Retaining the allure of luxury brands during an economic downturn

2015 ◽  
Vol 19 (4) ◽  
pp. 416-429 ◽  
Author(s):  
Salah Hassan ◽  
Melika Husić-Mehmedović ◽  
Philippe Duverger
Keyword(s):  
Competitive Advantage ◽  
Economic Downturn ◽  
Luxury Brands ◽  
Negative Consequences ◽  
Global Marketplace ◽  
Content Type ◽  
Luxury Brand ◽  
Global Brands ◽  
The Media ◽  
Luxury Market

Purpose – Despite the changing conditions worldwide, some global luxury brands have attained strong performance levels, and perhaps it is their globalness that keeps them resilient. Since the global luxury market is comprised of customer segments with relatively homogeneous needs, wants and motivations, achieving a global luxury brand positioning will help mitigate the negative consequences of economic crises, regardless of the market in which a luxury brand operates. The paper aims to discuss these issues. Design/methodology/approach – A survey instrument was administered to a sample of 200 professionals located in a European country where none of the global brands cited in the paper are originating. The country was also selected on the basis of its propensity to have local luxury brands in competition with the global brands in each of the categories tested. The survey was conducted during the peak of economic crisis in Europe. Findings – This study provides evidence that brand globalness may be a major value creating factor, and thus a source of competitive advantage for luxury brands competing in the global marketplace. Another question addressed by this study is should the luxury brand modulate the message projected in the media away from luxury and closer to quality or other stimuli less associated with luxury in order to avoid luxury shame. All these are questions addressed by this imperial study to investigate how the brand globalness influences consumer perceptions in global recessionary times. Originality/value – The proposed research formulates an empirical study of the underlining effects of what is referred to as “glocalization” in the literature on the luxury positioning. This study provides evidence that brand globalness may be a major value creating factor, and thus a source of competitive advantage for a luxury company competing in the global marketplace.

Is it love or just like? Generation Z’s brand relationship with luxury

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hyunju Shin ◽  
Jacqueline Eastman ◽  
Yuan Li
Keyword(s):  
Luxury Brands ◽  
Generational Cohort ◽  
Brand Relationships ◽  
Research Attention ◽  
Content Type ◽  
Luxury Brand ◽  
Luxury Branding ◽  
Generation Z ◽  
Brand Relationship ◽  
High Level

Purpose This study aims to focus on understanding the consumer-luxury brand relationships among Generation Z. Generation Z is an up-and-coming generational cohort that has received limited research attention in the domains of both consumer-brand relationships and luxury branding, despite its growing size and purchasing power. Therefore, this study highlights the distinctive patterns of Generation Z’s relationship with luxury by identifying their choice of a luxury brand, the nature of the brand relationships, what characterizes these relationships and the internal and external influences that shape these relationships. Design/methodology/approach This study used brand collage construction. A total of 56 Generation Z respondents created brand collages that covered 38 different luxury brands. The data from the collages and their accompanying descriptions were evaluated using content analysis. Findings This study identifies Generation Z’s unique yet expansive view of luxury that encompasses not only traditional luxury but also masstige and non-traditional luxury brands. Moreover, the findings generally support that Generation Z’s relationships with luxury brands are characterized by “like” rather than “love”; while Generation Z may feel a high level of loyalty toward luxury brands in terms of attitudes and behaviors, they do not necessarily have strong, passionate feelings for them. Originality/value The findings of this study offer a comprehensive understanding of Generation Z’s brand relationship with luxury. Luxury marketers need to recognize that for Generation Z consumers, luxury is an integral part of their everyday lifestyle more than a display of success, which is clearly different from previous generations.

Enhancing Consumer-Brand Relationships Through Luxury Brand Experiences

2021 ◽  
pp. 86-107
Author(s):  
Esra Arıkan
Keyword(s):  
Brand Experience ◽  
Luxury Brands ◽  
Brand Relationships ◽  
Luxury Brand ◽  
Relational Outcomes ◽  
Luxury Market

The extant research highlights that the strength of consumer-brand relationships is very much shaped by consumers' experiences with brands. Given the inherent characteristics of luxury brands, it is no surprise that luxury consumers expect much more intense experiences, and thus the delivery of a superior brand experience is a necessity in the luxury market. Therefore, both marketing scholars and brand managers in the luxury market need to acknowledge the power of brand experiences as a way to strengthen consumer-brand relationships. However, despite the need for a deeper understanding of brand experience in the context of luxury brands, still much remains unknown regarding the factors that can be used to enhance brand experience. Building on this gap in the literature, this chapter investigates the relational outcomes of brand experience and subsequently discusses the various drivers that luxury brands can use to enhance luxury brand experience and thus develop stronger consumer-brand relationships.

