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Article
Publication date: 21 December 2023

Yue 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.

Details

Journal of Product & Brand Management, vol. 33 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 16 August 2022

Jung Eun Lee and Jung Rim Cho

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…

2203

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.

Details

Journal of Product & Brand Management, vol. 32 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 14 March 2016

Jean Boisvert

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…

1027

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.

Details

Journal of Service Theory and Practice, vol. 26 no. 2
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 15 October 2020

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…

1169

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.

Details

European Journal of Marketing, vol. 55 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 5 September 2018

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…

4301

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.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 17 October 2016

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.

Details

Industrial Robot: An International Journal, vol. 43 no. 6
Type: Research Article
ISSN: 0143-991X

Keywords

Article
Publication date: 6 November 2018

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…

1603

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.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Book part
Publication date: 7 December 2020

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.

Article
Publication date: 2 November 2012

Jiaxun He

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…

2054

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.

Details

Nankai Business Review International, vol. 3 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 18 July 2008

Yu Henry Xie

This paper attempts to examine the relationship between consumer innovativeness and consumers' acceptance of brand extensions.

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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.

Details

Journal of Product & Brand Management, vol. 17 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

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