IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v124y2021icp560-570.html
   My bibliography  Save this article

Branding the hotel industry: The effect of step-up versus step-down brand extensions

Author

Listed:
  • Hultman, Magnus
  • Papadopoulou, Christina
  • Oghazi, Pejvak
  • Opoku, Robert

Abstract

The study investigates how customer perceptions of parent brands influence the perceived value of brand extensions in the hotel industry and how these relationships are moderated by the nature of the brand extension in question. Drawing on brand equity logic, the study proposes that perceived positive brand attributes, awareness, attitudes, and loyalty toward the parent brand positively relate to higher perceived value of the brand extension, and that these positive relationships grow stronger in cases of step-down extensions rather than step-up extensions. Survey results from UK hotel customers reveal that only perceived parent brand attributes and attitudes seem to have a positive impact on perceived value of the extension and subsequent (re)visit intentions. The moderation results further reveal that the positive relationships turn stronger in cases of step-down extensions and insignificant during step-up extensions. Managers are therefore cautioned to apply step-up extensions too frivolously, as such extensions seem largely ineffective in generating consumer value and subsequent behavioral intentions, whereas the effectiveness is heightened in cases of step-down extensions.

Suggested Citation

  • Hultman, Magnus & Papadopoulou, Christina & Oghazi, Pejvak & Opoku, Robert, 2021. "Branding the hotel industry: The effect of step-up versus step-down brand extensions," Journal of Business Research, Elsevier, vol. 124(C), pages 560-570.
  • Handle: RePEc:eee:jbrese:v:124:y:2021:i:c:p:560-570
    DOI: 10.1016/j.jbusres.2020.10.047
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320307219
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2020.10.047?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul W. Miniard & Rama K. Jayanti & Cecilia M. O. Alvarez & Peter R. Dickson, 2018. "What brand extensions need to fully benefit from their parental heritage," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 948-963, September.
    2. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    3. Liebermann, Yehoshua, 1999. "Membership Clubs as a Tool for Enhancing Buyers' Patronage," Journal of Business Research, Elsevier, vol. 45(3), pages 291-297, July.
    4. Hongwei He & Yan Li, 2011. "CSR and Service Brand: The Mediating Effect of Brand Identification and Moderating Effect of Service Quality," Journal of Business Ethics, Springer, vol. 100(4), pages 673-688, June.
    5. Yuan, Ruizhi & Liu, Martin J. & Luo, Jun & Yen, Dorothy A., 2016. "Reciprocal transfer of brand identity and image associations arising from higher education brand extensions," Journal of Business Research, Elsevier, vol. 69(8), pages 3069-3076.
    6. Liu, Matthew Tingchi & Wong, IpKin Anthony & Tseng, Ting-Hsiang & Chang, Angela Wen-Yu & Phau, Ian, 2017. "Applying consumer-based brand equity in luxury hotel branding," Journal of Business Research, Elsevier, vol. 81(C), pages 192-202.
    7. Martínez Salinas, Eva & Pina Pérez, José Miguel, 2009. "Modeling the brand extensions' influence on brand image," Journal of Business Research, Elsevier, vol. 62(1), pages 50-60, January.
    8. Nita Umashankar & Yashoda Bhagwat & V. Kumar, 2017. "Do loyal customers really pay more for services?," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 807-826, November.
    9. Fournier, Susan, 1998. "Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 343-373, March.
    10. Foroudi, Pantea & Jin, Zhongqi & Gupta, Suraksha & Foroudi, Mohammad M. & Kitchen, Philip J., 2018. "Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention," Journal of Business Research, Elsevier, vol. 89(C), pages 462-474.
    11. Dall'Olmo Riley, Francesca & Pina, José M. & Bravo, Rafael, 2013. "Downscale extensions: Consumer evaluation and feedback effects," Journal of Business Research, Elsevier, vol. 66(2), pages 196-206.
    12. Pantea Foroudi & Zhongqi Jin & Suraksha Gupta & Mohammad M. Foroudi & Philip Kitchen, 2018. "Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention," Post-Print hal-01813914, HAL.
    13. Hem, Leif Egil & Iversen, Nina Marianne & Olsen, Lars Erling, 2014. "Category characteristics' effects on brand extension attitudes: A research note," Journal of Business Research, Elsevier, vol. 67(8), pages 1589-1594.
    14. Pina, José M. & Dall'Olmo Riley, Francesca & Lomax, Wendy, 2013. "Generalizing spillover effects of goods and service brand extensions: A meta-analysis approach," Journal of Business Research, Elsevier, vol. 66(9), pages 1411-1419.
    15. Goedertier, Frank & Dawar, Niraj & Geuens, Maggie & Weijters, Bert, 2015. "Brand typicality and distant novel extension acceptance: How risk-reduction counters low category fit," Journal of Business Research, Elsevier, vol. 68(1), pages 157-165.
    16. Liu, Yeyi & Hultman, Magnus & Eisingerich, Andreas B. & Wei, Xingjie, 2020. "How does brand loyalty interact with tourism destination? Exploring the effect of brand loyalty on place attachment," Annals of Tourism Research, Elsevier, vol. 81(C).
    17. Lei, Jing & de Ruyter, Ko & Wetzels, Martin, 2008. "Consumer Responses to Vertical Service Line Extensions," Journal of Retailing, Elsevier, vol. 84(3), pages 268-280.
    18. Pontes, Nicolas & Palmeira, Mauricio & Jevons, Colin, 2017. "Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 209-218.
    19. Shimp, Terence A & Bearden, William O, 1982. "Warranty and Other Extrinsic Cue Effects on Consumers' Risk Perceptions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 38-46, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pizzetti, Marta & Chereau, Philippe & Soscia, Isabella & Teng, Fangyuan, 2023. "Attitudes and intentions toward masstige strategies: A cross-cultural study of French and Chinese consumers," Journal of Business Research, Elsevier, vol. 167(C).
