Regional Approach to Luxury Market Segmentation: The Case Of Western Balkans

Nature of the luxury brand requires limited market in order to maintain exclusivity. Individual countries in the Western Balkans are not lucrative per se, therefore, regional segmentation is needed in the case of luxury brands. Countries of Western Balkan, i.e. Bosnia and Herzegovina, Croatia, Serbia and Slovenia are all post-socialist, post-war countries currently going through major transitions. Rather small markets are yet to be established in its final form politically, economically, socially and culturally and individually. Foreign investors and world’s leading companies are concerned mainly about the size of the potential individual market. The main idea of this paper is to analyze luxury consumption in the Western Balkans region in order to identify some consumption patterns and to describe the regional luxury consumer. Broad study among 800 respondents in four countries defines demographics and buying intent of the luxury consumers. Moreover, this study identified luxury consumer region-wide and helps luxury brand managers to target those small countries together as a rather significant market segment of approximately 20.000 consumers. The region that has shared similar historical and cultural facts proved to have similar or the same luxury consumption patterns. This paper has significant practical value for the luxury brand managers and their segmentation of the Western Balkan countries. They will decide much easier to target this region knowing that consumers are sharing the same lifestyle and preferences regarding the luxury consumption. Main limitation of the research is the average income of the sample. However, the top market segment is always difficult to reach with surveys, therefore, qualitative approach might be used in the further studies in this regard.

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Enhancing Consumer-Brand Relationships Through Luxury Brand Experiences

Building Consumer-Brand Relationship in Luxury Brand Management - Advances in Marketing, Customer Relationship Management, and E-Services ◽

10.4018/978-1-7998-4369-6.ch005 ◽

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.

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Inconspicuous Luxury Consumption

Building Consumer-Brand Relationship in Luxury Brand Management - Advances in Marketing, Customer Relationship Management, and E-Services ◽

10.4018/978-1-7998-4369-6.ch004 ◽

2021 ◽

pp. 65-85

Author(s):

Aslı Tolunay Kuşçu

Keyword(s):

Theoretical Framework ◽

Value Proposition ◽

Luxury Brands ◽

Luxury Consumption ◽

Luxury Goods ◽

Economic Changes ◽

Luxury Brand ◽

Complex Development ◽

Managerial Implications ◽

Luxury Products

With luxury consumption still growing fast despite various challenges such as increasing competition, rise in rental luxuries, and in counterfeits, luxury brands are challenged with an additional and complex development: consumers' interest towards inconspicuous luxury products. Being one of the major characteristics of luxury goods, conspicuousness is losing its value among some luxury shoppers necessitating a new definition for luxury and a new value proposition for luxury brands. This chapter initially provides a review on luxury and on the different motivations that determine luxury consumption. Next, socio-economic changes that trigger the shift from conspicuous to inconspicuous luxury consumption is examined briefly. And finally, a discussion on why inconspicuous consumption is valued by consumers is followed by a theoretical framework on the motivations for inconspicuous luxury brand usage. The chapter then concludes with theoretical and managerial implications.

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Retaining the allure of luxury brands during an economic downturn

Journal of Fashion Marketing and Management ◽

10.1108/jfmm-03-2015-0030 ◽

2015 ◽

Vol 19 (4) ◽

pp. 416-429 ◽

Cited By ~ 8

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.

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The Object and Art of Luxury Consumption

Critical Luxury Studies ◽

10.3366/edinburgh/9781474402613.003.0006 ◽

2016 ◽

Cited By ~ 1

Author(s):

Mike Featherstone

Keyword(s):

Luxury Brands ◽

Luxury Consumption ◽

Luxury Goods ◽

Artistic Production ◽

Art Objects ◽

Luxury Market ◽

The Prestige

This chapter looks at two dynamics of luxury — the ‘democratisation’ of luxury, which occurs when such goods are made more widely available; and the rebranding of luxury goods as art objects, which emphasize their value in how unique and exclusive they are. The expansion of the luxury market and the more general ‘democratisation of luxury’ not only means that luxuries are everywhere, it also creates pressures to develop even more exclusive goods, stimulating ultra-luxury brands and the bespoke luxury market. Moreover, if it is possible for the luxury house to appropriate the aura of the artist and artistic production, then the prestige of their goods will necessarily rise. In exploring these tensions, the chapter looks at the broader issues of access to luxuries, the sustainability of their production, their just distribution, and the possibility of a space beyond.

