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1 – 10 of over 8000Yue He, Zan Mo and Huijian Fu
Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by…
Abstract
Purpose
Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by high-status brands may be challenged by horizontal extended products launched by relatively low-status brands when these two types of products target similar consumers. This study aims to examine the impact of product type (horizontal extended versus downward extended) on consumers’ purchase intentions, the underlying mechanism and the moderating role of power distance belief.
Design/methodology/approach
Four scenario-based experiments were conducted to probe the research questions.
Findings
Consumers develop lower purchase intentions for downward (versus horizontal) extended products due to the reduction of perceived fit and self-congruity (Study 1). Beyond that, power distance belief moderates the impact of product type on consumers’ purchase intentions, as a low power distance belief reduces the negative effect of downward line extension (Studies 2a, 2b and 2c). Perceived fit and self-congruity mediate the interaction effect between product type and power distance belief on consumers’ purchase intentions (Study 2c).
Practical implications
This study provides marketing practitioners with guidance on implementing the strategy of downward line extension.
Originality/value
This study serves as a preliminary effort to compare consumers’ responses between downward and horizontal extended products, which deepens the understanding of downward line extension. It also contributes to the body of knowledge about line extension and power distance belief by demonstrating the moderating role of power distance belief in a line extension context.
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The purpose of this study is to examine the effects of a Disney collaboration and Disney product line extension type on the perceptions of masstige brands and purchase intentions…
Abstract
Purpose
The purpose of this study is to examine the effects of a Disney collaboration and Disney product line extension type on the perceptions of masstige brands and purchase intentions. By identifying masstige brands as two types (i.e. born-masstige versus luxury-masstige brands), this study investigates how consumers respond to a Disney collection across different types of masstige brands.
Design/methodology/approach
The authors conducted three studies using an experimental approach.
Findings
Study 1 shows that compared to a traditional collection, a Disney collection lowered perceptions of brand luxury, but the negative effect is stronger for born-masstige brands than luxury-masstige brands. Studies 2 and 3 revealed that an upward extension enhanced perceptions of luxury for the born-masstige brand more than it did with a horizontal extension, whereas there was no difference between upward and horizontal extensions for the luxury-masstige brand.
Research limitations/implications
This study contributes to understanding how Disney collaborations influence consumers’ perceptions of masstige brands. It has implications for brand positioning and pricing strategies for practitioners collaborating with Disney or similar companies.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind to investigate consumer responses to a Disney collaborated collection across two types of masstige brands by exploring their type of product line extensions.
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The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched horizontal and…
Abstract
Purpose
The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched horizontal and upward service line extensions affect transfer and reciprocal transfer of brand associations.
Design/methodology/approach
A field study using a survey methodology based on a 2×2 experimental random design was conducted with a sample representative of the target population of an established bank in Eastern Canada. Two levels of parent brand accessibility (high/low) and two levels of line extension (upward/horizontal) were tested. Pretests were conducted, and the analysis of results was done using a three-point-in-time confirmatory factorial analysis for each cell.
Findings
The findings indicate that for a newly launched horizontal service line extension, when accessibility of an established parent brand is high, information transfer and reciprocal transfer of brand associations is strong and complete. When accessibility is low, transfer is strong but incomplete, leading to partial dilution of the parent brand. In the case of a newly launched upward service line extension, for both high- and low-accessibility contexts, only key diagnostic parent brand associations transfer to the extension. Reciprocal transfer is strong, leading to a significant dilution of the parent brand.
Research limitations/implications
Other kinds of extensions (e.g. downward, distant), other types of services, and consumer goods could be tested to observe the extent to which transfer works.
Practical implications
This study provides key findings to managers who are responsible for launching newly created service line extensions (horizontal and upward). When evaluating a new vertical service line extension, consumers actively process the available information at hand (e.g. print advertising, point-of-purchase materials), but key diagnostic associations of the parent brand tend to persist over time. Thus, marketers must be careful when using or not using parent brand information during launch, though an upward service line extension is likely to dilute the parent brand’s equity, either positively or negatively.
