Luxury Brand Perception Research Articles

The Impact of New Media Strategies on Luxury Marketings: A Case Study of LVMH and Dior

Abstract: With the rapid development of digital technology, the traditional communication model of luxury brands is facing great challenges. There is an urgent need for luxury companies to explore new communication modes to break the limitations of traditional models and increase brand influence. This study explores the impact of new media marketing strategies adopted by LVMH on luxury brand perception and product sales. Taking Dior as an example, as part of the LVMH group, it has actively explored the corporate strategy of utilizing new media for marketing, especially through virtual fashion shows' novel new media marketing strategy. The article analyses how LVMH uses new media platforms such as social media, online advertising and content marketing to engage with its target audience. It assesses the impact of these strategies on brand perception and sales performance. It also discusses the challenges faced by LVMH in new media marketing. It proposes solutions and recommendations to promote the substantial development of the luxury industry in the new media era.

The Application of New Media Marketing in Luxury Brand Communication

In the evolving landscape of luxury brand communication, this paper explores the transformative role of new media marketing in the dissemination and perception of luxury brands. Drawing insights from recent studies on social media impact on luxury consumption, it delves into how platforms like Instagram, Facebook, and WeChat have reshaped consumer behavior, particularly among the affluent and aspirational demographics. The paper also investigates the alignment of advertising strategies with the United Nations Sustainable Development Goals (SDGs), particularly focusing on women's empowerment, showcasing how luxury brands can leverage social responsibility to enhance their image and appeal. Strategies adopted by luxury brands in the new media era are analyzed, emphasizing the effectiveness of content marketing, influencer partnerships, and digital storytelling. Case studies highlight the success of brands like Gucci and Chanel in engaging audiences through innovative campaigns that blend heritage with modernity. An understanding of the nuances in different cultural contexts is crucial, as demonstrated by the need for sensitivity towards post-feminist ideologies in crafting messages of empowerment. The paper concludes by offering recommendations for luxury brands looking to optimize their new media marketing efforts. It suggests a balanced approach that integrates online and offline experiences, fosters community engagement, and prioritizes ethical and sustainable practices. By doing so, luxury brands can not only increase their market penetration but also contribute positively to societal goals, thereby ensuring long-term brand loyalty and relevance in an increasingly digital and socially conscious world.

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.

The Role of Generative AI in Shaping Millennials and Gen Z’s Orientation Toward Luxury Products

This study investigates the impact of Artificial Intelligence (AI)-generated promotional content and status motivations on the perception of luxury brands among Millennials and Generation Z. The author adopts a mixed-method research approach that integrates a quantitative survey and structural equation modeling analysis with qualitative Natural Language Processing (NLP). The findings reveal that generative AI promotional content impacts millennials and Gen Z’s purchase intention due to its perceived entertainment, transparency, and usefulness. Status motivations had a stronger impact on purchase intention, and demographic characteristics were significantly different in their results. The study is the first to examine the human characteristics of perceived expertise, transparency, and entertainment in an AI context in light of status consumption motivation. As AI is expected to have more human-like characteristics and behavior, testing theories centered on human influence in an AI context is crucial for marketing theory and practice.

High-end fashion as a social phenomenon: Exploring the perceptions of designers and consumers

Grounded on the social constructionist theory, this paper intends to compare the perceptions of the realities of high-end consumers and fashion designers on high-end brands. The main aim is to understand how the perception of luxury brands is socially constructed by designers and consumers and to explore the impact of the social interaction, specifically, the designers' realities impacting consumers' realities.The research consists of two studies. Study 1 comprised sixteen interviews with worldwide high-end fashion designers, while Study 2 considered three consumer samples (A) consumer interviews (B) consumers' tweets (n = 145,986) specifically on sixteen high-end fashion brands, and (C) consumer online questionnaire (n = 330). We found that high-end fashion designers had more negative (less positive) sentiments compared to the consumers. Designers defined different characteristics that comprise luxury brands. They tend to classify their brand category lower than the consumers. Corroborating the social constructionist theory, we found that the value of high-end brands is constructed by the designers' and consumers' interactions. Consumers gave lower value to a luxury brand if they knew that the designers were unsatisfied and critical of their work, compared to when they were satisfied and confident about it. Therefore, high-end fashion brand managers should consider the different realities of designers and consumers and their interaction in the strategic planning process to ensure designers are satisfied with their work and aligned with the brand's values and image to maintain its luxurious status and appeal to consumers.

