Luxury Marketers Research Articles

Influence of values, brand consciousness and behavioral intentions in predicting luxury fashion consumption

PurposeThis paper aims to examine the relationships among two distinct yet interconnected forms of value orientations, namely, terminal and instrumental values, brand consciousness and behavioral intentions. This study validated the conceptual model for branded fashion apparel consumption in an emerging market, e.g. India.Design/methodology/approachThe research design followed a two-step approach to test the measurement and structural models for partial least squares structural equation modeling with SmartPLS (v.3.0) as recommended by Anderson and Gerbing (1988).FindingsThe results illustrated that both the instrumental and terminal values influence brand consciousness and, consequently, brand consciousness had an impact on behavioral intentions for fashion apparel consumption. Instrumental values had a greater influence on brand consciousness and behavioral intentions than terminal values. Brand consciousness mediated the relationship between instrumental/terminal values and behavioral intentions.Research limitations/implicationsThis study defined two value orientations (i.e. instrumental versus terminal) using cross-sectional data from an emerging market. Future studies may examine the research findings’ generalizability using diverse data sets (longitudinal and cross-sectional) and evaluate the value orientation and customers’ favorable behavioral intentions for luxury fashion consumption.Practical implicationsThis study provides insights into luxury marketers and practitioners to understand the contribution of instrumental and terminal values on brand consciousness and behavioral intentions for luxury fashion apparel. The findings would assist in developing marketing strategies for an emerging market, i.e. India.Social implicationsWith the rapid proliferation of materialism, the Indian market has witnessed the dawn of a new era of luxury fashion acceptance. The research offers evidence that in emerging markets such as India, consumers exhibit value orientation toward luxury brands while holding a sense of fashion involvement in their consumption behavior.Originality/valueThis study is a pioneering attempt to understand the relationships between the value orientation, namely, instrumental and terminal values and their underlying influence on brand consciousness and behavioral intentions toward fashion apparel. Rokeach’s (1973) two-dimensional value dichotomy was adapted to understand luxury apparel consumption in an emerging market context, specifically India.

Consumer Motivations for Sharing Luxury Brands

Luxury marketers have been watching the rise of sharing startups and the unprecedented consumer acceptance of the same with trepidation. This phenomenon has the potential of scuttling the apple cart of legacy luxury brands and the conventional way of marketing. Thus, the author makes an attempt to dissect the consumer motivations for sharing precious possessions on the one hand and using such services on the other hand. By observing such phenomenon at close quarters using in-depth consumer interviews supplemented by netnographic observation of luxury brand communities, this paper attempts to capture the enablers of a changing consumer psyche in order to chart out strategic implications for brand custodians. In short, this paper examines the following research question a) what are the consumer motivations for sharing as well as using shared luxury brands b) what are the enablers of consumer transition from ownership- centric to experience-centric consumption of luxury.

A conceptual framework on the influence of authenticity and rarity on luxury brand value

The luxury goods market has been expanding globally since the early 1990s. Luxury consumption has witnessed a phenomenon of democratisation with the recent progress of civilisation and technology. It is easier now than 50 years ago to discover a scarce resource or purchase a refined item. Luxury marketers are faced with the challenge of the dilution of rarity and authenticity. This exploratory study is based on existing studies that discuss the definitions and associations of luxury, luxury brand, brand rarity, brand authenticity. The present study proposes a conceptual framework illustrating the internal relations of luxury brand authenticity, rarity and brand behaviour. It emphasises that in post-scarcity world, the nature or technical scarcity will tend to zero. The gap in the quality and functional value between each brand will diminish or even disappear. Intangible value generated by brand authenticity became the brand kernel, thus placing a price tag and attracting consumers, especially for luxury brand. Authenticity becomes the dominant factor distinguishing a luxury brand from others and whether the brand behaviour reflects its authenticity consistently, continuously and individually determines how consumers judge this brand.JEL codes: M30, M31

The picture of luxury: A comprehensive examination of college student consumers' relationship with luxury brands

AbstractThis study examines college student consumers' relationship with luxury brands through two studies. Study 1 analyzes collages to determine what represents luxury to them, how consumers perceive their relationships with luxury, and who they are as luxury consumers. Study 2 analyzes qualitative interviews to validate the findings of Study 1 and to add further insights. Results of Study 1 suggest that college student consumers represent a vibrant segment in the luxury market. These consumers perceive a wide variety of products and brands as meeting their luxury needs. They are currently interested in luxury and their potential will only increase as their incomes do. Results of Study 2 confirms their views of luxury and emphasizes the critical roles social media, peers, and family play in influencing college student consumers' luxury consumption and provide insights for how to build an emotional bond with them. Luxury marketers can build brand relationships with college student consumers by offering them entry‐level products as they are current luxury consumers and see their consumption expanding in the future. Given that college student consumers are both vulnerable and savvy in recognizing when they are being manipulated, caution needs to be taken in approaching this segment in relationship‐building efforts.

