We experimentally tested the effect of presenting a garment on a contextualized versus decontextualized setting on an online clothing store. A contextualized setting improves perceived plausibility and processing fluency. It increases the perceived similarity with the actual clothing and enhances perception that it should fit well on one’s body.
Concepts from country-of-origin, the authenticity concept and ingredient branding make up the essential literature for this scale development. This study intends to develop a scale specifically to measure consumers’ motivation to seek for ingredient authenticity in luxury brands. The proposed methods for scale development and its implications are also highlighted.
This study present an integrative model incorporating key consumer characteristics (shopping motivations, need for touch, and perceived risk) as drivers/barriers of e-commerce in the footwear industry. An online survey was conducted using a sample of 4,203 customers of a global footwear retailer. The model was validated across cultural/gender segments.
The fashion industry has been dramatically transformed during the last 20 years with the introduction of fast fashion: a style of instant cutting edge fashion at affordable prices (Sheridan, Moore, & Nobbs, 2006). The term, fast fashion, describes a business model characterized by rapid supply chains, merchandising techniques and retail technology all developed to respond to increasingly fast changing consumer demands (Kim, Choo, & Yoon, 2013). In contrast to this business format, luxury fashion brands have always held a superior position in the fashion industry through their quality, limited release and pricing policies. The contemporary fashion industry is now highly competitive, with this additional pressure coming from fast fashion companies constantly delivering original and “fresh” products at affordable prices (Cholachatpinyo, Fletcher, Padgett, & Crocker, 2002). Despite the apparent price discrepancy between fast fashion and luxury fashion products, both these two fashion styles appear to cater to a consumer’s need for uniqueness. Through the consumption of fashion this uniqueness factor becomes evident in the way in which consumers convey their individual identity and self-image to society. Intuitively, as the two styles of fashion are distinctive, the type of uniqueness component desired by their consumer will differ. Therefore, we ask: “what aspects of uniqueness are motivating consumers to choose between fast fashion and luxury fashion brands?” The paper answers this important research question through evaluating (1) the predictively of fashion-brand attitude and self-congruency on fashion style preferences and (2) the moderating role of consumers’ need for uniqueness (CNFU) in these direct relationships.
An online survey of 301 U.S. participants was conducted utilizing a quazi-experimental between-subjects design. All participants had experience with purchasing either fast fashion or luxury fashion clothing. Fashion-brand attitude and self-image congruency were treated as independent variable with preference for fashion style as the dependent variable. The three factors that constitute CNFU were treated as moderators. The results suggest that fashion style preference is determined more by the level of self-image congruency than positive attitudes towards fashion brands. More importantly, the different qualities of CNFU are capable of influencing individual consumers’ fashion preference within each fashion style. Collectively, the findings present strong supporting evidence that the differences in consumers’ need for uniqueness are likely to affect some fashion style preferences and not others. In particular, the majority of findings are consistent with the central argument that fashion consumers are uniqueness seekers and have their own ways of portraying their individuality to society (Workman & Caldwell, 2007). There was however inconsistent results obtained by treating CNFU as a single moderating construct, thus adding further support for Tain, Bearden and Hunter’s (2001) proposition that the consumers need for uniqueness consists of three distinct components, each specifying a unique personality trait.
Background & Research Objectives
The ever-changing nature of fashion and multicultural consumption motives shape and challenge the contemporary global fashion world. To some extent, it has been experienced that individuals across countries engage in similar fashion movements simultaneously. Therefore, it may be assumed that there partially exists a homogenized, transnational global consumer segment when it comes to the purchase of clothing items. Nevertheless, on the other hand, there still remain several divergences in the consumption behavior of fashion products around diverse parts of the world (Yurchisin & Johnson, 2010). It is universally agreed that consumers engage in shopping with specific decision-making modes and styles which make the search for a common instrument that is able to describe the purchase orientation of fashion consumers across cultures quite problematic and challenging. Indeed, according to the buyer´s cultural backgrounds, fashion consumption motives and the benefits searched for when buying an apparel product could be very different (Tahmid, 2012).Today´s fashion consumer is characterized by a continuously evolving set of complex wants and needs that can be satisfied by a wide variety of competing alternatives (Pandey & Dixit, 2011). The different aspirations and motivations which consumers express are generally shaped by various shopping outcomes which they are prone to achieve (Yurchisin & Johnson, 2010).Motivation is described as an internal state that activates goal-oriented behaviour. It refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies). Marketers try to create products and services to provide the desired benefits and help the consumer to diminish this tension (Solomon, 2013).It is advocated that fashion consumption is made up of two major categories of drivers, namely social consumption motives and individual consumption motives which both represent psychological determinants. Those psychological factors influencing apparel purchase behavior can be separated into rational, emotional (perceptional) and patronage motives (Diamond, 2005). Rational motives replicate a pragmatic orientation, such as quality- or price consciousness in purchase behavior. In contrast, emotional drivers include, amongst others, motivations linked to physical vanity and fashion consciousness, adventure-, gratification- and pleasure seeking, materialism, status and conspicuousness, impulsive and compulsive consumption. Patronage motives, on the other hand, reflect habitual buying and for instance are connected to brand-consciousness and store loyalty (Diamond, 2005). By profiling international apparel consumers based on their individual decision-making styles and modes, more meaningful ways to identify and understand different cross-cultural customer segments are offered. As a result, fashion industries are able to target each customer segment with more focused marketing-strategies, based on their motives and aimed-for benefits linked to purchasing clothing products.This topic raises a number of important questions for researchers and practitioners. To the authors´ knowledge no empirical contributions to compare and contrast prevalent motives of apparel consumption in Western nations exist. Hence, in order to fill this research gap and broaden this important research area, this explorative study focuses on the identification and discussion of similarities and differences in buying characteristics between the USA, France, Germany and Austria by analyzing valuable motives that have not yet been empirically examined in a cross-cultural fashion context.
Methodology
Starting with a review of existing literature regarding generic consumer decision making motives, like e.g. Sproles & Kendall (1986), Mokhlis (2009) and Hiu, Siu, Wang & Chang (2001), an initial classification into rational, emotional and patronage motiveswas undertaken for the field of fashion, which later on was expanded using the results of a qualitative pre-study conducted with 50 interviewees in New York to gain first insights as a basis for the proximate, main empirical research. In compliance with triangulation theory in social science (see e.g. Cohen & Manion, 2000), which advocates data collection from manifold sources, a combination of quantitative and qualitative research was carried out in the core study, consisting of expert interviews and an online consumer survey. Due to a lack of existing literature foundation, the main research is explorative and not based on specific hypotheses. In the first section, a qualitative analysis of the mentioned motives was done using NVivo on the grounds of 16 expert interviews with fashion marketing communication and design experts in the four research countries. The second part of the empirical study was conducted via a quantitative consumer survey, to enable a Web based questioning through Lime Survey. To minimize possible language barriers, the questionnaire was delineated in three languages, translated from English into French and German by bilingual professionals in order to ensure best possible quality, precision, accuracy, reliability and validity of the empirical study. For this specific type of quantitative research, a stratified random sampling procedure was applied. Altogether, 693 individuals (482 female and 211 male subjects) participated in the online survey, 174 in USA, Germany and Austria respectively, and 171 in France. The total non-student sample included participants with a mean age of 28.4 years. Subjects were asked to evaluate 22 rational, emotional and patronage motives derived from literature and the pretest on a 7 point Likert scale. Cross-cultural similarities and differences were revealed throughout the examination process. An analysis of variance (one-way ANOVA) on the mean values and a subsequent Post-Hoc Tukey Test disclosed significant variations between the four nations for 15 out of the 22 tested motivational determinants influencing fashion consumption behavior.
