Value Creation for Luxury Brands through Brand Extensions: An Investigation of Forward and Reciprocal Effects

Albrecht, Carmen-Maria; Backhaus, Christof; Gurzki, Hannes; Woisetschläger, David M.

doi:10.15358/0344-1369_2013_2_91

Cited by 10 publications

(3 citation statements)

References 33 publications

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“…This study focuses on this broad meaning of luxury goods and not just focusing on luxury fashion like the majority of previous studies. Traditional luxury fashion brands such as Armani have seen an opportunity in other forms of luxury goods such as restaurants, bars, furniture and chocolate and expanded to these sectors capitalizing on their strong brand equity Versace and Bulgari are few of the luxury brands that have entered the hotel business (Albrecht et al, 2013).…”

Section: Luxury and Luxury Goodsmentioning

confidence: 99%

The young luxury consumer in Qatar

Farrag

2017

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Purpose This study aims to examine the factors influencing Qatari youth’s attitude toward luxury brands and intentions to purchase luxury brands. The appetite for luxury spending in the Gulf region and specifically in Qatar is accelerating even with the fall in oil prices and faltering economic growth. Design/methodology/approach Both qualitative research in the form of in-depth interviews and quantitative research in the form of survey were utilized in this study. Initially, eight in-depth interviews were conducted with luxury store owners and/or salespersons to identify the most important factors influencing attitude toward luxury brands. Furthermore, 330 Qatari respondents between the ages from 16 to 25 years were interviewed via a mall-interception method at two different malls with high-end/ luxury stores in Doha. Structural equation modeling using AMOS was run to analyze the hypothesized relationships between variables and test the model fit. Findings The findings indicated the overall fitness of the model. More specifically, the results indicated that fashion involvement, brand consciousness, social comparison and experiential needs have a significant impact on attitude toward luxury brands and consequently on their purchasing intentions. Research limitations/implications This study has several limitations. A more comprehensive framework can be proposed including more variables that may also influence the attitude of youth toward purchasing luxury, for example, brand prominence, vanity and functional value. Comparative studies across demographics (e.g. male vs female and adult vs young luxury buyers) as well as across different cultures and countries can also provide interesting insights related to luxury purchasing behavior among youth. Developing a typology for Qatari luxury consumers can also be very insightful, specifically for supporting brand owners in fine-tuning their marketing and targeting strategies. Finally, other moderating variables like influence of social media or peer influence can also be considered in future studies. Originality/value The study sheds light on a significantly important and emerging phenomenon; the increasing consumption of luxury in the gulf region and specifically in Qatar in an attempt to understand the main drivers to their attitude toward luxury brands in general.

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Section: Luxury and Luxury Goodsmentioning

confidence: 99%

The young luxury consumer in Qatar

Farrag

2017

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“…These findings have to be interpreted in the context of the brands used in the survey: Given that three of the brands that have been utilized as experimental stimuli are nonluxury brands, it does not seem surprising that the value dimensions associated to luxury brands-on averagedo not emerge as important determinants of extension evaluation. In this context, a recent study by Albrecht, Backhaus, Gurzki, and Woisetschläger (2013) has shown that prestige value seems to play a major role when focusing on brand extendibility in the pure case of luxury brands.…”

Section: Discussion Implications and Future Researchmentioning

confidence: 99%

Drivers of Brand Extension Success: What Really Matters for Luxury Brands

et al. 2013

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The use of brand extensions has become fundamental to the business model of most luxury brands. Many traditional luxury brands such as Louis Vuitton or Chanel have expanded into traditional luxury sectors beyond their core business. Some brands such as Armani or Prada even crossed boundaries to nontraditional lifestyle segments to pursue new business opportunities. Given the high practical relevance of brand extensions for luxury brands and the importance to understand the success factors for their extendibility and potential backward effects on the parent brand, surprisingly little research has addressed these issues for luxury brands in comparison to nonluxury brands. The current research reveals extension‐related differences between luxury and nonluxury brands by simultaneously analyzing key dimensions of parent brand value, fit, and extension category involvement on the consumer's attitude toward the brand extension, which in turn influences the postextension image of the parent brand. Results of a structural equation model based on a survey among 492 participants show that the predominant driver of brand extension success for both luxury and nonluxury brands is overall extension fit, followed by the consumer's involvement in the extension category. The influence of functional value of the parent brand on the extension evaluation is more important for nonluxury brands. The hedonic value of the parent brand is found to be of relevance only in case of luxury brands. Moreover, a reciprocal spillover effect between the extension evaluation and the parent brand evaluation is observed. The degree of luxuriousness of the parent brand moderates this relationship. This effect is weaker for luxury brands.

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“…However, research has generally paid less attention to emotions as a psychological force that leads to luxury consumption (Makkar & Yap, 2018). Of the studies that have considered them, Zhang and Zhao (2019) demonstrated the emotional value of luxury fashion goods in significantly enhancing Chinese consumers’ purchase intention, while the experience of emotional arousal toward a luxury brand has been found to be a significant predictor of brand success (Albrecht et al, 2013). Thus, the current research hypothesized that:…”

Section: Review Of the Relevant Literature And Hypothesis Developmentmentioning

confidence: 99%

Elevating Food Perceptions Through Luxury Verbal Cues: An Eye-Tracking and Electrodermal Activity Experiment

Sung

Butcher

Easton

2021

Australasian Marketing Journal

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Many brands, including food brands, draw on connotations of luxury to elevate the favorability of consumer perceptions. This is often undertaken using cues in marketing communications; however, no research has examined the psychophysiological effect of luxury cues on consumer attention. Evidently, this study is the first experiment to use eye-tracking and skin conductance analysis to investigate how luxury cues in marketing communications can influence consumer perceptions of a food product. Our findings demonstrate that the use of luxury verbal cues can significantly enhance the attention to hedonic processing and elevate food brand perceptions. Specifically, consumers pay greater attention to the imagery of marketing communications when exposed to luxury verbal cues, which, in turn, enhance arousal and positive brand evaluations. Our research provides valuable theoretical and managerial implications for food brands using communications such as content marketing and advertising to build favorable brand connotations and elevate brand positioning.

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Value Creation for Luxury Brands through Brand Extensions: An Investigation of Forward and Reciprocal Effects

Cited by 10 publications

References 33 publications

The young luxury consumer in Qatar

The young luxury consumer in Qatar

Drivers of Brand Extension Success: What Really Matters for Luxury Brands

Elevating Food Perceptions Through Luxury Verbal Cues: An Eye-Tracking and Electrodermal Activity Experiment

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