The nature of luxury: a consumer perspective

Abstract

Purpose – The purpose of this paper is threefold: to provide an overview of the literature defining “luxury”; to suggest that luxury goods be distinguished from other goods through the presence of critical success factors (CSF) and to identify different dimensions of luxury; and to introduce a new classification framework to analyse luxury consumers profiles and to explain the personal perception of luxury. Design/methodology/approach – The first part of the paper is a critical discussion of the literature around the concept of luxury; the second part shows the application of an original classification framework, validated through a number of focus groups carried out with participants of Masters and executive training courses. Findings – The concept of luxury is a multifaceted one. A comprehensive approach to classify luxury consumers is used first of all to reveal different customer profiles, and also to prove that the tangible/intangible and personal/social distinctions are relevant for understanding the motivations underlying the purchase of a luxury product. Research limitations/implications – The model has been validated using four “archetypal” luxury goods (a bag, a bracelet, and so on). Nonetheless, the range of possible luxury goods and the set of possible consumer ' s motives behind luxury spend are so wide that a much more extended testing is required. Originality/value – The newly proposed model would allow a luxury company to better assess their target market and their current customers, while scholars and analysts might find it useful to define the scope of the luxury market when estimating market figures.