In a first step, the authors refrained from using a factor analysis, in order to retain more detailed information. Findings demonstrate that American consumers pay the most attention towards price-value relations and cheap deals, compared to the remaining countries. They additionally consider quality attributes the least when deciding upon which fashion products to buy. In contrast to the other nations, American consumers are most pragmatically oriented when deciding upon which apparel items to purchase. Furthermore, they engage the least in spontaneous clothes shopping in the spur of the moment. An investigation of the preferred brand segments per country supported these outputs by highlighting the statistic that American consumers buy significantly less apparel from the upper-middle price segment than Austrian, German or French consumers. Accordingly, in comparison to the other nations, American consumers purchase the most value/discount fashion. Moreover, outcomes illustrate that French consumers have a higher tendency of buying garments from the same stores and boutiques than Austrian and German consumers. Correspondingly, Austrian and German consumers feel significantly less confused by over-choice of apparel offerings than French consumers. To that effect, in terms of country of origin being a characteristic that impacts fashion consumption, findings prove that French consumers value national heritage of clothing more than Austrian and German consumers. Indeed, they tend to also pay more attention to buying apparel that originates from the home country. Outcomes further pinpoint that compared to Austrian and German consumers, Americans and French utilize fashion significantly more to make a positive impression on others, feel socially belonging and accepted as well as to be part of a reference group. In contrast to Austrians and Germans, Americans are more likely to adjust their wardrobe to the specific expectations and norms of their working environments. In addition, results indicate that French consumers devote more consideration towards dressing in accordance to their job conventions than Austrian and German consumers. Interestingly, Austrian and German consumers value physical vanity significantly more than American and French consumers. French consumers, however, employ fashion the most as a means of boosting satisfaction with one´s self-image, compared to the other research nations.
Detailed results of the empirical study will be thoroughly discussed in the presentation in order to explicitly highlight specific common and divergent archetypes and patterns between the research countries. Additionally, final key outcomes, in-depth implications as well as limitations and directions for future research will be addressed in the conference.
Customization systems have incarnated the notion of co-creation and provided a wide variety of customized products which fit individual customers’ needs. However, most customized fashion items are no more than modified products based upon existing products and, therefore, satisfy only expressed needs. In contrast, mass-production systems can offer more innovative fashion items satisfying latent needs, though they may not fit individual needs in detail.
To investigate the relationship between the type of market orientation (responsive vs. proactive market orientation) and the type of production system (mass-production vs. customization systems), we conduct a consumer survey regarding four types of fashion items (sneakers, business shirts, belts, and underwear).
The results of ANOVA showed that fashion categories in which customers have the needs for responsive market orientation have much potential for developing customized products, whereas fashion categories in which customers have the needs for responsive market orientation have less potential for providing customized products. The results also showed that fashion categories in which customers have the needs for proactive market orientation have much potential for providing new, innovative (mass-produced) products, whereas fashion categories in which consumers have proactive market orientation have less potential for providing new, innovative (mass-produced) products.
Firms should emphasize on the responsive market orientation if their customers perceive much potential for developing a customization system in the category; firms should emphasize on the proactive market orientation if customers perceive much potential for offering new, innovative products under the previous mass-production system. If there are potentials for developing both innovative mass-produced products and customized products, firms need ambidextrous market orientation.
This research aims to consider the respective roles of status seeking consumption, interpersonal influence and need for uniqueness, and to set these relationships within a broader theoretical context of the literature on the “extended self” and “self-congruity”. Furthermore, “consumer’s need for subtle branding” (e.g. inconspicuousness of a brand’s mark or logo) is proposed to moderate the relationship between these consumer attitudes toward luxury brands and the purchase intention of luxury brands.
Selfie refers to self-portrait photography, which became widespread practice with handy digital photographing technologies and the proliferation of social media. There are only a few studies on selfie and most of them examine the psychological profiles of selfie takers. However, we conducted a qualitative study to understand diverse goals embedded in the selfie practice and meanings of the practice.
Eighty one undergraduate students enrolled in a university in South Korea, who reported to take selfies frequently, were recruited for in-depth interviews. Semi-structured interviews were conducted for thirty minutes to an hour, asking their selfie-taking behaviors including general information (when, where, how, why), skills and techniques, related memories and experiences, and sharing and online posting. Transcripts and observations were analyzed through multiple steps of coding.
Data revealed numerous strategies in selfie photography and statements about why those strategies are important, that is, goals of selfie practice. We present findings in the following structure:
Operation of selective selves → Subordinate goals → Superordinate goals
We abstract the essential feature of selfie as augmented control as a result of integrative and selective operation of the three selves as the one who photographs, the one who is photographed, and/or the one who owns and uses the selfie. Participants’ strategies reflect this complexity. For example, tips for camera angles and lighting are related to self as a subject who photographs. Knowledge on facial expressions reflects self as an object that is photographed. Photoshop skills are obtained as self who uses the photographs.
Five goals at the subordinate level emerged: Attractive appearance, social activities, testimonial, fact check, and story-telling. These are the immediate goals gained through taking, using, and possessing selfies. Different goals are formed based on relatively different importance of each of the three selves. For example, to post a selfie that tells one’s feeling about new season, the photographer chooses to focus on the self as a subject who writes a story and portrays in photographing rather than the self as an object of the photograph.
Superordinate goals are derived from the subordinate goals: Narcissism, self-discovery, self-expression, reminiscence, display, self-monitoring, and belongingness. As in the relations between selves and subordinate goals, some subordinate goals are related to more than one superordinate goal. Some superordinate goals also result from more than one subordinate goal. We conclude that selfie provides augmented control in producing and using pictures and the selective operation of the three selves enables consumers to obtain various individual and social values through the selfie practice.
