Export Competitiveness of Luxury Products: Measurement Scale Development

Abstract

Doing business internationally brings a number of potential risks and difficulties, and globalization has raised new challenges for firms. With the attempt of business strategy development, competitiveness is a vital success factor of thriving competitive markets. Consumer demand has become the core focus of the luxury products, hence the adoption of distinctive combination of competitiveness factors to address customers’ specific demand is critical for business’s success. Thus, far to our best knowledge, there is no study on the export competitiveness of luxury products. In an attempt to address what is luxury product export competitiveness, this research proposes three dimensions of export competitiveness of luxury products: objective, subjective and collective factors. The objective competitiveness dimension consists of five elements focusing on internal resources and functions. The next dimension is the subjective competitiveness containing customer and market factors. Lastly, the collective dimension refers to external factors such as government-related factors, suppliers and distribution. The proposed measurement scale is developed from existing recent insights from the literature regarding luxury products, competitiveness and exporting research offering a framework for systematically assessing the exporting of competitiveness of luxury products. Keywords: Luxury Products, Luxury Product Export Competitiveness, Objective Competitiveness Factors, Subjective Competitiveness Factors and Collective Competitiveness Factors