The luxury should be “high”: the effect of positioning in cobranding on luxury evaluation

Purpose

This study examines how the visual cues (i.e. positioning in cobranding advertising) influence the luxury evaluation.

Design/methodology/approach

Through four experiments in different contexts, this study investigates the effects of the positioning of two brands in cobranding on luxury evaluation, the moderating role of product category and the mediating role of benefit understanding.

Findings

This study finds that the positioning of two brands in cobranding affects luxury evaluation. Specifically, vertical positioning benefits consumers’ attitude toward luxury compared with horizontal positioning. Results also elucidate that such an effect depends on the product category; that is, the effect of positioning on luxury only exists when the cobranded product belongs to the core (vs non-core) category of luxury. The benefit understanding explains the effects of the positioning and product category on the luxury attitude.

Research limitations/implications

This study contributes to the literature on luxury and cobranding by exploring the visual cues at the marketing communication level influencing the evaluation of luxury brands.

Practical implications

The findings provide important managerial guidelines for enhancing luxury cobranding effectiveness.

Originality/value

This study proposes positioning in cobranding advertisements as one of the antecedents affecting luxury cobranding evaluation. Accordingly, this study adopts a new perspective on visual perception, based on conceptual metaphor theory, which advances the theoretical and empirical knowledge of luxury cobranding.