Navigating contradictory logics in the field of luxury retailing

Abstract

When designing luxury retail experiences, luxury managers are often encouraged to focus on a single logic: the logic of distinction. Evidence suggests, however, that multiple logics influence the field of luxury retailing. In this paper, we explore the implications of such multiplicity, focusing particularly on logics coming into tension with one another. Our research questions are: 1) What are the logics that come into conflict in luxury retail settings and 2) How can luxury retail managers navigate conflicts between logics to facilitate positive customer experiences in luxury retail settings? Based on extensive ethnographic fieldwork in the luxury field, we find conflicts mainly between three logics: distinction, pragmatism, and hedonism. We show that each logic is underpinned by different values, different linguistic practices, and different focal objects. We further find that conflicts between the logics tend to become acute during specific interactions during the customer journey. Our findings also suggest that since luxury boutiques are by and large designed to enforce the distinction logic, luxury retailers at times struggle to accommodate and navigate the conflicts that occur between these logics. We identify three interrelated sets of practices, collectively referred to as experiential hybridization, that effectively allow luxury retailers to address the challenge of logic complexity. Theoretically, our research helps illuminate institutional logics as a factor that informs customers’ experiences in contemporary retail fields such as luxury. Managerially, we suggest ways for luxury retailers to manage logic conflict and deliver superior customer experiences.