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The impact of branding strategies on horizontal and downward line extension of luxury brands: A cross-national study

Jean Boisvert (Department of Marketing, American University of Sharjah, Sharjah, United Arab Emirates)
Nicholas J. Ashill (Department of Marketing, American University of Sharjah, Sharjah, United Arab Emirates)

International Marketing Review

ISSN: 0265-1335

Article publication date: 5 September 2018

Issue publication date: 25 October 2018

4258

Abstract

Purpose

The purpose of this paper is to empirically assess the impact of branding strategies on horizontal and downward line extensions of French luxury brands in a cross-national context (France vs USA).

Design/methodology/approach

This study is based on a two line extensions (horizontal/downward) × three branding strategies (direct brand/sub-brand/standalone brand) x two country (France/USA) between-subjects ANOVA design.

Findings

The study shows that the subtyping effect created by a sub-branded luxury downward line extension tends to be rated similarly to a direct branded extension which oppose previous beliefs put forward in non-luxury settings. In contrast, a new independent/standalone extension fully uses the subtyping effect which helps attenuate this risk related to luxury downward stretches. The study also found that the effect of gender in cross-national settings must always be taken into consideration as significant variations occur in the process.

Research limitations/implications

The study covers two countries but should be replicated in other cross-national contexts.

Practical implications

This study helps marketing managers of luxury brands make a better decision when it comes to launching vertical line extensions (upscale/downward) by carefully using types of branding strategies and relevant communications whether women and/or men are targeted in cross-national contexts.

Originality/value

This study breaks new ground in the international luxury literature by providing key theoretical and managerial insights in terms of launching new downward line extensions with the proper use of branding strategies when targeting specific genders.

Keywords

Citation

Boisvert, J. and Ashill, N.J. (2018), "The impact of branding strategies on horizontal and downward line extension of luxury brands: A cross-national study", International Marketing Review, Vol. 35 No. 6, pp. 1033-1052. https://doi.org/10.1108/IMR-10-2017-0208

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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