Luxury Brand Managers Research Articles

Strategic Management of Luxury Brands: A Case Study of Louis Vuitton’s Market Performance and Consumer Loyalty

This study explores the critical role of brand strategy management in the luxury goods industry, focusing on Louis Vuitton (LV) as a case study. With the continuous development of the global economy and heightened consumer expectations, competition in the luxury market has intensified. Brand strategy management, encompassing positioning, communication, maintenance, and extension, emerges as a vital competitive tool that influences market performance and consumer loyalty. This research aims to uncover the unique aspects of LV's brand strategy, its impact on market performance and consumer loyalty, and the challenges the brand faces. Through an in-depth literature review and case analysis, the study identifies key success factors of LV's brand strategy, providing strategic recommendations for other fashion brands to enhance their market competitiveness. The findings contribute to the existing literature by filling gaps in the understanding of luxury brand management and offering practical insights for industry practitioners. Additionally, the study highlights the importance of innovation and adaptation in maintaining brand prestige and relevance in an ever-evolving market landscape, emphasizing how LV's strategic decisions have solidified its position as a leader in the luxury sector. This comprehensive examination not only sheds light on LV's enduring success but also offers valuable lessons for emerging brands aiming to navigate the complexities of the luxury market.

Social comparison and self‐determination in luxury consumption motivations

AbstractThis study integrates social comparison theory) and self‐determination theory to examine the roles of escapism, conformity, and individual cultural values in shaping luxury brand attitudes. Concepts related to consumer upward and downward social comparison are complemented by aspects related to self‐determination and autonomy. Drawing on survey data from the United States and Colombia, the research employs partial least squares structural equation modeling and fuzzy‐set qualitative comparative analysis (fsQCA) to investigate the complex drivers of luxury consumption. The findings reveal that escapism and conformity, complementary motivations grounded in social comparison and self‐determination theories, positively influence luxury brand attitudes. Furthermore, individual cultural values, such as self‐enhancement and self‐transcendence, moderate the relationships between these consumer motivations and attitudes. The cross‐cultural comparison highlights differences in the influence of cultural values on luxury consumption between two distinct cultures. The fsQCA—results uncover distinct configurations of motivations and values sufficient for driving positive luxury attitudes, extending the understanding of the complex interplay of factors shaping luxury consumption. By integrating social comparison theory and self‐determination theory perspectives, examining cultural values, and employing advanced methodological approaches, this study contributes to the theoretical understanding of luxury consumption. It also offers valuable insights for luxury brand managers navigating the evolving global market. Future research directions emphasize the potential for further integrating these two theoretical frameworks in the luxury domain.

The use of non-fungible tokens (NFTs) as promotional devices to build brands: An application of lovemark theory

ABSTRACT Luxury brand managers are paying attention to utilizing non-fungible tokens (NFTs) as promotional tools, yet there has been limited study on the topic. To help address this gap, this study explores the impact of the cognitive and affective aspects of the use of NFTs as promotional devices on consumer behavior. A survey is conducted to explore aspects of NFTs that make them effective in as promotional tools. This study reveals four key attributes associated with NFT promotional efforts, namely, scarcity, authenticity, resaleability, and trendiness. Moreover, drawing on lovemark theory, the study finds a significant effect of NFTs electronic word of mouth generation and brand purchase intention. The empirical findings can aid both academics and practitioners in the management of digital marketing activities via NFTs.

Navigating Tradition and Ethics: Consumer Perceptions of Luxury Brands Using Animal Products

This study investigates the complex relationships between consumer perceptions, brand equity, and customer loyalty in the context of luxury brands using animal products in Northern Vietnam. Employing a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), we surveyed 228 luxury consumers in urban areas. Our findings reveal that consumer perceptions significantly influence all components of brand equity - brand awareness, brand associations, and perceived quality - which in turn strongly impact customer loyalty. Notably, brand equity partially mediates the relationship between consumer perceptions and customer loyalty. The study also uncovers the dual influence of cultural factors: traditional cultural values positively moderate the relationship between consumer perceptions and brand equity, while ethical concerns exert a negative moderating effect. These results contribute to the theoretical understanding of luxury consumption in emerging markets and provide practical implications for luxury brand management. Our research highlights the need for a nuanced approach in navigating the delicate balance between leveraging cultural heritage and addressing growing ethical concerns in the luxury sector.

