KOREASCHOLAR

Despite important theoretical implications seldom research exist regarding the impact of luxury parent brand status signaling on the evaluation of horizontal line extension through the moderating role of extension authenticity, quality and fit. The luxury literature review revealed that despite important theoretical implications seldom research exist regarding the impact of luxury parent brand status signaling on the evaluation of horizontal line extension through the moderating role of extension authenticity, quality and fit. Research has examined how consumers use luxury goods to signal their status or relative position in social hierarchies (Berger & Ward 2010; Dubois et al., 2012; Geiger-Oneto et al., 2013; Kastanakis, & Balabanis, 2014) but until the current study the luxury literature could not support the extent to which status signaling impact line extension’s evaluation through the moderating role of extension authenticity (Spiggle, Nguyen, & Caravella, 2012; Beverland & Farrelly, 2010; Morhart et al., 2015; Guèvremont & Grohmann, 2016). Previous studies have found that authenticity can be to emotional attachment (Morhart et al., 2015), help pursue personal goals (Beverland & Farrelli, 2010), or relevant to brand identity, status and equity (Guevremont & Grohmann, 2016). Surprisingly, none of these studies has empirically tested this important relationship. This study’s contribution to the literature is important as it empirically confirms that in launching a new line extension, a luxury parent brand’s status signaling will directly impact the extension’s evaluation. In the process, the perceived authenticity of the extension proves to affect the evaluation significantly if the perceived quality and fit of the extension are taken into consideration in the measurement framework.

• Jean Boisvert(American University of Sharjah, USA)