Luxury Brand Consumption Research Articles

EXPERIENTIAL E-LUXURY: THE RISE OF ONLINE FASHION BRANDING

EXPERIENTIAL E-LUXURY: THE RISE OF ONLINE FASHION BRANDING

LUXURY BRANDS SOCIAL MEDIA MARKETING EFFORTS: INFLUENCE ON BRAND EQUITY AND CONSUMERS’ BEHAVIOR

There is relatively little evidence on how social media marketing activities influence brand equity creation and consumers’ behavior towards the brand. We explore these relationships by analyzing pioneering brands in the luxury sector (Burberry, Dior, Gucci, Hermes, and Louis Vuitton). Based on a survey of 845 luxury brand consumers (Chinese, French, Indian and Italian) who follow the five brands studied on social media, we developed a structural equation model that helps to address gaps in prior social media branding literature. Specifically, our study demonstrates the links between social media marketing efforts – measured as a holistic concept incorporating five aspects (entertainment, interaction, trendiness, customization and word of mouth) and their consequences (brand preference, price premium and loyalty).

BRAND CONGRUITY: A STUDY OF THE TOD’S LUXURY BRAND

This paper aims to gain an understanding of luxury brand positioning in relation to brand attributes, distribution channel and the target consumer characteristics. In so doing, we hope to get a fuller explanation of brand perceptions within the market environment in which the transactions occur.Luxury brands need to flourish in an increasingly complicated and competitive environment. In the past socio-demographic characteristics were used to position the offering, but this is becoming more difficult to apply in contemporary global markets. It is possible to broadly position luxury brands using Aaker’s (1997) 3A’s framework to show how brands are crowded and compete in the middle “aspirational” segment. There also appears to be a polarization within the market on the part of highly informed and expert consumers who do not follow traditional norms of purchasing behaviour; purchasing elite luxury and high street purchases at the same time. Such inconsistent behaviour compels us to investigate the luxury brand consumer in depth. Consumer perceptions of luxury value comprise financial, functional, individual and social components (Hennings et al. 2012), as well as changing cultural interpretations (Mo and Roux. 2009) and symbolic and human characteristics (Aaker, 1997). Examing the brand and the consumer is not sufficient and a third aspect needs to be considered relating to distribution channels (D’Astous and Levesque 2003). This is the environment where the personality of the brand is staged to reinforce tangible and intangible attributes that further influence consumer perceptions. Store personality suggests functional qualities and psychological attributes that help define the store in the consumer’s mind (D’Astous and Levesque, 2003). In order to differentiate between brands perceived with similar positioning, the symbolic qualities of the luxury brands become highly relevant and a key motivation of luxury brand purchase behaviour (Heine 2009; Liu et al 2010).What is of interest to us in this study is the congruity between consumers’ perceptions of a luxury flagship store personality, the personality of the luxury brand and consumers own personality traits. Drawing upon the foregoing we have established that there is a need to understand how consumers see themselves in relation to luxury brands. Understanding the relationships between the consumer, the brand and store personality is critical for the effective positioning and strategic management of the luxury brand in terms of product mix strategy, pricing, advertising and distribution. Our analysis draws upon Aaker’s (1997) brand personality, luxury consumer personality traits from Weidmann et. al., (2009) and store personality dimensions from D’Astous and Levesque, (2003) and we delineate luxury using the four values, financial, functional, individual and social from Weidmann et. al.,(2009). The difference in the degrees of alignment represents what we have termed “congruence distance” between each personality dimension. Misalignment may indicate that the corporate view of the luxury brand is out of sync with consumer perceptions and may impact upon strategic marketing efforts.Using a quantitative research approach we report the results of a survey of Tod’s consumers in the UK, France and Italy. Constructs are developed to measure consumers’ perceptions of a luxury flagship store personality, the personality of the luxury brand and consumers own personality traits.Our theoretical contribution hopes to enhance explanations of luxury consumption. We have taken three disparate frameworks that each look at elements of luxury brand positioning to assess levels of convergence using one case study. We add to luxury brand theory by presenting a rubric of congruence distance that draws the three frameworks together and highlights clusters within dimensions of value. Managerially, we find the importance of alignment across a variety of dimensions and clusters. Through this rubric, multiple segmentation and positioning scenarios can be assessed with implications for strategy. We find that consumer interaction with sales personnel is critical to consumers’ experience of the brand based upon an understanding and expectation of the luxury it represents.