Exploring the Influence of Consumer Perception, Social Norms, and Face Consciousness on Generation Z’s Willingness to Purchase Counterfeit Luxury Goods

This conceptual study explores the influence of consumer perception, social norms, and face consciousness on Generation Z's willingness to purchase counterfeit luxury goods. As the youngest and most digitally connected consumer group, Generation Z presents a unique paradox: a desire for luxury and social status juxtaposed with value-driven, often budget-conscious purchasing behaviors. Drawing on theories of consumer behavior, social identity, and face consciousness, this paper examines how Generation Z’s motivations are shaped by perceptions of counterfeit value, peer influence, and a heightened sense of social image. By analyzing these factors, the study provides a framework for understanding Gen Z's attitudes toward counterfeit luxury goods, offering insights for luxury brand managers to reinforce brand authenticity and mitigate counterfeit appeal. Findings suggest that aligning brand strategies with Gen Z’s values around authenticity, social responsibility, and exclusivity can play a pivotal role in counteracting the demand for counterfeit products, while fostering a culture of informed and ethical consumption.

Factors that influence consumers’ inclination to acquire counterfeit luxury goods

This study investigates the influence of perceived value and perceived risk on consumer intentions to purchase counterfeit luxury goods, drawing upon an integrated theoretical framework encompassing perceived value theory, risk perception theory, and consumer behavior models. Through a quantitative research design involving a structured survey and Structural Equation Modeling (SEM), the study examines the relationships among perceived value dimensions (functional, emotional, social, economic), perceived risk factors (financial, social, performance), consumer attitudes, and purchase intentions. The findings reveal that perceived value positively influences purchase intentions, with consumer attitudes acting as a critical mediating mechanism. Conversely, perceived risk negatively impacts purchase intentions, with this relationship also mediated by consumer attitudes. Furthermore, Bayesian Network analysis uncovers the indirect pathways through which perceived risk shapes purchase intentions via its influence on consumer attitudes. By integrating these theoretical frameworks and employing advanced analytical techniques, this study contributes to a comprehensive understanding of the complex decision-making processes underlying counterfeit luxury goods consumption. The findings provide valuable insights for policymakers, luxury brand managers, and consumer protection agencies in devising targeted strategies to address consumer perceptions of value and risk, ultimately mitigating the proliferation of counterfeit luxury goods.

The Applications of Social Media for Luxury Brand Management — A Narrative Review

Purpose — The emergence of social media and digital technologies has reformed the competitive aspect for firms that quickly acknowledged the increasing relevance of social media platforms for business purposes social media is emerging as an important part of our lives. Luxury brands are gaining popularity as the customers are getting richer. In this paper, we did an extensive review of the research papers to understand the applications of social media for luxury brands management. We also studied the data analysis techniques used in those research papers. Methodology — The papers related to the applications of social media for luxury brand management were collected using related keywords. We searched the papers with the keywords such as “Social media marketing” and “Luxury brands”, “Social media consumer engagement” and “Luxury brands”, “Social media consumer response” and “Luxury brands” and “Social media communication” and “Luxury brands” in Scopus database. Findings — Marketing and customer response are the two main categories of the applications of the social media for luxury brand management. Regarding data analysis techniques, traditional data analysis models such as structural equation modelling, regression, etc. have been used more as compared to data mining, text mining, etc. process. Originality — We propose a new categorisation of different research papers related to applications of social media for luxury brand management. We also did an extensive study of the data analysis techniques to conclude that traditional data analysis models have been mostly used in this research area. The recommendations to social media marketing professionals related to luxury brands have been presented to improve the effectiveness of social media campaigns for luxury brands. We also suggest challenges and future research directions in this area.

Causes and Effects of Social Media Engagement in Luxury Fashion Marketing: A Comparative Study Over the COVID Pandemic

This paper examines cross-country heterogeneities and over-time changes of the role of social media marketing (SMM) in the luxury fashion industry. A comprehensive literature review is conducted on customer value, purchase intention, and engagement motivation to understand the causes and effects of SMM. Based on the survey data in China and the United Kingdom, probit and oprobit regressions are employed to estimate the models of SMM. Results show that affectional and cognitive motives are the two primary drivers of SMM engagement in both countries. Chinese customers are more susceptible to SMM than their British counterparts, suggesting significant potential benefits of developing SMM strategies in China. Over time, SMM has become an irreversible trend of luxury brand management after the coronavirus disease 2019 pandemic. Identified heterogeneities and changes call for differentiated international marketing strategies in different countries at different times.