Exploring the role of visual aesthetics and presentation modality in luxury fashion brand communication on Instagram

PurposeThe purpose of this paper is to examine the strategic importance of visual aesthetics and presentation modality for consumer responses to fashion luxury brand content posted on Instagram.Design/methodology/approachA content analysis of 40,679 posts on the official Instagram accounts of 15 global luxury brands was conducted.FindingsBrand posts using expressive aesthetic image received more likes and comments on Instagram than those with classical aesthetics. Brand video content received more likes and comments than static content. There was also a significant interaction between visual aesthetics and presentation modality in generating likes and comments. Brand content adopting expressive aesthetic and audio-visual modality generated more responses when using audio-visual modality, while content using classical aesthetics produced more responses in a visual-only format.Practical implicationsAs visual aesthetics and modality resulted in different responses to Instagram ads, luxury marketers should consider using appropriate approaches when creating brand posts on Instagram.Originality/valueThis is one of the few studies examining the effectiveness of visual aesthetics and presentation modality in Instagram advertising, especially in luxury fashion brand context.

Exploring Motivational Factors and Brand Equity as Drivers of Luxury Consumer Buying Behavior: An Empirical Study

The Indian luxury landscape is evidently undergoing strong transformation that is redefining the luxury consumer profile and also how luxury marketers need to function in this sector. This paper tries to study the factors that influence female luxury consumers' behaviour towards purchase of luxury goods. The study tries to combine the effect of motivational factors and brand equity on consumers purchasing decision. Data was collected using snowball sampling via mall-intercept method at different malls with high-end luxury stores in India. A self-administered questionnaire was employed. The framework was developed and structural equation modeling was used to test the hypotheses. The findings of the study showed significant relationship between motivational factors and brand equity with consumer behaviour.

A conceptual framework of brand experience for luxury brands

Increasingly researchers are emphasizing the role of consumer experiences in marketing of luxury brands. Experiential marketing essentially describes marketing initiatives that give consumers in-depth, tangible experiences in order to provide them with sufficient information to make a purchase decision. The objective of this research paper is to develop a conceptual framework of antecedents and outcomes of brand experience for luxury brands, which would enable luxury marketers to formulate experiential branding strategies for their offerings in the marketplace. Keywords: Luxury brands, Brand experience, Conceptual framework, Antecedents, Outcomes, Brand.

Value-Based Segmentation of U.S. Luxury Consumers: Conceptual Replication and Model Validation

The primary objective of this study was to understand the U.S. consumers’ luxury value perceptions using Luxury Value Perception (LVP) model (Wiedmann, Hennigs & Siebel, 2009). The study replicated the procedure used in Wiedmann et al.’s (2009) article to validate the dimensions of the LVP model in the U.S. context. Data were collected using an online survey through Amazon Mechanical Turk. The findings revealed the applicability of the LVP model in the U.S. context and revealed interesting differences in luxury value perceptions among U.S. and German consumers. This study advances theory as it is the first to validate the latent luxury value construct as influenced by individual, social and functional luxury value perceptions in the U.S. context. The LVP model helped identify luxury value drivers of U.S. consumers and cluster them in homogenous segments. These findings may potentially help U.S. luxury brand marketers to know the needs and values of different customer segments, ultimately helping them to develop effective brand positioning strategies in a competitive marketplace.