Role of Celebrity Endorsement in Luxury Brand Marketing: A Study of Consumer Preferences in China

Purpose: The aim of the study was to investigate the role of celebrity endorsement in luxury brand marketing: a study of consumer preferences in china Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on celebrity endorsements in luxury brand marketing in China revealed that celebrities significantly shape consumer preferences. Cultural relevance is crucial, as celebrities admired by Chinese consumers have a stronger impact. Aligning the celebrity's image with the brand's values enhances credibility. Authentic endorsements, perceived as genuine, are more effective. Overall, the study emphasizes the influential role of celebrities in shaping consumer perceptions of luxury brands in China. Unique Contribution to Theory, Practice and Policy: Social identity theory, self-congruity theory & information processing theory may be used to anchor future studies on the role of celebrity endorsement in luxury brand marketing: a study of consumer preferences in china. It emphasizes the need to tailor endorsement strategies to Chinese cultural values, prioritize authenticity, leverage social media platforms, and invest in long-term partnerships with celebrities. From a policy perspective, the study underscores the importance of transparency, ethical standards, and consumer protection in celebrity endorsement agreements within the Chinese market.

Differential Analysis of Luxury Brand Extension Strategies in Different Cultural Contexts

With the acceleration of globalization and the increasingly fierce competition in the market, luxury brands are facing many challenges in the process of seeking sustainable growth. As an important strategic tool, brand extension strategy is of great significance to the growth and development of luxury brands. Nevertheless, there are differences in consumers' perception and acceptance of luxury brands under different cultural backgrounds, which makes it necessary for luxury brands to consider the influence of cultural factors when implementing extension strategies. This paper emphasizes the importance of cultural sensitivity in luxury brand extension strategies. Firstly, this paper explains the definition and importance of luxury brand extension strategies, and through comparing the cases of luxury brand extension strategies in different cultural contexts, the paper provides references for luxury brands to formulate extension strategies that are more in line with their target markets, so as to enhance their brand value and market competitiveness.

Pengaruh Luxury Brand Perception, Social Influence, Brand Personality Dan Country Of Origin Terhadap Purchase Intention Pada Perusahaan Fast Fashion di Indonesia

This study aims to take the influence of Luxury Brand Perception, Social Influence, Brand Personality and Country of Origin on Purchase Intention in fast fashion companies in Indonesia. This research is a causal research with a quantitative method approach and using multiple linear regression analysis. The population in this study is the millennial generation who intend to buy fast fashion products at H&M and Uniqlo. The sampling technique using non-probability sampling uses purposive sampling with a total sample of 150 respondents. The results of this study indicate that Luxury Brand Perception has no effect on Purchase Intention, Social Influence has no effect on Purchase Intention, Brand Personality has a positive effect on Purchase Intention, Country of Origin has a positive effect on Purchase Intention.

How social capital builds online brand advocacy in luxury social media brand communities

The growth in luxury consumption has fuelled interest in understanding consumer perceptions of luxury brands, particularly with the escalation of social media usage. This study examines consumers’ perceptions of social capital in consumer-initiated luxury social media brand communities. Empirical findings based on 353 luxury brand community members verified the effects of social capital dimensions on brand passion and brand community engagement. Shared vision and reciprocity displayed positive relationships with brand passion, while shared language, shared vision, and reciprocity affected brand community engagement. Although social trust influenced brand passion in the Eastern luxury watch brand community, the effect was nonsignificant in the Western luxury watch brand community. The study adds to the literature on Social Capital Theory by clarifying the role of social capital in consumer-luxury brand relationship building. To capitalise on the amalgamation of consumer power in luxury brand communities, marketers need to comprehend the mechanisms of social capital in establishing consumer-brand community engagement and online brand advocacy behaviours.