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Unique Brand Extension Challenges For Luxury Brands

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v4i10.2704 ◽

2011 ◽

Vol 4 (10) ◽

Cited By ~ 2

Author(s):

Nicole Stegemann

Keyword(s):

Brand Equity ◽

Marketing Strategies ◽

Brand Extensions ◽

Luxury Brands ◽

Font Size ◽

Demand And Supply ◽

Luxury Brand ◽

Parent Brand ◽

Luxury Market ◽

The Impact

This article addresses the impact of brand extensions on the brand equity of luxury brands.  A review of the developments in the luxury market has shown significant changes in demand and supply sides.  The luxury market has been growing rapidly over the last 20 years, and luxury brands, formerly reserved for a small group of privileged individuals, are now available to more consumers.  Meanwhile, luxury goods manufacturers have been applying new marketing strategies, and extending their brands without any insights as to the consequences for their brands.  Despite these changes, little research has investigated the luxury market.  Therefore, a systematic review has been undertaken regarding the nature of luxury brands and research measuring individual luxury brand equity elements such as attitudes and perceptions.  Deviating results in the application of concepts for non-luxury brands to luxury brands have been found due to the abstract and emotional nature of luxury brands.  These results support the development of distinct brand equity constructs for luxury brands.  The main focus of this article is the impact of luxury brand extensions on the parent brand’s equity and the proposal of a framework to allow the impact to be measured.

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Perceptions And Attitudes Towards Luxury Brand Products

GIS Business ◽

10.26643/gis.v14i5.8780 ◽

2019 ◽

Vol 14 (5) ◽

pp. 45-53

Author(s):

R. SATHYADEVI ◽

R. ASWINI

Keyword(s):

Luxury Brands ◽

Related Factors ◽

Luxury Goods ◽

Luxury Brand ◽

Perceptions And Attitudes ◽

Actual Growth ◽

Luxury Products ◽

The Rich ◽

Luxury Market ◽

And Behavior

As consumers satisfy their feelings of pleasure and gratification through the luxury goods, the available luxury products will also continue to enhance its charm for consumers. The rich have no more a monopoly on the luxury goods. One of the most important factors leading to the actual growth of the luxury market is the introduction of luxury goods to the middle and upper-middle class. The present study attempted to analysis the knowledge, affection and behavior related discernment of the consumers on the luxury products. For obtaining the objectives, the study adopted questionnaire to collect the data from the customers. The study collected data from the customer, who visiting the shopping malls for buying the luxury brand products. T Test used to present the collected opinion of the consumers. The study highlighted that most of consumers are depend with affect related factors to luxury brands compared with knowledge and behavior based factors.

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Pre-loved luxury: identifying the meanings of second-hand luxury possessions

Journal of Product & Brand Management ◽

10.1108/jpbm-05-2014-0603 ◽

2015 ◽

Vol 24 (1) ◽

pp. 57-65 ◽

Cited By ~ 42

Author(s):

Linda Lisa Maria Turunen ◽

Hanna Leipämaa-Leskinen

Keyword(s):

