Luxury Marketing (eBook)

Klaus-Peter Wiedmann is the Chair of Marketing and Management and the Director of the Institute of Marketing and Management at the Leibniz University of Hannover, Germany. Nadine Hennigs is an Assistant Professor at the Institute of Marketing and Management at the Leibniz University of Hannover, Germany.

Foreword 5
Inhaltsverzeichnis 6
The Authors 8
Part 1 Luxury Marketing as a Challenge for Marketing Theory and Practice 14
1 Placing Luxury Marketing on the Research Agenda Not Only for the Sake of Luxury — An Introduction 15
1.1 The Reason Why: What is the Relevance of Luxury and Luxury Marketing? 16
1.1.1 The Relevance of Luxury and Luxury Marketing from an Economic Perspective 16
1.1.2 Luxury Marketing as an Important Chance for Western Industrialized Countries in the Context of Growing International Competition 17
1.1.3 The Luxury Marketing Strategy as a Success Factor in Different Industries 18
1.1.4 Luxury Marketing and its Positive Impacts on Societal Developments 18
1.1.5 Combining It All: The Essence of Luxury Marketing 20
1.2 The “Know How”: Possible Directions for Discussion and Future Research 21
1.2.1 Developing a Meaningful Typology of Luxury Product/Market Combinations 21
1.2.2 Guiding Future Research along a Comprehensive Contingency Approach 22
1.2.3 The “What We Need”: A Preliminary Conclusion 24
1.3 The “What We Have”: An Overview of the Different Contributions to this Handbook 25
1.4 Acknowledgments and Outlook 28
2 More on Luxury Anti-Laws of Marketing 29
2.1 Introduction 30
2.2 A source of managerial confusion: the six meanings of luxury 31
2.3 Distinguishing luxury, fashion and premium strategies 32
2.4 Do not confuse brand extension and brand stretching 34
2.5 The anti-laws of marketing 35
2.6 Why luxury brands should not pander to their customers’ wishes? 35
2.7 Why always raise the average price of the brand? 39
2.8 How to always keep raising the price point 40
2.9 Why beware of celebrities? 41
2.10 Implementing the luxury strategy beyond the luxury market 42
2.11 The limits of the luxury strategy 42
References 43
Part 2 Luxury and Luxury Consumption: A Global Phenomenon or Dependent on Cultural Differences? 44
3 Culture and Luxury: An Analysis of Luxury Perceptions across Frontiers 45
3.1 Introduction 46
3.2 Luxury concept: different definitions according to different perspectives 46
3.2.1 Luxury: an economic perspective 47
3.2.2 Luxury: a psychological view 47
3.2.3 Luxury: a marketing standpoint 47
3.3 Luxury concept: different facets according to different countries 48
3.3.1 Research design: a qualitative perspective 49
3.3.2 Main categories of luxury: analysis for the three countries 49
3.3.3 Main categories of luxury: analysis for countries’ specificities 54
3.4 Conclusion 57
References 59
4 An Intercultural Comparison of the Perception of Luxury by Young Consumers 64
4.1 Introduction 65
4.2 The Concept of Luxury 65
4.3 Brand Functions and Brand Relational Dimension 67
4.3.1 The functional brand 67
4.3.2 The brand relational dimension. 68
4.4 Research Questions and Methodology 68
4.5 General Empirical Results of Young People’s Perceptions of Luxury: A Semiotic Analysis of the Concept of Luxury and the Ranking of Luxury Brands 70
4.6 The ranking of luxury brands 76
4.7 Discussion 79
References 81
5 Consumer Value Perception of Luxury Goods: A Cross-Cultural and Cross-Industry Comparison 83
5.1 Introduction 84
5.2 The Market for Luxury Goods 84
5.2.1 The Concept of Luxury 84
5.2.2 Luxury Product Categories 87
5.3 Conceptualization: Luxury Value Perception 87
5.4 Methodology 89
5.4.1 Measurement Instrument 89
5.4.2 Sample and Data Collection 90
5.5 Results and Discussion 91
5.6 Conclusions and Implications 102
References 103
Part 3 Luxury and Luxury Consumption from a Theoretical Perspective 105
6 Luxury Brands from a Psychoanalytic Perspective 106
6.1 Luxury Brands and Sublimation 107
6.2 Luxury Brands as a Fetish 113
6.3 Identification and Luxury Brands 114
6.4 Borromean Rings and Luxury Brands 116
References 119
7 Indulging the Self Positive Consequences of Luxury Consumption 121
7.1 Introduction 122