Luxury consumption and the moderating role of attitude toward counterfeits: The case of an emerging market

The purpose of this research is to investigate the moderating role of positive attitude toward economic benefit of counterfeit products in the relationship between luxury value perception and purchase intention of luxury brands among Iranian consumers. Data were collected using questionnaires, which were completed by 386 customers at various shopping malls. Structural equation modeling was used to test the direct hypotheses in Amos v.18, and moderated regression analysis to test the moderating hypothesis in SPSS v.19. The results indicate that financial and social value are important drivers of luxury value perception in shaping the purchase intention of consumers, while functional value is not involved in this regard. Moreover, attitude toward counterfeits, as a moderator, reduces the positive effect of luxury value perception on purchase intention. This research provides important insights not only with regard to market entry decision-making but also to develop marketing strategies for positioning a luxury brand in an Asian emerging market. The findings could be potentially generalized to other developing countries in the Middle East with analogous socioeconomic and cultural circumstances. While several studies have been conducted regarding counterfeiting and luxury brand consumption, this is an initial investigation on the moderating role of positive attitude toward economic benefits of counterfeits in the relationship between luxury value perception and purchase intention in the context of an emerging market. This research facilitates further investigations in this regard.

Revisiting the impact of perceived social value on consumer behavior toward luxury brands

In recent years, the luxury market has come to face important structural changes, such as the entry of new segments into the market and the use of the Internet as a sales channel. In this context, luxury brands must understand their young consumers' perception of social value while adapting to environmental changes. This study aims to validate an up-to-date model to determine the impact of perceived value of luxury brands on consumer behavior. To validate the model, we analyze attributes of luxury brands and the value assigned to those attributes. We collect the data from a survey (n = 225) and analyze the results with partial least squares-structural equation modeling. The results show that in our up-to-date model of perceived social value of luxury brands, the social component, as the only antecedent, has a major influence on consumer behavior; the results, however, fail to support our expectations of the impact of financial and functional brand perceptions. Furthermore, we find a relationship between overall luxury brand perception and behavioral and emotional outcomes for young consumers such that companies might consequently tailor their business strategies.

Understanding consumer perceptions of luxury brands

Continuing the stream of luxury brand research that seeks to identify how luxury brands differ from non-luxury brands, we test whether the brand usage and attribute prototypicality influences on consumers’ perceptual responses about non-luxury brands extend to luxury brands. Drawing on data from individuals who qualify in the top 25% income tier in their country, in the United States ( n = 300) and China ( n = 366), across three luxury categories of Fashion, Jewelry, and Watches, we find that brand usage and attribute prototypicality patterns drive baseline response levels for brands on luxury attributes. Furthermore, a calculation from Romaniuk and Sharp is able to accurately estimate scores (±2pp) for over 90% of luxury brands of the 580 brand–luxury attribute combinations tested. The ability to benchmark scores for brands on luxury attributes will enable practitioners to separate real differences in the positioning of luxury brands from those that simply reflect the current size of the brand’s customer base, and over time more effectively detect the effect of luxury brand marketing activities on consumers.

Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers

The study examined influencing factors that affect Chinese consumers' attitude towards purchasing foreign luxury fashion goods online. Data were collected in mainland China. A total of 502 respondents were included. Using structural equation modelling, results indicated that materialism, brand consciousness and bandwagon luxury consumption behaviour have a significant effect on intentions to buy foreign luxury fashion products online. In addition, results show that consumer ethnocentrism moderates the relationship between materialism and intentions to buy.These findings provide insight into consumer perceptions of luxury brands and offer managerial implications for companies and marketers to develop and sustain luxury businesses in the Chinese online market.

Mass Prestige brands – the end of traditional luxury brand marketing?

The luxury goods market is undergoing dramatic changes due to the fact that vast numbers of new consumers are gaining access to goods previously regarded as unobtainable. As a result, luxury is losing its elitist and exclusive character. The aim of this paper is to explore the changes in luxury brand marketing and to introduce the emergence of a new branding philosophy – Mass Prestige brands. The concept of Mass Prestige brands emerged as a response to luxury losing its elitist character, and it was intended to combine elements of luxury brand values perception with mass-market strategies. The key question of the discussion presented in this article is whether the values included in the luxury brand perception model fit Mass Prestige brand value perceptions, and if so, to what extent. Personal (“luxury for oneself”) and social (“luxury for others”) value dimensions of luxury brands were taken into consideration and confronted with the principles of Mass Prestige strategies. As a result, a modified version of the model was proposed that includes only the elements that are relevant to the buying motives of newly rich consumers seeking Mass Prestige brands.

