Brand social power in luxury retail

Abstract

Purpose – This research aims to investigate the factors which contribute to the power of luxury brands in the stores and the means through which brand power meaning transfers to the clients. Design/methodology/approach – The research protocol follows a phenomenological approach, through analyses of narratives of customers with lived shopping experiences in luxury stores. Data were collected in two phases: first, a collection of experiences from clients with different cultural backgrounds in the same store; second, a comparison of experiences for the same client in thirty-three luxury stores around the world. This cross-examination procedure enhances the trustworthiness of the findings. Findings – Although French and Raven ' s typology of power (referent, reward, coercive, legitimate, expert) is relevant when studying the luxury brand-client relationship, it is not sufficient to explain entirely the sources of the luxury brand power. Through the brand cathedral (the flagship store), the brand ambassadors (sales representative), the brand protocol (rituals and selling ceremony) and the brand treasures (the products), the luxury brand exerts an auratic power which achieves the sacralization of the brand. Practical implications – These marks of power are difficult to transfer virtually through internet websites. To establish this power, luxury brands need a control over their operations, at least the visual merchandising and the customer relationship. This reinforces the importance of retailing in the luxury industry and the strategic role of company-owned-stores, particularly in “new luxury markets” where the auratic power of the brand is not necessarily established. Additionally, when there is power asymmetry in a service encounter, the customer becomes “hyper-vigilant” regarding the service provided. In luxury stores, the salespersons should be trained to deliver a luxury service, personalized to the very needs of the client. Originality/value – To the authors ' knowledge, this research is the first to investigate consumers ' perception of luxury brand power.