The impact of fashion line extensions on consumers’ valuations of mainstream and niche brands examining the moderating effect of (slow-fashion versus fast-fashion) line extension on the relationship between (niche versus mainstream) brand type and consumers’ valuations

Abstract

The fashion industry has created major social and environmental issues from abusing its workforce to damaging the planet. Over time, these concerns intensified, pushing consumers to reconsider their purchasing behavior. Consequently, many companies have started putting more effort into changing their business models to incorporate the stakeholders’ interests. How ever, mainstream brands have suffered from consumers’ skepticism about the ability of large established brands to reach satisfactory levels of sustainability undermining their good deeds. Brand extensions have been a powerful tool, used by major brands, to enhance these valuations. To examine this phenomenon further, the current study evaluates how slow-fashion brand ex tensions may be a solution to improve consumers' valuations of mainstream brands. Based on prior literature, an experimental study was conducted to test the impact of brand type (niche vs. mainstream) and type of fashion line extension (slow-fashion vs. fast-fashion) on consumers’ valuations. Additionally, the mediating effect of brand satisfaction is examined on the relation ship between brand type and consumer valuations. Results show that consumers show higher customer-based-brand equity and ethicality perceptions when exposed to niche brands. Additionally, findings show that the exposure to slow-fashion lines will generate more favorable consumers’ valuations in comparison to fast-fashion lines. This dissertation provides important theoretical and managerial contributions highlighting the positive impact of both brand type and fashion line type on consumers’ valuations. Also, the ability of companies to further en hance these valuations by focusing on brand satisfaction.

Date of Award	27 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Vera Herédia Colaço (Supervisor)