The broad embrace of luxury: Hedonic potential as a driver of brand extendibility

Abstract This research proposes a feelings‐based account of brand extension evaluation and demonstrates that the promise of pleasure (hedonic potential) associated with luxury brands is a key driver of brand extendibility. In four studies, we contrast a luxury brand with a value brand. Both brand concepts lead to equally favorable brand evaluations, but the luxury brand concept results in more favorable brand extension evaluations due to the hedonic potential inherent in this concept. However, the luxury brand is shown to be sensitive to inconsistent brand cues, leading to diminished hedonic potential and consequently decreased brand and brand extension evaluations.