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The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands

Author

Listed:
  • F. Magnoni

    (CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique)

  • E. Roux

    (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)

  • Pierre Valette-Florence

    (CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper analyzes the role of the brand concept (luxury vs. non-luxury) in the impact of step-down line extension on consumer-brand relationships. A before-and-after pseudo-experimental study conducted on the Internet among BMW and Peugeot buyers shows that step-down line extension negatively influences the main variables of consumer-brand relationships (e.g., self-brand connections, brand attachment, brand trust and brand commitment) only for the luxury brand BMW. On the contrary, no dilution effects are found for the non-luxury brand Peugeot.

Suggested Citation

  • F. Magnoni & E. Roux & Pierre Valette-Florence, 2011. "The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands," Post-Print halshs-00660296, HAL.
    • Handle: RePEc:hal:journl:halshs-00660296
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00660296
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    References listed on IDEAS

    as
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