Cross-category indulgence: Why do some premium brands grow during recession?

Mark, Tyler; Southam, Colette; Bulla, Jan; Meza, Sergio

doi:10.1057/s41262-016-0004-6

Cited by 10 publications

(14 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In periods of economic turbulences, more and more consumers are attracted by "good enough" substitute instead of the ideal product especially when the switching cost is low (Mark et al, 2016). Luxury manufacturers are not spared by this situation and while they expand their market in countries such as China, they have been tempted to tap into lower…”

Section: Discussionmentioning

confidence: 99%

“…2. Theoretical background and hypotheses development 2.1 Luxury, premium and masstige brands Mark et al (2016) explain that when a consumer, who desires a luxury handbag (e.g. Louis Vuitton), cannot afford it and yet continues to desire the product category, the same consumer is likely to choose a premium version from a more affordable brand to achieve this goal.…”

Section: Imr 356mentioning

confidence: 99%

See 1 more Smart Citation

The impact of branding strategies on horizontal and downward line extension of luxury brands

Boisvert

Ashill

2018

IMR

View full text Add to dashboard Cite

Purpose The purpose of this paper is to empirically assess the impact of branding strategies on horizontal and downward line extensions of French luxury brands in a cross-national context (France vs USA). Design/methodology/approach This study is based on a two line extensions (horizontal/downward) × three branding strategies (direct brand/sub-brand/standalone brand) x two country (France/USA) between-subjects ANOVA design. Findings The study shows that the subtyping effect created by a sub-branded luxury downward line extension tends to be rated similarly to a direct branded extension which oppose previous beliefs put forward in non-luxury settings. In contrast, a new independent/standalone extension fully uses the subtyping effect which helps attenuate this risk related to luxury downward stretches. The study also found that the effect of gender in cross-national settings must always be taken into consideration as significant variations occur in the process. Research limitations/implications The study covers two countries but should be replicated in other cross-national contexts. Practical implications This study helps marketing managers of luxury brands make a better decision when it comes to launching vertical line extensions (upscale/downward) by carefully using types of branding strategies and relevant communications whether women and/or men are targeted in cross-national contexts. Originality/value This study breaks new ground in the international luxury literature by providing key theoretical and managerial insights in terms of launching new downward line extensions with the proper use of branding strategies when targeting specific genders.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Imr 356mentioning

confidence: 99%

The impact of branding strategies on horizontal and downward line extension of luxury brands

Boisvert

Ashill

2018

IMR

View full text Add to dashboard Cite

show abstract

“…The contraction periods were selected on the basis on official figures from the national statistical department. They correspond to recessions defined as two or more consecutive periods with decreasing GDP (Mark et al , 2016). Each specific period of time covers 26 weeks.…”

Section: Methodsmentioning

confidence: 99%

“…Difficult economic situations have led to changes in consumer attitudes and behaviours towards brands (Nunes et al , 2011; Mark et al , 2016). Recession particularly increases price sensitivity and consideration of price fairness (Ferguson, 2014), as well as price consciousness (Lichtenstein et al , 1993).…”

Section: Introductionmentioning

confidence: 99%

Choosing high-equity cosmetic brands in bad macroeconomic conditions: evidence from panel data

Kaswengi

Diallo

Akrout

et al. 2020

IJRDM

View full text Add to dashboard Cite

PurposeThis study investigates how price, promotion and consumer characteristics affect consumer choice of high over medium- and low-equity cosmetic brand under different macroeconomic conditions.Design/methodology/approachThe study uses purchase records from MarketingScan's Behaviour Scan panels (a GFK – Mediametrie Company) covering the period from 2008 to 2009. The panel analysed represents a sample of 2,149 households representative of the national population.FindingsResults indicate that regular price and relative brand price increase high-equity cosmetic brand choice over both low- and medium-equity brands, while reference price decreases it. Brand feature promotion activity and joint promotion positively affect high-equity cosmetic brand choice, whereas display promotion decreases it. In comparison to medium-equity cosmetic brands, gender and education slightly increase high-equity cosmetic brand choice, while age decreases it. Surprisingly, household income does not affect high-equity cosmetic brand choice. The effect of regular price decreases over worsening macroeconomic conditions. However, the effect of relative brand price decreases between low and moderate contraction periods, but increases between moderate and high contraction times. Feature promotion is effective only when the contraction is moderate, while the negative effect of display promotion is stable over time.Originality/valueThe paper underlines the moderating role of macroeconomic conditions on the relationship between pricing decisions as well as promotion activity and consumer choice of high-equity cosmetic brands.

show abstract

“…Marketing store brands and manufacturer brands: role of referent and expert power in merchandising decisions (Chimhundu, 2016) Cross-category indulgence: why do some premium brands grow during recession? (Mark et al, 2016) A lovable personality: the effect of brand personality on brand love (Roy et al, 2016) Certification and authentication of brand value propositions (Starr and Brodie, 2016) Getting what you're worth: implications that affect firm value in a brand acquisition (Budeva et al, 2016) The sweet taste of consistency in brand name sound & product/label shapes: investigating appetitive responses in a dessert context and obstacles that suppress (Spears et al, 2016) Brand prominence in luxury consumption: will emotional value adjudicate our longing for status? (Butcher et al, 2016) Brand trust and avoidance following brand crisis: a quasi-experiment on the effect of franchisor statements (Shin et al, 2016) Consumer perceptions of co-branding alliances: organisational dissimilarity signals and brand fit (Decker and Baade, 2016) Toward a model of brand strategy adoption (Neuvonen, 2016) internal communication and alignment, external alignment, and successfully overcoming resistance to change.…”

Section: Introductionmentioning

confidence: 99%

Journal of Brand Management – Year end review 2016

Powell

2016

J Brand Manag

View full text Add to dashboard Cite

A review and reflection on key topics plus extrapolation of future research avenues from within the Journal of Brand Management during 2016 that included a special issue focused on the themes of (i) Corporate identity, branding, marketing, communication, and reputation. Seven additional themes within the Volume are identified: (ii) Brand engagement, (iii) Brand orientation, (iv) Brand counterfeiting and protection, (v) Online and digital branding, (vi) Brand and product naming, (vii) City branding, and (viii) branding in Higher Education.

show abstract

Cross-category indulgence: Why do some premium brands grow during recession?

Cited by 10 publications

References 19 publications

The impact of branding strategies on horizontal and downward line extension of luxury brands

The impact of branding strategies on horizontal and downward line extension of luxury brands

Choosing high-equity cosmetic brands in bad macroeconomic conditions: evidence from panel data

Journal of Brand Management – Year end review 2016

Contact Info

Product

Resources

About