This study examines the concept of consumer perceived extension authenticity and the extent to which the launch of a luxury downward (masstige) extension can affect the parent brand status signaling and parent brand purchase intentions with consumer-perceived extension fit and consumer attitude toward the extension as mediating variables.
Using a large sample of luxury consumers in the United States, France and China, we apply structural equation modeling (SEM) to assess the spillover effect of luxury downward (masstige) on the parent brand status signaling. The main measurement constructs being extension authenticity (brand heritage dimension), consumer-perceived extension fit and consumer attitude toward the extension.
Findings demonstrate that a luxury downward (masstige) extension negatively affects its luxury parent brand status signaling and purchase intentions and is more common among cultures with higher Motivation toward Achievement and Success (MAS) (e.g. the US and China) than among those with lower MAS (e.g. France). By contrast, when the relationship is partially mediated by consumer-perceived extension fit and attitude, luxury downward (masstige) extension authenticity (brand heritage) has a significant spillover effect on luxury parent brand status signaling for countries with lower Uncertainty Avoidance (UA) – (e.g. the US and China) but not for countries with higher UA (e.g. France).
Numerous luxury brand manufacturers have been encouraged to capitalize on the rapidly growing masstige trend by introducing their own downward extension masstige extensions. However, such extensions that are inherently develop “downward” face the risk diluting the luxury parent status signaling. The goal of this study is to scientifically and empirically demonstrate this important luxury branding issue through a cross-national comparison.