VISUAL AESTHETICS, VIVIDNESS, AND MESSAGE TYPES IN LUXURY BRAND COMMUNICATION ON INSTAGRAM

Despite of its strategic role in shaping corporate image, Instagram predicts that 70% of its contents are not seen by users due to content overload and saturation problems. As more than 95 million photos are shared on Instagram on daily basis, when accessing Instagram, users are bombarded with a lot of visual information and consequently tend to selectively choose photos to pay attention to. Therefore, it is important for marketers to design an ads that has the ability to stop consumers and hold their attention for enough time to be processed cognitively before they scroll up or down to see other photos. This study investigates how visual aesthetic, vividness, and message type of pictures posted on Instagram affects customer responses. A content analysis of 3,952 brand content posted between July and December 2017 was conducted from the official Instagram accounts of seven global luxury brands. The top-listed brands on the Luxury Fashion Social Index namely Burberry, Calvin Klein, Chanel, Gucci, Hermes, Louis Vuitton, and Prada; were investigated as they were considered as good representatives of luxury brands with good social media presence. The coding guide in this study included the numbers of consumer responses (likes and comments), visual aesthetic (classical and expressive), vividness (high and low), and message type (literal and symbolic). For the independent variables, binary coding was used. ANOVA was used to test the hypotheses. Findings suggest that brand posts using expressive aesthetic image received more likes and comments on Instagram than the ones with classical aesthetics. Brand posts with high level of vividness receive more likes and comments than the ones with low level of vividness. Brand posts adopting using symbolic message receive more likes and comments than the ones implementing literal message. The results also suggest that there was a significant interaction between visual aesthetics, vividness, and message types in generating likes Brand content on Instagram using a combination of expressive aesthetic, high vivid, and symbolic message generates more likes and comments than any other combinations. Instead, the content adopting a combination of classical aesthetic, low vivid, and literal message produced the least responses. From theoretical perspective, findings can extend and modify media richness theory to luxury brand and social media contexts. Instagram can be used to display brand contents with various levels of vividness. This study imply that luxury consumers favor expressive aesthetics and symbolic message more positively indicating that they tend to have high level of need for cognition in consuming brand messages. Luxury brand marketers can increase their cognitive load by increasing the level of information complexity increasing the number of colors or patterns, using metaphoric statements, or crafting symbolic messages when creating brand posts on Instagram.

Oscar PR Girl: How interconnected social media platforms humanized the Oscar de la Renta brand identity

Abstract This project examines how the social media persona Oscar PR Girl was constructed and humanized as a luxury brand identity for Oscar de la Renta. To understand this issue, the article considers branding literature focused on luxury brand marketing via social media, then details a textual analysis of Oscar PR Girl content across three social media accounts (Instagram, Twitter and Pinterest) between 1 February and 31 March 2015. The findings of this analysis address how Oscar PR Girl’s messages on various social media accounts interacted with each other to become a unified branding tool. This exploration comes at a time when luxury marketers grapple with how to participate in social media platforms without diminishing brand identity and exclusivity.

Exploring Social Media Engagement Behaviors in the Context of Luxury Brands

Content analysis of in-person interviews with luxury shoppers in Paris identified 11 discrete social media engagement behaviors. Findings indicate that consumer engagement behaviors (CEBs) have different potential for luxury brand cocreation depending on their intended audience, degree of applied effort and creativity, complexity of motivations, and dominant content creation style, but not on choice of social media platform. Luxury marketers can preserve their unique positioning in social media by offering top-quality visual content reinforcing the desired brand associations to (a) generate active and creative behaviors by influentials and (b) promote low-effort, high-virality behaviors by consumers motivated by less complex needs.

