Consumer responses to vertical service line extensions

Title: Consumer responses to vertical service line extensions
Creator: Lei, Jing; de Ruyter, Ko; Wetzels, Martin
Relation: Journal of Retailing Vol. 84, Issue 3, p. 268-280
Publisher Link: http://dx.doi.org/10.1016/j.jretai.2008.05.001
Publisher: Pergamon Press
Resource Type: journal article
Date: 2008
Description: Vertical line extensions extend an established brand to products at different price/quality points. In this study, we examine consumer evaluations of vertical service line extensions and the feedback effects of these extensions on the parent brand. Findings of two empirical studies in the hotel industry indicate that consumers perceive higher risks in step-up extensions than in step-down extensions, which consequently influences their evaluations of the extensions. This effect of extension direction is also found to be moderated by risk relievers such as service guarantee and consumers’ prior knowledge in the service category. Furthermore, we found that a parent brand receives more positive evaluations after the introduction of a step-up extension than that of a step-down extension.
Subject: consumer brand evaluation; vertical service line extension; feedback effect
Identifier: http://hdl.handle.net/1959.13/1058497
Identifier: uon:16426
Identifier: ISSN:0022-4359
Language: eng
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