Traditional Luxury Research Articles

Eco-sustainable luxury jewellery firms: The case of Courbet's social entrepreneurship model Theme of the case: sustainable business models (SBMs) and social entrepreneurship

Manuel Mallen co-founded Courbet in 2018, an eco-sustainable luxury jewellery firm, with the objective of being the first Maison on Place Vendôme (Paris) to market laboratory-grown diamonds. This case discusses the challenges faced by this French entrepreneur as he confronts traditional luxury brands that sell diamonds from open-pit mining and claim responsible practices. The seven largest diamond producers, representing 75% of world production and grouped in the Natural Diamond Council (NDC), financed a public report (the Trucost report), showcasing their compliance with Corporate Social Responsibility (CSR), threatening Courbet's assertions about eco-luxury. By comparing the components of sustainability (economic, social, and environmental) and value (proposition, creation, and capture), how can Courbet leverage a new business model against traditional jewellery brands? The case also questions whether Courbet's alignment with the 17 United Nations (UN) Sustainable Development Goals (SDGs) can foster market evolution towards sustainability and social change.

The Impact of Artistic Marketing on China's Luxury Market A Case Study of Gucci

The continuous expansion of today's luxury market reflects the rising economic strength of China. As people's purchasing power increases, so does their demand for spiritual aspects. The gradually improving aesthetic standards are posing a threat to the traditional luxury industry that is content with the status quo, thus the demand for excellent artistic marketing is becoming urgent. Gucci has a development history of nearly a hundred years, and its former design director's design themes, which combined Renaissance themes, innovated while inheriting its foundation. Undoubtedly, this brought positive guidance, but the change of design directors also undoubtedly had a huge impact. Artistic marketing has its pros and cons, and it should be more cautious in terms of promotion.

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.

What drives new luxury consumption? Application of schema congruity theory and heuristic systematic framework

PurposeLuxury consumption has evolved, and two important reasons behind the change include globalization and the COVID-19 crisis. These factors have led to the rise of new luxury consumption, which is different from traditional luxury consumption. This study examines how consumers’ identities shape their intentions to consume traditional luxury and new luxury brands.Design/methodology/approachThe theoretical underpinnings of the schema congruity theory and heuristic systematic framework were applied to understand the role of identities in determining consumers’ regulatory focus, price luxuriousness inference and preference for traditional and new luxury brands.FindingsFindings suggest that the global identity of consumers shapes their promotion focus and price luxuriousness inferences. However, their local identities induce a prevention goal. Consumers with such a goal are unlikely to make price luxuriousness inferences. Further, these inferences lead to the choice of traditional luxury over new luxury brands. The results also establish the moderating effects of consumer flexibility.Originality/valueThe extant literature is inconclusive on the role of globalization in luxury consumption and ignores new luxury brands. The current study shows the impact of identities and regulatory focus on traditional and new luxury consumption. The findings also indicate consumers’ regulatory focus and price luxuriousness inference as the reasons behind the influence. The paper also implies that consumers open to renting, sharing or buying second-hand goods will prefer new luxury over traditional luxury brands.

Shaping the Digital Renaissance: The Impact of Glamorous NFT Collections

A glamorous NFT collection can have a significant impact on the NFT ecosystem, reflecting a convergence of creativity, luxury, and digital innovation. By showcasing digital representations of haute couture, luxury lifestyle items, and opulent experiences, a glamorous NFT collection captivates collectors and enthusiasts, offering a tantalizing glimpse into a world of sophistication and elegance. The impact of such a collection extends beyond artistic expression, influencing trends, perceptions, and market dynamics within the NFT space. With its emphasis on aesthetics, exclusivity, and prestige, a glamorous NFT collection elevates the perception of NFTs as valuable and desirable assets, attracting a diverse range of collectors, investors, and enthusiasts. Moreover, by fostering collaborations with luxury brands, fashion houses, and celebrities, a glamorous NFT collection expands the reach and appeal of the NFT ecosystem, bridging the gap between traditional luxury markets and the digital realm. Ultimately, the impact of a glamorous NFT collection lies in its ability to redefine notions of digital ownership, luxury, and status, transforming the way we perceive and interact with digital assets in the 21st century.

A typology of consumers sharing luxury services

ABSTRACT The exponential growth of the sharing economy has led to the emergence of new forms of luxury services and experiences. The rise of shared luxury services and experiences challenges the DNA of traditional luxury consumption by enabling consumers to tap into new, digitalized and shared forms of luxury. While previous research has hitherto investigated consumers’ perceptions of new forms of liquid luxury, little is known about the types and characteristics of consumers who engage in shared luxury services and experiences. This research aspires to answer the following research questions: who are these consumers and what are their characteristics, motives, and attitudes? We delve deeper into the different motivational and behavioral characteristics of 805 US-based consumers in a shared luxury service context. Through a cluster analysis, we uncover four main clusters of shared luxury consumers: Luxury indulgers, excellence-driven traditionalists, value seekers, and community engagers. We delineate each cluster’s different characteristics, motivations, and attitudes towards shared luxury services and offer theoretical and managerial implications for shared luxury providers as well as traditional luxury marketers who wish to tap into this fast-growing market.

