The dilemma of luxury brand extensions

Abstract

The present paper focuses on luxury brand perceptions and their effect on attitude towards brand extensions whilst addressing the moderating role of hedonism. Particularly, the study discusses how hedonism affects the way luxury brand perceptions influence attitude towards upward and downward brand extensions. Two online surveys are used to review consumers’ attitude towards upward and downward extensions. Two real brand cases, the brands of Louis Vuitton and Hugo Boss, provide the context for the studies based on the perceived divergence between the marketing approaches of the brands. Louis Vuitton is considered as a more exclusive luxury brand, whereas Hugo Boss is perceived as more open to the masses, universally consumed brand. Study 1 indicates that luxury brand perceptions generate positive attitudes towards upward extensions. Hedonic consumption does not moderate the relationship between luxury brand perceptions and attitude towards upward extensions. Study 2 designates that luxury brand perceptions lead to negative attitudes towards downward extensions. Hedonic motives seem to significantly moderate this relationship. The study discussed significant implications for both academics and practitioners with respect to the role of consumers’ personal motives on the effectiveness of mass marketing strategies in the luxury brand sector.