SELF-INCONGRUITY AND IDEAL CONGRUITY EFFECTS OF LUXURY FASHION BRANDS

Past research has shown that the self-congruity effect (Sirgy, 1982) is an important key predictor for consumers’ responses (e.g., attitude, purchase intention, choice, satisfaction, and loyalty) toward various marketing stimuli such as brand, store, and product (Barone, Shimp, and Sprott, 1999; Sirgy, Grewal, & Mangleburg, 2000). The self-congruity effect refers to the match between consumers’ actual self-concept and the image of objects compared, such as brand image, product image, store image, and advertising materials (Choi & Rifon, 2012; Sirgy, Grewal, & Mangleburg, 2000). These relationships, however, have not been tested in the context of luxury brand products (Sirgy, 1982). Our purpose is to address this knowledge gap by investigating the relevancy of self-congruity theory to the purchase of luxury brands. In contrast to the long-standing self-congruity effect, we propose that actual self-incongruity and ideal self-congruity effects will work when consumers evaluate luxury fashion brands.A survey method was used to gather data. Data were collected through an online panel provided by E-rewards, a marketing research company located in the United States. A stratified sampling method was employed to obtain an evenly distributed number of participants from different income classes. The strata was identified by income. Three strata were developed: (1) more than $100,000; (2) $55,000 to less than $100,000; and (3) less than $55,000. The sample (n = 502, average age = 41) represented most demographic categories.We tested the influence of actual self-incongruity and ideal self-congruity on brand attitude, purchase intention, and perceived quality for 3 brands. Actual self-incongruity had a significant positive effect on brand attitude, whereas ideal self-congruity had a significant positive effect on brand attitude, purchase intention, perceived quality. Overall, the results supported our main hypothesis. We conducted an additional analysis to examine the moderating role of income. Specifically, for brand attitude, the influence of actual self-incongruity was significantly positive only for the low-income group. The influence of ideal self-congruity was significantly positive only for the low- and middle-income groups. For purchase intention, the influence of ideal self-incongruity was significantly negative only for the low-income group, whereas the influence of ideal self-congruity was not significant for the middle- or high-income groups. Finally, for perceived quality, the influence of actual self- and ideal self-incongruity was significant only for the middle-income group, whereas that influence was not significant for the high-income group. This research contributes to the self-congruity effect in the context of luxury brands. Our results show the positive influence of ideal self-congruity and actual self-incongruity on the evaluation of luxury brand products. This is the first study identifying that actual self-congruity has a negative influence on the evaluation of brands in a luxury market context, as opposed to previous findings. Our results provide important implications to practitioners in planning their marketing communication strategies or consumer relationship management for luxury brand consumers.

Colluding with Neo-Liberalism: Post-Feminist Subjectivities, Whiteness and Expressions of Entitlement

This discussion contributes to the ongoing debates regarding the (re)sexualisation of female bodies in popular and visual culture. Visual texts display the upper middle-class white female as the carrier of mainstream neo-liberal values in Western societies, and the success of this approach is the twinning of the culture of individualism, self-interest and market values with feminist vocabularies; namely, choice, freedom and independence. Drawing on a broad feminist scholarship that includes discussions on the influence of the HBO series Sex and the City, semiotic analysis is combined with intersectionality to gain an understanding of how gender, class and sexuality shape and reinforce whiteness as entitled to luxury in an advertising campaign for Michael Kors luxury goods. Contemporary representations have expanded to include representations of affluent women who appear to have it all. These new post-feminist subjectivities promote an aesthetic of wealth, to display privileged whiteness, heterosexuality, normative Western beauty ideals and individualism. An intersectional approach reveals the apparent neutrality of neo-liberal values as being an expression of whiteness, specifically in representations of white women as economically independent neo-liberal subjects who display their status through the conspicuous consumption of luxury brands.

