scholarly journals Unique Brand Extension Challenges For Luxury Brands

2011 ◽  
Vol 4 (10) ◽  
Author(s):  
Nicole Stegemann
Keyword(s):  
Brand Equity ◽  
Marketing Strategies ◽  
Brand Extensions ◽  
Luxury Brands ◽  
Font Size ◽  
Demand And Supply ◽  
Luxury Brand ◽  
Parent Brand ◽  
Luxury Market ◽  
The Impact

<p class="MsoBodyTextIndent3" style="line-height: normal; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-style: normal;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">This article addresses the impact of brand extensions on the brand equity of luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>A review of the developments in the luxury market has shown significant changes in demand and supply sides.<span style="mso-spacerun: yes;">&nbsp; </span>The luxury market has been growing rapidly over the last 20 years, and luxury brands, formerly reserved for a small group of privileged individuals, are now available to more consumers.<span style="mso-spacerun: yes;">&nbsp; </span>Meanwhile, luxury goods manufacturers have been applying new marketing strategies, and extending their brands without any insights as to the consequences for their brands.<span style="mso-spacerun: yes;">&nbsp; </span>Despite these changes, little research has investigated the luxury market.<span style="mso-spacerun: yes;">&nbsp; </span>Therefore, a systematic review has been undertaken regarding the nature of luxury brands and research measuring individual luxury brand equity elements such as attitudes and perceptions.<span style="mso-spacerun: yes;">&nbsp; </span>Deviating results in the application of concepts for non-luxury brands to luxury brands have been found due to the abstract and emotional nature of luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>These results support the development of distinct brand equity constructs for luxury brands.<span style="mso-spacerun: yes;">&nbsp; </span>The main focus of this article is the impact of luxury brand extensions on the parent brand&rsquo;s equity and the proposal of a framework to allow the impact to be measured.</span></span></span></p>

Investigating the Impact of Luxury Brands' Traditional and Digital Contents on Customer-Based Brand Equity

2021 ◽  
pp. 81-100
Author(s):  
Fabrizio Mosca ◽  
Philip J. Kitchen ◽  
Valentina Chiaudano
Keyword(s):  
Social Networking ◽  
Brand Equity ◽  
Direct Consequence ◽  
Luxury Brands ◽  
Communication Tools ◽  
Luxury Brand ◽  
Level Of Satisfaction ◽  
Digital Contents ◽  
Marketing Actions ◽  
The Impact

After a period of initial scepticism, luxury-branded companies now understand the necessity of integrating digital technologies into their marketing actions. Therefore, most luxury companies approach emerging digital tools commencing from communication strategies. The direct consequence is the adoption of social media such as blogs, applications (apps), and social networking as new communication tools alongside and in conjunction with traditional media. The purpose of this chapter lies in seeking to understand the extent to which luxury brand consumers appreciate the contents of luxury brand communications and in comparing digital and traditional ranges. In addition, the chapter investigates the existence of a correlation between the level of satisfaction perceived by luxury consumers and the dimension of customer brand equity according to the Aaker model. In this endeavour, this study is an attempt to provide academics and practitioners with insight about the expectation of luxury brand consumers from contents delivered, comparing digital and traditional platforms.

scholarly journals The effect of vertical brand extensions on consumer-brand relationships in South Africa

2017 ◽  
Vol 48 (1) ◽  
pp. 1-10 ◽  
Author(s):  
O. Muroyiwa ◽  
R. Abratt ◽  
M. Mingione
Keyword(s):  
South African ◽  
Negative Impact ◽  
Brand Extensions ◽  
Brand Commitment ◽  
Luxury Brands ◽  
Brand Relationships ◽  
Brand Attachment ◽  
Luxury Brand ◽  
Vertical Step ◽  
The Impact

The purpose of this research is to evaluate the impact of the introduction of vertical brand extensions on Consumer-Brand Relationships (CBRs) in the mobile phone market. In particular, we aim at exploring the effect vertical brand extensions that luxury and functional brands have on consumers’ perceptions, as well as the effect the extensions will have on CBRs. This study pursues a quantitative approach, developing and testing four hypotheses on the influence vertical brand extensions have on four CBR-related constructs, namely brand attachment, brand trust, brand commitment and brand identification. The elicited context is the South African market and the selected brands are Apple, to represent luxury brands, and Samsung, representative of functional brands. Results only partially confirm previous research on vertical brand extension. Supporting previous studies, a vertical step-down extension has been found to have a stronger negative impact on brand commitment for the luxury brand than for the functional one. However, findings disconfirm the literature in revealing a stronger negative impact on the functional brand than the luxury brand and a positive effect on the brand attachment of both brands, especially the functional brand.

scholarly journals Impact of Status Consciousness on Consumer Purchase Intention and Brand Equity: the Mediating Role of Brand Associations

