In a study, the results revealed when high status brands downward extend their product line, consumers feel a sense of dishonesty and untrustworthy towards the brands image. This is as a result of luxury brands having a stereotype of being exclusive and high quality, and with the addition of a lower quality, cheaper product the consumers perceive this as a breach.
The research revealed that when high-end brands diversify their product lines to include less expensive, lower-quality products, customers view this as a contradiction to the brand's established reputation for exclusivity and superiority.