Luxury Brand Consumption Research Articles

The “little emperor” and the luxury brand: How overt and covert narcissism affect brand loyalty and proneness to buy counterfeits

AbstractThe authors build on approach‐avoidance motivations theory to investigate the relationship between narcissism and luxury brand consumption. Narcissistic consumers, that is, those showing excessive conceit, are prone to consuming high‐prestige products and are thus attractive targets for luxury brands. Yet despite research in psychology distinguishing two types of narcissism, overt (or grandiose) and covert (or vulnerable) narcissism, little is known about how luxury consumption varies by these forms of narcissism. This paper focuses on Chinese Generation Y consumers to examine how overt and covert narcissism differ in their effects on luxury brand loyalty and proneness to purchase counterfeits as well as the moderating role of brand‐image self‐image congruity on the relationship between overt/covert narcissism and brand loyalty. Findings highlight the need for marketers to understand narcissistic targets more clearly in order to develop successful strategies to foster brand loyalty and diminish counterfeit consumption.

Did They Earn It? Observing Unearned Luxury Consumption Decreases Brand Attitude When Observers Value Fairness

People frequently observe others’ consumption, making inferences about both the consumer and the consumed brands. Although these observations are often beneficial for brands, this research demonstrates that observing luxury brand consumers whose consumption arose from unearned (vs. earned) financial resources reduces observers’ brand attitudes when observers place a high value on fairness. When fairness values are high, observers do not perceive luxury brand consumers who use unearned (vs. earned) consumption resources as prestigious, and in turn, lower prestige perceptions adversely affect observers’ brand evaluations for luxury brands. Consistent with our theorizing regarding the signaling of prestige, the joint effect of consumers’ consumption resources and observers’ fairness values on observers’ brand attitudes does not hold for nonluxury brands, which are not associated with prestige and thereby are not denigrated when the consumer is not perceived as prestigious. This research sheds light on the role of moral values in marketplace judgments of luxury consumption and brand attitude by considering the influence of consumption resources on observers’ judgments.

...and they lived luxury ever after: storytelling as a driver for luxury brand perception and consumer behaviour

Storytelling has become increasingly of interest for marketing and management in the last years and promises both aesthetic design and effecting consumers' perception of luxury brands positively. Nevertheless, the complexity of story design, still being rather focused by the humanities, and its effective adaption for luxury brands regarding value perception and related behavioural consequences are still poorly understood and have not been explored so far. The particular value of our study is to present and empirically verify design elements of storytelling with respect to theoretical narrative approaches, which may have specific impact on certain luxury values and their causal effects on luxury brand consumption. Our results reflect remarkable implications for luxury brand management as well as future research in luxury marketing and storytelling. A luxury company may indeed stimulate purchase behaviour with a storytelling campaign. However, our study proved that a rather appropriate design, respecting research approaches of narratology, is able to increase the impact on consumers' perception and behavioural outcome.

...and they lived luxury ever after: storytelling as a driver for luxury brand perception and consumer behaviour

...and they lived luxury ever after: storytelling as a driver for luxury brand perception and consumer behaviour

The emotional value of arts-based initiatives: Strengthening the luxury brand–consumer relationship

This paper discusses how Arts-Based Initiatives offered to consumers can function as a source of value creation. The conceptual model proposes that brand connoisseurs', despite not being physically present in such initiatives, derive emotional value which positively affects brand loyalty through the mediating role of brand attachment. The findings of a study investigating how consumers respond to this emerging practice by luxury brands reported, largely confirm the relevant hypotheses. Relevant theoretical implications include the extension of previous conceptualizations of this practice and the contribution to understanding relevant consumer responses, while the findings also suggest that luxury brand managers can use Arts-Based Initiatives as a relationship-strengthening tool that transcends geographical barriers.

Constructing a typology of luxury brand consumption practices

Luxury branding has received much attention from marketing and consumer research scholars. Yet, research into how consumers themselves shape luxury brand meanings is underdeveloped. Following the resurgence of the application of theories of social practices in consumer research, we offer a novel and comprehensive typology of luxury consumption practices. In doing so, we shed light on how personalized meanings of brand luxury are emerging in the private sphere of everyday life, as luxury consumers integrate various materials, meanings, and competencies within their practice performances. The findings provide important insights for both scholars and practitioners in developing a more holistic understanding of the multi-dimensionality and fluidity of luxury brand meanings in the context of contemporary consumer culture.