The self on display: The impact of self‐objectification on luxury consumption

AbstractSelf‐objectification, the tendency to perceive oneself predominantly through the lens of physical appearance, has been a focal point of study in psychology and mental health fields. Yet, its intersection with marketing and consumer behavior remains underexplored. This study endeavors to fill this gap, unveiling self‐objectification as a novel driver behind the consumption of appearance‐related luxury goods. Such a tendency is hypothesized to arise from the heightened self‐presentation motivation prevalent among those exhibiting self‐objectification. Through three empirical experiments, we validate this connection, emphasizing a strong association between self‐objectification tendencies and luxury consumption, especially for appearance‐related products, with self‐presentation motivation mediating this relationship. Theoretically, our study integrates self‐objectification into the marketing area, linking it to consumer behaviors and enriching the prevailing literature while indicating directions for future research. From a practical perspective, our results offer important insights for luxury brand management. Moreover, by clarifying the impact of self‐objectification on purchasing behaviors, we aim to promote more informed consumer decision‐making.

How violation of consumers’ expectations causes perceived betrayal and related behaviors: Theoretical perspectives from expectancy violation theory

Expectancy violation theory was used as a theoretical foundation to predict the influence of brands' norms violation, expectation violation, and moral violation in developing luxury brands' consumers' betrayals. We examined the perceived influence of betrayal on consumers' behaviors, such as vindictive complaining and retaliatory behavior. The present framework also checked the boundary effects of post-purchase regret on the impact of perceived betrayal on vindictive complaining and retaliatory behavior. Data was collected from 378 luxury brand consumers using a web-administered questionnaire. We applied PLS-SEM using SmartPLS 4.0. To analyze the data. Our results revealed that predictors, i.e., norm violation, expectation violation, and moral violation, positively develop consumers' perceived betrayal. Perceived betrayal significantly triggers vindictive complaining and retaliatory behavior. This research found that moderating effects of post-purchase regret strengthen the association between consumers’ betrayal and behavioral outcomes. We enrich our understanding of betrayal and consumer psychology, identifying how positive outcomes cause negative emotions in consumer behavioral responses and offering strategies for managers of luxury brands. We also acknowledge shortcomings and highlight future avenues for research.

Does cuteness enhance luxury brand equity? Exploring the effect of perceived uniqueness

AbstractCuteness is a feature of a variety of products and is common in marketing communications. Despite its popularity among mainstream brands, there is limited academic attention to cuteness in the context of luxury brands. While cuteness and luxury may appeal to different customers, luxury brands sometimes incorporate cuteness in their product design or brand communication. The potential impact of cuteness on luxury brand equity warrants investigation. Across four experiments with 662 participants, this research examines the effect of cuteness on luxury brand equity. Results show that cuteness enhances luxury brand equity through perceived uniqueness, as cuteness is less commonly associated with luxury brands. However, this positive effect only exists for traditional luxury brands, not for masstige or mass consumer brands. This research advances the literature on cuteness, particularly regarding its implications for luxury brands, and offers insights for luxury brand managers.

지각된 브랜드명성이 브랜드인게이지먼트에 미치는 영향

Purpose - This study aims to determine the impact of brand prestige on brand self-congruity and brand consciousness in the luxury brand setting, and the moderating role of brand trust in these relationships. In addition, we aim to confirm the impact of brand self-congruity and brand consciousness on brand engagement, and the moderating role of brand commitment in the relationship between these constructs. Design/Methodology/Approach - In this study, SPSS 27.0 and AMOS 26.0 statistical packages were used to confirm the validity and reliability of the data. Research hypotheses were tested using structural equation modeling (SEM). Convergent validity was analyzed using confirmatory factor analysis (CFA), and discriminant validity was confirmed using correlation analysis. Findings - Brand trust fully mediated the relationship between brand prestige and brand self-congruity, and partially mediated the relationship between brand prestige and brand consciousness. However, brand commitment was found to be insignificant in the relationship between brand self-congruity and brand engagement, but was found to be partially mediated in the relationship between brand consciousness and brand engagement. Research Implications - Luxury brand marketers and managers must increase brand trust so that consumers can have a high level of loyalty to the brand, and identify with the brand. Additionally, it is necessary to encourage active engagement in luxury brands by increasing brand commitment.