7.2 Conceptual Framework and Hypotheses Development 123
7.3 Study 1: Relationship between Luxury Consumption and Self-Esteem 126
7.3.1 Participants and Procedure 126
7.3.2 Measures 126
7.3.3 Results and Discussion 127
7.4 Study 2: Impact of Luxury Consumption on Self-Esteem 127
7.4.1 Method 127
7.4.2 Results and Discussion 128
7.5 Study 3: Alternative Explanation of Direct Appreciation 129
7.5.1 Method 129
7.5.2 Results and Discussion 130
7.6 General Discussion and Conclusions 131
7.7 References 133
8 How Do Exclusivity Perceptions of Independent and Interdependent Consumers Influence Their Desires for Luxury Products 139
8.1 Introduction 140
8.2 Theoretical Background 140
8.2.1 Self-Construal 140
8.2.2 Optimal Distinctiveness for Interdependent and Independent Self-Construal 141
8.3 Hypotheses 142
8.4 Study 1 142
8.4.1 Method 143
8.4.2 Results 144
8.4.3 Discussion 146
8.5 Study 2 147
8.5.1 Method 147
8.5.2 Results 147
8.5.3 Discussion 148
8.6 General Discussion and Conclusion 149
References 150
Part 4 Different Approaches to Understanding Luxury and Luxury Brands from the Customer’s Perspective within Specific Cultural Contexts 153
9 Luxury Buying Behaviour and the Role of Culture: An Indian Context 154
9.1 Introduction 155
9.2 Indian Culture 156
9.2.1 The New Luxury 158
9.3 Discussion 161
References 163
10 Perceptions, Attitudes and Luxury Brands 165
10.1 Luxury Brands in Australia 166
10.2 Conceptual Framework 167
10.2.1 Luxury Brand Attitudes 167
10.2.2 Perceptions of Brand Luxury 168
10.2.3 Brand Familiarity 169
10.2.4 General Attitudes to Luxury 170
10.2.5 A Model of Attitudes to Luxury Brands 170
10.3 A Study to investigate Brand Luxury Attitudes 171
10.3.1 Approach and Methods 171
10.3.2 Analysis Approach and Cleaning Variables 172
10.4 Results and Findings 172
10.4.1 Perceived Brand Luxury 174
10.4.2 Familiarity 174
10.4.3 General Attitude to Luxury 175
10.5 Conclusion 175
10.5.1 Theoretical Contributions 176
10.5.2 Implications for Practice 176
10.5.3 Limitations and Future Research 176
References 177
Part 5 Luxury and Luxury Consumption in the Context of Societal Change 180
11 Luxury Marketing in the Age of Cheap An Exploratory Survey on Consumer Behavior in Online Shopping Clubs 181
11.1 Introduction 182
11.2 The Phenomenon of “Trading Down” 182
11.3 Recent Developments in Luxury Marketing 185
11.3.1 Luxury as a Real Experience 186
11.3.2 Transformation into a Mass Market 186
11.3.3 Sustainable Luxury 187
11.3.4 Luxury Brands in the Internet 187
11.4 Luxury Orientation of Consumers in Online Shopping Clubs 188
11.4.1 Study Design 189
11.4.2 Results and Discussion 191
11.5 Implications 194
11.5.1 Research Implications 195
11.5.2 Implications for New Luxury Marketing 195
References 196
12 Luxury Brands in the Digital Age — the Trust Factor 199
12.1 Introduction 200
12.2 Luxury Brands and E-Commerce 200
12.3 Developing Trust in a Luxury Brand Website 202
12.3.1 Usability 203
12.3.2 Information Content 204
12.3.3 Technological Professionalism 205
12.3.4 Aesthetics 205
12.3.5 Safety 206
12.3.6 Consumer Relationship Management 207
12.3.7 Order Fulfilment 208
12.4 Conclusions 208
References 209
Part 6 Counterfeits Challenging the Luxury Industry, Consumers and Society 211
13 Luxury Goods vs. Counterfeits: An Intercultural Study 212
13.1 Statement of problem 213
13.2 Literature review and research questions 214
13.3 Method 216
13.3.1 Cultural context 216
13.3.2 Measures 216
13.3.3 Sampling 217
13.4 Results 218
13.4.1 Ethical concerns about counterfeiting in general 218
13.4.2 Typology of consumer orientations toward fake luxury goods 219
13.4.3 Intention to buy fake luxury goods 221
13.5 Summary 223
13.5.1 Discussion 223
13.5.2 Limitations and further research 225
References 225
14 Brazil: Luxury and Counterfeits 233
14.1 The Brazilian context 234
14.1.1 Figures for the Brazilian luxury market 234
14.2 Different perspectives of Luxury 237
14.2.1 Marketing theory and Luxury 237
14.2.2 Theory of consumption and Luxury 238
14.2.3 Modes of consumption of fake Luxury 241
14.2.4 Final remarks 245
References 246
15 Luxury Longing and Counterfeit Complicity: A Consumer Typology based on the Perception of Luxury Value and Counterfeit Risk 248