What is a luxury brand? A new definition and review of the literature

In spite of considerable prior research on luxury branding, no widely accepted definition of “luxury brand” exists. The purpose of this paper is to review the literature in order to: a) summarize the state of knowledge on luxury brand marketing; and b) provide a new and usable definition of a luxury brand. A literature review was conducted with a focus on developing a more useful definition of “luxury brand,” outlining key theoretical perspectives that have been used in this area, and summarizing key research findings. Ko and Megehee's (2012) framework for understanding consumption of luxury brands is used as the guiding conceptual framework for the review. Directions for future research are provided.

Do luxury brands successfully entice consumers? The role of bandwagon effect

PurposeThe purpose of this paper is to explore the underlying motivations for bandwagon luxury brand consumption among consumers of an emergent market by empirically investigating the effects of consumers’ interdependent and independent orientations on their personality traits, such as conformity, need for uniqueness and status consumption, which in turn affect their bandwagon luxury brand consumption.Design/methodology/approachA paper-based survey method is used to collect data from more than 400 Pakistani consumers indulging in bandwagon luxury brand consumption. The model is estimated through structural equation modeling.FindingsThe results show that individuals’ personality traits significantly affect their bandwagon luxury brand consumption. Further, the results suggest that the relationship between individuals’ interdependent/independent orientation and bandwagon luxury brand consumption is partially/fully mediated by their personality traits.Research limitations/implicationsThese findings offer insights into consumers’ perceptions about bandwagon luxury brand consumption and provide useful managerial implications for the managers/marketers to build reputable luxury brands.Originality/valueThis research contributes to the literature by investigating the mediating role of consumers’ personality traits in the relationship between their interdependent/independent orientation and bandwagon luxury brand consumption behavior. There is scant literature on bandwagon luxury brand consumption, especially in the context of collectivistic society where the proposed framework has been empirically tested.

CONSUMER RESISTANCE TO LUXURY GIFTGIVING

The act of gift-giving is one of the most significant consumption rituals that individuals perform world-wide (Anton, Camarero, and Gil, 2014) and represents a substantial industry and a major source of revenue for retailers (Segev, Shoham, and Ruvio, 2013). In addition to its economic significance, gift giving is instrumental in maintaining social bonds and functions as symbolic communication in relationships (Belk, 1979; Belk and Coon, 1993). Various researchers (e.g., Belk and Coon, 1993; Fischer and Arnold 1990; Lowrey, Otnes, and Ruth 2004; Ruth, Otnes, and Brunel 1999; Sherry and McGrath 1989) explore reasons for giving and receiving gifts. Although these studies offer valuable insights into gift giving, research on luxury brands as gifts is scarce (Reyneke, Berthon, Pitt, and Parent, 2011). Similarly, research on luxury concentrates on consumer perceptions of luxury brands and motivations behind luxury consumption (Dubois and Duquesne, 1993; Zhan and He, 2012; Roux, Tafani, and Vigneron, 2017). There is a lack of research on consumer resistance to luxury brands. This paper attempts to address these gaps from a conceptual perspective. Drawing on gift giving, consumer resistance and luxury brand literature, this study will examine consumer resistance to luxury brands as gifts. Consumer resistance is “the way in which individuals or groups practise a strategy of appropriation in response to structures of domination” (Poster, 1992, p.1). Consumer resistance can be generic (toward all forms of consumption), or specific (toward a brand or product) (Nepomuceno, Rohani, and Gregoire, 2017). Moisio and Askegaard (2002) suggested three factors that trigger resistance: market conditions that are deemed unacceptable; products or brands that do not conform to the consumer’s self-image; and dominant cultural values that are rejected due to their hegemonic nature. Key motives for luxury brand consumption include impressing others or interpersonal aspects (Berry, 1994; Kastanakis and Balabanis, 2014), and personal or hedonic reasons (Dubois, Czellar, and Laurent, 2005; Wiedmann, Hennigs, & Siebels, 2009). The reasons for resistance to consumption are not merely the opposite of motives for consumption. Hence, to gain a comprehensive understanding of consumption, it is essential to examine resistance to consumption as an alternative consumption (Roux, 2007; Close and Zinkhan, 2009). This study will contribute theoretically to work on gift giving, consumer resistance and luxury brands. Managerial implications will be relevant to brand managers and how they can develop strategies to prevent consumer resistance to their brands.