Research Context
The term User Generated Content (UGC) refers to a wide range of consumers’ contributions shared through digital and social platforms. These contributions can take the form of blogs, articulated collections of images, homemade videos (or even “homemade advertising” campaigns) and various types of product reviews and product usage demonstrations (Berthon, Pitt, & Campbell, 2008; Fader & Winer, 2012). In a previous study, we reviewed the OECD (2007) official definition of UGC to encompass the evolving and more holistic nature of this phenomenon. We defined UGC as “content in the form of text, sound, visuals or videos, which has been created by or in collaboration with consumers and disseminated through social platforms across various digital and non-digital channels. UGC can be centered on a brand, product or service or revolve around a topic/issue of interest to the consumer. It can be either solicited as part of commercial or non-commercial initiatives or contributed spontaneously by the consumer” (Montecchi & Nobbs, 2012).
Marketing managers are now facing a completely different landscape where the more traditional approaches to brand promotion “are giving way to a messy tangle of market-based communications consisting of multiple authors including customers, competitors, observers, employees, and interested collectives” (Muniz Jr. & Schau, 2011). In this context, UGC is a clear representation of how the balance of power and control has shifted from brands to consumers (Sheehan, 2010; Pires, Stanton, & Rita, 2006; Berthon, Pitt, Plangger, & Shapiro, 2012).
Amongst the various sectors which have benefited from a constant growth of digital channels and consumers’ online engagement, the luxury industry has shown some astonishing results. After an initial skepticism, major luxury organisations have embraced digital channels from both a distribution and marketing communications perspective, following the success of online pure-players such as Net-A-Porter. With online sales projected to grow steadily, luxury brands need to learn how to engage more effectively with a new generation of hyper-connected customers by re-addressing the balance of power and control they want to manage.
Purpose of the Research
By building on Smith, Fischer, & Yongjian (2012) framework for the analysis of UGC, this research aims to map the features of brand related UGC across three social media platforms (Facebook, Twitter and YouTube) with a particular focus on the luxury product/market context.
Through the analysis of a sample of brand-related digital contributions, a set of customer profiles will be constructed to highlight further targeting opportunities for luxury brands.
Three brands operating at global level (Louis Vuitton, Rolex and Burberry) will be selected as the context of this investigation since these generate a significant level of consumers’ discussion and engagement on digital media.
Methodology
The research design is based on observational netnography and content analysis (Ertimur & Gilly, 2011; Kozinets, 2002). A sample of 100 consumers’ contributions for each brand, published on each of the three selected platforms, will be analysed for a total of 900 pieces of UGC. The framework which will be used for the analysis is derived from the research conducted by Smith, Fischer, & Yongjian (2012). It allows researchers to explore the level of customers’ self-presentation, the centrality of the brand in the content shared, whether there is an attempt to a brand-directed communication and associated responses and whether the content is more factual or emotional. The brand sentiment in each piece of content will also be measured. The results of this analysis will be used to construct a multi-dimensional set of customer profiles by building on the UGC typologies identified. This will provide luxury brands with an effective tool to enhance their market segmentation and targeting capabilities.
Consumers struggle to find clothes that are fit. This is a problem that has been accentuated with the increasing online sales. It is the largest contribute to sales returns and make customer return about every third item they buy (Ratcliff, 2014). If consumers select to buy online, they can no longer try them out in a fitting room. Most of fast fashion brands have opened their online shops, and many designers’ brands have also started to sell their ready-to-wear lines online. While online shopping is seen as a significant new way to reach more consumers in fashion industry, the size problem becomes more visible and is waiting to be solved. It may decrease the fashion industry’s ambition to piggyback on recent advances in e-commerce.
Previous studies on clothing consumption have already touched upon the topic of size and fitting. Consumer surveys in the clothing industry indicate that in general between 35% and 50% of female consumers in the USA were not satisfied with the fitting in their clothing already ahead of the surge in online stores (Desmarteau 2000; Goldsberry et al. 1996). Alexander et al. studied the shopping behaviour of young women in south-eastern USA and found that almost 64% of the respondents frequently changed ready-to-wear clothes to achieve the desired fit (Alexander et al. 2005). Ashdown and Loker pointed out the size problem in current clothing shopping experiences and proposed a conceptual framework called “mass-customized target market sizing”, which is a size system “based on and derived from measurement data exclusively from the people who represent an apparel firm’s target market” (Ashdown and Loker 2010, p147). In this paper we study how innovative mobile technology, social media and crowd sourcing can contribute to solving the size problem. We summarize the current digital approaches that deal with the fitting issues in online clothing shopping and present a new concept, called “Figuracy”, which attempts to find consumers new fitted clothing items through matching their own clothes with anonymous persons’ virtual wardrobe. We have built a mobile application to implement the idea and have done two initial feedback studies to see the consumers’ attitudes. This concept provides new perspectives and opportunities of tackling the fitting problem in online shopping.
Ready-to-wear and fast fashion brands are selling their clothes all over the world, not just to one local community. This business model of constantly new collections, draws on standardizing size series that come only in a selected number of models. This adds to the continuous size problem where the interpretation of a particular size varies in-between brands, and even within different models from a single manufacturer. Firms in the ready-to-wear apparel industry in the world use different sizing systems, like general sizes as XS, S, M, L, or more specific standards as numbered sizes from UK, US, FR systems, which can make consumers confused. These sizing systems are usually based on the ideal body types of consumers from certain geographic regions (Nordic Council of Ministers, 2009), thus, a size standard from one region may not fit all types of body within this region. What’s worse, there has been vanity sizing in clothing industry in recent several decades, which actually makes the garments of the normal sizes bigger in physical size (Dooley, 2013). This adds to the difficulty of finding well-fitting apparels.
Recently, a few companies have provided a number of solutions to the fitting problem. The solutions are based on fine-grained automatic body measurements; self-generated extended body or garment measurement and body matching. First, the approach to use technology for more automatic and detailed measurements has attracted many interests. For example, it has been to generate a visual presentation of the body by using three-dimensional scan technology. Then consumers do not need to type information manually. A UK-based company, called Bodymetrics, provides the services that use three-dimensional body scanner and “On-line Virtual Try-On” technology to help find the perfect pair of jeans. Second, there are a number of services that require users to manually type the measurements of their bodies or garments that they own and fit. It can be done by users input information of their body types by answering simple questions, such as weight, height, body type, or measurements of bust, waist and hip. Some systems like Mipso, SmartFit can add more personal preferences, such as colours, cuts and budgets. Then the system runs some algorithms to determine the users’ full set of body measurements. It can also be done such as Virtusize, Truefit and Clothes Horse by measuring a garment that the user knows it fits in detail (Perez, 2012). When the personal data is added to the service, it can then match individual’s body measurements with specific brands and sizes of garments. The service recommends fitted ready-to-wear clothing from various brands in online stores, like Fashion Metric and Virtusize. The data can be used to see how fitted the clothing item in an online website is on a virtual avatar built upon the input measurements of the users, like in Virtusize and Mipso. Third, it has been suggested to use self-described body descriptions and then match consumers’ new purchases as a way to recommend clothes that are fit. For instance, Fitbay attempts to personalize clothes suggestions based on the selection of other users with similar descriptions of size and body shape (Lomas, 2014). Through the help of anonymous persons in the community, one could find fitted clothing items.