Originality/value
This paper brings new insights to the service branding literature with respect to the dynamics of transfer of brand associations between service line extensions (horizontal and upward) and their parent brands. Drawing on the accessibility-diagnosticity framework, it closes an important theoretical knowledge gap regarding the persistence over time of accessible vs diagnostic parent brand information in the mechanisms of transfer of brand associations to and from different types of service extensions.
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Parisa Bagheri Tookanlou and Hartanto Wijaya Wong
The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical…
Abstract
Purpose
The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical dimensions.
Design/methodology/approach
This paper develops a model to evaluate when it is preferable for a firm to extend the product line in a vertical or horizontal direction. Consumers are modeled as being vertically heterogeneous with respect to their valuation of quality and horizontally heterogeneous with respect to their preference on the esthetic component of the product. These model characteristics allow us to consider a broader set of product line extension strategies. By considering both a vertically integrated channel and a decentralized channel, this study investigates how channel structure influences optimal product line design. The problem with supplemental numerical analyses is mathematically analyzed.
Findings
The analysis shows that a horizontal product line extension strategy that offers the customized product can be used as an alternative to a vertical product line extension strategy. If the fixed cost is not too high, offering the customized product with low quality may be preferred to the quality-based segmentation strategy. Furthermore, the analysis shows that the channel structure is influential as the preference for the horizontal product line extension strategy is more pronounced in the decentralized channel than in the centralized channel.
Research limitations/implications
The analysis presented in this paper is limited by the consideration of full market coverage. Further research is needed to see how the results can be generalized to the case with partial market coverage.
Practical implications
The analysis suggests that a firm may consider product customization as part of its product line strategy. Information regarding market characteristics and channel structure is important when deciding on the optimal product line design.
Originality/value
The model reflects a more realistic marketing strategy and channel structure than previous studies that typically consider product line extension in only one direction and focus on the centralized distribution channel. Combining the standard product line extension and customization strategies also represents an important contribution to the literature. These extensions produce interesting new results and insights into a firm’s optimal product line design strategy.
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Jean Boisvert and Nicholas J. Ashill
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…
Abstract
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.
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Jian Le, Hua Zhang and Jin-wen Li
This study aims to improve the welding quality and efficiency, and an algorithm should be designed to realize tracking space-curved fillet weld joints.
Abstract
Purpose
This study aims to improve the welding quality and efficiency, and an algorithm should be designed to realize tracking space-curved fillet weld joints.
Design/methodology/approach
Fillet weld joints tracking based on the two wheels and the horizontal slider coordinated movement has been studied. The method of pattern recognition is used to identify the height deviation, and the analysis of the accuracy corresponding to recognizing height deviations has been researched. The proportional control algorithm is used to control the vertical and horizontal sliders movement, so fillet weld joints tracking in the height direction has been achieved. Based on wheels and vertical and horizontal sliders coordinated movement, the algorithm of space-curved fillet weld joints tracking has been researched.
Findings
Some experiments have been done, and experimental results show that the welding robot can track space-curved fillet weld joints with high accuracy and good reliability.
Research limitations/implications
The welding robot can improve the welding quality and efficiency.
Practical implications
The welding robot can track fillet weld joints in ship panels, and it was shown that the welding robot could track space-curved fillet weld joints with high accuracy and good reliability.
Social implications
The welding robot has many industrial and social applications.
Originality/value
There are various forms of fillet weld joints in the industry, and the fillet weld is curved in the space. Experimental results show that the welding robot can track space-curved fillet weld joints with good stability and high precision.
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Michelle Childs, Byoungho Jin and William L. Tullar
Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such…
Abstract
Purpose
Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution.
Design/methodology/approach
This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis.
Findings
Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions.
Originality/value
This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.
