Mer är mer - En kvantitativ studie på effekterna av vertikala varumärkesutvidgningar i nedåtgående led på lyxvarumärken

Sammanfattning: In order for brands to differentiate themselves from their competitors, they frequently renew themselves by launching new brands. The luxury industry is characterized by a high competition and density of brands, therefore a differentiating strategy is even more important. One of these strategies is vertical brand extension that involves launching a new brand within the same category but with a different quality and price level. Vertical brand extension is a common strategy for luxury brands since it creates the possibility to increase sales and simultaneously uses luxury brands most important resource; brand image. Previous research has focused on the effects vertical brand extensions has on non-luxury brands but the effects on luxury brands is relatively unexplored. This study examines a luxury brand that has launched a new brand with lower quality and price by testing the fictitious brands Waldorf, Toms, Gravelle and their respective vertical brand extensions to lower quality W by Waldorf, T by Toms, G by Gravelle. The objective of this study is to describe the effects that vertical brand extensions to lower quality have on luxury brands. The results from this study are based on a survey designed by the authors that was answered by 210 respondents. The study finds that by extending luxury brands to lower quality, individuals' evaluation, attitude, purchase intention for the brand and their perceived pleasure improves. Furthermore, the study confirms earlier research on the importance of brand fit between the luxury brand and its extension. The implications from the study are that variety effects are especially important for luxury brands and therefore, vertical brand extension to lower quality is a valuable strategy for luxury brands.