Connecting transformative luxury with individual and collective well-being: a conceptual approach

Abstract

PurposeThe tension between individual and collective well-being is at the core of the macromarketing perspective, and transformative luxury research (TLR) has recently begun to consider this in the context of luxury consumption. This conceptual paper reviews TLR in the setting of the tourism and hospitality industry.Design/methodology/approachThe study is based on a literature review in the field of marketing and tourism management.FindingsThe authors propose a TLR–management model (MM), which identifies the link between TLR and well-being, as well as four elements that are important for the success of luxury innovations: risk; trust; ethics and ambidextrous management practices. Further studies will be able to apply this conceptual model in diverse luxury markets to develop more industry-specific versions of it but should always maintain the model’s focus on individual and collective well-being to ensure that it supports the growth of transformative luxury in the future.Practical implicationsThe research has highlighted the benefits (individual and community well-being) of transformative research in the field of luxury products and services, but also the requirements (taking risk, trust and ambidextrous management) to achieve this transformative stage.Originality/valueThe study provides a guideline to be followed by the luxury yachting industry to reach its transformative potential.