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

TYPICALITY EFFECTS IN LUXURY BRAND ADVERTISEMENTS

Consumers’ perception of advertisements can affect brand attitudes, brand trust, and brand image (Meenaghan, 1995; Sheinin, Varki, & Ashley, 2011). Therefore, strategic selection of elements in advertisements becomes important, especially for luxury brands. Luxury brands tend to position themselves as artisans of a particular category or a product and highlight exclusivity (Fionda & Moore, 2008). When a luxury brand is known for a specific product, a less-known product of the brand in an advertisement would be perceived differently. The present study focused on exploring the different effects of iconic products and less-associated products of a luxury brand in the context of advertisements. Categorization theory, typicality effects, and conceptual fluency provided theoretical foundation in understanding the relationships.Typicality effects, simply put, occur when members in a category are graded, “with members ranging from very good (typical) members of a category to very poor (atypical) members of a category” (Loken, Barsalou, & Joiner, 2008, p. 153). In consumer studies, typicality had been examined in various dimensions and showed to effect consumer attitude (Goedertier, Dawar, Geuens, & Weijters, 2015; Loken & Ward, 1990; Ward & Loken, 1988). However, to our knowledge, the subject had not been covered in the luxury brand advertisement context.To test the effects of typicality, the study examined whether typical products in luxury advertising have a higher level of advertisement liking, pleasantness, and novelty than atypical products (H1), whether consumers’ advertisement attitude from luxury advertising have a positive effect on brand attitude (H2), and whether consumers’ product involvement moderated the relationship between product typicality and advertisement attitude.Before the main test, two pretests were performed; the first to select the luxury brand and products to be used in the main test; the second to ensure the brand-product association of the advertisements. A total of 123 undergraduate students participated in the experiment, a (typical vs. atypical) between-subjects design. Participants were exposed to one of the two experimental conditions and were asked to complete a questionnaire. They were provided with questions measuring advertisement liking, pleasantness, novelty, brand attitude, demographical questions, and manipulation checks. All questions, apart from the demographics and certain questions in the manipulation checks, were measured on a 5-point Likert scale. Reliability analysis, multivariate analysis of variance, and multiple regression analysis were used in hypothesis testing.Results of the study revealed that typical brand products in luxury brand advertisements have a higher level of advertisement liking, pleasantness, and novelty. Additionally, advertisement liking and novelty have a positive effect on brand attitude but pleasantness had no effect. Finally, product involvement did not moderate the effects of product typicality on advertisement attitude.The study shows significance in that it supports the typicality effect in categorization theory by showing that there are certain products that consumers link with brands, and the closer the link, the more positive advertisement attitude becomes. Based on the results, it is recommended that luxury brands take caution in product placement and include iconic products in advertisements. There should also be focus on which products are in the advertisement, not the individual consumer’s involvement in a product.For future research, experiments exploring whether presenting typical products with atypical products in advertisements would strengthen the relationships between brands and atypical products is suggested. Also, studies on how luxury brands can elevate the status of atypical products to typical products by educating consumers would provide practical strategies for luxury brand marketers.

Targeting the luxury consumer

PurposeBehavioral targeting has become a popular marketing strategy among brands as it enables advertisers to display ads to consumers based on their previous surfing behaviors. The purpose of this paper is to investigate the effectiveness of behaviorally targeted ads for luxury brands and to explore how and when behavioral targeting works.Design/methodology/approachA 2 (targeted vs non-targeted ads) ×2 (culture: China vs the Netherlands) between-subjects factorial design is conducted to test the hypothesis.FindingsThe result reveals that as for luxury brands, behavioral targeting can shorten the psychological distance and in turn lead to a more positive attitude toward the ad. However, the effect of behavioral targeting depends on the culture. In the Netherlands, behavioral targeting can enhance the attitude toward the ad by lowering the psychological distance. However, in China, these effects are mitigated.Practical implicationsThis study contributes to the research of online luxury marketing. First, luxury brands should adapt their marketing strategy to different regional markets. In addition, luxury marketers should not worry about a shorter distance with consumers caused by the use of internet. A shorter distance does not mean to reduce an aura of mystery, but to build up a closer relationship with consumers. Luxury brands are not necessary to be aloof and supercilious like an indifferent robot. A closer relationship with consumers brings more positive effects.Originality/valueThe current research makes important contributions both to the scientific literature and to the luxury industry. First, this research reveals the effectiveness and underlying mechanisms of behavioral targeting for luxury brands and also compares the effectiveness of behavioral targeting in two cultures, which contributes to the current cross-cultural studies and international marketing research. Second, this study also helps luxury marketers to realize the importance of behavioral targeting and to know how and when they can use this new marketing strategy in a global environment.

Narrow, powerful, and public: the influence of brand breadth in the luxury market

Although the current literature in brand extensions is replete with studies in both line and category extensions, the effect of brand breadth (magnitude of the category extensions) is still yet to be thoroughly examined. Few researchers have focused on brand breadth, to suggest when to choose a narrow (vs. broad) brand extension strategy. Accordingly, no theoretical explanations support the coexistence of both narrow brands (i.e., brands with extensions in similar categories) and broad brands (i.e., brands with extensions in dissimilar categories), particularly in the luxury market. In order to provide guidelines for luxury marketers to enhance overall brand equity, we investigate conditions under which narrow brands are more strongly preferred to broad brands in the luxury market, using a total of 389 respondents recruited via Amazon M-turks and 230 university volunteers in four experiments. Findings demonstrate that narrow brands are liked more than broad brands only with consumers who feel powerful and desire status, and especially when the consumption occurs in public. Highlighting the importance of brand breadth, the current research contributes to the literature in brand extensions and luxury branding by supplying theoretical guidelines to formulate successful brand extension strategies for luxury marketers.

Pleasure and guilt: how do they interplay in luxury consumption?

