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

F. Magnoni 1 E. Roux 2 Pierre Valette-Florence 1
1 (Axe de recherche : Marketing)
CERAG - Centre d'études et de recherches appliquées à la gestion, UPMF - Université Pierre Mendès France - Grenoble 2, UGA IAE - Université Grenoble Alpes - Institut d'Administration des Entreprises
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.
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F. Magnoni, E. Roux, Pierre Valette-Florence. The impact of step-down line extension on consumer-brand relationships: A risky strategy for luxury brands. 2011, 24 p. ⟨halshs-00660296⟩

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