The effects of a Disney masstige brand collaboration on perceptions of brand luxury: vertical versus horizontal product line extension strategies

Abstract

Purpose The purpose of this study is to examine the effects of a Disney collaboration and Disney product line extension type on the perceptions of masstige brands and purchase intentions. By identifying masstige brands as two types (i.e. born-masstige versus luxury-masstige brands), this study investigates how consumers respond to a Disney collection across different types of masstige brands. Design/methodology/approach The authors conducted three studies using an experimental approach. Findings Study 1 shows that compared to a traditional collection, a Disney collection lowered perceptions of brand luxury, but the negative effect is stronger for born-masstige brands than luxury-masstige brands. Studies 2 and 3 revealed that an upward extension enhanced perceptions of luxury for the born-masstige brand more than it did with a horizontal extension, whereas there was no difference between upward and horizontal extensions for the luxury-masstige brand. Research limitations/implications This study contributes to understanding how Disney collaborations influence consumers’ perceptions of masstige brands. It has implications for brand positioning and pricing strategies for practitioners collaborating with Disney or similar companies. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to investigate consumer responses to a Disney collaborated collection across two types of masstige brands by exploring their type of product line extensions.