INDIVIDUAL DIFFERENCES IN CULTURAL CAPITAL THE IMPACT OF THE VISUAL MERCHANDISE DISPLAY ON CONSUMER PURCHASES OF LUXURY BRANDS

INDIVIDUAL DIFFERENCES IN CULTURAL CAPITAL THE IMPACT OF THE VISUAL MERCHANDISE DISPLAY ON CONSUMER PURCHASES OF LUXURY BRANDS

Forms of inconspicuous consumption

Inconspicuous consumption – whereby brand signals are subtle, or not easily visible, to most consumers and the overt display of social status is sidestepped – is on the rise, even in China, which has typically favoured conspicuous brand signalling. Research on luxury brands tends to focus on conspicuous consumption, and few studies have explored the ways in which Chinese consumers use Chinese luxury brands in inconspicuous ways. This study examines how Chinese luxury consumers are redefining their identity projects, as well as their conceptions of luxury, in relation to inconspicuous consumption. We suggest that inconspicuous consumption encompasses consuming luxury products without overtly displaying wealth and social status. Thus, certain luxury brands enable inconspicuous consumption. Turning to a group of Chinese luxury brands offers insights into how luxury brands may fill this role for newly emerging forms of inconspicuous consumption. We distinguish four forms of inconspicuous consumption, illustrated by consumers (1) with wished-for identities or fantasy lifestyles, (2) who appreciate aesthetics and function, (3) who are wealthy and prefer not to provoke envy and/or anger in times of economic austerity and (4) who desire to differentiate themselves and employ subtle signals that are only observable to people with the requisite knowledge to decode their meaning. These forms of inconspicuous consumption facilitate the construction and display of one’s reflective identities, including privately fantasized identity, privately held identity and partially public reflective identities. Thus, we contribute to identity construction theory by explicating aspects of reflective identity and linking them to forms of inconspicuous consumption. Finally, we expand upon recent research on inconspicuous consumption by demonstrating how inconspicuous consumption is manifested in China – the largest luxury market. The results help redefine constructs in the paradoxical situation of inconspicuous consumption of luxury brands, adding a layer of complexity to the inconspicuous consumption concept.

Effect of religiosity on luxury consumer behavior: the case of the Tunisian Muslim

PurposeThe purpose of this paper is to describe the effects of religiosity on attitude and personal orientation toward luxury brands and on purchase and repurchase intentions. Determining the effects of religiosity on the consumers’ behavior toward luxury has proved to be a crucial matter. As far as the authors know, academic research on this topic is almost non-existent. This is an exploratory study at the level of the direct effects of religiosity. Following a literature review, a model was constructed to represent the various interrelationships between the variables investigated in this research.Design/methodology/approachA quantitative study was conducted among 227 individuals having varying levels of religiosity. The authors verified, before, that those interviewed have purchased a luxury brand.FindingsThe findings show that religiosity does not hinder the consumption of luxury brands. Indeed, the authors detected a positive relationship between attitude and personal orientation toward luxury brands and the level of religiosity. The effect of religiosity on attitude and personal orientation is stronger for persons having higher incomes. Moreover, this effect is slight more marked among women.Research limitations/implicationsJust as for all other research work, it is important to identify the limitations of this study. The authors need only to acknowledge its exploratory nature for these relationships to be identified as preliminary ones and as the first elements of proof rather than as a conclusive demonstration. This research suffers from certain other limitations, especially concerning its convenience sampling and the fact that it covered only a limited geographical area, namely, the capital, Tunis, and its adjacent suburbs.Practical implicationsThis research has shown that whatever the level of religiosity, its effect is stronger among persons having a high income. Therefore, Muslims, whatever their religiosity, can be a target for marketers and luxury brand.Social implicationsIslam is not against luxury brand but against ostentation.Originality/valueIt is the first research, as the authors know, that study the relationship between religiosity and consumer luxury behavior, especially among Muslims.