What drives higher active customer engagement in luxury brands’ social media? Measurement and contingencies

This study investigates customer engagement behaviors related to luxury brands on social media, focusing on the motives driving active and passive engagement. Applying a sequential mixed methods approach, drawing on netnographic and survey data analyses, the study identifies 10 emergent themes across intrinsic and extrinsic motives that shape overall motivation for social media engagement with luxury brands. Findings from the netnographic analysis provide empirical insights into customer motivations, which inform the development of hypotheses tested through quantitative analysis. The results highlight the roles of intrinsic motivations, such as entertainment, authenticity, gratitude, experience sharing, nostalgia, aesthetics, and lifestyle inspiration. Further, extrinsic motivations such as social support, utilitarian rewards, and social status seeking are revealed to influence customers' attitudes and behaviors toward luxury brands on social media. The findings regarding the necessary condition and importance-performance matrix analyses provide additional nuanced insights into the necessity and importance of intrinsic and extrinsic motivations for active and passive engagement on social media by customers. The study also clarifies the moderating effects of customers’ value for money orientation and brand identification on the relationship between overall motivation and engagement behaviors. The findings provide a granular understanding of luxury customer behavior on social media, offering valuable insights for luxury brand managers aiming to foster stronger customer–brand relationships.

Does consumption values and ascribed responsibility predict attitudes towards sustainable luxury brands

PurposeThe young generation (Gen Z and Millennials) has a different set of values that the brand needs to interpret better. There is evidence of a correlation between luxury brands and sustainability. The purpose of this study is to assess the impact of consumers’ consumption values (functional, experiential, and symbolic) and ethical values (ascribed responsibility) through flow experience (FE) on consumers’ attitudes towards sustainable luxury brands (SLB) in the young generation based on stimulus-organism-response theory.Design/methodology/approachThe research design consists of Studies 1 and 2. Study 1 used a structured questionnaire on a sample of 396 respondents based on the scales of luxury consumption values. For Study 2, the authors collected 30 qualitative responses from the target group (young Indian shoppers who indulge in luxury fashion shopping frequently) via open-ended essays. PLS-SEM was used to test the hypothesised relationship.FindingsAs per the results, functional values are the most significant predictors of FE, followed by AR, experiential values and symbolic values. The study also discovered that FE has a substantial influence on the formation of attitudes towards sustainable luxury fashion brands. The qualitative findings were in line with the quantitative findings, except that the respondents have reservations with respect to the authenticity of sustainable initiatives by the brands.Practical implicationsAs the young consumer represents the future development of the luxury market, it is crucial to fully comprehend their view with respect to consumption value and AR in an emerging economy like India, which constitutes one of the highest populations of young consumers. The new research framework will also assist luxury brand managers in the formulation of efficient brand marketing strategies for sustainable luxury apparel.Originality/valuePrevious studies have mainly focused on FE in the context of the service industry. There are limited studies exploring the impact of achieving FE in framing the attitude towards sustainable luxury fashion brands. Academic research in the area so far has limited its scope to quantitative and a few qualitative studies, but this study provides a mixed-methods approach in a luxury setting, contributing to the study’s distinctiveness.

Luxury Brand Management in the World of Evolving Technologies

The dynamics of the luxury sector are unique and quite different from those existing in the fastmoving consumer goods (FMCG) arena. Consequently, the marketing strategies used in the brand management of luxury companies are also distinctive, and brand managers rely on traditional marketing practices only to a limited degree. Luxury has also been slower to embrace online methods due to a perceived potential threat to preserving the values associated with luxury brands. However, as new technologies emerge, organizations – luxury companies included – find themselves facing both new opportunities and challenges. These developments are further magnified by changing demographics, in particular the growing presence of generations Z and Alpha, who have grown up online and will soon become more significant customers with greater buying power. This discussion paper examines the evolving technologies, focusing on the challenges and opportunities presented to luxury companies. Several examples are used to map this scene. Blockchain, NFTs, the metaverse, artificial intelligence, and machine learning are considered. The paper concludes with a brief look at opportunities for future research.