Luxury brand markets as confluences of multiple cultural beliefs

Purpose – Cross-cultural influences are important considerations in the international marketing of luxury brands. These influences have predominantly been understood through cross-national approaches and the lens of glocalisation. The purpose of this paper is to study augments these paradigms by advancing the view of luxury brand markets as confluences of multiple cultural beliefs. Design/methodology/approach – A hermeneutic analysis of 24 in-depth interviews was conducted with luxury brand consumers in New Zealand. Findings – The findings describe two cultural beliefs that convey divergent meanings and shape luxury brand consumption styles in a multicultural marketplace. More specifically, the authors illustrate that consumers can be influenced by and shift between both local and foreign cultural beliefs in a single national market. Research limitations/implications – The study offers a situated account of the New Zealand luxury market. Other cultural beliefs may be in operation in different national mar...

Pre-loved luxury: identifying the meanings of second-hand luxury possessions

Purpose – The purpose of this study is to shed light on the consumption of second-hand luxury brands, identifying the meanings attached to second-hand luxury possessions in the context of fashion and, specifically, in the case of luxury accessories. Prior discussions of luxury consumption and marketing have focused on brand-new luxury goods, thus largely neglecting the emergence of markets for used luxury products. Design/methodology/approach – The empirical data for this study were generated through interviews with ten Finnish women and through fashion blogs concerning luxury goods that are bought second-hand. Findings – The findings show that second-hand luxury possessions are characterized by five different meaning themes: Sustainable Choice, Real Deal, Pre-loved Treasure, Risk Investment and Unique Find. The study highlights how consumers are able to achieve luxury experiences even without exclusive service, as the informants attached meanings of luxury to second-hand luxury possessions, especially with regard to the symbolic value and authenticity of the product. However, the meaning of authenticity appears to be a double-edged sword in this context, as consumers may also consider that they are taking a financial as well as reputational risk when acquiring a previously owned luxury item. Originality/value – This study brings forward novel viewpoints to discussions on luxury brand marketing by connecting the issue with the topical phenomenon of second-hand and luxury consumption. The study suggests important managerial implications for luxury brand marketers.

Luxury branding: the industry, trends, and future conceptualisations

Purpose– The purpose of this paper is to examine the emergence of a global luxury brand industry and discusses previous conceptualisations of luxury brands. In this endeavour, the study illustrates the unique context of luxury consumption, to highlight several developments in extant literature, and to advocate for the advancement of the consumer-centric paradigm of luxury branding.Design/methodology/approach– The study reviews the emergence of a global luxury brand industry, discusses macro-environmental trends that have influenced luxury brand consumption, critically evaluates the existing literature on luxury brands, and offers directions for future research.Findings– The study highlights that luxury brands have emerged as a special form of branding that conveys the unique sociocultural and individual meanings to their adherents. Moreover, it was found that these meanings have been shaped by a number of important cultural, social, and external trends, which call researchers and practitioners to consider the consumer-centric paradigm of luxury branding.Originality/value– The study calls for a shift in the focus from the characteristics of luxury brandsper se, and towards phenomenological experiences and socio-cultural influences, in the pursuits to understand what brand luxury conveys in the broader context of post-modern consumer culture. The study offers two distinct areas for future research to address these developments.

Perceived brand value and its impact on purchase intention

Managers require knowledge of the main dimensions of luxury in order to focus their efforts and so acquisition of such knowledge is important and it has been a popular subject for research. Studies in luxury brand consumption have burgeoned in recent years, with branding practitioners and academics keen to explore this US$ 180 billion industry. The aim of this study was to investigate the impact of perceived brand value on purchase intention. Data were collected with questionnaire instruments. Model was developed and tested with structural equation model (SEM) using data collected from 285 Apple iPhone mobile users in Iran. The results show that functional value, symbolic value and social value has a positive impact on purchase intention. And also results show that symbolic value has greater impact than functional and social values.