2020 ◽  
Vol 6 (1) ◽  
pp. 23-42
Author(s):  
Hayat M. Awan ◽  
Zara Hayat ◽  
Sahar Hayat ◽  
Rafia Faiz
Keyword(s):  
Brand Equity ◽  
Purchase Intention ◽  
Marketing Strategies ◽  
Brand Associations ◽  
Mediating Role ◽  
The Status ◽  
Consumer Purchase Intention ◽  
The Impact ◽  
Self Administered Questionnaire

This paper studies the impact of status consciousness on consumer’s purchase intention and brand equity. It also examines the mediating role of brand associations between status consciousness, purchase intention and brand equity. A self-administered questionnaire was developed and data was collected from a sample of 500 female customers. The results support that status conscious consumers develop associations towards the brands and so they intend to purchase those brands, thus raising the brand equity. The results obtained will help the marketers by focusing on developing strong brand associations for luxurious brands for the status conscious consumers. It will also help in developing marketing strategies specifically designed to promote luxurious brands to increase consumer’s purchase intention and brand equity.

Slogans With Negations’ Effect on Sustainable Luxury Brand

2021 ◽  
pp. 183933492110466
Author(s):  
Felix Septianto ◽  
Joya Kemper ◽  
Gavin Northey
Keyword(s):  
Cognitive Flexibility ◽  
Communication Strategies ◽  
Experimental Studies ◽  
Effective Communication ◽  
Brand Attitudes ◽  
Luxury Brands ◽  
Consumer Responses ◽  
Luxury Brand ◽  
The Impact

The integration of sustainability within luxury brands is of increasing concern to practitioners and academics alike. Thus, it is important to consider how brands can develop effective communication strategies to promote sustainable luxury brands, particularly among an increasingly skeptical consumer base. This research thus investigates the impact of advertising slogans with negations (vs. affirmations) in this regard. Three experimental studies show that advertising slogans with negations (vs. affirmations) increase brand trustworthiness (Studies 1 and 3) and favorable brand attitudes (Studies 1 and 2) among consumers with high levels of skepticism. Notably, this effect is driven by an increased cognitive flexibility (Study 3). The findings of this research can assist sustainable luxury brand managers in developing effective communication strategies to increase favorable consumer responses to sustainable luxury brands.

Branded Content on Social Media

2017 ◽  
pp. 118-131
Keyword(s):  
Social Media ◽  
Brand Equity ◽  
Marketing Strategies ◽  
Social Media Marketing ◽  
Vital Part ◽  
Long Run ◽  
Social Media Platforms ◽  
Marketing Tool ◽  
The Impact

Social media platforms have become a powerful marketing tool for brands in order to reach new audiences and engage with them. Creative content is a vital part of social media marketing strategies, as innovative content can attract more users and improve brand health. In this chapter, the channels and creative strategies that are being utilized by marketers in social media are explored, and brand health, which is how the brand is evaluated by consumers, is examined. Brand health is an indicator for brand equity in the long run, and as such, the impact of social media marketing on it should be considered by managers.

Enhancing Consumer-Brand Relationships Through Luxury Brand Experiences

2021 ◽  
pp. 86-107
Author(s):  
Esra Arıkan
Keyword(s):  
Brand Experience ◽  
Luxury Brands ◽  
Brand Relationships ◽  
Luxury Brand ◽  
Relational Outcomes ◽  
Luxury Market

The extant research highlights that the strength of consumer-brand relationships is very much shaped by consumers' experiences with brands. Given the inherent characteristics of luxury brands, it is no surprise that luxury consumers expect much more intense experiences, and thus the delivery of a superior brand experience is a necessity in the luxury market. Therefore, both marketing scholars and brand managers in the luxury market need to acknowledge the power of brand experiences as a way to strengthen consumer-brand relationships. However, despite the need for a deeper understanding of brand experience in the context of luxury brands, still much remains unknown regarding the factors that can be used to enhance brand experience. Building on this gap in the literature, this chapter investigates the relational outcomes of brand experience and subsequently discusses the various drivers that luxury brands can use to enhance luxury brand experience and thus develop stronger consumer-brand relationships.

