TY - JOUR
T1 - Branding the hotel industry: The effect of step-up versus step-down brand extensions
AU - Hultman, Magnus
AU - Papadopoulou, Christina
AU - Oghazi, Pejvak
AU - Opoku, Robert
PY - 2021
Y1 - 2021
N2 - The study investigates how customer perceptions of parent brands influence the perceived value of brand extensions in the hotel industry and how these relationships are moderated by the nature of the brand extension in question. Drawing on brand equity logic, the study proposes that perceived positive brand attributes, awareness, attitudes, and loyalty toward the parent brand positively relate to higher perceived value of the brand extension, and that these positive relationships grow stronger in cases of step-down extensions rather than step-up extensions. Survey results from UK hotel customers reveal that only perceived parent brand attributes and attitudes seem to have a positive impact on perceived value of the extension and subsequent (re)visit intentions. The moderation results further reveal that the positive relationships turn stronger in cases of step-down extensions and insignificant during step-up extensions. Managers are therefore cautioned to apply step-up extensions too frivolously, as such extensions seem largely ineffective in generating consumer value and subsequent behavioral intentions, whereas the effectiveness is heightened in cases of step-down extensions.
AB - The study investigates how customer perceptions of parent brands influence the perceived value of brand extensions in the hotel industry and how these relationships are moderated by the nature of the brand extension in question. Drawing on brand equity logic, the study proposes that perceived positive brand attributes, awareness, attitudes, and loyalty toward the parent brand positively relate to higher perceived value of the brand extension, and that these positive relationships grow stronger in cases of step-down extensions rather than step-up extensions. Survey results from UK hotel customers reveal that only perceived parent brand attributes and attitudes seem to have a positive impact on perceived value of the extension and subsequent (re)visit intentions. The moderation results further reveal that the positive relationships turn stronger in cases of step-down extensions and insignificant during step-up extensions. Managers are therefore cautioned to apply step-up extensions too frivolously, as such extensions seem largely ineffective in generating consumer value and subsequent behavioral intentions, whereas the effectiveness is heightened in cases of step-down extensions.
KW - 512 Business and Management
KW - brand extension
KW - hotel
KW - brand value
KW - step-up extension
KW - step-down extension
KW - brand equity
UR - http://www.scopus.com/inward/record.url?scp=85094824198&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/3cd0c96c-0abf-3a0e-8064-d5fe6372b50a/
U2 - 10.1016/j.jbusres.2020.10.047
DO - 10.1016/j.jbusres.2020.10.047
M3 - Article
VL - 124
SP - 560
EP - 570
JO - Journal of Business Research
JF - Journal of Business Research
SN - 0148-2963
ER -