Luxury fashion brands at the gates of the Web 3.0: An analysis of early experimentations with NFTs and the metaverse

ABSTRACT Luxury fashion brands have been pioneers in experimenting with NFTs and the metaverse. Though, the analysis of the success of these forerunning initiatives to date still pertains to anecdotal literature. Drawing upon a mixed-method convergent multiple-case-study design involving four cases, this study investigates how pivotal marketplace actors – namely, journalists and consumers – perceived these early experimentations and the extent to which these new technologies can support luxury fashion brands in further conveying their traditional luxury values. Findings suggest that luxury fashion brands should exploit these technologies to reinforce the perception of scarcity, accelerate the “artification” process, and innovatively convey their ancestral heritage. Nevertheless, when leveraging Web 3.0 technologies, luxury fashion brands must be particularly cautious about the risks of conveying their distinctive aesthetics ineffectively and offering experiences that do not align with the highly experiential nature of luxury.

What (really) drives consumer love for traditional luxury brands? The joint effects of brand qualities on brand love

ABSTRACT This study explores the links between the drivers of love towards traditional luxury brands and the key outcomes of these. In more detail, we use the stimulus – organism – response (S-O-R) as an overarching framework to theorise and empirically test relationships between brand uniqueness, hedonism, brand prestige and symbolism (stimuli); brand love (organism); and purchase intention, positive word-of-mouth, and attitudinal brand loyalty (response). We also evaluate the mediating role of brand prestige, brand symbolism and brand love. The results of Partial Least Squares Structural Equation Modelling (PLS-SEM) conducted on survey data from Australian consumers indicate that only hedonism drives brand prestige and symbolism. Brand prestige and symbolism then jointly shape brand love for traditional luxury, ultimately impacting all response variables. Besides advancing existing research on luxury brand love, the results also contribute to practice, illustrating the strategies managers of traditional luxury brands can use to obtain a competitive edge.

Luxury brands and corporate social responsibility (CSR): exploring the differences between traditional and new luxury

Purpose This study aims to comprehend luxury brands' corporate social responsibility (CSR) strategies. In addition to facing a demand for new CSR strategies (consumer-centric CSR), changes in CSR discourse among luxury brands are observed. This study examines how CSR-related and luxury-related agendas relate in the news media, especially concerning the difference between traditional and new luxury brands.Design/methodology/approach A total of 117,171 fashion-related news articles were collected from January 2016 to December 2020. The word2vec method was used to determine the relationship between CSR and luxury agendas.FindingsThe results indicate that company-centric CSR is more prominent with traditional luxury brands, while consumer-centric CSR is more relevant for new luxury brands. In addition, specific CSR attributes and luxury-related attributes are associated with media discourse, which means that CSR and luxury are compatible.Originality/valueStudies on CSR in the luxury industry are not extensive in the literature. This study addresses this gap through a unique framework that combines agenda-setting theory and existing CSR literature and applies them to the luxury industry. Specifically, this study captures the development of each construct (company-centric CSR to consumer-centric CSR and traditional luxury to new luxury) and identifies the specific relationships between them. This result provides a novel view of the luxury industry indicating that it has evolved to encompass CSR-related values. The empirical results also offer practical implications for luxury marketing.

Three Main Tools for Luxury Brands to Strengthen Customers Perception of the Brand

The paper is mainly focusing on examining strategies for firms in the luxury goods market to increase sales. In this paper, the 3 strategies: why logos play an essential role in this industry, why traditional luxury brands began collaborating with fashionable brands and why luxury brands pay high fees to celebrities to engage them as spokespersons, are illustrated. After elaborating on these strategies along with an empirical research and screenshots, the results show that one of the reasons why people are fond of buying luxury products is that logos represent a sense of superiority and may show the owners status; collaboration draws people's attention and increases purchase desire as a large number of people appreciate the combination of luxury and street fashion; star effect leads to many customers want to follow or imitate their idols so they are likely to purchase the clothes or items which their idols have worn.