Retaining the allure of luxury brands during an economic downturn

2015 ◽  
Vol 19 (4) ◽  
pp. 416-429 ◽  
Author(s):  
Salah Hassan ◽  
Melika Husić-Mehmedović ◽  
Philippe Duverger
Keyword(s):  
Competitive Advantage ◽  
Economic Downturn ◽  
Luxury Brands ◽  
Negative Consequences ◽  
Global Marketplace ◽  
Content Type ◽  
Luxury Brand ◽  
Global Brands ◽  
The Media ◽  
Luxury Market

Purpose – Despite the changing conditions worldwide, some global luxury brands have attained strong performance levels, and perhaps it is their globalness that keeps them resilient. Since the global luxury market is comprised of customer segments with relatively homogeneous needs, wants and motivations, achieving a global luxury brand positioning will help mitigate the negative consequences of economic crises, regardless of the market in which a luxury brand operates. The paper aims to discuss these issues. Design/methodology/approach – A survey instrument was administered to a sample of 200 professionals located in a European country where none of the global brands cited in the paper are originating. The country was also selected on the basis of its propensity to have local luxury brands in competition with the global brands in each of the categories tested. The survey was conducted during the peak of economic crisis in Europe. Findings – This study provides evidence that brand globalness may be a major value creating factor, and thus a source of competitive advantage for luxury brands competing in the global marketplace. Another question addressed by this study is should the luxury brand modulate the message projected in the media away from luxury and closer to quality or other stimuli less associated with luxury in order to avoid luxury shame. All these are questions addressed by this imperial study to investigate how the brand globalness influences consumer perceptions in global recessionary times. Originality/value – The proposed research formulates an empirical study of the underlining effects of what is referred to as “glocalization” in the literature on the luxury positioning. This study provides evidence that brand globalness may be a major value creating factor, and thus a source of competitive advantage for a luxury company competing in the global marketplace.

Entering the dragon’s nest: exploring Chinese upper-class consumers’ perception of luxury

2015 ◽  
Vol 18 (1) ◽  
pp. 4-29 ◽  
Author(s):  
Shan Chen ◽  
Lucio Lamberti
Keyword(s):  
Marketing Strategies ◽  
Upper Class ◽  
Luxury Brands ◽  
Chinese Market ◽  
Chinese Consumers ◽  
Individual Values ◽  
Content Type ◽  
Value Consciousness ◽  
New Perspective ◽  
Luxury Market

Purpose – The purpose of this study is to explore the perception of luxury from the perspectives of Chinese upper-class consumers. Design/methodology/approach – Four focus groups, each consisting of six upper-class and experienced luxury consumers, are formed in four cities, Beijing, Shanghai, Guangzhou and Hong Kong, which are among the most affluent, populated and developed in the luxury market. Findings – The findings suggest that Chinese upper-class luxury consumers, indeed, hold different perceptions for luxury in several aspects: price premium is a prestige in contrast to general Chinese consumers’ “value-consciousness”; exclusivity is more valued by the upper-class and experienced consumers; more attention of the upper-class consumers has shifted to individual values from social values; brand value is of high importance; and there exist differences among consumers in different regions. Practical implications – The study suggests that luxury brands should recognize the differences between the upper-class customers who are still the core consumers for luxury goods and the middle-class customers who are growing rapidly while designing their marketing strategies. Originality/value – The study focuses, unprecedentedly, on the upper-class and experienced Chinese luxury consumers who represent the most valuable group of customers of the luxury brands in the Chinese market. Given the peculiarity of customer behavior in the luxury market, such focus provides a brand new perspective without the noises from the inclusion of consumers with insufficient purchasing power and ineligible experience in luxury consumption.

The role of perceived brand personality in promotion effectiveness and brand equity development of professional sports teams

2017 ◽  
Vol 18 (2) ◽  
pp. 180-195 ◽  
Author(s):  
Marilyn Giroux ◽  
Frank Pons ◽  
Lionel Maltese
Keyword(s):  
Brand Equity ◽  
Structural Equation ◽  
Online Survey ◽  
Positive Impact ◽  
Brand Personality ◽  
Marketing Strategies ◽  
Equation Modeling ◽  
Content Type ◽  
Sports Industry ◽  
The Impact

Purpose In the highly saturated sports industry where sport teams represent a complex offering loaded with intangible and tangible attributes, it is important to implement appropriate marketing strategies that will ultimately contribute to the development of strong brand equity. In this paper, the authors focused on the relationship between brand variables and marketing activities on the development of brand equity. More specifically, the purpose of this paper is to study the impact of brand personality on the evaluation of marketing promotional activities and the impact on the brand equity. Design/methodology/approach Respondents (2,400) were recruited through an online survey and data were analyzed using structural equation modeling. Findings The survey revealed that the congruence between the brand personality and the promotional activities has a positive impact on its evaluation and on brand equity. In addition, the results showed that consumers who consider the financial strength of the team as an important factor evaluate more positively the value of congruent and incongruent promotional activities. Practical implications Brand managers should maintain consistency between their brand personality and their promotional activities in order to maintain and increase their brand equity. Originality/value The results contribute to the literature by investigating the impact of brand personality on the evaluation of promotional activities. Also, it examines an important factor (financial consciousness) that could influence how fans react in front of an incongruent promotional activity. This research brings a better understanding of the impact of brand personality on marketing strategies and brand equity.

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