Exploring luxury brand country of origin impact on purchasing behaviors in India

2015 ◽  
Vol 7 (3) ◽  
pp. 216-236 ◽  
Author(s):  
Don Schultz ◽  
Varsha Jain
Keyword(s):  
Qualitative Study ◽  
Web Sites ◽  
Country Of Origin ◽  
Luxury Brands ◽  
Cue Utilization ◽  
Content Type ◽  
Luxury Brand ◽  
Indian Consumers ◽  
Luxury Products ◽  
Two Phases

Purpose – Luxury brands’ marketing efforts have traditionally focussed on developed nations since that has comprised the majority of consumer demand. However, double-digit growth in developing nations such as India and China, have attracted the attention of most luxury brand managers. Using cue utilization theory, the authors conducted a qualitative study in two phases comprised of first, focus group discussions (FGD), structured observations (SO) and second, In-Depth Interviews (IDI) to understand the effects of country of origin (COO) on Indian consumers’ current day purchasing behaviors with luxury products. The paper aims to discuss these issues. Design/methodology/approach – Using cue utilization theory, the authors conducted a qualitative study in two phases comprised of first, FGD, SO and second, IDI to understand the effects of COO on Indian consumers’ current day purchasing behaviors with luxury products. A conceptual framework has been developed that should help luxury brands formulate marketing strategies for this booming market. Findings – Further, this study found that COO affects the exploration of luxury brands and this process is carried out digitally and primarily with friends. Luxury brand managers can insert detailed information about COO on web sites and can understand the keywords used in the search engines to facilitate consumers using appropriate consideration data. This research also found that COO is compared on the basis of quality, features and innovation. Research limitations/implications – The results of this study are only from one emerging country, i.e., India. Similar studies should be carried out in other emerging nations. Additionally, developed countries can also carry out comprehensive research in this domain as their behavior is also changing for COO and luxury brands. Originality/value – This insight can be used by the brand managers and they can develop apps and web sites that would help the consumers to compare the COO for their products. Additionally, this research found that COO helps the luxury consumers to evaluate the brands and how they associate it with consumer images. Luxury brand managers need to be conscious when their countries products/ brands have been rated low by the consumers as it could result in consumers simply discarding them from their consideration set.

SNS use leads to luxury brand consumption: evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wangshuai Wang ◽  
Nuoya Chen ◽  
Jie Li ◽  
Gong Sun
Keyword(s):  
Social Networking Sites ◽  
Design Methodology ◽  
Empirical Studies ◽  
Luxury Brands ◽  
Daily Lives ◽  
Content Type ◽  
Luxury Brand ◽  
Chinese Consumer ◽  
Consumer Data ◽  
Psychological Mechanism

Purpose Social networking sites (SNSs) are an indispensable part of people’s daily lives. However, scant literature describes how SNSs affect users’ behaviors, especially consumer behavior in emerging markets. This research aims to fill this literature gap. Design/methodology/approach Two empirical studies were conducted using different methods. Study 1, a survey, provided correlational evidence. Study 2, a lab experiment, further verified the causal relationship. Findings From Chinese consumer data, SNS consumption exposure enhances luxury brand consumption, mediated by social comparison motivation and moderated by legitimacy perceptions of SNSs as information outlets. Originality/value This research bridges SNSs and luxury brand consumption, two islands among different streams of literature. In addition, the paper illuminates the psychological mechanism through which SNSs affect luxury brand consumption and the boundary condition in which this effect diminishes. Practically, this paper is also instructive for SNSs and luxury brands.

Predictors of young consumer’s green purchase behaviour

2016 ◽  
Vol 27 (4) ◽  
pp. 452-472 ◽  
Author(s):  
Yatish Joshi ◽  
Zillur Rahman
Keyword(s):  
Structural Equation ◽  
Predictive Power ◽  
Negative Consequences ◽  
Deterministic Theory ◽  
Content Type ◽  
Government Organizations ◽  
Awareness Campaigns ◽  
Consumption Practices ◽  
The Media ◽  
Environmental Messages

Purpose – The purpose of this paper is to determine the factors that predict green purchase behaviour of young educated consumers in Delhi. Design/methodology/approach – A survey was carried out on a sample of 1,502 young educated consumers. Structural equation modelling was used to assess the predictive power of considered variables towards green purchasing. Findings – Results indicate that the variables under study predicted green purchase behaviour of young educated consumers of Delhi in the following descending order: social influence, attitude towards green purchase, perceived environmental knowledge, recycling participation, ecolabelling and exposure to environmental messages through the media. Research limitations/implications – The sample considered in the study was restricted to Delhi only. Further, the predictive power of only a few variables was examined. Practical implications – The paper identifies key predictors of consumers’ green purchase behaviour, enabling practitioners to understand which factors influence young educated consumers in their decision making regarding green purchases. This knowledge will help marketing managers design effective strategies to encourage green purchase behaviour among such consumers. Social implications – Policy makers and government organizations may use the findings of this study to run awareness campaigns for disseminating information and promoting green purchase behaviour among larger sections of society. Such initiatives may help in minimizing the negative consequences of irresponsible consumption practices on environment and society. Originality/value – The present study is the first which applies reciprocal deterministic theory to predict green purchase behaviour of educated young consumers in India. Moreover, this is the first study to investigate the influence of consumers’ exposure to environmental messages through the media on their green purchase behaviour.

