The impact of branding strategies on horizontal and downward line extension of luxury brands: A cross-national study
International Marketing Review
ISSN: 0265-1335
Article publication date: 5 September 2018
Issue publication date: 25 October 2018
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.
Keywords
Citation
Boisvert, J. and Ashill, N.J. (2018), "The impact of branding strategies on horizontal and downward line extension of luxury brands: A cross-national study", International Marketing Review, Vol. 35 No. 6, pp. 1033-1052. https://doi.org/10.1108/IMR-10-2017-0208
Publisher
:Emerald Publishing Limited
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