Should luxury brands display their logos prominently? Implications for brand authenticity, coolness and behavioral intentions

Abstract

Purpose: Extant research captures the signaling and attitudinal effects of luxury brand prominence strategy; however, little is known about the underlying mechanisms that drive this effect. This study aims to uncover brand authenticity and brand coolness as parallel mediators driving the effects of brand prominence on luxury purchase intentions and explores the moderating role of consumers’ self-brand connection. Design/methodology/approach: The research consisted of three experiments. Study 1 (n = 121) explored the direct effects of brand prominence among Chinese consumers. Using a sample of Turkish consumers (n = 115), Study 2, measured the mediation effects of brand authenticity and brand coolness. Study 3 (n = 211) examined how self-brand connection moderated the mediation effects among British customers. Findings: A luxury brand prominence strategy leads to negative perceptions of coolness and authenticity and, in turn, reduces purchase intentions. The negative effect of brand prominence is even more pronounced among consumers with high self-brand connection. Research limitations/implications: The study elaborates on how brand prominence informs consumers’ perceptions of authenticity and coolness. In examining the role of self-brand connection, the study reveals a theoretically and managerially relevant boundary condition of this focal effect. Practical implications: The research highlights how luxury brands can use differing brand prominence strategies. This research informs brand managers on how to enhance brand authenticity and coolness while managing self-brand connection. Originality/value: The study extends the luxury branding literature by explaining the brand prominence effect through the parallel mediators of brand authenticity and brand coolness. In contrast to extant research, the findings show that the negative effect of brand prominence is particularly strong among consumers with high self-brand connection.

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