Perception and Consumption of Global Luxury Brands in Russia and Romania: Comparative Cross-Cultural Aspects

The present paper compares the luxury consumption in Russia with that in the post-communist countries of the former Soviet bloc. The aim of this research is to find out the common and specific about an attitude to global luxury brands in Russia and Romania. We investigate the motives for buying luxury brands in these two countries, as well as the brands’ preferences for Russian and Romanian consumers. Furthermore, the portrait of an average luxury consumer in Russia and Romania is introduced and analyzed in the study. The current investigation consisted of two parts. First, it was qualitative research, as in-depth interviews with luxury brands consumers. It allowed us to formulate the hypotheses. Then to verify the hypotheses, we conducted on-line survey in which 45 female respondents from each country took part. As can be seen from the study, Russian and Romanian luxury brands connoisseurs have much in common. Both of them prefer global brands to local ones. The majority of Russian respondents agree that luxury brands are bought to demonstrate the status and welfare or at least it is a kind of reward for being hard working. As for Romanians, the key reason for luxury consumption is a very high quality and perfectionism in details. Although the consumers from the countries have shown some common characteristics, they are different in their attitude to Louis Vuitton (LV is not № 1 in Romania). What is more, the brands ratings and products choice are completely different in Russia and Romania. All our respondents have very strong cultural background: they visit opera, museums, listen to classical music and read serious books. Furthermore, their touristic destinations have cultural purposes as well. It means that people appreciate not only material brands, but also try to do their best to follow the cultural life style. This research contributes to some extent to the understanding of luxury brands consumption in Russia and Romania. The study can be useful for luxury companies, which plan to do business in these countries or already have been presented there.

Relationship between Purchase Intentions for Luxury Brands and Customer Experience - Comparative Verification Among Product Categories and Brand Ranks

This paper aims to provide empirically validated evidence on the effect that experiences, which was proposed by Schmitt [1], have on purchase intentions. For this study, I chose GODIVA, Meiji, Ferrari, and Toyota as subject luxury brands and conducted comparative analyses between product categories (food and cars) and brand ranks (luxury brands [Note 1] and mass brands). The results suggested the following: 1) Providing customers with satisfaction through the five senses and positive feelings by taking advantage of advertisements, products, and store designs is something a brand must achieve at the very least, regardless of brand rank, for the product categories of food and cars, and providing this value alone will not be enough for luxury brands to distinguish themselves from mass brands. 2) Both food and car luxury brands make an attempt to distinguish themselves from mass brands by producing emotions that will make consumers want to have an active connection with other consumers or voluntarily recommend the brand to others. 3) Conspicuousness, which has been believed to be a typical motive for the consumption of luxury brands since the 19th century, does not necessarily apply today.

Luxury brand commitment: a study of Chinese consumers

Purpose – The purpose of this paper is to assess brand commitment levels demonstrated by luxury brand consumers in China and seeks to identify the most significant combination of antecedents from brand affect, image, value and trust. Design/methodology/approach – A self-completion, researcher-supported questionnaire was disseminated within four Beijing shopping malls, generating 501 participants. The questionnaire comprised a range of scale sets covering brand affect, image, value, trust and commitment. The analysis comprised a summary overview of brand attainment followed by a substantive analysis involving confirmatory factor analysis and structural equations modelling to identify the most significant combination of antecedents relating to brand commitment. Findings – Regarding absolute consumer endorsement, brand affect was the most positive area, with image, trust and value representing relatively positive brand attributes. Declared commitment was relatively low, representing a potential commercial challenge. Value, represented by its social and symbolic components, and trust were identified as providing a significant and direct explanation of consumer commitment, represented by its affective and continuance dimensions. The role of value and trust must be central in marketing luxury brands given their direct and combined impact on consumer commitment. Research limitations/implications – The findings are transferable to other “Tier 1” locations in China, but take no account of either consumer behaviour outside of these wealthier conurbations, or segmentation of the associated markets. Originality/value – Geographic setting and consideration of a vast consumer group provides research value and contribution to marketing planning in the pursuit of higher levels of consumer commitment to their brands.