15.1 Introduction 249
15.2 Theoretical Background 249
15.2.1 Luxury Consumption 249
15.2.2 Counterfeit Consumption 250
15.3 Conceptualization 251
15.3.1 The Conceptual Model 251
15.3.2 Dimensions of Luxury Value Perception 252
15.3.3 Dimensions of Counterfeit Risk Perception 254
15.4 Methodology 255
15.5 Results and Discussion 256
15.6 Conclusions and Implications 259
References 260
16 What is the Harm in Fake Luxury Brands? Moving Beyond the Conventional Wisdom 264
16.1 Introduction 265
16.2 The Scope of the Problem 265
16.3 Consumers as Co-Conspirators 266
16.4 The Non-Cannibalization Hypothesis 267
16.4.1 Evidence for the prevalence of the omnivorous buyer 269
16.4.2 Collateral damage 270
16.5 Counterfeits Harm the Original brand by Reducing their brand Equity 271
16.6 Could Counterfeits Increase the Original’s Brand Equity? 272
16.7 Conclusion 274
References 275
17 Counterfeiting of Luxury Brands: Opportunity beyond the Threat 278
17.1 Counterfeiting: a growing threat to luxury products 279
17.2 An in-depth view of luxury brand equity 283
17.3 Two empirical studies of counterfeiting’s impact on CBBE 285
17.3.1 Sample and procedure 285
17.3.2 Results 286
17.4 Conclusions 294
References 296
Part 7 The Management of Luxury and Luxury Brands 298
18 Luxury SMEs Networks 299
18.1 Luxury Italian SMEs 300
18.2 Country of origin and territory: features of Made in Italy 302
18.3 Territory as network and creativity in network interactions 305
18.4 Luxury SME networks in the Florence area: the results of an empirical analysis 307
18.4.1 Research aim, phases and methodology 307
18.4.2 The Florence area and the SMEs analyzed 308
18.4.3 Main results 309
18.5 Final remarks 314
References 314
19 Managing the Value of Luxury: The Effect of Brand Luxury Perception on Brand Strength 319
19.1 Introduction 320
19.2 Construct Definition and Literature Review 320
19.2.1 Brand Luxury Perception 320
19.2.2 Attitudinal Brand Strength 321
19.3 The Conceptual Model and Related Hypotheses 321
19.4 Methodology 323
19.4.1 The Questionnaire 323
19.4.2 The Sample 323
19.5 Results and Discussion 325
19.5.1 PLS Path Modeling and Related Evaluation Criteria 325
19.5.2 Evaluation of the Formative Measurement Model 325
19.5.3 Evaluation of the Reflective Measurement Models 327
19.5.4 Evaluation and Discussion of the Structural Model 329
19.5.5 PLS-based Importance-Performance Analysis 330
19.6 Conclusion 331
19.6.1 Theoretical Contribution and Research Implications 331
19.6.2 Implications for Luxury Brand Management 332
References 333
20 Personal Selling for Luxury Brands 335
20.1 Introduction 336
20.1.1 The Role of Personal Selling for Luxury Brands 336
20.1.2 Research on Personal Selling for Luxury Brands 337
20.2 Conceptual Model: Sales Strategies Customer Value Perceptions 338
20.2.1 Research on Selling and Persuasion Strategies 339
20.3 Methodology of the Study 342
20.3.1 Description of the Data Sample 342
20.3.2 Measure Description and Reliability Diagnostics 342
20.3.3 Source: Author's illustrationTwo-Level Regression as Analytical Approach 344
20.3.4 Results of the Two-level Regression Analysis 346
20.4 Discussion Managerial Implications 348
References 350
Part 8 Luxury and Luxury Marketing in the Wine Industry 352
21 The Hedonistic Consumption of Luxury and Iconic Wines 353
21.1 Introduction 354
21.2 An experimental paradigm 354
21.3 The luxury wine market 355
21.4 Contemporary consumption patterns 356
21.5 Key characteristics of luxury wines 357
21.6 Experiential domain of luxury wines 359
21.7 Strategies for experientially marketing luxury wines 360
21.8 Realms of experience 360
21.9 Implications for luxury wine marketing strategies 363
21.10 Conclusion 363
References 364
22 Wine as Luxury Experience: A Taxonomy of Consumers Based on Best-Worst Scaling 367
22.1 Introduction 368
22.2 Theoretical Background 368
22.2.1 Effective Wine Marketing 368
22.2.2 Wine Attributes and Consumer Choice 369
22.3 Conceptual Framework 370
22.4 Methodology 372
22.5 Results and Discussion 379
22.6 Managerial Implications and Further Research Steps 384
References 385