Résumé

Although the benefits of a brand extension are numerous, companies should carefully pick their extension strategies. Extant literature indicates that both fit and brand extension authenticity (BEA) are important in determining the success of a brand extension. A brand may be able to stretch successfully into more distant categories (such as luxury consumer goods into hospitality), provided that BEA is high. In the current paper, we test and confirm that high BEA is not mandatory for all types of parent luxury brands. More specifically, we find that high BEA is not important for luxury parent brands perceived as authentic. Since consumers are expecting consistency in every action authentic brands undertake, they will not additionally search for a proof of the legitimacy of the brand extension. Interestingly, we also find that for luxury brands perceived low in authenticity, consumer reactions towards the extension are positive only when BEA is low.

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