A Study of Luxury Brand Consumption in Mongolia

In this study, three kinds of value dimensions for the luxury consumption (self expression, susceptibility to normative influence, and functional value) were checked to explore the roles of them on Mongolians attitude toward the luxury brand and the interaction effect of middle-class income level on the role of susceptibility to normative influence. Middle-class consumers in Mongolia mainly participated in the empirical study. The empirical results illustrated that all of the three variables positively affected the attitude toward the luxury brand. However, the positive impacts of susceptibility to normative influence on the attitude were weakened when consumers were belonged to the high income group, which indicated income level played moderating roles in the effects of the susceptibility on the attitude toward the luxury brand. These findings might provide marketing implications for the practitioners doing luxury brand businesses in Mongolia.

Drivers of attitudes toward luxury brands

Purpose– Limited attention has been paid to the cultural influences on the formation of consumer attitudes toward luxury brands (LUX). The purpose of this paper is to investigate this relationship by developing a model that additionally employs the constructs of susceptibility to normative interpersonal influence (SNII) and brand consciousness (BCO).Design/methodology/approach– Sample data were gathered through surveys administered to 383 college students in the UK and Taiwan. The model of cultural influences on attitudes toward luxury brands was empirically tested using multi-group structural equation modeling to evaluate its applicability across the two countries.Findings– Results are presented in two parts: first, the exogenous construct part of the model establishing the reliability and validity of the cultural dimension constructs (horizontal individualism, vertical individualism, horizontal collectivism, and vertical collectivism) that are antecedent to consumer SNII and 2) the endogenous part of the model in which consumer SNII affects LUX through the mediating role of BCO.Research limitations/implications– The findings in the current study are limited to a sample of college students in the UK and Taiwan, which, through representing western and Asian countries, each housing different cultures, do not span the greater number of cultures found across these countries, much less across the world. Furthermore it is assumed that there are a number of subcultures in both the UK and Taiwan that are not accounted for in this study.Practical implications– An individual level of cultural orientation (e.g. horizontalism and verticalism) rather than traditionally adopted regionally defined or nationally based (Hofstede, 1980) cultural criteria should be investigated to identify more accurate market demand patterns in order to best target consumers in these markets (Sharma, 2010). In addition, appealing, vertical ad messages would be more effective in stimulating consumer motivations for consumption of luxury brands. Conversely, horizontal ad messages would be effective in demarketing approaches.Originality/value– The current study is the first of its kind to explore the effect of cultural-orientation on the formation of LUX cross-nationally. As such it provides future cross-cultural researchers with valid and reliable culturally based constructs that can be used to predict consumer SNII in developing LUX. In addition, establishing the mediating role of BCO in the relationship between SNII and LUX helps marketers better understand the equity of their luxury brands, particularly in Asian countries.

MEASURING LUXURY BRAND CONSUMPTION AND FEMALE CONSUMERS' RELIGIOSITY IN THE UAE

Luxury brand consumption by female consumers in the rich Arab Gulf states has never been systematically studied, and thus most of our knowledge in this area remains shaped by preconceived notions that are not likely to withstand scientific scrutiny. This study fills that gap in research and provides significant evidence on the actual consumption behavior of this enigmatic consumer segment. In our study, focus groups and expert feedback were used to construct a Luxury Consumption Scale (LCS) to measure actual luxury purchases, while Tiliouine's Scale (RS) was used to measure religiosity. Results show that the sample tended to be religious with moderate luxury consumption, but no relationship was observed between these two. Results also demonstrate that brands transcend boundaries; ridges created by politicians and extremists are bridged by Burberry, Hermes and Versace. Religious Arab women did not perceive a problem in being defined by international brands of non-Muslim origin. This study contributes to the literature by examining the underexplored intersection of female luxury brand consumption and religiosity in the lucrative markets of the Arab Gulf.