The dilemma of luxury brand extensions

ABSTRACTThe present paper focuses on luxury brand perceptions and their effect on attitude towards brand extensions whilst addressing the moderating role of hedonism. Particularly, the study discusses how hedonism affects the way luxury brand perceptions influence attitude towards upward and downward brand extensions. Two online surveys are used to review consumers’ attitude towards upward and downward extensions. Two real brand cases, the brands of Louis Vuitton and Hugo Boss, provide the context for the studies based on the perceived divergence between the marketing approaches of the brands. Louis Vuitton is considered as a more exclusive luxury brand, whereas Hugo Boss is perceived as more open to the masses, universally consumed brand. Study 1 indicates that luxury brand perceptions generate positive attitudes towards upward extensions. Hedonic consumption does not moderate the relationship between luxury brand perceptions and attitude towards upward extensions. Study 2 designates that luxury brand perceptions lead to negative attitudes towards downward extensions. Hedonic motives seem to significantly moderate this relationship. The study discussed significant implications for both academics and practitioners with respect to the role of consumers’ personal motives on the effectiveness of mass marketing strategies in the luxury brand sector.

Can premium private labels compete with luxury brands: the impact of advertising on perceived luxuriousness

Increasingly, high-end retailers in various parts of the world are marketing premium private label products. This study examines the degree to which advertising can lead premium private labels to be perceived as luxurious and the factors that enhance this perception. Using a theoretical framework based on cue utilization theory and categorization theory, a model is proposed to describe the key factors driving perceived luxuriousness. The findings generally support the model and suggest that premium private labels should be advertised in a way that maximizes the image difference in comparison to regular private labels and equates them to a leading national brand. Additionally, advertising that emphasizes the superiority of the label’s quality relative to competitors and strong image congruity between the store and the brand can improve consumer perceptions of private label luxury brands. It is also found that store type (department store vs. hypermarket) influences the perceptual factors that drive perceived luxuriousness.

An Exploration of Children’s Understanding of Luxury: A Visual Approach

In this article we investigate children’s perception and visual understanding of luxury and luxury brands. We explore what luxury means to children and whether their understanding of luxury is based on their own individual views or on those projected by luxury brands. Children’s appreciation of luxury, ranging from its personal meaning to its design and aesthetic value and to the importance of the brand, is investigated. While a plethora of studies have examined luxury, luxury consumption and the meaning of luxury, scant work focuses on luxury from the perspective of the younger consumer, and specifically those between eleven- and sixteen-years-old. This article is the first to use visual collages to gain an understanding of children’s perception of luxury and luxury brands. The findings provide important insights into how children’s understanding and perception of luxury and luxury brands vary by gender and age. Hence, the article is of value to scholars and practitioners seeking to gain an appreciation of children’s understanding of luxury and luxury brands.

The implications of digital marketing on WeChat for luxury fashion brands in China

This paper examines the use of e-commerce and social media marketing within brand marketing in international luxury fashion retailers in China, focusing on their use of Chinese social media app WeChat for marketing communications and sales. A multiple case study of 15 international luxury fashion brands active on e-commerce platforms in China was conducted in 2015. Qualitative data were collected through face-to-face semi-structured interviews with senior managers in the retailers’ Chinese head offices and their VIP clients, combined with observation of the brands’ WeChat accounts. Contrary to previously held beliefs that e-commerce erodes the fragile perception of luxury brands’ exclusiveness, our findings suggest that concerns over exclusivity due to social media overexposure are irrelevant for the Chinese market, and product exclusivity remains the prominent element in protecting brand exclusivity. WeChat is significantly different in its functionality and use from Western social media and has particular advantages over other social media for luxury consumers and brand managers within China and beyond. Finally, the paper presents a conceptual framework for managing luxury brand marketing in China in the digital era.

