KOREASCHOLAR

The luxury market has expanded out of its traditional niche of elite and hit the middle-class consumer; this is part of the brand extension strategies. The goal of the research is to examine whether consumers perceive different degrees of "luxuriousness" among luxury brands using different brand name extension strategies. Kowalczyk (2010) proposed that a downward vertical extension is related to the dilution of the mother luxury brand. Corroborating this idea Kim, Lavacke and Smith (2001) indicate that the introduction of any vertical brand extension, whether up or down, has a negative impact on consumer evaluation of the parent brand. The results of Hennigs et al (2013) are not clear about the effects of downward extension. This exploratory study presents a quantitative approach; a survey was conducted with consumers who had purchased one luxury goods in the last 12 months (judgement sample). The hypothesis are: H1- The consumer perceives different levels of prestige among luxury brands; H2 – consumers evaluate differently a brand using different brand name strategies in brand extension. Results reveal that consumers perceived different degrees of prestige among brands (F = 19.260, sig.000). The results showed that the Chanel is the brand with a higher degree of prestige with an average of 8.01, the second luxurious brand was the Giorgio Armani (7.40), followed by Emporio Armani (6.28), Diesel (6.13), Armani Jeans (5.77), Calvin Klein (5.43) and finally the less prestigious degree was the Armani Exchange (5.22).Although these are data cannot be extrapolated to the whole population there is evidence that Brazilian consumers evaluate luxury brands inside a range of perceived luxuriousness. Further studies should use a conclusive method to verify the impact of brand extension on the degree of perceived luxury. Chanel (mean = 8.0111, Sd = 2.60393) and Giorgio Armani (mean = 7.4028, Sd= 2.59494) brand are identified as possessing the highest degree of luxury. So this exploratory study can raise the hypothesis to be tested in the future that the strategy of the name being used does not impact on the degree of perceived luxury brand mother. The trademark dilution may occur in the group of lowest degree of luxury (such as Armani Jeans, Armani Exchange.

• Suzane Strehlau(Universidade Nove de Julho)
• Evandro L. Lopes(Universidade Nove de Julho)