Luxury goes digital: how to tackle the digital luxury brand–consumer touchpoints

Today, many of the big brands are diverting substantial amounts of resources away from classical communication channels toward the digital domain. However, despite the digital gold rush, major sections of luxury brands still have not fully arrived in the digital world. Their sentiment increasingly shifts from “Do we need to be online?” to a more complicated question: “How do we actually do it right?” Therefore, this paper has two major objectives. First of all, we want to provide luxury marketers with an overview of the major digital luxury brand–consumer touchpoints and corresponding digital working areas. The first step to digital excellence is to know the available digital opportunities. Based on that, we want to derive some recommendations regarding how to tackle the digital channels successfully, based on an expert survey and a discussion of case studies for each major digital touchpoint. The paper concludes with some major lessons learned.

The role of brand trust in male customers' relationship to luxury brands.

This study examined the role of brand trust in customers' luxury brand consumption behavior. Perceived value and brand satisfaction were presented within a framework as antecedents of brand trust, while brand loyalty and brand risk were presented as consequences. A face-to-face survey was administered to a sample (N = 400) of men between 25 and 54 years of age who had purchased luxury brand and non-luxury brand suits within the previous three months. The results showed the greater the hedonic value on brand satisfaction, the greater the influence of brand satisfaction on brand trust, and the greater was the effect of brand trust on brand loyalty for luxury brands as compared with non-luxury brands. Similar patterns are identified between luxury and non-luxury brands for the positive relationship between utilitarian value and brand satisfaction and the negative relationship between brand trust and brand risk.

Evidence for two facets of pride in consumption: Findings from luxury brands

This paper documents the multifaceted nature of pride in consumer behavior. Drawing on recent psychological research on pride, we provide evidence for two separate facets of pride in consumption. In a series of studies, we propose a model wherein luxury brand consumption and pride are systematically interrelated. Whereas authentic (but not hubristic) pride leads to a heightened desire for luxury brands, hubristic (but not authentic) pride is the outcome of these purchases, and is the form of pride signaled to observers by these purchases. Further, we show that these effects are generally exacerbated for those low in narcissism. These findings shed new light on why consumers purchase luxury brands, highlighting a paradox: these purchases may be sought out of heightened feelings of accomplishment (and not arrogance), but they instead signal arrogance to others (rather than accomplishment).

Value Creation of Luxury Brands for Consumers

Nowadays brands are recognized as main king of saving of the present crises in the market. The main kings which isn’t received easily for companies. But keep of brand in a better place is more difficult than receiving it in a place as a brand. Brands receive this importance as high improvement and stability in priority in market when they are valuable for their consumers. Consumers search gaining value as main actor of each market. According to science to this topic, brands especially luxury brands should be sensitive to this need of consumers and clients and also apply their whole try for changing this need to competitive advantage. According to the importance of this discussion, it is tried in the present research that evaluation of luxury brands is examined for consumers. Necessary data are collected by using questionnaire method in this research. Statistical sample of this research is 384 people among consumers of luxury brands in Kish Island based on volume formula of Kukran sample and the analysis method of the present research is structural equation technique which necessary analysis is considered by using AMOS software.

Attitude of Indian consumers towards luxury brand purchase: an application of 'attitude scale to luxury items'

The objectives are to study consumers’ attitude about luxury goods with special reference to the Indian consumers and to select the themes (cognitive, affective and behavioural) from the existing ones from the ‘attitude scale to luxury items’ suggested by Dubois et al. (2005) for the ‘none available’ item spaces as mentioned in a priori classification of attitudes to luxury using the C-OAR-SE procedure by Rossiter (2002) and Stegemann et al. (2007). Consumers’ attitude about luxury goods in Indian perspective has been examined through an empirical investigation that was carried out among urban respondents belonging to different social strata in Kolkata Megapolis, West Bengal, India. We have proposed three hypotheses where separately attitude and subjective norms toward luxury brands positively affect the intention to use the goods. Furthermore, intention to use luxury brands does not positively influence actual usage of the same. Finally through qualitative process, we have determined the ‘none available’ item spaces as mentioned in a priori classification of attitudes to luxury. The findings support the hypothesis that luxury consumption intentions affect actual luxury brand consumption behaviour. The findings show how nuances occur between measures of attitudes, subjective norms, and intention.