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Grounded in categorization theory, this study examines the impact of luxury parent brand status signaling on brand extension authenticity and consumer attitudes in two international luxury markets.

Using samples of luxury consumers from France and the United States, the study's hypotheses are tested using confirmatory factor analysis (CFA), structural equation modelling (SEM) and multi-groups comparisons.

Findings demonstrate that luxury parent brand (PB) status signaling, familiarity and perceived quality impact luxury extension authenticity, and authenticity has a significant effect on consumer attitudes toward the extension. The relationship between PB status signaling and extension authenticity is stronger for French consumers compared to their American counterparts. The effect of luxury PB perceived quality and familiarity on PB status signaling is similar for both American and French consumers. However, the effect of PB familiarity on luxury brand extension authenticity is stronger in France than the United States.

Results provide researchers and managers with insights on how to design marketing programs for luxury line extensions in a cross-national context.

The authors contribute to existing literature examining factors related to the parent brand and the relationship between the parent brand and the extension by examining the effect of PB status signaling and extension authenticity on extension attitudes in two international luxury markets.

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).

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.

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.

The study covers two countries but should be replicated in other cross-national contexts.

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.

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.

The purpose of this study is to assess the extent to which gender impacts the evaluation of vertical line extensions of luxury brands in a cross-national context. The topic of brand/line extensions has been investigated in the mainstream branding literature. On the other hand, the topic has received less attention in the luxury literature. At the same time, while research has examined brand/line extensions from an international perspective, the impact of gender on consumer purchase intentions of luxury downward line extensions in different countries has remained unexplored.

Based on an ANOVA design (2 extension types × 2 genders × 2 countries). The independent variables were ordered as follows: gender (male/female), vertical line extensions (upscale/downward) and country of living (France/USA). The purchase intention of the extension was chosen as the dependent variable.

The study results show that key differences exist between men and women regarding vertical luxury line extensions. For instance, women in both countries rate a new downward line extension of a luxury brand more positively than men. In contrast, although women evaluate a new upscale line extension of a luxury brand similarly to men in France, women are more positive than men in the USA. Also, US men rate an upscale extension less positively than their French counterparts. Finally, women in both countries rate luxury downward extensions more positively than men.

This study contributes to the literature of luxury brand management by examining how gender types process and respond to upscale and downward luxury line extensions versus purchase intentions in two different countries. This paper is unique as gender types are not often compared in previous research while fundamental distinctions exist, leading to significant differences. Practically, this study also provides key insights for marketing strategy development and adjustment for luxury manufacturers in terms of their target market, more specifically men versus women.

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.

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.

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.

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.

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.

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.

The purpose of this paper is to test and model the effect of parent brand salience, branding strategy and extension innovativeness positioning on the extent of transfer of associations from the parent brand to a brand extension.

A field experiment based on a 2×2×2 between‐subjects completely randomized factorial design involving 808 consumers was conducted. Three factors were manipulated: parent brand salience, product innovativeness, and the branding strategy.

The paper finds that, in addition to the main effects of salience and the branding strategy, all three factors jointly influence the extent of transfer of associations from a parent brand to an extension.

Despite the external validity of a natural experiment, some uncontrolled factors may have influenced the results. Also, transfer was assessed within time constraints (i.e. the time to complete the survey). The “duration” of any transfer effect is likely to be related to the ad exposure, which could be tested in future research.

The findings are important for line extension development since they suggest that the launch of an extension can be designed to maximize or minimize transfer of brand associations from the parent brand to a new line extension, depending on the specific marketing objectives for the parent brand and/or extension.

This paper fills an important gap in the literature in terms of identifying product innovativeness, parent brand salience and the branding strategy as synergistic factors affecting transfer of brand associations for parent brands to their extensions.

The purpose of this paper is to examine the extent to which perceived extension innovativeness, extension quality, and consumer involvement affect reciprocal attitudes toward a newly launched vertical service line extension and the parent brand.