Luxury Brands ◽

Luxury Consumption ◽

Luxury Goods ◽

Content Type ◽

Luxury Brand ◽

Reputational Risk ◽

Brand Marketing ◽

Managerial Implications ◽

Symbolic Value ◽

Risk Investment

Purpose – The purpose of this study is to shed light on the consumption of second-hand luxury brands, identifying the meanings attached to second-hand luxury possessions in the context of fashion and, specifically, in the case of luxury accessories. Prior discussions of luxury consumption and marketing have focused on brand-new luxury goods, thus largely neglecting the emergence of markets for used luxury products. Design/methodology/approach – The empirical data for this study were generated through interviews with ten Finnish women and through fashion blogs concerning luxury goods that are bought second-hand. Findings – The findings show that second-hand luxury possessions are characterized by five different meaning themes: Sustainable Choice, Real Deal, Pre-loved Treasure, Risk Investment and Unique Find. The study highlights how consumers are able to achieve luxury experiences even without exclusive service, as the informants attached meanings of luxury to second-hand luxury possessions, especially with regard to the symbolic value and authenticity of the product. However, the meaning of authenticity appears to be a double-edged sword in this context, as consumers may also consider that they are taking a financial as well as reputational risk when acquiring a previously owned luxury item. Originality/value – This study brings forward novel viewpoints to discussions on luxury brand marketing by connecting the issue with the topical phenomenon of second-hand and luxury consumption. The study suggests important managerial implications for luxury brand marketers.

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RESSO: a social media network for luxury retail

10.32920/ryerson.14643675.v1 ◽

2021 ◽

Author(s):

Asma Arslan

Keyword(s):

Social Media ◽

Social Stratification ◽

Brand Management ◽

Luxury Brands ◽

Market Place ◽

Psychological Study ◽

Luxury Brand ◽

Online Sales ◽

Luxury Market ◽

Social Media Network

This Major Research Project investigates the role of social media to fill the gap created in online and offline dynamics of Luxury Industry over the recent years. This gap is evident in the fact that 75% research about a purchase is done online but online sales bring are only a mere 6%. Psychological study of luxury brand consumers informs the aim of luxury brands to mainly deliver status elevation, social stratification and internal satisfaction. Resso is a project inspired by the psychological objectives of luxury consumers and online consumers decision journey referred to as CDJ. Resso is an online hybrid luxury market place which is a highly interactive social media network where users shop luxury goods. They also receive luxury client services, offers, access to latest reviews and YouTube influencers linked to each product. Users make real connections with each other and an option to give and track charity on one digital platform. The paper will discuss theories of luxury brand management, present digital scenario, the design structure and affordances of the project Resso.

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RESSO: a social media network for luxury retail

10.32920/ryerson.14643675 ◽

2021 ◽

Author(s):

Asma Arslan

Keyword(s):

Social Media ◽

Social Stratification ◽

Brand Management ◽

Luxury Brands ◽

Market Place ◽

Psychological Study ◽

Luxury Brand ◽

Online Sales ◽

Luxury Market ◽

Social Media Network

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Luxury in Emerging Markets: Towards Understanding New Prestige Brands in India

The Oxford Handbook of Luxury Business ◽

10.1093/oxfordhb/9780190932220.013.26 ◽

2020 ◽

Author(s):

Glyn Atwal ◽

Douglas Bryson ◽

J. P. Kuehlwein

Keyword(s):

Emerging Markets ◽

Consumer Behaviour ◽

Luxury Brand ◽

Brand Building ◽

The Future ◽

Sustainable Advantage ◽

Brand Strategies ◽

Luxury Market

The complexity of luxury- and prestige-brand consumer behaviour combined with the relevance of “new prestige” has created a novel paradigm for luxury-brand strategies in emerging markets. As the luxury market in many emerging markets continues to grow, and in some cases approaches maturity, executives will need to consider appropriate tactics in order to achieve a sustainable advantage with luxury and prestige brands. With a focus on India, this chapter consequently applies the following principles of prestige brand building: (1) mission incomparable, (2) longing versus belonging, (3) from myth to meaning, (4) the product as manifestation, (5) living the dream, (6) unselling, and (7) never-ending growth. Examples include local and international brands with varying degrees of “luxuriousness”. Insights will provide luxury executives the option of using the principles of modern prestige branding to build the future of their brand on a robust foundation.

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