УКРАЇНСЬКІ SUPERFOODS: ЕКОНОМІЧНІ, ЕКОЛОГІЧНІ, ПСИХОФІЗІОЛОГІЧНІ, ГАСТРОКУЛЬТУРНІ АСПЕКТИ

The article examines the factors that caused the growth of the segment of consumers choosing balanced, healthy, ecologically clean and safe food. The characteristics of the products named "superfoods", their composition, and their properties to have a health-improving effect on the human body are presented. At the same time, superfoods represent a luxury food product for many consumers, and research has linked traditional luxury foods to higher average food prices. Features of the superfood market and its growth rates are discussed. It emphasizes the negative aspects of globalization and the development of international logistics networks, which increasingly facilitate the marketing of food products from different countries and, therefore, beyond traditional sales periods. The specified advantages of creating short food chains for consumers of organic products, who get the opportunity to independently evaluate the ecological and social characteristics of products, and for their producers, who can take advantage of modern technological developments, solving the observed process of perception of the quality of food products. In addition, short food chains show greater resilience to external shocks, such as the COVID-19 pandemic and the Russian-Ukrainian war. The analysis of the superfood market of Ukraine and its development prospects is presented. A retrospective review of the use of products with an increased biological and functional value in traditional Ukrainian gastronomic culture is presented. These are the main products that fully meet the definition of "superfoods" and can be offered to domestic consumers. The possibilities for expanding the assortment of high-quality food products are given in the use of flax seeds as whole grain seeds, flour, and oil. A conclusion was made about the possibility of replacing expensive foreign superfoods with domestic products that are no less valuable, but affordable to a wide segment of consumers. The economic, ecological, psychophysiological, and gastrocultural significance of the increase in the production of Ukrainian superfoods is considered. There are proposed communication and marketing strategies for popularizing Ukrainian regional superfoods.

메타버스 플랫폼 기반 지각된 럭셔리 패션 브랜드 경험에 대한 연구:제페토를 중심으로

In the metaverse, users can enjoy benefits such as feeling satisfaction through their avatars, interacting with various people worldwide, and creating revenue through differentiated content creation. The metaverse also can induce adequate brand cognition through differentiated and unique brand experiences. Compared to its growth potential and social importance, studies on brand experience in the metaverse have been limited. Therefore, this study examines the perceived brand experience, brand equity, brand attitude, and behavioral intention in the metaverse platform. For this research, in-depth interviews were conducted on users of ZEPETO, a metaverse platform in South Korea. Results showed that traditional luxury brands focused on aesthetic aspects of store composition, while new luxury brands focused on more realistic store composition. Also, as customer participation increased, positive brand attitude increased while re-visit intention and word-of-mouth recommendations decreased. According to content creation involvement, there was no difference in purchase intention, which means that regardless of people

Elevating the boutique appeal: generating a sense of place in luxury hospitality through virtual tours

PurposePlace identity refers to the combination of physical setting, social interactions, emotions and associated meanings. This research paper aims to broaden knowledge about boutique concepts and to examine the role of advertisement types suited to generate a heightened sense of place for customers. The design and delivery of tangible and intangible components of the boutique service experience are investigated to better understand business-relevant customer outcomes.Design/methodology/approachAn introductory qualitative study explores the key features and managerial relevance of the boutique appeal as a means to communicate personalization and a sense of place. Interviews with managers of a boutique catering service are conducted and thematically analyzed. A quantitative follow-up study examines the effect of the boutique appeal on hotel image, purchase intention and willingness to pay.FindingsA boutique hotel appeal is more attractive to customers (compared to traditional luxury appeals) when it is advertised using visually engaging virtual tours because it augments customers’ sensation of place identity. The mediating psychological mechanism, place identity, represents the essential emotional component evoked by boutique concepts and its positive effect on managerially relevant customer outcomes.Originality/valueThis paper provides insight for the design and management of boutique concepts to better shape and predict consumer responses in various luxury hospitality industries. The process by which customers identify with the location where the service is provided, socialize with staff and attach meaning to these settings evokes a sense of place identity, a critical resource in the process of value co-creation.

When luxury democratizes: Exploring the effects of luxury democratization, hedonic value and instrumental self-presentation on traditional luxury consumers’ behavioral intentions

While traditional luxury consumers remain an important market segment, the upsurge of affluent aspirational middle class has led to luxury democratization creating a significant shift in the marketplace. However, academic research on the effects of luxury democratization is practically non-existent. Integrating the theories of network effects and impression management, we conceptualize and offer empirical support for the negative network effects of democratization on traditional luxury consumers’ purchase intentions. In study 1, survey data involving 202 traditional Spanish luxury consumers analyzed using SEM and PROCESS and in study 2 an experiment with 205 UK participants, we demonstrate the underlying mechanism of hedonic value that drives the negative effect of democratization. The results also show an important boundary condition through instrumental self-presentation. The study further contributes by developing items to measure luxury democratization. This research shows how luxury firms can develop better positioning strategies for managing the luxury democratization challenge.

