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This study aims to understand how consumers evaluate downscale vertical line extensions of a prestige/luxury original equipment manufacturer (OEM) in the European automotive market. The authors investigate the moderator effects of innovativeness and the need-for-status traits on the relationships between consumers' extension perceived fit (EPF), extension attitude (EA) and extension perceived value (EPV).

Experimental design with quantitative analyses based on a sample of 419 participants. Participants were randomly assigned to two treatments: low-fit and high-fit extension simulations.

The purchase intention of the downscale vertical extension of a luxury OEM brand is directly influenced by EPV and indirectly influenced by consumer EA and EPF with the parent brand. Findings also suggest that parent brand equity is transferable to extensions that present closeness and consistency with the brand’s heritage. Moreover, the need for status strengthens the relationship between the EPF and the extension perceived social value (EPSV).

The authors developed a realistic simulation of a downscale model of a well-known prestige/luxury car brand. The authors test the influence of innovativeness and need-for-status personal traits on consumer extension acceptance.

Research on vertical line extensions shows that consumers tend to evaluate upward extensions higher than downward ones. This paper examines the opposite situation. It also investigates the process underlying consumer responses by identifying a moderator and mediators.

Two studies were conducted to assess the effect of extension direction (upward vs downward) on consumers' extension evaluations. Study 1 incorporated implicit theories of relationships (the growth belief) as a moderator and inferred motives for launching a vertical line extension as mediators in the effect. Study 2 presented a firm's rationale for undertaking the extension to examine whether it influenced evaluations.

Consumers' preferences for downward over upward extensions appeared in markets where the exclusivity of luxury brands had been reduced. However, the resistance to upward extensions was weaker when consumers endorsed stronger growth beliefs in human relationships. Consumers inferred customer- and selling-oriented motives more strongly from downward than upward extensions, enhancing the evaluations. Finally, when presenting a rationale for launching an extension in the launch announcement, customer-oriented reasoning raised the evaluations higher than selling-oriented reasoning but did not elevate the evaluations higher than the announcement showing no reason.

This study advances the literature on vertical line extensions and shows that consumers' preference for upward over downward extensions is not universal. The opposite pattern exists in markets with a lower distinction between high- and low-end brands. It supports the theoretical notion that responses are driven by the differences in growth belief and in cognitive inferences vis-à-vis motives.

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.

Four scenario-based experiments were conducted to probe the research questions.

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).

This study provides marketing practitioners with guidance on implementing the strategy of downward line extension.

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.

Vertical line extension is an attractive growth strategy that allows brands to address heterogeneous consumer needs and react to competitive pressure. The purpose of this paper is to systematically review and summarize vertical line extension research to derive general insights into vertical upward and downward line extension.

Drawing on a systematic review of 536 academic articles and predefined inclusion criteria, this research identifies and evaluates all articles that add knowledge to the topic of vertical line extension (n = 64).

This research derives general insights in several vertical line extension-specific issues. Different forms of vertical line extension, conceptual differences between upward and downward extensions, as well as the role of perceived fit, extension degree and the parent brand are crucial for the study and evaluation of extension and parent brand feedback effects. Those effects are complex and often work in opposing directions not only for the parent brand but also for the extension. Future research needs to face that complexity as well as methodological issues and different research contexts to further advance the literature stream.

This paper provides a comprehensive, state-of-the-art review of vertical line extension research characteristics and results. It provides new insights on the characteristics and effects of vertical line extensions and guides future research on the topic.

Luxury consumption has evolved, and two important reasons behind the change include globalization and the COVID-19 crisis. These factors have led to the rise of new luxury consumption, which is different from traditional luxury consumption. This study examines how consumers’ identities shape their intentions to consume traditional luxury and new luxury brands.

The theoretical underpinnings of the schema congruity theory and heuristic systematic framework were applied to understand the role of identities in determining consumers’ regulatory focus, price luxuriousness inference and preference for traditional and new luxury brands.

Findings suggest that the global identity of consumers shapes their promotion focus and price luxuriousness inferences. However, their local identities induce a prevention goal. Consumers with such a goal are unlikely to make price luxuriousness inferences. Further, these inferences lead to the choice of traditional luxury over new luxury brands. The results also establish the moderating effects of consumer flexibility.

The extant literature is inconclusive on the role of globalization in luxury consumption and ignores new luxury brands. The current study shows the impact of identities and regulatory focus on traditional and new luxury consumption. The findings also indicate consumers’ regulatory focus and price luxuriousness inference as the reasons behind the influence. The paper also implies that consumers open to renting, sharing or buying second-hand goods will prefer new luxury over traditional luxury brands.

This study conceptualizes a form of luxury consumption in which luxury brands collaborate with unconventional non-luxury partners. These unconventional luxury brand collaborations are growing in popularity among Chinese luxury consumers of the post-1990s generation. Luxury brands are exploring new branding strategies due to the growing commercial importance of Chinese luxury consumers.

An in-depth qualitative study informs this paper. Interviews with young adult luxury consumers self-identifying as Chinese reveal a growing interest for luxury brands that collaborate with odd partners in social media and online culture.