Luxury brands consumption: The segment of “Chandlers”

Luxury brands consumption: The segment of “Chandlers”

Scale development & validation for assessing attitude towards counterfeit luxury

Luxury consumption has long been the area of study both for academic as well as managerial reasons. The sector operates and thrives on what are recognized as anti-laws of marketing. However, with growing consumer aspirations as well as emergence of highly symbolic and globally recognized luxury brands, an equally thriving market is the parallel counterfeit luxury brand market. The current study looked at a significant and widely accepted driver of counterfeit luxury brand consumption- consumer attitudes towards counterfeit consumption.A tri-component model to measure consumer attitude and purchase intention for counterfeit luxury brands was adopted basis a mixed method methodology. A 33 item five- point Likert scale was formulated and pilot tested on a sample of 188 urban consumers of counterfeit luxury brands and later validated through a study of 392 consumers’ across two Indian metros. A comprehensive 15 item scale measuring cognitive, affective and connative attitudinal components towards counterfeit luxury brands was formulated and validated. CFA was conducted to measure the goodness of fit of the proposed model. The instrument had satisfactory construct validity and high reliability scores. The study makes a unique contribution towards measuring and evaluating consumer attitude towards counterfeit luxury brands. Thus, the findings have significant theoretical and managerial implications not only for the Indian but also for other developing markets as well.

Values associated with luxury brand consumption and the role of gender

We investigate the role of gender in the perceptions of and motives for luxury brand consumption. Based on the social structural theory of gender, we propose that differences in men's and women's luxury values result from asymmetries in social status. We conduct three studies with samples of frequent luxury brand buyers. Study 1 (N=512) generates main values associated with luxury brand consumption. Study 2 (N=640) identifies a four-factor model of luxury brand values, including refinement, heritage, exclusivity, and elitism, and shows that women give more importance to refinement, while men give more importance to exclusivity and elitism. Study 3 (N=1024) demonstrates that public self-consciousness has a stronger positive influence on refinement for women rather than men. In contrast, consumer need for uniqueness and status consumption exert respectively a stronger positive influence on exclusivity and elitism for men rather than women.

Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior

Scant evidence is available on of how social media marketing activities influence brand equity creation and consumers' behavior towards a brand. This research explores these relationships by analyzing pioneering brands in the luxury sector (Burberry, Dior, Gucci, Hermès, 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, the study develops a structural equation model that helps to address gaps in prior social media branding literature. Specifically, the study demonstrates the links between social media marketing efforts and their consequences (brand preference, price premium, and loyalty). The study measures brands' social media marketing efforts as a holistic concept that incorporates five aspects (entertainment, interaction, trendiness, customization, and word of mouth). Another contribution of the study is that it finds that SMMEs have a significant positive effect on brand equity and on the two main dimensions of brand equity: brand awareness and brand image.

Co-creating luxury brands in an emerging market

Purpose The purpose of this paper is to explore consumer meaning-making and brand co-creation and the role of brand value and the consumption context of luxury goods in the emerging South African market. Design/methodology/approach An extant segmentation approach that classifies luxury brand consumers into four different segments was used to guide the identification of a total of 16 luxury consumers with whom in-depth interviews were conducted. Findings The findings identify differences between four consumer segments’ levels of brand knowledge and indicate how these differing levels produce interesting meanings assigned to luxury brands which in turn co-create the brands. A framework is also proposed that maps each of the four luxury segments according to the value they derive from luxury brands and the context in which luxury consumption holds the most meaning for each segment. Practical implications Managerial recommendations concerning the implications of consumers assigning meaning and value to luxury brands and recommendations pertaining to the managing and positioning of luxury brands to each of the four luxury segments in this market are proposed. Originality/value The study provides interesting insights with regards to how consumers assign meaning and value to luxury brands in the emerging South African market. The proposed framework also uniquely demonstrates underlying behaviours within each of the four luxury segments and contributes to a better understanding of how and why these segments consume luxury brands.