Distance and Alternative Signals of Status: A Unifying Framework

Abstract In the past decades, as traditional luxury goods and conspicuous consumption have become more mainstream and lost some of their signaling value, new alternative signals of status (e.g., vintage, inconspicuous consumption, sustainable luxury) have progressively emerged. This research applies the grounded theory method to establish a novel framework that systematically unifies existing conceptualizations, findings, and observations on alternative signals of status. The proposed framework organizes alternative signals in terms of their distance from traditional status symbols and categorizes them along six focal dimensions: time (new/old), quantity (many possessions/few possessions), conspicuousness (conspicuous/inconspicuous), aesthetics (beautiful/ugly), culture (highbrow/lowbrow), and pace of life (slow/fast). This parsimonious framework captures various consumption phenomena related to status signaling, unifies existing theories, and generates a fruitful agenda for future research.

Should a luxury Brand's Chatbot use emoticons? Impact on brand status

AbstractLuxury brands are increasingly adopting chatbots for online customer service. But, little is known about the role of adding design features such as emoticons on customers' luxury experience. This study fills this research gap by exploring the influence of a luxury brand chatbot's adoption of emoticons on status perception and its underlying mechanisms. Results from two experiments suggest that luxury brands might be better off not using emoticons in chatbot communications because it dampens the brand status perception due to perceived unexpectedness, which in turn decreases the perception of the appropriateness of the interaction with chatbots. However, this negative effect of luxury brand's use of emoticons in chatbot communication only exists for traditional luxury brands, not for masstige brands. This study advances the literature on AI, particularly regarding luxury brand‐specific chatbot applications. It also offers insights for luxury brand managers that they should be cautious in adopting emoticons in chatbot communication given the risk of ruining the brand status, especially when the brand is a traditional luxury brand as opposed to a masstige brand.

Three Main Tools for Luxury Brands to Strengthen Customers Perception of the Brand

The paper is mainly focusing on examining strategies for firms in the luxury goods market to increase sales. In this paper, the 3 strategies: why logos play an essential role in this industry, why traditional luxury brands began collaborating with fashionable brands and why luxury brands pay high fees to celebrities to engage them as spokespersons, are illustrated. After elaborating on these strategies along with an empirical research and screenshots, the results show that one of the reasons why people are fond of buying luxury products is that logos represent a sense of superiority and may show the owners status; collaboration draws people's attention and increases purchase desire as a large number of people appreciate the combination of luxury and street fashion; star effect leads to many customers want to follow or imitate their idols so they are likely to purchase the clothes or items which their idols have worn.

Luxury or Masstige: Role of Global and Local Identities, Luxuriousness Variances, Price Luxuriousness Inferences, and Consumer Flexibility

Masstige or mass prestige luxury brands are considered one of the principal drivers behind increased luxury consumption. Literature has proposed increasing globalization as one of the primary reasons behind the sales of these masstige brands. Given the impact of globalization, this research proposes and examines the impact of consumers’ global and local identities on their propensity to purchase traditional luxury and masstige brands. Results from a survey of 278 Indian respondents show a differential impact of global and local identities of consumers on these preferences. Further, the results show the serial mediation of luxuriousness variances and price luxuriousness inferences behind this impact. The results also indicate that the mediating effect of price luxuriousness inference is moderated by consumer flexibility, where consumer flexibility is a facet of consumer wisdom. The traditional luxury and masstige brand managers can use these results to formulate segmenting, targeting, and positioning strategies for their brands.

Leveraging visual cues and pricing strategies: An empirical investigation of the pre-owned luxury market

ABSTRACT Previously less notable behind the primary market, the pre-owned luxury market has grown rapidly during the past five years as luxury resale has become a new normal. This market presents some new challenges that do not apply to the traditional luxury market, yet limited research explores it. This paper fills this gap by investigating information disclosure and pricing effects in pre-owned luxury product promotion in the digital market. Analysis of a unique dataset from a leading luxury resale online platform suggests that providing more information through visual cues reduces information asymmetry and facilitates transactions, but the effect is moderated if pre-owned products are in newer conditions. High prices also have an overall negative effect on sales, but the effect is moderated among newer products because they provide higher price-prestige value. Managerial implications to sellers and the platform are discussed.

(2021) Volume 2, Issue 4 Cultural Implications of China Pakistan Economic Corridor (CPEC Authors: Dr. Unsa Jamshed Amar Jahangir Anbrin Khawaja Abstract: This study is an attempt to highlight the cultural implication of CPEC on Pak-China relations, how it will align two nations culturally, and what steps were taken by the governments of two states to bring the people closer.

(2021) Volume 2, Issue 4 Cultural Implications of China Pakistan Economic Corridor (CPEC Authors: Dr. Unsa Jamshed Amar Jahangir Anbrin Khawaja Abstract: This study is an attempt to highlight the cultural implication of CPEC on Pak-China relations, how it will align two nations culturally, and what steps were taken by the governments of two states to bring the people closer.