An empirical investigation using a survey methodology was conducted with a sample of 664 respondents representative of the target population. Three pre‐tests were conducted. Partial least squares structural equation modeling and analysis of variance helped test the complex paths of nominal, mediating, and moderating variables.

Extension innovativeness, extension quality, and consumer involvement positively mediate the relationship between the new extension and the parent brand. In addition, parent brand perceived innovativeness negatively moderates the impact of extension innovativeness on attitudes toward the parent brand. Perceived quality of the extension does not solely mediate a reciprocal attitude but is partially mediated by extension innovativeness.

Future studies should investigate different types of services and consumer goods to generalize the results. Other dimensions of involvement could also be tested.

This study provides key findings to managers who are responsible for launching newly‐created upscale service extensions. When evaluating a new vertical service line extension, consumers actively process the available information. Thus, marketers must be careful to communicate the quality and the innovativeness of a new service because both factors can dynamically influence reciprocal attitudes toward the parent brand.

This article brings new insights as well as closing an important theoretical gap in the literature regarding the complex dynamic effects of perceived innovativeness, quality, and involvement in a context of a vertical service line extension during launch as it reciprocally impacts attitude toward the parent brand.

The purpose of this study is twofold: first, to assess the impact of extension innovativeness on attitude towards service line extension and the mediating role played by extension quality (in relation to the parent brand); second, to examine the effect of consumer involvement as a moderator of the relationship between extension quality (in relation to the parent brand) and attitude towards the extension.

An empirical investigation using a survey methodology was conducted with a sample of 664 respondents. The structural model was assessed using partial least squares (PLS graph).

The results suggest that in launching a new service line extension perceived quality of the extension (in relation to the parent brand) has a direct impact on attitude towards the service line extension and mediates the effect of perceived extension innovativeness on extension attitude. The findings also suggest that consumer involvement in the extension moderates the relationship between extension quality (in relation to the parent brand) and attitude towards the extension.

Line extensions of other types of services and consumer goods could be investigated in futures studies. Involvement is a multidimensional construct. Other dimensions of involvement could be tested in similar contexts.

This study is important for managers of newly created service branches. In launching a new service line extension, marketers must be careful in developing the quality of the service as well as managing its innovation as both factors influence attitude and behavioral intention outcomes. Also, the moderating role of involvement indicates that managers must attempt to reduce risk perceptions during launch.

The paper makes an important contribution to the emerging service line extension literature.

According to The Ethics Centre (2018) ‘[T]he social license to operate (SLO) is made up of three components: legitimacy, credibility, and trust’. These three components serve to frame the relationship that has emerged and continues to evolve, its root arguably dating back to the Enlightenment and Post-industrial ages, between the worlds of capitalist commercial and industrial operations, and the liberal-democratic citizenry/consumers of society. The ‘SLO’, it will be shown, has historical grounding that indicate the SLO is a broader translatable concept not limited to the business realm. The SLO, the evidence will show, is a multifaceted concept not least, a unifying vehicle utilized for the purpose of acceptance, to advance normative concerns, and resistance, against questionable and harmful practices. Evidently, many domains of human services operate sub-optimally with less than favourable outcomes. In effect, this translates to structural injustices as characterized by poor understanding, insufficient standards of practice, ineffective safeguard, and governance institutions, perpetuated by entrenched practices, allowing the rise of mediocre service providers no less enabled by deficient regulation. Accordingly, the ethical focus of this paper is on the healthcare system, the evident and unnecessary deficiencies, and the failings of the central governance institutions involved. The underlying characteristics of what constitutes a SLO arguably, whether in name or not, have been engaged to expose, challenge, and repel, unethical conduct that gave rise to multiple health care-related Royal Commissions across Australia; predominantly, impacting the Disability, Aged Care, and Mental Health (DAM) sectors to name a few of recent times.