We investigate a fourth approach, called “Figuracy”, where people get suggestions on the garments that are fit by crowd sourcing their existing clothing items and then matching wardrobes among members in the community. It draws on utilizing the matching of consumer-generated data, i.e. crowd sourcing as Fitbay also does. But it uses a description of existing fitting garments in people’s wardrobes in terms of brands, models and size, rather than self-description of bodies. The idea depends on that a community of people are willing to share information of their favourite and fitting clothes from their own wardrobes. The system matches the clothes from one wardrobe with that of other members in order to recommend new fitting clothes to the user. In specific, if the system finds that a user shares a single clothing item with another person in the community, it will predict that the two of them have similar body types. Then it recommends other items from the second person’s wardrobe to the first user. Therefore, the system gains data from the fitting clothes in users’ wardrobe and matches the information with the items from someone else’ wardrobe. If the approach is successful, consumers would not need to input any personal body-data but only data on existing fitting clothes. The concept depends on the existence of a massive database of clothing items from individual wardrobes, i.e. a critical mass, which is also a big challenge to build.
The Figuracy concept and implementation is at an early state and it has not yet the amount of content to start generating matching suggestions. Still, the concept is intriguing and the size problem is highly relevant. Thus we were interested in acquiring early users’ feedback. We have done two user studies of two variations of the concept, with a focus on one type of clothing item- the bra. Bras have high requirements on fitting (Chena et al. 2010) and it is considered specifically difficult to find garment of this type that is fit. Since the number of test persons was limited to around ten people each, the system did not generate any matching suggestions. The first test was done in November in 2013 on the app that was available in iPhone’s App-store. This version of the system reads the barcodes, which are usually attached to the price tag, to acquire a unique identifier for brand, model and size. We invited the participants to download the app and scan the barcodes of fitting bras when they try new bras in stores. We conducted phone interviews with six participants. The early feedback identified that users hesitated to add garments based on the barcodes. They did not feel comfortable with adding it in a fitting room in a shop, and they did not have any saved prize tags for the bras at home. Thus, although the barcode is theoretically and technically an easy and effective way of uploading garments, it proved to be inadequate in practice. Based on this feedback, we built a new version, which includes a manual and text-based tag function allowing users to add information about a garment, which do not require barcode reading. The second user feedback study was carried out in December in 2014. We recruited female students on the campuses of Stockholm University and Royal Institute of Technology in Stockholm, Sweden. In the end, nine participants tested the application and input data of their bras at home. After the try-out, we contacted the participants for either a phone interview or a face-to-face interview, each of which lasted between twenty and forty minutes. Each interview was recorded and transcribed. We used a method of qualitative content analysis to study the transcripts. “Qualitative”, as opposed to quantitative, indicates that the analysis goes beyond systematic data coding to identify interesting topics and allow us to contextualize the interpretation of the materials, given theoretical preconceptions (Mayring 2004).
Through studying the transcripts, we find the following preliminary results. First, our participants all provided concrete examples of size problems they met in real life. Seven participants considered bras as one of the clothing items that are most difficult in this respect. Three participants stated that size should not be independent from other qualities, such as comfort and style. This implies that future design of similar systems may take into account not only sizes, but also other aspects of clothing. Second, in terms of the input function, all of them followed the instructions and managed to input information of their fitted bras from their wardrobes. Seven participants considered it easy to use while two of them thought it was a bit confusing when to add information. They got stuck at whether they should scan the barcode or just type, since the two functions were presented in one place. All of them used “type” to add items and thought the information on what they should input was acceptable. Four participants felt it complicated to take photos by themselves, so they downloaded pictures from the Internet. In addition, the participants tended to add the latest and favourite items from their wardrobes into the system. Thus these items could represent their personal tastes and styles, which will be useful to link fitting and styles in the future improvement of the application. This also points to a general problem. From an individual perspective, a single item would in the long run be enough to get matches from other people’s wardrobes, if they have added more than one item. If they also only add only a single item, the first person would not get any matches. The users must crowd source their wardrobe, and not for example their latest purchase. The user study shows that this concept might be restricted by users’ unwillingness to present data in such a way. Third, as to social interaction, eight participants at least “liked” one item from others’ wardrobe. Although none of the participants commented on other’s items, they all thought it was important to have some kind of social interactions. Four participants expected more interactions, such as reviews and discussions of certain clothing items, or following fashionable people. Most of the existing fitting systems, except Fitbay, lack the opportunities for social interaction, but Figuracy provides such a platform for users to share their interests and exchange their ideas. Two participants asked for increased opportunities to add the information on their own profile pages even though they were sharing images of their underwear. They asked for means similar to those available when building a blog space so that people in the community would get to know each other better. According to the participants, more social interactions could make them more engaged with the application. Social communities are good for those looking to learn, help and/or support like-minded individuals with common interests. Last but not the least, most of the participants were very interested in the “buy” function, which link the item to online shopping sites. But still three participants revealed their concerns and discussed the problems of it, such as how the system can guarantee the fitting of the item if they conduct a purchase through the system.
In sum, the use of crowd sourcing and social interaction to fixing the size problem in online shopping gained great interests among participants. However, they also expressed their uncertainties towards how the system would work. They needed the system to make sure that it could provide fitting clothing items. They thought the biggest problem was that it was unclear what real help they could get from the application at this stage. Although the application failed to provide new recommendations based on matching, the user study allows us to see the feedback of the potential users so that we could improve the system, such as clearer interaction flows in adding items and more interesting interactions. Future research will continue the improvement of the system, start collaborations with online clothing stores and a third recruitment of users to test. On a general level, the study provides an example on how to investigate critical topics in online fashion through the so-called design research. Such research needs to be interdisciplinary and span technology and social science.
Over the last five years the notion of ‘third space’ or ‘place’ has started to become referred to within a retail context (Nobbs & Manlow 2014). Third space is defined by Mikunda (2004: 11) as “somewhere which is not work or home but a comfortable space to browse, relax and meet people, even enjoy a meal”. In the fashion sector there is an increasing trend for retail and culture/leisure activities to be housed in the same space as means of drawing customers into the store and tempting them to stay for longer. However there is a lack of both empirical and conceptual research on this emergent concept (Oldenberg1999). The aim of this study is to investigate the notion of third space in practice from both a brand and consumer perspective with respect to identifying the motives and methods for its adoption.
