Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction

Pontes, Nicolas; Palmeira, Mauricio; Jevons, Colin

doi:10.1016/j.jretconser.2016.10.003

Cited by 16 publications

(21 citation statements)

References 45 publications

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“…Increased perceptions of expertise could also be driven in part by consumers' consistent perceptions that sustainable products are more expensive compared to traditional products (Berger, 2019; Guyader, Ottosson, & Witell, 2017; Ivanova, 2019). Signalling theory suggests that consumers make their judgments and form perceptions about the firm's expertise using extrinsic cues or signals, such as a price range (Pontes, Palmeira, & Jevons, 2017; Wernerfelt, 1988), where the highest‐end price is often the signal of the brand's level of expertise (Heath, DelVecchio, & McCarthy, 2011; Randall, Ulrich, & Reibstein, 1998). Thus, we expect perceptions of expertise to be higher for companies that use green marketing signals.…”

Section: Signalling Theorymentioning

confidence: 99%

Signaling green: Investigating signals of expertise and prosocial orientation to enhance consumer trust

Waites

Stevens

Hancock

2020

J of Consumer Behaviour

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Prior research has established the positive effect of green marketing on purchase intentions. Less well known is why. Two empirical studies were conducted to investigate trust as an important mediator explaining the relationship between green marketing and purchase intentions. In study one, we successfully replicate prior research, again finding higher purchase intentions for companies that engage in green marketing. Additionally, trust in the company was found to mediate this relationship. Study two then examines the underlying mechanisms of expertise and prosocial orientation on the relationship between green marketing and trust, and then serially to purchase intentions. Demographic boundary conditions of age and gender were also investigated. Despite previous research indicating that gender affects perceptions of sustainable marketing, gender was not found to influence trust through perceptions of expertise and prosocial orientation. Interestingly, consumer age was found to influence perceptions of the company's expertise but not prosocial orientation. Younger consumers, specifically those about 38 and younger, believe that companies using green marketing display more expertise compared to those that do not, ultimately increasing perceptions of trust in the company.

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Section: Signalling Theorymentioning

confidence: 99%

Signaling green: Investigating signals of expertise and prosocial orientation to enhance consumer trust

Waites

Stevens

Hancock

2020

J of Consumer Behaviour

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“…In addition, the study only included perceived fit as the moderating factor. Future studies could consider also other concepts such as extension direction (upscale extensions vs. downscale extensions) ( Pontes et al, 2017 ), brand commitment ( Wang et al, 2017 ) and product innovation ( Lee and O'Connor, 2003 ). In terms of the sample, the majority of the respondents were young consumers of luxury brands from Iran.…”

Section: Limitations and Future Research Directionsmentioning

confidence: 99%

Brand Attribute Associations, Emotional Consumer-Brand Relationship and Evaluation of Brand Extensions

Pourazad

Stocchi

Pare

2019

Australasian Marketing Journal

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This research aims to test the power of brand attribute associations and emotional consumer-brand relationship (E-CBR) as drivers of the intention to purchase brand extensions, while taking into consideration the moderating role of perceived fit. These aspects are examined in the context of luxury brands, given their expressive and hedonic nature. In more detail, using survey data from a population of Iranian consumers and covariance-based structural equation modelling (SEM), this study confirms that E-CBR has a positive impact on the intention to purchase a luxury brand's extension. The study also confirms that E-CBR mediates the relationship between brand attribute associations and the intention to purchase a luxury brand's extension. As such, this research sheds light on the synergic effects of cognitive (brand attribute associations) and emotional (E-CBR) factors in relation to extensions of luxury brands. With respect to perceived fit, the results highlight that it moderates the relationship between brand attribute associations and the intention to purchase a luxury brand's extension. These findings advance existing knowledge of how consumers see extensions of luxury brands, revealing important underlying mechanisms that tie rational and emotional aspects, shaping consumers’ intent. Accordingly, this research yields important implications in relation to the marketing tactics that could be utilised to promote the acceptance of luxury brands’ extensions, especially in growing middle-Eastern markets such as Iran.

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“…The importance of brand extension strategies is highlighted throughout the literature. Apart from being cost-effective strategies when introducing new brands, brand extensions create additional sources for leveraging brand equity (Pitta & Katsanis, 1995;Pontes et al, 2017). Additionally, brand extension activities enable brands to compete in less saturated markets, provided the parent brand's assets are also considered assets in the extended markets (Kapferer, 2008).…”

Section: Significance Of Brand Extensions In the Lodging Industrymentioning

confidence: 99%

“…Step-up extensions carry enhanced features and are often priced notably higher than the parent brand (Lei, Dawar, et al, 2008). Irrespective of the parent brand's capabilities, they involve high performance and financial risk perceptions (Pontes et al, 2017). High performance risk is evident in step-up extensions, as consumers doubt whether the brand is capable of delivering distinctive service as expected in a premium setting (Aaker, 1997;Lei, de Ruyter, et al, 2008).…”

Section: Moderating Effect Of Brand Extension Typementioning

confidence: 99%

“…Therefore, while there is an apparent need to examine the link between hotel brand extensions and their outcomes, few studies have, in fact, explored this, and even fewer have investigated the boundary conditions that may serve to explain some of the empirical inconsistencies (cf. Pontes et al, 2017). Moreover, given the rise of online hospitality brokers like Airbnb and the new breed of consumers whose needs and demands are entirely different to those of previous generations, catering for different market segments and leveraging existing brand value are of utmost importance for lodging firms (Ye et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Branding the hotel industry: The effect of step-up versus step-down brand extensions

Hultman

Papadopoulou

Oghazi

et al. 2021

Journal of Business Research

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Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction

Cited by 16 publications

References 45 publications

Signaling green: Investigating signals of expertise and prosocial orientation to enhance consumer trust

Signaling green: Investigating signals of expertise and prosocial orientation to enhance consumer trust

Brand Attribute Associations, Emotional Consumer-Brand Relationship and Evaluation of Brand Extensions

Branding the hotel industry: The effect of step-up versus step-down brand extensions

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