The purpose of this study is to examine how status‐seeking and fashion‐innovative young consumers evaluate diffusion brands. The influence of brand naming techniques and country of origin on brand image and product quality of diffusion brands is also examined.
Two well‐known luxury brands and two product categories were identified as the stimulus for the study through pretests. Data were collected using a convenience sampling method in a large Australian university. A self‐administered questionnaire was distributed and 603 usable responses were returned with the sample falling between the ages of 18‐24.
The results revealed that sub‐brands and nested brands have similar product quality and brand image evaluation when compared with the parent brand. Furthermore, sub‐brands and nested brands have demonstrated product quality fit and brand image fit with the parent brand. The findings suggest that a new brand is not a good substitute for the parent brand to express status. In addition, brand origin is a greater indication of product or brand quality than country of origin.
Replication of study on other segments is worthy of future research. Only the influence of fashion innovativeness and status consumption on diffusion brands was examined. Other external factors can be identified and explored.
Marketers or brand strategists can consider establishing sub‐brands or a nested brand in the early stages of product innovation as status symbols to attract young consumers. There should also be greater emphasis on brand name instead of product involvement when marketing a diffusion brand.
There is limited research that examines how young status‐seeking and fashion‐innovative consumers evaluate diffusion brands. Furthermore, the study is conducted in an Australian context. Two product categories were also studied.