Experiences form an integral part of third space as they activate psychological experience mechanisms (Mikunda 2006). This study will consider the motivations for stakeholders to invest in third space environments using the chosen case study fashion brand Urban Outfitters. This retailer has a history of creating unconventional store formats which blend music, lifestyle and fashion products under one roof. In 2008 they created a development called Space fifteen twenty in Los Angeles which was a curated mix of ownbrand and lifestyle brands and featured food, art, vintage and programme of events aimed at the hipster community. In 2014 they opened a store called Space 98 in Williamsburg in Brooklyn which used the same formula, a carefully selected space with an art gallery, revolving pop up stores and a bar and restaurant (WGSN 2014). The research methodology utilises a qualitative approach in the form of store observations, in-depth interviews with store and head office staff, the architect and also snapshot exit interviews with patrons of the store. The results are audio recorded and analysed using thematic content analysis. The outcome of this exploratory technique will provide a 360 degree perspective of the concept in action. The results of the study will be useful for academics and retail marketing practitioners interested in the impact of store formats on consumer behaviour and brand identity.
There is relatively little evidence on how social media marketing activities influence brand equity creation and consumers’ behavior towards the brand. We explore these relationships by analyzing pioneering brands in the luxury sector (Burberry, Dior, Gucci, Hermès, and Louis Vuitton). Based on a survey of 845 luxury brand consumers (Chinese, French, Indian and Italian) who follow the five brands studied on social media, we developed a structural equation model that helps to address gaps in prior social media branding literature. Specifically, our study demonstrates the links between social media marketing efforts – measured as a holistic concept incorporating five aspects (entertainment, interaction, trendiness, customization and word of mouth) and their consequences (brand preference, price premium and loyalty).
In the last decade loyalty programs have gained popularity across various industries. They are one of the most popular marketing tools that companies use to increase retention, enhance loyalty and gather ‘big data’. The number of companies adopting loyalty programs is rapidly increasing with fashion department stores grown their loyalty program subscriptions by 70% between 2010 and 2012 (Colloquy, 2013). One of the main reasons for this growth can be attributed to the benefits fashion retailers offer to their customers. A new body of current research had directed its attention to a comprehensive set of benefits offered by loyalty programs as well as their potential to increase customer retention and profitability (Evanschitzky et al., 2012). Until recently, it was debatable if loyalty programs can be effective and appropriate in luxury retailing (Lowenstein, 2009), despite research evidence showing a positive effect of loyalty programs’ benefits on customer retention (e.g. Mimouni-Chaabane & Volle, 2010). Traditionally, luxury companies and retailers build loyalty through top-end and differentiated customer experiences. If loyalty schemes were to succeed in the luxury sector they had to deliver the kind of recognition and rewards that make luxury shoppers feel remarkable. Given the growing interest in loyalty programs and scarcity of research related to their effectiveness in the luxury fashion department stores, this study comes to examine the effectiveness of such programs. In particular, this research examines how the utilitarian, hedonic and symbolic perceived benefits from loyalty programs can influence the satisfaction and trust with the program and consequently store loyalty. These relationships are compared between high- and low-end fashion department stores and the differences in their effectiveness are reported. To test these relationships data were collected form a sample of 984 consumers from an online panel in US, using a structured questionnaire. A range of different department stores that offer loyalty programs were pre-selected through a rater procedure to represent the high- and low- fashion department stores. Using structural equation modelling and multi-group analysis, findings support that the effectiveness of loyalty programs is important to both high-and low-end fashion retailing settings but the strength of this effectiveness varies across the two settings. Specifically, hedonic and symbolic benefits derived from loyalty programs found to be more important in the high-end rather than the low-end fashion retailers. In contrast, utilitarian benefits found to be much more effective in influencing customers’ satisfaction with the program in the low-end fashion retailing. The results of this research address an important research gap and help to better understand customers' perceptions of loyalty program benefits obtained from high- and low-end fashion department stores. Finally, the findings provide clear guidelines for managers in both high- and low-end fashion retailing on how to design effectively their loyalty program rewards, by strategically allocating their resources to the benefits that are more important in their setting.
Introduction
This article analyzes retail store openings of luxury fashion brands in international markets. Our aim is to point out the relevance of this market entry strategy as well as to highlight the main destination markets and different trends over the 2004-2013 period.
More precisely, this article analyzes the role of the retail direct channel as a means to manage relationships with consumers in international markets. The choice to develop retail operations in international markets is considered in this article as one of the key strategies implemented by luxury manufacturing companies. However, it seems to have received minor attention in the academic literature dealing with internationalization (Guercini and Runfola, 2014). Consequently, the main aim of this article is to propose empirical evidence to support the widespread use of this strategy by luxury firms, proposing the analysis of an original database built on the retail store operations of a sample of Italian fashion luxury companies over the period 2004-2013.
The retail marketing strategy is a peculiar strategy within the luxury marketing strategies. As stated by Kapferer and Bastien (2012), in fact, through retail store openings (and distribution in general), luxury companies may implement and take advantage from what has been defined by the authors the “watchword of luxury brand management” (p. 233) namely “experience”. In fact, the literature in the field of luxury retailing has pointed out the role of the point of sale from a consumer point of view to experience the value of a company. The discussion on the consumer perspective is increasing in the literature as testified by various contributions aimed at analyzing and discussing how and what kind of experiences could be transferred by the opening of retail stores and in what terms the luxury retail strategy differs from other retail marketing strategies (Dion and Arnould, 2011).
The opening of retail stores from luxury companies has been considered within the stream of research on the internationalization of the company. It has been pointed out that companies with luxury positioning can differentiate their offering with respect to mass market retailers and open retail stores even in culturally distant markets (Hutchinson et al. 2009). These openings, however, are considered more as ways of promoting the brand, rather than a structural international retail development (Moore et al., 2010). In fact, it has been noticed that luxury griffes open retail stores quite exclusively in primary locations (Hutchinson et al. 2009) and that most of the internationalization literature on retail stores openings by luxury firms is referred to the opening of flagship stores (Moore et al., 2010), a specific retail store format that from its nature, is mostly related to brand promotion than to an effective and stable retail development. In fact, retailing as international market entry strategy implies significant investment both in economic and cognitive terms (Mattila el al., 2002; Guercini and Runfola, 2010). The study of retail stores opening as an entry strategy in international markets remains an understudied field of study in the academic literature, as evidenced for example by Ilonen et al. (2011) in their study on the importance of branded retail in manufacturers' international strategy. Moreover, the authors point out that among other things, this remains a topic of interest but not yet analyzed in the case of the fashion industry.
Following this reasoning, our article aims to answer to the subsequent research questions: RQ1 - What is the evolution over time of the distribution investments of luxury fashion manufacturing companies? RQ2 - Is there a difference between emerging markets and advanced markets for luxury retail store openings? RQ3 - What is the role of metropolitan areas and how does this evolve over time?
