentioning

confidence: 99%

Fragrances' luxury brand extension: consumer behaviour and influences

Figueiredo

Eiriz

2020

EMJB

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PurposeThis article aims to understand the influences surrounding the consumption of fragrances, especially if these products fit as a brand extension of luxury brands. More specifically, it aims at identifying the main reasons behind the process of buying fragrances and the main features associated with the consumption of fragrances.Design/methodology/approachThis research adopts a qualitative approach in the form of 15 in-depth interviews with consumers of fragrances, seeking to assess attitudes and influences in the consumption of fragrances as a brand extension of luxury brands.FindingsThis research shows that the emotional use of fragrances as a luxury product is much more important than their functionality, the relationship between the studied consumers and fragrances depends on the occasion of consumption (season of the year; day or night) and the aroma and the durability of the aroma is the main decision criterion for the purchase of fragrances. Respondents have also mentioned comfort, elegance and sophistication as attributes to choose a fragrance as a luxury product.Originality/valueThis article adds to the current knowledge on the topics of luxury brand management and buying behaviour by providing a better understanding of attitudes and influences towards the use of fragrances. This research recognizes the importance of a brand extension strategy for luxury brands, especially in the case of fragrances.

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Section: Discussion and Conceptualizationmentioning

confidence: 99%

Fragrances' luxury brand extension: consumer behaviour and influences

Figueiredo

Eiriz

2020

EMJB

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“…, 2018; Albrecht et al. , 2013; Margariti et al. , 2019; Stankeviciute and Hoffmann, 2010; Reddy et al.…”

Section: Discussion and Theoretical Implicationsmentioning

confidence: 99%

“…However, while line extensions are widespread within the mass-market and fast moving goods sector, an understanding of the strategic antecedents and drivers of consumer responses to line extensions in the luxury sector is more fragmented (Veg-Sala and Roux, 2014; Eren-Erdogmus et al. , 2018; Kim and Wingate, 2017; Margariti et al. , 2019).…”

Section: Introductionmentioning

confidence: 99%

“…, familiarity of the parent brand (V€ olckner and Sattler, 2006) and the perceived fit between the extension and the parent brand (Sichtmann and Diamantopoulos, 2013;Carter and Curry, 2013;Verhellen et al, 2016). However, while line extensions are widespread within the mass-market and fast moving goods sector, an understanding of the strategic antecedents and drivers of consumer responses to line extensions in the luxury sector is more fragmented (Veg-Sala and Roux, 2014;Eren-Erdogmus et al, 2018;Kim and Wingate, 2017;Margariti et al, 2019). Luxury researchers have compared the drivers of line extensions success with the nonluxury sector (Albrecht et al, 2013) and examined extension attitudes in various industry settings including services (Ahn et al, 2018), travel Reddy et al (2009) and fashion (Stankeviciute and Hoffmann, 2010).…”

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confidence: 99%

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The impact of luxury brand status signaling, extension authenticity and fit on luxury line extension evaluation: a cross-national study

Boisvert

Ashill

2022

IMR

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PurposeGrounded in categorization theory, this study examines the impact of luxury parent brand status signaling on brand extension authenticity and consumer attitudes in two international luxury markets.Design/methodology/approachUsing samples of luxury consumers from France and the United States, the study's hypotheses are tested using confirmatory factor analysis (CFA), structural equation modelling (SEM) and multi-groups comparisons.FindingsFindings demonstrate that luxury parent brand (PB) status signaling, familiarity and perceived quality impact luxury extension authenticity, and authenticity has a significant effect on consumer attitudes toward the extension. The relationship between PB status signaling and extension authenticity is stronger for French consumers compared to their American counterparts. The effect of luxury PB perceived quality and familiarity on PB status signaling is similar for both American and French consumers. However, the effect of PB familiarity on luxury brand extension authenticity is stronger in France than the United States.Research limitations/implicationsResults provide researchers and managers with insights on how to design marketing programs for luxury line extensions in a cross-national context.Originality/valueThe authors contribute to existing literature examining factors related to the parent brand and the relationship between the parent brand and the extension by examining the effect of PB status signaling and extension authenticity on extension attitudes in two international luxury markets.

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“…This marketing efficiency generates higher profits, which in turn enables a firm to enhance firm value. The marketsensing aspects of marketing efficiency that are customer related allow firms to identify segments (Margariti et al, 2019). Segmentation allows for better targeting, which then leads to a better positioning of the firm's products relative to that of its competitors (Yuan et al, 2018).…”

Section: Literature and Theoretical Frameworkmentioning

confidence: 99%

Small and Medium Scale Enterprises and the Utilization of Strategic Alliance: The Effect of Spatiality in Emerging Markets Economy

Nwokocha

2021

Production & Manufacturing Research

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This study examined the effects of spatiality in the utilization of strategic alliance by SMEs in an emerging market economy such as Nigeria. A case study approach, survey research design and a questionnaire survey of 233 SMEs were adopted for the study. Data for this study were analysed using descriptive statistics and nearest neighbour analysis, while maps and tables were used to illustrate the results. The result of the study showed that SMEs had three distribution patterns in cluster, regular and random distribution in the study. SMEs in these distribution patterns had a total mean score of 3.93, 3.58 and 3.05 as well as an average mean score of 2.00 in cost reduction, risk reduction, resource and knowledge accessibility in the use of strategic alliance. This signified that engaging in strategic alliance is not determined by the spatial distribution of SMEs but the need to achieve cost reduction, risk reduction and resource accessibility.

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The dilemma of luxury brand extensions

Cited by 14 publications

References 62 publications

Fragrances' luxury brand extension: consumer behaviour and influences

Fragrances' luxury brand extension: consumer behaviour and influences

The impact of luxury brand status signaling, extension authenticity and fit on luxury line extension evaluation: a cross-national study

Small and Medium Scale Enterprises and the Utilization of Strategic Alliance: The Effect of Spatiality in Emerging Markets Economy

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