Thinking fast and slow: a revised SOR model for an empirical examination of impulse buying at a luxury fashion outlet

PurposeDespite the extensive stimulus–organism–response (SOR) literature, little attention has been paid to the role of marketing activity as a key environmental stimulus, and there is a dearth of research examining the interplay between emotions and cognition on consumer behaviour, as well as the sequential effects of emotions on cognition. To address these gaps, this study aims to develop a revised SOR model by incorporating Kahneman’s fast and slow thinking theory to investigate the impulse buying of affordable luxury fashion (ALF).Design/methodology/approachThe authors use outlet stores at Bicester village (BV) in England as the research context for ALF shopping. Partial least squares structural equation modelling was used to analyse a survey sample of 633 consumers with a BV shopping experience.FindingsThe authors find that impulse buying of ALF arises from the interplay of emotional and cognitive factors, as well as a sequential and dual process involving in-store stimuli affecting on-site emotion and in-store browsing.Research limitations/implicationsThis study reveals that brand connection has a significant and negative influence on the relationship between on-site emotion and in-store browsing, advancing the SOR paradigm and reflecting the interactive effect of human emotion and reasoning on the impulse buying of ALF items.Practical implicationsInsights into consumers’ impulse buying offer practical implications for luxury brand management, specifically for ALF outlet retailers and store managers.Originality/valueThe results suggest a robust sequential effect of on-site emotion towards in-store browsing on impulse buying, providing updated empirical support for Kahneman’s theory of System 1 and System 2 thinking.

Research on the Marketing Strategy of LVMH in the Chinese Market under the Background of New Media

Chinas new media has developed rapidly in recent years, and society has entered the era of new media. At the same time, Chinas economic level is developing rapidly, and peoples living standards are also greatly improved. The demand for luxury goods is greatly increased. The huge population makes China become the largest consumer of luxury goods. In this context, various luxury brands have different marketing strategies for the China market. As one of the worlds largest luxury goods companies, LVMH is bound to change its marketing strategy for China market. In addition to an overview of the topics and trends covered in the relevant literature, this paper mainly discusses the impact of new media on the luxury industry and how the luxury industry should change in the new media environment. For some academics and marketing managers of luxury brands, this paper can provide some theoretical basis and is of great reference for changing marketing strategies.

Luxury brand cultural symbolism: signaling effect on customer well-being

ABSTRACT Although previous studies of consumer behavior have examined the relationships between consumption and well-being, little is known about the impact of luxury brands on consumer life satisfaction. This study uses signaling theory to develop a model examining the impact of cultural symbolism, as measured by brand authenticity, on customer well-being. Self-administered online survey data is collected in the United States due to the growth and size of the luxury industry in the United States. Partial least squares structural equation modeling using SmartPLS showed that cultural symbolism has a positive signaling impact on customers’ perceptions of the authenticity of a luxury brand, prompting both hedonic and eudaimonic senses of well-being. Multigroup analyses supported the impact of the types of perceived benefits (hedonic and utilitarian) on the relationship between luxury consumption and consumer well-being. The present study offers useful insights for luxury brand managers by highlighting the roles of brand culture creation and brand authenticity on life satisfaction.

Research on LV Cosmetics Product Line Extension and Luxury Brand Construction

During the Post Covid-19 Era, the luxury brand production category have boomed in two directions, high pricing production & lower pricing production. Western markets have suffered from an economic recession because of the War and the energy tension. Luxury brands how to perform the strategies in different markets to keep the growth and make up the loss from the western markets, minimizing the negative from the mass production. Firstly, this paper talk about the ideological reasons for luxury brand expansion. After that, this paper talks about the economic reasons for luxury brand expansion: why it is so urgent to do the production turn down. Finally, this paper talks about how luxury brands growth is through product line extensions: galaxy mode product line expansion, not the pyramid mode & LV brand growth; Control create product process tightly; Pricing strategy in two directions. This paper defines the principle rarity domain of Luxury brand management. Still, cultural differences exist in Western and Eastern markets, meaning those two markets perceive the rarity principle quite differently. The two paradox discussions in social ideology, the economic perspective from different lands, have managerial implications.

The Visual Luxury Consumer: Louis Vuitton, Hermès, Maison Schiaparelli

The luxury consumer is one of the most celebrated concepts in what is known as luxury brand management. However, this study of the associations between the visual, luxury, and the consumer offers new possibilities for thinking about the contemporary visual culture of luxury brands such as Louis Vuitton, Hermès, and Maison Schiaparelli. The article guides readers through issues at the heart of work on the luxury consumer, including the visual luxury consumer as practitioner, as an expert who uses their visual knowledge as part of their luxury consumption. What becomes apparent is that work on the luxury consumer is impossible to ignore for anybody who is serious about contemporary visual culture, and this investigation provides an ideal critical introduction to a wide variety of texts and topics related to luxury and consumption.