Methodology and discussion
We investigate these research questions in the case of Italian luxury manufacturing companies. In order to study the expansion of Italian luxury companies, we have exploited the information contained in the database that we have created expressly for the purposes of this research. The database has been compiled by examining any news contained in two specialized and highly recognized national fashion-sector publications - Fashion and Pambianco Week - regarding the opening of retail outlets in foreign countries by Italian luxury firms in the decade 2004-2013. For the purpose of this research we have considered as luxury brands those brands that are members of Altagamma, a association whose members are Italian companies that operate at the highest end of the market, and those brands that are recognized globally and by academics and empirical press as luxury brands, although not being members of Altagamma. The above process has identified 594 sales points opened by 39 Italian brands in 62 countries over the period 2004-2013. The top 10 brands for number of store openings over this period are the followings: Prada (64), Salvatore Ferragamo (59), Miu Miu (51), Ermenegildo Zegna (31), Valentino (29), Armani (26), Versace (26), Gianfranco Ferrè (25), Brioni (22), Etro (22).
Hereafter we try to describe some preliminary findings regarding the three research questions advanced previously.
RQ1 – What is the evolution over time of the distribution investments of luxury fashion manufacturing companies?
Our analysis seems to show an evolution in this growth strategy over the period 2004-2013. In fact, if during the period 2004-2008 our analysis shows the opening of 261 single-brand outlets by the enterprises of our sample, during the period 2009-2013 the number of operations became 333 stores. This seems to highlight how, even in a period of international crisis, the retail strategy for luxury companies remained fundamental for growing abroad. The year 2008 is the year with the maximum number of stores opened by our companies (95 stores, roughly 16% of the total 594 stores opened), while the year 2004 is the one with the minimum number of stores opened, only 35 stores (roughly 6%). Moreover, each year from 2009-2011 accounts for over 70 stores.
RQ2- Is there a difference between emerging markets and advanced markets for luxury retail store openings?
In order to distinguish between “mature”, developed countries and “emerging” ones, we considered the first 24 countries that joined firstly the OCSE as “mature”, while all the remaining countries have been considered “emerging”. Our analysis reveals during the period analyzed a growing incidence by emerging markets compared to mature markets, given that emerging markets account for 60.9% of the openings. Moreover, in each year analyzed emerging markets overcome advanced markets for number of stores opened. However, traditional mature markets for Italian luxury (such as USA or Japan) as well as new emerging markets (such as China and Russia) are within the top destinations all over the period. If we consider only the first three markets for number of retail operations we may note some differences between the two sub-periods. In fact, during the period 2004-2008 the first three markets listed for decreasing number of operations were the USA (45 retail stores opened, 17,2% of the total number of stores), China (29 stores, 11,1% of the total) and India (19 stores, 7,3% of the total). During the period 2009-2013, China increased the number of operations, becoming the leading market with 74 stores, representing 22,2% over the total, followed by the USA (46 stores, 13,2% of the total) and United Arab Emirates (15 stores, 4,5%). The rising of China in the second period, is associated with an increasing importance of other emerging markets such as Brazil and South Korea, that in the previous period were not within the top international destinations. We should however stress that other mature markets, such as France and Japan still have key roles for Italian luxury companies.
RQ3 – What is the role of metropolitan areas and how does this evolve over time?
Our analysis shows that the major cities world-wide are present in our database. In total the companies in our sample have opened stores in 163 cities. Over the period 2004-2013 the top 10 cities listed for decreasing number of stores are the following: Shanghai (30), Hong Kong (28), New York (25), Moscow (24), Tokyo (22), Paris (21), Dubai (20), London (20), Los Angeles (20), Beijing (20). However, as evidenced by the data, while in the period 2004-2008, the total number of cities targeted by the companies were 83, in the following period 2009-2013 the number cities targeted became 127. This data seems to highlight how, over time, the presence of luxury firms is not only concentrated in the top cities around the world neither only in luxury streets, but affects a larger number of cities and locations. Take for example the case of the new rising Chinese cities of the II, III and IV tiers.
To conclude, our research points out how retail strategy implemented by luxury manufacturing companies is one of the driving strategy for relating the company with consumers in international markets. This strategy seems to represent a relevant and widespread used strategy to enter in foreign market and to develop the brand further.
Some considerations are due on the limitations inherent in the present study, which can also furnish some useful indications as to future work. The empirical evidence reported here is based on secondary research in market publications. Aside from collecting further, more up-to-date information, future research should be addressed to performing a number of enterprise case studies in order to acquire a better understanding of the phenomena at play through contacts with luxury enterprise managers with whom to share the main aspects involved in establishing sales networks in foreign countries. Moreover, the considerations advanced are based on empirical evidence drawn solely from study of the Italian luxury fashion industry. In this sense, future research should aim to check if any differences exist in retail store openings between the Italian fashion system and the luxury fashion industries of other economically mature nations (e.g., France, the UK, Japan or the USA).
Although, our empirical analysis has some limitations, it seems to confirm that the retail market strategy is a key strategy to relate with consumers in international markets and to let them “experience” the brand. For manufacturing companies in the luxury field this strategy should not be considered only in terms of promotion, as typically associated with the opening of flagship stores abroad. Rather, it represents an effective retail strategy with important implications from a managerial point of view. Considering this latter point, future research should be directed towards the study of the different strategic behaviors aiming at pointing out different strategic groups within our companies, for example in terms of company size or destination markets. In general terms, future research should be directed towards the study of the link between retail stores openings and customer experience in international markets. This issue has a particular relevance in the case of the Italian fashion industry, where understanding the retail strategy of luxury companies may contribute to recognize potential bandwagon effects of other companies in this sector, such as small and medium sized companies with other positioning.
This study aims to investigate the effects of price promotions on the perception of a brand in the mind of consumer in luxury market. This study extends the previous literature on price promotional strategy and brand equity (brand awareness, brand image, and brand loyalty) by focusing on how a consumer perceives functional value and psychological value to create brand equity in luxury products.
This study was designed to investigate luxury brand co-value creation. A mixed method approach was used to 1) identify encounter attributes of value co-creation, consumer value and brand value and 2) examine the relationships among encounter attributes, consumer value, brand value, and purchase intention to explain the process of value co-creation.
The paper analyses the effect of Country Related Product Image (CRPI), as Country of Origin construct, and Country Product Familiarity (CPF) on retailers’ Intention to Buy (INTB). Despite the relevance and richness of the country-of-origin (COO) research, this body of literature is mainly based on investigating purchasing behaviours of consumers rather than professional buyers. Therefore, the effect that this construct exerts on retail buyers requires further understanding. Moreover, the study contributes to the literature by testing the impact of CRPI, and its multidimensional nature, jointly with CPF. A cross product analysis is considered to verify whether these effects on retailers’ INTB change in relation to specific product categories.