EYE MOVEMENT STUDY TO INCREASE CONSUMER’S ATTENTION ON VISUAL POSTING OF PRE-LOVED LUXURY FASHION BRAND IN MOBILE APP

Introduction - Dubois (2002) said that luxury is identical with perception of comfort, beauty, and sumptuous lifestyle. There are five key factors of perceived luxury goods such as uniqueness, quality, hedonic, conspicuousness, and extended self (Vigneron and Johnson, 2004). So that, the definition of luxury fashion brand itself is goods (in terms of fashion) that has brand image and perceived as something that has uniqueness, quality, hedonic, conspicuousness, and extended self and could give comfort, beauty, and sumptuous lifestyle. Online visual display nowadays is one of maketer’s channel to promote the product. In terms of exclusivity, there is only few channels that has been used by marketer, such as website of the luxury brand itself, Instagram, Facebook, Youtube, and so on. This research of online luxury fashion brand is focused on one mobile app, named Instagram. Instagram is choosen because the usage of Instagram is increasing over time, especially in Indonesia. This research is focused on pre-loved luxury fahion brand on online shop at Instagram. There is one problem of this research, which is the percentage of middle to high income is increasing in 5 years (2010-2015) in Indonesia, but consumer is less likely to buy pre-loved luxury fashion brand. The tendency that consumer is less likely to buy because of decreasing sales of some pre-loved online shops in Indonesia. Exploratory research was taken and it can be concluded that the root cause of decreasing sales happens because visual display of pre-loved online luxury fashion brand is not too attractive. Method - The method that which is used is experiment design. The respondent of this research are choosen by non-probability sampling, which is judgemental sampling (we already know the priority characteristic of respondent, such as middle to high income) and female (because the online shop that will be observed is only offer luxury fashion for female). This research will use eye tracker, named Gaze Point. To get the quantitative experiment data, the minimum respondents that will be need is 39 people if we want to generate until get the heatmaps (Kara Pernice and Jakob Nielsen, 2009). Users will be given some oral question after they finished the experiment with eye tracking. There are some contents that will be measured in this reseach, such as caption, image clarity, and background of product. This research will be conducted only for consumer in Bandung. Respondents are female with middle to high income that has been bought pre-loved luxury fashion bag. The variables which are used in this research are the result of combination of construct from previous research about luxury brand perception and attractiveness of visual display. Sensory stimuli of sights will make automated perception actives and determine whether the information attractive or not. Findings – This research found that pre-loved online luxury fashion brand is currently growing rapidly. However, more respondents still prefer to buy online product if the visual display could be more attractive and the longer respondent saw the visual display, means that the respondents tend to be more interested of that posting. Author made proposed design improvements. Author then recommend them to the owner of pre-loved online luxury bag.

THE EFFECTS OF MERGERS AND ACQUISITIONS ON BRAND LOYALTY IN LUXURY BRANDS

This paper examines the effects of the mergers and acquisitions (M&A) announcement through social media on the consumer perception of the luxury brand consumption. A M&A is becoming more wide spread in the luxury market. Yet, the academic research examining the M&A in the luxury brand context has been sparse albeit the growing interests. Moreover, previous research has not paid attention to the effect of social media as a vehicle to communicate the M&A deal with consumers although social media is increasingly used by luxury brands in their brand communication these days. We aim to fill the gap in the luxury brand literature by examining how a horizontal M&A announcement delivered through social media would affect the brand loyalty derived from the luxury consumption values. Specifically, our research focuses on the four distinctive luxury brand values, which are symbolic, experiential, economic and quality values as well as the perceived sustainability of the M&A deal. We examine how a M&A announcement would affect these five values which in turn influence the brand loyalty, as well as examining the differential effect of social media and non-social media as a brand communication vehicle. In addition, we examine how the vertically differentiated luxury brand perceptions (i.e. different luxury tiers) between acquiring and acquired brands influence the consumption values and brand loyalty. Using a scenario-based online survey, our results reveal several interesting insights on the luxury brand M&A. First, our results show that use of social media as a communication vehicle has differential effects on how the M&A announcement influences consumption values and brand loyalty, comparing with the non-social media communication vehicle. Second, we find that a M&A announcement via social media has a positive impact on the consumer values. Third, the symbolic and experiential values have a positive influence on the brand loyalty, regardless of the luxury tier difference between brands. Fourth, our results show that the perceived sustainability has a positive impact on the brand loyalty as long as the M&A was completed between brands at different tiers. Fourth, the perceived quality has a positive impact on the brand loyalty only if the brand is acquired by a less prestigious brand. Lastly, economic value has a positive impact on the brand loyalty only if the acquiring brand is of more luxurious. In sum, our paper provides useful insights to both academics as well as practitioners in the luxury brand M&A context.