How to Deal with luxury and prestige Goods in Business?

Abstract

The luxury goods market is growing constantly, despite the fact that there is no unified definition of the basic terms such as ’luxury’ and ’prestige’. This can lead to misunderstandings and wrongly created synonyms. It is for this reason that, from an academic and organisational point of view, there is a distinct need to define the fundamental concepts and their differences in relation to the world of luxury and the luxury market, which is the main goal of this paper. The paper is constructed as a review paper. It begins with a comparison of various authors’ views and definitions of ‘luxury’ and ‘luxury goods’. This is followed by defining the terms ‘prestige’ and ‘prestige goods’ by reviewing authors’ discussions based on this area. The research paper concludes with the design of a model for the future treatment of such goods in business. The term ‘luxury’ is a wide concept that has evolved over time. To understand the meaning of luxury, it must be understood as a whole. Prestige, meanwhile, goes hand in hand with the luxury goods market. This paper contributes to a better understanding of luxury and prestige goods in academic science, which can be applied for organisational purposes.