The research hypotheses are tested by conducting a survey on a sample of 257 Chinese retail buyers and considering two different Italian product categories: shoes, that is a traditional fashion sensitive product, and ceramic tiles, that is a less fashion-based product whose technical attributes are more prominent for buyers’ evaluations. Results show that 1) the CRPI is a multidimensional construct that influences the intention of Chinese retail buyers to buy Italian products; 2) when CPF is considered, the impact of CRPI dimensions on intention to buy decreases; 3) the joint effect of CRPI dimensions and CPF on retailers’ INTB varies according to the product considered. Theoretical and managerial implications are derived.
Introduction
The growth of the luxury goods market has seen an increased level of interest in the topic from both practitioners and academic researchers. The luxury market consists of a number of diverse categories (e.g., luxury clothing, cars, wines, jewelry, vacations) and is considerable in size, reaching €865 billion (over 1 trillion U.S. dollars) in 2014 (D’Arpizio 2014). While the topic of luxury brand marketing historically received only limited attention in the academic literature (Berthon, et al., 2009; Miller and Mills, 2012a) recent years have seen a growth of studies on the marketing of luxury products, including both goods and services). As the last half-decade has seen especially accelerated attention given to the topic, the time is right to examine the body of the overall literature on luxury brand.
With the need for consolidation of findings in mind, this paper conducts a literature review of studies of luxury branding that is designed to contribute to the literature on luxury branding in multiple ways. First, the study is designed to provide guidance for researchers on luxury brands as to the definition and measurement of a “luxury brand.” While a number of studies have attempted to define the term, no single widely accepted definition of luxury brand exists and multiple measurement schemes have been put forward. This paper will review key definitions and measurement scales in an effort to help guide future researchers. A second intended contribution is to identify the most influential theories that have been used to help understand whether/why consumer behavior towards luxury brands differs from that towards other brands. A third intended contribution is to outline major sub-areas of research on luxury brands and identify key themes in the findings within these areas in order to summarize the state of knowledge of luxury brand marketing. These areas are: 1) consumer motivation for consuming luxury brands; 2) segmentation strategies for luxury brands; 3) international considerations; and 4) the role of social media in the marketing luxury brands. In conjunction with this goal we summarize how luxury brand marketing has been found to differ from the marketing of other types of brands. In other words, we identify what principles appear to be unique to luxury brand marketing. Finally, the study is designed to contribute to the literature by identifying areas especially in need of additional research in order to move this body of literature forward.
Defining “Luxury Brand”
Unfortunately for researchers, there is not a widely accepted definition of luxury brand. For example, the American Marketing Association’s dictionary of terms does not contain a definition of “luxury,” “luxury brand,” or “luxury marketing.” Yet, several scholars have attempted to define what constitutes a luxury brand. Prior research is characterized by, “…a lack of clarity regarding a definition, operationalization, and measurement of brand luxury” (Miller and Mills 2010, p.1471). This observation is consistent with previous calls by researchers for a more precise definition of luxury goods marketing (e.g., Berthon, et al., 2009). It has further claimed that the definition and measurement of luxury has been highly subjective (Godey et al., 2009). To the extent that it is true that definitions of luxury have been subjective, this is based on what individual researchers have put forward, as opposed to luxury being an inherently subjective construct. Thus, it is possible and desirable to define what a luxury brand is and measure the degree to which a given brand is a luxury brand.
Fortunately, some researchers have made attempts to define luxury. The Miller and Mills (2012a) paper focused on fashion brands and also intentionally included several characterizations of luxury that were not designed to be formal definitions. Thus, it is not directly applicable to our purpose here, which is to identify key usable definitions of luxury brand that are generally applicable. For our purposes, a definition of a luxury brand should meet three key criteria in order to be considered viable definition. First, it should be based on a sound conceptual foundation, as is characteristic of academic definitions in general. Thus, we list here only those definitions that are logically derived from previously articulated and supported concepts. Second, the definition must be broadly applicable to luxury brands in general, and not just a subset such as only products or services, or one type of product category (e.g., fashion goods or automobiles). Finally, the theoretical definition should be capable of being operationalized in a way that allows the construct to be measured. Further, if the definition is multidimensional, it must be possible to measure all of the dimensions.
We assembled a collection of definitions that meet these criteria that is displayed in table form. The literature largely defines luxury brands based on consumer perceptions (Heine 2012, Hagtvedt and Patrick 2009), managerially determined dimensions such as marketing activities and product attributes (Keller 2009, Nueno and Quelch 1998), or a combination of both (Vigneron and Johnson 2004, Berthon et al. 2009, Tynan et. al 2010, Vickers and Renand 2003). Some dimensions are present in multiple definitions such high quality (Keller 2009, Heine 2012, Dubois et al. 2001, Tynan et. al 2001, Vigneron and Johnson 2004, Nueno and Quelch 1998) rarity (Tynan et al. 2001, Heine 2012,Vigneron and Johnson 2004, Nueno and Quelch 1998), premium pricing (Keller 2009, Tynan 2010, Heine 2012, Nueno and Quelch 1998), and a high level of aesthetics (Keller 2009, Dubois et al. 2001, Heine 2012). Though the authors of many of these definitions present some explanation of the dimensions underlying the brand luxury definition, further clarification on how these dimensions should best be measured would make any definition of brand luxury more useful. Without methods to clearly measure brand luxury there exists a cacophony of definitions, all with their own grouping of necessary dimensions that lack true clarity or empirical backing.
Measurement Scales for Brand Luxury
Essential to a better understanding of luxury brands is availability of reliable and valid scales to measure the level of luxury a brand possesses and consumer perceptions of luxury value. There are a variety of reasons why widely accepted scale(s) for measuring luxury are necessary. First, as is evident from the numerous definitions of brand luxury, there exists considerable disagreement on what makes a luxury brand; making objective measurement necessary to clarify potential inconsistencies. Another important consideration in developing scales to measure luxury stems from the reality that amongst consumers and researchers it is acknowledged that not all luxury brands are equally luxurious (Vigneron and Johnson 2004). This suggests that it may be useful to view a brand’s relative luxury as existing on a continuum opposite another construct rather than as an absolute demarcation. The schemes developed thus far are presented with particular focus on those, which are most promising.
While there is no generally accepted scale for measuring luxury, the scales that have drawn the most interest for measuring brand luxury appear to be Vigneron and Johnson’s (2004) BLI, and Dubois’ (2001) 33 item scale. Weidemann et al.’s (2009) scale also appears to warrant additional attention, while Miller and Miller and Mills’ (2012) scale appears to be promising but was designed for fashion brands only. Shukla and Purani’s(2012) effort is notable, but the real focus in on consumer motivation and not luxury.
Key Theories
Though a variety of theories are employed in the luxury marketing literature to explain the motivation for luxury consumption, a number of prominently used theories are summarized in Table 3. Though these various theories all add something slightly different to the understanding of what motivates luxury consumption, they all are largely social in nature. The oldest and perhaps most popular of these theories is conspicuous consumption which originates from Thorstein Veblen’s The Theory of the Leisure Class (1899). Veblen posits that individuals consume in a highly visible manner to signal wealth to others which infers status and power (Veblen 1899). More recently, Bearden and Eztel (1982) found that luxury goods consumed in public were more likely to be conspicuous in nature. Numerous measurement schemes have included conspicuousness as a key dimension of and motivation for consumption of luxury brands (e.g. Wiedmann 2009, Vigneron and Johnson 2004, Dubois et. al 2001).