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Tommaso Ramus, Antonino Vaccaro, Pietro Versari and Stefano Brusoni
A key challenge for hybrid organizations is managing to recombine the different institutional logics they incorporate while navigating complex, fast-changing environments. To…
Abstract
A key challenge for hybrid organizations is managing to recombine the different institutional logics they incorporate while navigating complex, fast-changing environments. To examine how hybrids address this issue, the authors analyze the evolution of the Italian fiscal police – the Guardia di Finanza – from its foundation in 1862. Building on this unique case of a fiscal law enforcement agency that incorporates public fiscal and military logics, the authors propose that hybrid organizations can integrate the different logics they incorporate on the basis of four mechanisms. The mechanisms of upward and downward vertical integration trigger the integration of different logics throughout the entire organization. Integrated horizontal task extension and integrated horizontal competency extension enable an organization to manage a broader range of tasks while it develops the competencies that environmental complexity demands. These four mechanisms interact and, when properly managed, reinforce each other. With this chapter, the authors contribute to research on the processual nature of organizational hybridity and to broader research on the role of structures and competencies in dealing with environmental complexity.
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This study aims to fill in new evidence related to theoretical explanations on how perception of sincerity, excitement and sophistication relates to attitudes towards the…
Abstract
Purpose
This study aims to fill in new evidence related to theoretical explanations on how perception of sincerity, excitement and sophistication relates to attitudes towards the different kinds of brand extensions, namely, horizontal extension and vertical extension.
Design/methodology/approach
Taking an established Chinese brand as a test object and a survey sample data from three cities in China, the strength of perception of brand personality and its effect on attitudes towards brand extension is tested. T‐test is used to analyze the data.
Findings
Results show that, a salient perception of personality “sincerity” is significantly favourable to downward extension, but has no significant effect on upward, near or far extension. A salient perception of personalities “excitement” and “sophistication” is significantly favourable to upward and far extension, but has no significant effect on downward or near extension.
Research limitations/implications
Although the data used for testing the hypotheses in this article are taken from three cities in China, spanning four major age groups, this collection of data does not eliminate the possible errors introduced in the course of survey. Another limitation is that this survey takes one single established brand.
Practical implications
This study provides targeted strategies for the long‐term management of Chinese local brands, particularly established brands. Decision makers for enterprises of established brands are consequently faced with two alternative solution approaches. One is to undertake brand extension and develop and promote new products to improve brand personality. The second is to reform a brand's personality to make it conducive for reasonable market extension.
Originality/value
This study contributes to branding theories by pioneering research on attitudes towards a parent brand as an evaluation factor in research on the mechanism of brand extension, as well as by enriching research on matters related to brand personality traits.
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This paper attempts to examine the relationship between consumer innovativeness and consumers' acceptance of brand extensions.
Abstract
Purpose
This paper attempts to examine the relationship between consumer innovativeness and consumers' acceptance of brand extensions.
Design/methodology/approach
This is a conceptual paper that builds upon the extant literature of consumer innovativeness and brand extensions. A number of research propositions are developed in this thought‐provoking work.
Findings
It is proposed that consumer innovativeness exerts considerable influence on consumers' acceptance of brand extensions when extension distance and types of extensions are examined. In addition, product information availability and interpersonal communication/influence (i.e. informative and normative) moderate the relationship between consumer innovativeness and consumers' acceptance of brand extensions.
Research limitations/implications
This study can help marketers develop appropriate and effective marketing strategies to influence consumers' acceptance of brand extensions. This study serves to provide guidance for brand managers and marketers alike in evaluating the potential success of their extended brands. On the other hand, the paper draws from the extant literature and theoretical discussion to develop research propositions. This approach might limit its depth and scope.
Originality/value
As the use of brand extensions intensifies in the marketplace, it is imperative to understand how consumer innovativeness exerts influence on acceptance of brand extensions. This study fills the research void in the literature and contributes to the extant literature by analyzing the relationship between consumer innovativeness and consumers' acceptance of brand extensions.
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