The impact of luxury brand status signaling, extension authenticity and fit on luxury line extension evaluation: a cross-national study

Purpose Grounded in categorization theory, this study examines the impact of luxury parent brand status signaling on brand extension authenticity and consumer attitudes in two international luxury markets. Design/methodology/approach Using samples of luxury consumers from France and the United States, the study's hypotheses are tested using confirmatory factor analysis (CFA), structural equation modelling (SEM) and multi-groups comparisons. Findings Findings demonstrate that luxury parent brand (PB) status signaling, familiarity and perceived quality impact luxury extension authenticity, and authenticity has a significant effect on consumer attitudes toward the extension. The relationship between PB status signaling and extension authenticity is stronger for French consumers compared to their American counterparts. The effect of luxury PB perceived quality and familiarity on PB status signaling is similar for both American and French consumers. However, the effect of PB familiarity on luxury brand extension authenticity is stronger in France than the United States. Research limitations/implications Results provide researchers and managers with insights on how to design marketing programs for luxury line extensions in a cross-national context. Originality/value The authors contribute to existing literature examining factors related to the parent brand and the relationship between the parent brand and the extension by examining the effect of PB status signaling and extension authenticity on extension attitudes in two international luxury markets.