Social comparison theory has been used in a variety of ways to explain different types of luxury consumption motivation. For example, Wiedmann et al. (2009) proposes that since social comparison theory predicts that people tend to conform to majority opinion of their membership groups, that consumers may likely use a luxury brand to conform to social standards. Mandel and Cialindi(2006) find that social comparisons impact not only one’s feelings of self-satisfaction, but also preference for luxury brands. Researchers have also used social comparison theory as a way to understand how consumers engage in comparison between themselves and mass media outlets, Kamal et al. (2013) use this theory in the context of social media marketing and luxury goods.
Self-concept theory is another lens scholars have used to examine luxury consumption. Self-concept comprises of how a person feels about his or herself (Gil et al. 2012) making one’s self-concept a potential motivator for luxury consumption. Luxury brands can appeal to self-concept by making consumers feel good about themselves through possession or gift giving (Shukla and Purani 2010). Recent findings have also suggested that one’s self-concept orientation can have an effect on preference for certain types luxury consumption. Kastakankis and Balabanis (2012) find that consumers with an interdependent self-concept are associated with bandwagon luxury consumption while an independent self-concept discourages this type of behavior.
Consumer culture theory in general (see Arnould and Thompson 2005) and Belk’s (1988) concept of the extended-self in particular, have informed how many researchers understand luxury consumption motivation. The extended-self helps to explain the symbolic role luxury possessions have in the consumers’ lives (Han, Nunes, and Dreze 2010). Consumers use possessions to form and alter their identities in order to fit their projections of who they are and hope to be (Belk 1988). Value in the possession and consumption of luxury brands is held in the ability to extend one’s self (Hung et al. 2011). Extended-self also serves as one of the five factors in Vigneron and Johnson’s (2004) BLI scale and includes the items of leading, very powerful, rewarding, and successful to measure this factor.
While some have argued that a characteristic of luxury brands is their uniqueness (e.g. Dubois et al. 2001), others have also suggested that an individual’s desire to be seen as unique is another important motivation for luxury consumption. Underlying this assertion is Snyder and Fromkin’s (1977) theory of uniqueness, which proposes that individuals develop the need to differentiate themselves from others when there is too much similarity in their social environment. Tian, Bearden, and Hunter’s (2001) concept of consumer’s need for uniqueness is derived from the theory of uniqueness. Consumer’s need for uniqueness suggests that consumers pursue differentness relative to others through the consumption of goods with the intention of developing and enhancing one’s self and social image (Tian et al. 2001). Luxury goods inherent scarcity due to high price and restricted distribution makes it an especially strong category for those attempting to display uniqueness to others (Bian and Forsythe 2012)
Motivations and Reasons for Consuming Luxury Goods
A consistent theme in the luxury goods marketing literature is that the motives for buying luxury brands differ from those of other types of brands. Numerous studies have explored a variety of potential motives for luxury brand consumption and findings consistently confirm that unique factors contribute to the consumption of luxury brands.
At the broadest level, it has been found that luxury brands are attractive to consumers for multiple reasons. Central to the appeal of luxury brands are symbolic meanings consumers attach to them as opposed to specific product features (Han et al., 2010; Kastakanis and Balabanis 2012). More so than standard brands, luxury brands attempt to leverage the meanings consumers attach to them in order to increase sales. The motives underlying the attachment of meanings to luxury brands are a key to understanding why consumers purchase luxury brands.
A summary of key articles aimed at exploring motivations for luxury consumption is provided in this section. Clearly, motives for purchasing luxury brands is drawing research interest and is in need of additional research. One longstanding factor that consistently comes up is the importance of social influence and comparisons to others as well as a desire to project a certain image to others due to status consciousness. The role of hedonic pleasure through the consumption of luxury goods has also been a point of emphasis in several studies. More recently, some studies focusing on promising additional factors, including luxury brand consumption as an expression of personal values and as a result of pride, or expressing self-confidence have produced key findings. It is also clear that some variation in motives for purchasing luxury brands has been found, such as differences between product categories, by gender, and culture, and that need more research in these areas.
International/ Cross-Cultural Considerations
A sub-topic that has been investigated by several researchers is whether international and cross-cultural factors have an impact on luxury brand marketers. It has been well documented that many luxury goods marketers have been successful in selling their products to high income/ high-status consumers around the world. As the market for luxury goods continues to grow consumer demand in Western developed markets have stalled in the face of recessionary trends while the appetite for luxury goods has grown in emerging economies such as China, India, Brazil, and Russia (Shukla and Purani 2012).
After reviewing the literature in this area it seems that to date, the studies done on cross-cultural issues in luxury brand marketing appear to raise more questions than they solve. On one hand, it is clear that luxury brands have grown in many parts of the world, resulting in interest in whether there are significant cultural factors independent of income that drive to own luxury goods. On the other, some studies appear to show individualism vs. collectivism matters to consumers while others are suggestive of similar motives across countries. As a result, it is very much worthwhile for more studies attempting to uncover nuances as to the circumstances under which collectivism makes a difference. Moreover, additional study of factors that may vary across culture, such as the influence of country of origin, value consciousness and susceptibility to interpersonal influence as well as other cultural factors should be considered going forward.
Market Segmentation for Luxury Brands
The extant research on segmentation in luxury brand markets suggests that there are strong possibilities for cross-market segmentation. The findings of Ko et al. (2007,2012) and Wiedmann et al. (2009) are notable examples of such possibilities. However, it must be noted that the research conducted to data primarily focused on markets at high levels of economic development, so further research on the circumstances under which markets can be segmented cross-nationally. It is also notable that much of the research on this issue has been conducted on female subjects, and in light of the Stokberger-Sauer and Teichman (2013) findings of gender differences in Germany, more research is needed on this topic.
Effective Use of Social Media for Luxury Brands
Research related to social media marketing and luxury brands is reviewed and underlying themes are presented. Because of the evolving nature of social media promotion and the limited number of studies, it is difficult to draw sweeping conclusions from the literature. However, it is clear that social media can be used to build brand image and enhance purchase intention if done properly. Moreover, Kim and Ko’s (2010 and 2012) study provides a promising framework for better understanding the impact of social media programs on various outcome measures.
Conclusion and Suggestions for Future Research
Recent growth in the study of the luxury market has produced a body of literature that has addressed a number of important issues related to the subject. This literature highlights how the marketing of luxury brands is different than other products while raising even more questions. Future research suggestions on all the topics included are presented based on the findings and themes in the literature review.