Effect of religiosity on luxury consumer behavior: the case of the Tunisian Muslim

2017 ◽  
Vol 8 (1) ◽  
pp. 74-94 ◽  
Author(s):  
Fawzi Dekhil ◽  
Hajer Boulebech ◽  
Neji Bouslama
Keyword(s):  
Geographical Area ◽  
Research Work ◽  
Academic Research ◽  
Luxury Brands ◽  
Content Type ◽  
Repurchase Intentions ◽  
Luxury Brand ◽  
Personal Orientation ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to describe the effects of religiosity on attitude and personal orientation toward luxury brands and on purchase and repurchase intentions. Determining the effects of religiosity on the consumers’ behavior toward luxury has proved to be a crucial matter. As far as the authors know, academic research on this topic is almost non-existent. This is an exploratory study at the level of the direct effects of religiosity. Following a literature review, a model was constructed to represent the various interrelationships between the variables investigated in this research. Design/methodology/approach A quantitative study was conducted among 227 individuals having varying levels of religiosity. The authors verified, before, that those interviewed have purchased a luxury brand. Findings The findings show that religiosity does not hinder the consumption of luxury brands. Indeed, the authors detected a positive relationship between attitude and personal orientation toward luxury brands and the level of religiosity. The effect of religiosity on attitude and personal orientation is stronger for persons having higher incomes. Moreover, this effect is slight more marked among women. Research limitations/implications Just as for all other research work, it is important to identify the limitations of this study. The authors need only to acknowledge its exploratory nature for these relationships to be identified as preliminary ones and as the first elements of proof rather than as a conclusive demonstration. This research suffers from certain other limitations, especially concerning its convenience sampling and the fact that it covered only a limited geographical area, namely, the capital, Tunis, and its adjacent suburbs. Practical implications This research has shown that whatever the level of religiosity, its effect is stronger among persons having a high income. Therefore, Muslims, whatever their religiosity, can be a target for marketers and luxury brand. Social implications Islam is not against luxury brand but against ostentation. Originality/value It is the first research, as the authors know, that study the relationship between religiosity and consumer luxury behavior, especially among Muslims.

Luxury brand commitment: a study of Chinese consumers

2014 ◽  
Vol 32 (7) ◽  
pp. 769-793 ◽  
Author(s):  
Ning Li ◽  
Andrew Robson ◽  
Nigel Coates
Keyword(s):  
Structural Equations ◽  
Brand Commitment ◽  
Luxury Brands ◽  
Chinese Consumers ◽  
Content Type ◽  
Luxury Brand ◽  
Direct Explanation ◽  
Brand Attributes ◽  
Consumer Commitment ◽  
Brand Affect

Purpose – The purpose of this paper is to assess brand commitment levels demonstrated by luxury brand consumers in China and seeks to identify the most significant combination of antecedents from brand affect, image, value and trust. Design/methodology/approach – A self-completion, researcher-supported questionnaire was disseminated within four Beijing shopping malls, generating 501 participants. The questionnaire comprised a range of scale sets covering brand affect, image, value, trust and commitment. The analysis comprised a summary overview of brand attainment followed by a substantive analysis involving confirmatory factor analysis and structural equations modelling to identify the most significant combination of antecedents relating to brand commitment. Findings – Regarding absolute consumer endorsement, brand affect was the most positive area, with image, trust and value representing relatively positive brand attributes. Declared commitment was relatively low, representing a potential commercial challenge. Value, represented by its social and symbolic components, and trust were identified as providing a significant and direct explanation of consumer commitment, represented by its affective and continuance dimensions. The role of value and trust must be central in marketing luxury brands given their direct and combined impact on consumer commitment. Research limitations/implications – The findings are transferable to other “Tier 1” locations in China, but take no account of either consumer behaviour outside of these wealthier conurbations, or segmentation of the associated markets. Originality/value – Geographic setting and consideration of a vast consumer group provides research value and contribution to marketing planning in the pursuit of higher levels of consumer commitment to their brands.

