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Luxury brand dilution: investigating the impact of renting by Millennials on brand equity

Author

Listed:
  • Areti T. Vogel

    (Stetson University)

  • Sasikarn Chatvijit Cook

    (Catawba College)

  • Kittichai Watchravesringkan

    (UNCG)

Abstract

Modern forms of product acquisition, such as renting, provide consumers with either first-time or increased access at relatively low cost to products of brands that historically have relied on exclusivity as a part of their strategies. This study seeks to determine how the ability of Millennials to rent exclusive luxury brands affects the values of those brands from the consumer perspective (i.e., brand equity). A one-way (traditional vs. masstige brand offered renting option) between-subjects experimental design was used. Results reveal that the means of the brand credibility and brand leadership dimensions of traditional luxury brand equity were decreased significantly after a renting option was offered. Results further show that the means of the brand association and brand credibility dimensions of masstige brand equity were decreased significantly after a renting option was also offered. Implications and future research directions are addressed.

Suggested Citation

  • Areti T. Vogel & Sasikarn Chatvijit Cook & Kittichai Watchravesringkan, 2019. "Luxury brand dilution: investigating the impact of renting by Millennials on brand equity," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 473-482, July.
    • Handle: RePEc:pal:jobman:v:26:y:2019:i:4:d:10.1057_s41262-018-00144-4
    DOI: 10.1057/s41262-018-00144-4
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    References listed on IDEAS

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    Cited by:

    1. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    2. Shaun M. Powell, 2019. "Journal of Brand Management: year end review 2019," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 615-620, November.
    3. Boisvert, Jean & Christodoulides, George & Sajid Khan, M., 2023. "Toward a better understanding of key determinants and consequences of masstige consumption," Journal of Business Research, Elsevier, vol. 161(C).
    4. Jain, Ritu & Jain, Kokil & Behl, Abhishek & Pereira, Vijay & Del Giudice, Manlio & Vrontis, Demetris, 2022. "Mainstreaming fashion rental consumption: A systematic and thematic review of literature," Journal of Business Research, Elsevier, vol. 139(C), pages 1525-1539.
    5. Shahid, Shadma & Adil, Mohd & Sadiq, Mohd & Dash, Ganesh, 2024. "Why do consumers consume masstige products? A cross-cultural investigation through the lens of self-determination theory," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    6. Schleich, Joachim & Tu, Gengyang & Faure, Corinne & Guetlein, Marie-Charlotte, 2021. "Would you prefer to rent rather than own your new heating system? Insights from a discrete choice experiment among owner-occupiers in the UK," Energy Policy, Elsevier, vol. 158(C).
    7. Kumar, Jitender, 2024. "Psychological mechanisms behind access-based luxury brand consumption: Empirical investigation from the lens of new ownership paradigm," Journal of Business Research, Elsevier, vol. 175(C).

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