Unconventional collaborations between luxury brands and non-luxury partners catalyze shifting meanings of luxury through the following juxtapositions: ephemeral instead of timeless, trendy rather than inaccessible, and playful in contrast with traditional. First, young Chinese consumers construct luxury meanings through ephemerality, like digital possessions, social media fame and fleeting experiences. Second, luxury meanings emerge in trendiness among social media influencers and online culture rather than in the seemingly inaccessible taste regimes of the upper class. Third, younger consumers appreciate fun, rebellious and over-the-top aesthetics in luxury brands.

The study contributes to the nascent field of unconventional luxury by conceptualizing how unusual, odd and unexpected collaborations constitute new forms of luxury consumption. The shifting meanings of luxury consumption that this study conceptualizes raise new opportunities and challenges for luxury brands. One of such is the release of limited collections with non-luxury partners seemingly at the opposite spectrum of design, image and values. Moreover, the study adds nuance to the understanding of luxury consumption among young Chinese consumers.

The primary objective of this study is to explore the nuanced interplay of conspicuous consumption, ethical label purchasing and the ensuing dynamics of civic virtue and cynicism within the luxury foodservice context.

Grounded in a theoretical understanding of solidarity within the context of product consumption, this research employs a two-pronged approach involving secondary data analysis and scenario-based experimental studies. The initial phase involves analyzing firm-level data from the Euromonitor database in 2019 and 2021. The main study employs a between-subjects experimental design with a cohort of 316 participants sourced from an online panel.

The results reveal a consistent pattern in the consumption of luxury foodservice and underscore a distinct upward trajectory in consumer demand for ethically labeled food. Notably, these findings underscore the moderating role of ethical label purchasing in the relationship between conspicuous consumption and consumers civic virtue. Additionally, ethical label purchasing moderates the impact of conspicuous consumption on consumer cynicism, both directly and indirectly through emotional solidarity related to both communal and equitable principles.

This study holds significance for both luxury food service researchers and market design practitioners. It provides valuable insights into how ethical labeling interacts with consumers conspicuous consumption, all facilitated by emotional solidarity.

While today's customer steadily adapts to various modes of shopping, their beliefs around fluency through each shopping channel, and personal factors such as income level, can impact their intention to patronage or purchase from omnichannel department stores. Hence, this study analysed the customers of omnichannel fashion department stores, using perceived fluency and income as indirect factors that help understand customers' patronage intention and purchase intention.

The overarching framework for this research is the theory of reasoned action, in which patronage and purchase intentions represent the specific likelihood-of-performance behaviours. A Seemingly Unrelated Regression model was empirically used to analyse the relationships between generational cohorts, income, and perceived channel fluency and the behaviours that lead to patronage intention and purchase intention. Researchers conducted a survey among 552 omnichannel fashion department store consumers to examine today's retail environment.

The results of this study suggest that (1) consumers between the ages of 50 and 69 years, including older Generation X and younger Baby Boomers, who earn between $60,000 and $79,999 in annual salary show a significantly positive relationship with both patronage and purchase intentions through perceived fluency and (2) consumers between the ages of 38 and 49 years, including older Millennials and younger Generation X, who earn between $80,000 and $99,999 in annual salary show a significantly positive relationship with purchase intention through perceived fluency

This study analyses correlations between a generational cohort, perceived fluency as moderated by income and the relationship between these variables and customers' patronage and purchase intentions, which has not been studied before.

To investigate (1) the relationship between young adults' behavioural brand loyalty (BBL) and Japanese fashion companies' financial performance (FP) and (2) FP improvement from the perspectives of social media brand engagement (BE) and loyalty programmes (LPs) by applying the complexity theory.

A mixed methodology was employed by combining qualitative and quantitative approaches to examine the prediction of outcomes by various variables in a realistic context. The integrated model associated BE and LPs with BBL and FP, which are essential for fashion companies. We selected 14 fashion brands belonging to 14 publicly traded Japanese fashion companies and surveyed 183 Japanese consumers (aged 18–25 years) who chose these brands as their favourites, engaged with the brands and participated in LPs.

The findings reveal the positive and negative effects of the variables (BE and LP) on the outcomes (short- and long-term FP). They offer marketing implications regarding brand strategy and financial improvement by considering various combinations of causal factors and complex situations, such as the fashion brands' and consumers' characteristics.

Existing empirical studies consider consumers' symmetric reactions to the benefits and losses from variables (BE, LP and BBL) but do not realistically reveal the negative and positive effects on outcomes (FP). This study addresses this gap by applying the complexity theory and offers multiple solutions to target different consumer types to predict high FP.

This study aims to examine the moderating role of principle-based entity (PBE) of luxury brands and its effect on perceived corporate social responsibility (CSR) motives, consumer situational scepticism and brand resonance.

Structural equation modelling using multigroup analysis was used. Data were collected through a consumer panel.

Values-driven motives lowered consumer situational scepticism (CSS) significantly more in PBE than non-PBE. However, egoistic-driven motives increased CSS significantly more in PBE than non-PBE. Stakeholder-driven motives and strategic-driven motives did not elicit CSS, contrary to prior studies in non-luxury brands. PBE status also weakens the relationship between CSS and brand resonance more than non-PBE status.

This study is the first to provide empirical insights into PBE status and its effects on perceived motives, CSS of CSR initiatives and its influence in consumer and management outcomes in luxury brands.