    2. Quamina, La Toya & Xue, Melanie Tao & Chawdhary, Rahul, 2023. "‘Co-branding as a masstige strategy for luxury brands: Desirable or not?," Journal of Business Research, Elsevier, vol. 158(C).
    3. Park, Joonyong & Kim, Renee B., 2022. "Importance of offline service quality in building loyalty of OC service brand," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    4. He, Yue & Mo, Zan & Wan, Xiuqi & Li, Mengyin & Fu, Huijian, 2023. "Who will embrace upward line extension? The role of power distance belief," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Amanda Belarmino & Yoon Koh & Hyejo Hailey Shin, 2022. "Blurred lines: comparing room rates, star-ratings, and user-generated contents for full-service and select-service hotels," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 721-742, September.
    6. Kuo-Yan Wang & Mu-Lan Ma & Jing Yu, 2021. "Understanding the perceived satisfaction and revisiting intentions of lodgers in a restricted service scenario: evidence from the hotel industry in quarantine," Service Business, Springer;Pan-Pacific Business Association, vol. 15(2), pages 335-368, June.
    7. Marta Pizzetti & Philippe Chereau & Isabella Soscia & Fangyuan Teng, 2023. "Attitudes and intentions toward masstige strategies: A cross-cultural study of French and Chinese consumers," Post-Print hal-04207447, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. He, Yue & Mo, Zan & Wan, Xiuqi & Li, Mengyin & Fu, Huijian, 2023. "Who will embrace upward line extension? The role of power distance belief," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    2. Ghanbarpour, Tohid & Gustafsson, Anders, 2022. "How do corporate social responsibility (CSR) and innovativeness increase financial gains? A customer perspective analysis," Journal of Business Research, Elsevier, vol. 140(C), pages 471-481.
    3. Anja Plumeyer & Pascal Kottemann & Daniel Böger & Reinhold Decker, 2019. "Measuring brand image: a systematic review, practical guidance, and future research directions," Review of Managerial Science, Springer, vol. 13(2), pages 227-265, April.
    4. Pourazad, Naser & Stocchi, Lara & Pare, Vipul, 2019. "Brand attribute associations, emotional consumer-brand relationship and evaluation of brand extensions," Australasian marketing journal, Elsevier, vol. 27(4), pages 249-260.
    5. Dimitriu, Radu & Warlop, Luk, 2022. "Is similarity a constraint for service-to-service brand extensions?," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1019-1041.
    6. E. Bacchiega & M. Colucci & M. Magnani, 2019. "What goes around, comes around: Reciprocal effects and double-sided moral hazard in the choice of brand licensing," Working Papers wp1136, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Dwivedi, Abhishek & Merrilees, Bill, 2013. "Retail brand extensions: Unpacking the link between brand extension attitude and change in parent brand equity," Australasian marketing journal, Elsevier, vol. 21(2), pages 75-84.
    8. Pontes, Nicolas & Palmeira, Mauricio & Jevons, Colin, 2017. "Brand expertise and perceived consistency reversals on vertical line extensions: The moderating role of extension direction," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 209-218.
    9. Beichen Liang & Wei Fu, 2021. "The choice of brand extension: the moderating role of brand loyalty on fit and brand familiarity," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(1), pages 17-32, March.
    10. Tran, Trang P. & Lin, Chien-Wei & Baalbaki, Sally & Guzmán, Francisco, 2020. "How personalized advertising affects equity of brands advertised on Facebook? A mediation mechanism," Journal of Business Research, Elsevier, vol. 120(C), pages 1-15.
    11. Leenheer, J. & Bijmolt, T.H.A. & van Heerde, H.J. & Smidts, A., 2002. "Do Loyalty Programs Enhance Behavioral Loyalty : An Empirical Analysis Accounting for Program Design and Competitive Effects," Discussion Paper 2002-65, Tilburg University, Center for Economic Research.
    12. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    13. Salgado, Stéphane & Hemonnet-Goujot, Aurelie & Henard, David H. & de Barnier, Virginie, 2020. "The dynamics of innovation contest experience: An integrated framework from the customer’s perspective," Journal of Business Research, Elsevier, vol. 117(C), pages 29-43.
    14. Coelho, Pedro Simões & Rita, Paulo & Santos, Zélia Raposo, 2018. "On the relationship between consumer-brand identification, brand community, and brand loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 101-110.
    15. Sarker, Moniruzzaman & Mohd-Any, Amrul Asraf & Kamarulzaman, Yusniza, 2021. "Validating a consumer-based service brand equity (CBSBE) model in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    16. Cho, Jihoon & Janda, Swinder, 2023. "Reciprocity in upward product line extensions: A longitudinal study," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    17. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2023. "Masstige marketing: An empirical study of consumer perception and product attributes with moderating role of status, emotion, and pride," Journal of Business Research, Elsevier, vol. 155(PA).
    18. Lee, Kuo-Wei & Li, Chia-Ying, 2023. "It is not merely a chat: Transforming chatbot affordances into dual identification and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    19. Caroline Kopot & Brenda J. Cude, 2021. "Channel Depth or Consistency? A Study on Establishing a Sustainable Omnichannel Strategy for Fashion Department Store Retailers," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    20. Vicenta Sierra & Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh, 2017. "Does Ethical Image Build Equity in Corporate Services Brands? The Influence of Customer Perceived Ethicality on Affect, Perceived Quality, and Equity," Journal of Business Ethics, Springer, vol. 144(3), pages 661-676, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:124:y:2021:i:c:p:560-570. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.