Consumers' attitudes on downscale extensions of a luxury automotive brand
Abstract
Purpose
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).
Design/methodology/approach
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.
Findings
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).
Originality/value
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.
Keywords
Acknowledgements
Since submission of this article, the following author(s) have updated their affiliation(s): Ana Sousa is at the Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), University of Aveiro, Portugal.
Citation
Pedrosa, G., Nobre, H. and Sousa, A. (2024), "Consumers' attitudes on downscale extensions of a luxury automotive brand", EuroMed Journal of Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EMJB-04-2023-0127
Publisher
:Emerald Publishing Limited
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