PurposeThis paper aims to examine, building upon affect balance theory, whether the two modes of luxury consumption, conspicuous consumption (CC) and style consumption (SC), trigger consumers’ mixed emotions of pleasure and guilt and whether the mixed emotions interactively as well as independently influence consumer loyalty to repurchase luxury.Design/methodology/approachUsing an online survey and seemingly unrelated regressions (SUR) analysis, the authors test the hypotheses and assess the parallel (double) mediation effects of pleasure and guilt on the relationships between luxury consumption and repurchase intention.FindingsThe authors confirm the relationships between CC and pleasure (+), between SC and pleasure (+), between CC and guilt (+) and between SC and guilt (−); the independent effects of pleasure (+) and guilt (−) on repurchase intention (RI); and the interaction effect of pleasure and guilt on RI (+). The authors further demonstrate that both pleasure and guilt mediate the relationship between CC and RI, whereas only pleasure mediates the relationship between SC and RI.Research limitations/implicationsFuture researchers may consider possible mixed emotions other than pleasure and guilt and further explore the dynamics between mixed consumer emotions and consumer loyalty in diverse consumption contexts.Practical implicationsThe authors suggest luxury marketers to reduce consumer guilt by promoting SC and by maximizing consumer pleasure, which will lead to greater repurchase intention.Originality/valuePrior research focused on either the positive or negative side of consumer emotion. The authors fill in the research void by examining whether mixed emotions coexist in luxury consumption and how they interplay and influence consumer loyalty.

The role of brand equity and face saving in Chinese luxury consumption

PurposeThis paper aims to investigate the impact of brand equity on Chinese consumers’ affective attitudes toward luxury brands and their behavioral intentions by applying the cognitive-affective model. The interaction effect between face saving and consumer’s affective attitude on luxury consumption is also examined.Design/methodology/approachA field survey was conducted using a sample of 248 luxury consumers in three Chinese cities.FindingsBrand equity was found positively to predict Chinese consumers’ affective attitudes and their willingness to pay a premium price for a luxury brand. Moreover, consumers who highly value face saving were found to be more willing to pay a premium price, even though they hold a less positive attitude toward the brand.Research limitations/implicationsThe use of cross-sectional survey data with young Chinese consumers in first-tier cities may limit the generalizability of the findings as well as precluding the making of causal inferences.Practical implicationsGlobal luxury marketers who plan to enter the China market can utilize marketing strategies to create prestigious value and appeal to consumers who seek for social approval and status.Originality/valuePrevious published studies of brand equity and luxury consumption have primarily emphasized Western markets. These findings advance our understanding of luxury purchase intention among young Chinese consumers, for whom the need for social acceptance acts as a crucial motivator in luxury consumption. The results contribute to amplifying the brand equity concept by taking cultural context into consideration.

Website design: place for luxury brands in cyberspace?

ABSTRACTA great challenge for luxury marketers is how to harness Internet’s incredible influence on customers while still maintaining and adhering to the customer-based brand equity (CBE) of luxury brands. This study aims to investigate the effect of website design on the CBE of luxury brands. Integrating the research on aesthetic design and luxury branding, we develop and empirically validate a research model, specifying that two aesthetic design dimensions (aesthetic formality and aesthetic appeal) can stimulate a strong sense of luxury, which in turn leads to a positive evaluation of CBE. Furthermore, the effect of aesthetic design on the sense of luxury is contingent upon brand familiarity prior to the exposure of a luxury brand website. The research model is validated with a survey study involving 201 participants. The paper includes implications for website design to deliver online brand experience and develop CBE with specific online consumer groups. As an early attempt to examine the website design effect on online branding experience and brand equity, this study contributes to both literature of website aesthetics and online luxury branding.

Psychological underpinnings of luxury brand goods repurchase intentions: Brand–self congruity, emotional attachment, and perceived level of investment made

This study unveils how affluent US consumers process, connect to, and invest various resources regarding luxury brands. The study examines relationships of brand–self congruity, emotional brand attachment, perceived level of investment, and repurchase intentions of a luxury brand. A nationwide, representative online survey was used and 476 adult consumers provided usable responses in the US. Findings from path analyses indicate that consumers’ luxury brand–self congruity positively and significantly predicted both emotional attachment to luxury brands and the perceived level of investment made toward the luxury brand. The perceived level of investment made toward the luxury brand positively impacted the consumers’ repurchase intention toward the brand and mediated interrelationships among the research constructs. Findings of the current study offer a conceptual framework for luxury retailers and marketers to enhance their brand strategies as well as the consumers’ experiences with the luxury brand. Managerial and theoretical implications are provided.

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.