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The apparel industry has commonly used vertical-downward brand extensions where a brand (e.g., Ralph Lauren) introduces a lower price and quality brand (e.g., RL Ralph Lauren). However, offering vertical-downward extended brands on an ongoing basis as with RL Ralph Lauren (i.e., ongoing collection) can dilute the brand image. A recent practice is providing limited edition brand extensions where apparel brands are limiting the product quantity and time the product is available. As with the Missoni at Target case (i.e., limiting offering time and quantity), this practice is mostly successful in that it increases consumers’ urgency to buy while keeping its brand image.

The Effect of Brand Extension Strategy and Brand Level on Urgency to Buy and Brand Dilution