The role of perceived value in vertical brand extensions of luxury and premium brands

• Published in: Journal of marketing management Vol. 31; no. 7-8; pp. 881 - 913
• Main Authors: Dall'Olmo Riley, Francesca, Pina, José M., Bravo, Rafael
• Format: Journal Article
• Language: English
• Published: Helensburg Routledge 04-05-2015; Taylor & Francis Ltd
• Subjects: Attitudes; Brand equity; Brands; Consumer attitudes; Consumer behavior; Correlation analysis; Luxuries; Luxury; luxury brand; mediating variable; perceived value; Products; purchase intention; SEM-PLS; Studies; Value; vertical brand extension
• ISSN: 0267-257X; 1472-1376
• DOI: 10.1080/0267257X.2014.995692

This study examines the role of perceived value in the relationship between brand attitude, perceived fit, extension attitude and consumers' purchase intention of downscale vertical extensions of luxury and premium brands in two product categories: cars and shoes. Results from 236 individuals with different income levels show that extension attitude is positively related to purchase intention both directly and indirectly, via the perceived value of the extension; the latter is more strongly correlated than extension attitude to consumers' purchase intention. Brand attitude is also positively associated with perceived value. Overall, perceived value partially mediates the relationships of brand attitude and of extension attitude with purchase intention. The product category affects the strength of some of the relationships in the model, including the role of fit.