Luxury brand purchases and the extended self

Purpose– It is generally agreed that marketing campaigns developed for western markets may not be appropriate for consumers living in eastern cultures, particularly with respect to strategies for promoting luxury brands. While consultancy reports and media commentaries show that rising levels of disposable income are driving increasing demand for luxury goods in China and Taiwan, for example, the academic literature offers very few consumer research findings clearly elucidating the different luxury purchasing behaviour of eastern and western consumers. The purpose of this paper is to compare the consumption of luxury products and luxury fashion purchasing habits in Taiwan and the UK, with particular reference to the fashion sector, focusing on a strategically important emerging market segment: young consumers of luxury brands.Design/methodology/approach– To achieve the study’s objectives, questionnaires were administered online in each of the two countries to females aged 18-26 years, who had made more than two luxury purchases in the year preceding the survey. Employing a two-wave survey, respondents were selected via social media and personal contacts in the UK and by means of snowball sampling in Taiwan.Findings– The study found one major point of difference among many similarities: the Taiwanese buyers scored significantly higher on indicators that they were treating luxury brands as a means of developing their self-identity and communicating their social standing: an important part of maintaining “face” in Asian cultures. These findings contain important strategic implications for luxury fashion brand managers developing marketing campaigns for the promotion of their brands in the distinctive cultures of Taiwan, Mainland China and their neighbours.Originality/value– The study reported in this paper compares the consumption of luxury products in Taiwan and the UK, with particular reference to the fashion sector. The study contributes to existing knowledge by evaluating differences and similarities in: first, the luxury fashion purchasing behaviour of young women in Taiwan and the UK; and second, the ways in which the two sets of consumers use luxury fashion products as an extension of their selves.

The impact of attitude functions on luxury brand consumption: An age-based group comparison

The main purpose of this study is to understand the consumption of luxury brands in different age groups. Attitude functions (social-adjustive, value-expressive, hedonic, utilitarian) explain luxury brand consumption among three age groups. A total of 297 respondents between the age of 16 and 59 participated in a survey. Using structural equation modeling, this study shows that the hedonic and utilitarian attitude functions are relevant across all age groups, while the impact of the social functions greatly differs among the target groups. Whereas the social-adjustive function strongly enhances luxury brand purchase behavior of late adolescents (16–25years), value-expressiveness only impacts the luxury consumption of young adults (26–39years). The social functions do not determine the acquisition of luxury brands by middle-aged adults (40–59years).

WORD-OF-MOUTH AND LUXURY BRAND CONSUMPTION: THE ROLE OF ATTITUDE FUNCTIONS

This study aims to investigate the effect of word-of-mouth on the purchase of genuine and counterfeit luxury brands. It also examines the roles of attitude functions and social norm in the relationship between word-of-mouth communication and consumers’ luxury brand evaluation. A 2 (information source: advertising vs. word-of-mouth) × 2 (luxury brand: genunie vs. counterfeit) between-subjects experimental design was used to collect the data. A total of 153 adult consumers from Shanghai, China were recruited and randomly assigned to one of the four experimental conditions. Prior to the conduction of the actual experiment, a pretest of 30 respondents was conducted to determine the brands and scenarios selected for the experiments. Attitude function (social-adjustive function or value-expressive function) is measured by a self-monitoring scale. Social norm, luxury brand evaluations on genuine and counterfeit luxury brands were measured. MANOVA and ANOVA were performed to examine the proposed hypotheses. Results indicated that purchase intention for counterfeit luxury brand was moderated by subjective norm. Word-of-mouth increased the subjective norm related to the disapproval of counterfeits, compared to traditional advertising. Subjective norm was found to strongly influence consumers’ counterfeit luxury brand evaluation. The relationship between subjective norm and counterfeit consumption was positively significant. The moderating effects of self-monitoring and subjective norm on consumers’ evaluations and consumption for counterfeit luxury brands were found to significant. In short, the findings support the proposed hypotheses and showed that positive word-of-mouth was an efficient way to enhance consumers’ purchase intentions for genuine luxury brands, and also an effective means to decrease purchase intentions for counterfeit luxury brands. The results reveal that social-adjustive function and value-expressive function served by luxury brand consumption can be increased by positive word-of-mouth. Furthermore, higher levels of social-adjustive function and value-expressive function served by publicly consumed product (vs. privately consumed product) are found, indicating that product categories also affect the attitude functions served by luxury brand consumption. Managerial recommendations are provided to the marketing managers for luxury brands.