Increasing customer equity of luxury fashion brands through nurturing consumer attitude

Abstract

The global luxury industry has seen steady growth for the last 15 years. It is one of the most attractive and profitable industries. Asia became the most potential region where the average income has risen significantly. Korea is one of the most attractive luxury markets in Asia. This study examines consumers' attitudes toward luxury brands and the relationship among attitude toward luxury brands, drivers of customer equity and customer lifetime value in Korea. Results of data analysis indicate that experiential need and fashion involvement are important antecedents of participants' attitude toward luxury brands. Attitude toward luxury brands positively influences luxury brand equity and value equity. This research finds that there is no significant relationship between attitude toward luxury brand and relationship equity. And as we expected, customer equity positively influences customer lifetime value.