Entering the dragon’s nest: exploring Chinese upper-class consumers’ perception of luxury

2015 ◽  
Vol 18 (1) ◽  
pp. 4-29 ◽  
Author(s):  
Shan Chen ◽  
Lucio Lamberti
Keyword(s):  
Marketing Strategies ◽  
Upper Class ◽  
Luxury Brands ◽  
Chinese Market ◽  
Chinese Consumers ◽  
Individual Values ◽  
Content Type ◽  
Value Consciousness ◽  
New Perspective ◽  
Luxury Market

Purpose – The purpose of this study is to explore the perception of luxury from the perspectives of Chinese upper-class consumers. Design/methodology/approach – Four focus groups, each consisting of six upper-class and experienced luxury consumers, are formed in four cities, Beijing, Shanghai, Guangzhou and Hong Kong, which are among the most affluent, populated and developed in the luxury market. Findings – The findings suggest that Chinese upper-class luxury consumers, indeed, hold different perceptions for luxury in several aspects: price premium is a prestige in contrast to general Chinese consumers’ “value-consciousness”; exclusivity is more valued by the upper-class and experienced consumers; more attention of the upper-class consumers has shifted to individual values from social values; brand value is of high importance; and there exist differences among consumers in different regions. Practical implications – The study suggests that luxury brands should recognize the differences between the upper-class customers who are still the core consumers for luxury goods and the middle-class customers who are growing rapidly while designing their marketing strategies. Originality/value – The study focuses, unprecedentedly, on the upper-class and experienced Chinese luxury consumers who represent the most valuable group of customers of the luxury brands in the Chinese market. Given the peculiarity of customer behavior in the luxury market, such focus provides a brand new perspective without the noises from the inclusion of consumers with insufficient purchasing power and ineligible experience in luxury consumption.

Competitive advantage from marketing the SDGs: a luxury perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Judith Hepner ◽  
Jean-Louis Chandon ◽  
Damyana Bakardzhieva
Keyword(s):  
Competitive Advantage ◽  
Online Survey ◽  
Competitive Advantages ◽  
Luxury Brands ◽  
Content Type ◽  
Partial Ranking ◽  
Complete Ranking ◽  
Development Goals ◽  
Willingness To Purchase ◽  
Luxury Industry

PurposeShall luxury firms promote their sustainable development goals (SDGs)? What are the risks and the competitive advantages? Some answers from sustainability-oriented luxury buyers are provided.Design/methodology/approachQuantitative and qualitative analysis from an online survey of 315 luxury buyers in 28 countries.FindingsSustainability-oriented luxury buyers want branding strategies aligned with the SDGs and rank SDGs in order of importance for the luxury industry. However, they are unable to rank consistently most brands based on their sustainability efforts. The Stella McCartney brand is a clear exception to the general findings: sustainability-oriented luxury buyers rank Stella the most sustainable luxury brand by a vast margin, show willingness to purchase more from this brand, recommend it and are ready to pay a premium.Research limitations/implicationsThe paper uses partial ranking of 20 luxury brands because in pretests, luxury buyers found it difficult to provide a complete ranking of the sustainability efforts of all the brands. Further research in more cultural or geographical contexts is needed.Originality/valueThe research empirically provides an example of a successful marketing strategy leveraging the SDGs to meet sustainability-oriented luxury buyers with targeted actions and messaging to gain competitive advantage.

Typology of social media followers: the case of luxury brands

2018 ◽  
Vol 36 (5) ◽  
pp. 558-571 ◽  
Author(s):  
Zahy Ramadan ◽  
Maya F. Farah ◽  
Armig Dukenjian
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Qualitative Approach ◽  
Luxury Brands ◽  
Content Type ◽  
Luxury Brand ◽  
Different Types ◽  
Social Media Platforms ◽  
Different Characteristics ◽  
Depth Interviews

Purpose Luxury brands tend to be hesitant in adopting social media. This matter has created an imminent need to understand the different types of online luxury followers so as to help luxury brands communicate effectively with their consumers, while maintaining the “luxe” image and experience. Accordingly, the purpose of this paper is to provide luxury brands with a deeper understanding of their online audience and the strategies needed to engage with them through the different social media platforms. Design/methodology/approach A qualitative approach was utilized in which 24 in-depth interviews were conducted with Lebanese followers of an online luxury brand’s social media pages. Findings The study identifies the presence of six main categories of online luxury followers: pragmatists, bystanders, trend hunters, image seekers, passionate owners, and prime consumers. Each group has a specific engagement and propensity to buy levels. Research limitations/implications Understanding the different segments of luxury brand followers provides a framework for marketing managers that allows them to correctly target their marketing and communication strategies in order to maximize consumer engagement and purchasing behaviors. Originality/value A significant gap exists in the extant literature which offers no understanding of the different luxury brand followers and their different characteristics. This study is the first to offer an exploratory typology of the various luxury brand followers on social media platforms.

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