Not only luxury brands, but also fast fashion brands such as ZARA and H&M have successfully opened flagship stores in prime locations such as Ginza, Tokyo. The market-entry strategy via flagship stores appears to be successful, as numerous companies have adopted it. However, for this strategy to work, it is important to consider and verify not only the place, but also the product, price, and promotion aspects. This study systematically investigates the flagship store strategy by comparing the strategies of luxury brands, represented by Chanel and Louis Vuitton, and those of SPA (Specialty store retailer of Private label Apparel) brands, represented by ZARA, developed by the Spanish Inditex Corporation.
The implications of brand hypocrisy for corporate social responsibility (CSR) at the brand level of analysis remain largely unexplored. Drawing on attribution theory and the sense making perspective of CSR, this paper aims to develop a conceptual framework that highlights the negative effects of advertising skepticism on brand distance, as mediated by perceptions of brand hypocrisy. Furthermore, the study seeks to examine whether a brand’s commitment toward sustainability, consumers’ desire for exclusivity and brand trust have any impact on perceived brand hypocrisy and distance. As the effect of CSR skepticism and brand hypocrisy bears heavily on consumers’ attitudes and behaviour, this paper draws from several socio-psychological theories to identify how it can be pre-emptively abated. Findings will enrich the understanding of negative consumer inferences related to brands and provide a conceptualization of an understudied but increasingly relevant form of brand judgment.
Luxury companies are striving to improve their communication with customers while paying attention to online promotion and marketing activities. As companies interact with customers in luxury brand communities via various channels, they yield consumers higher value throughout the effective consumption process. In addition, this connection enhances customers’ understanding of the company, making it easier for companies to acquire empathy from customers. This study aims to analyze the value factors that affect luxury brand community members’ purchase intention and brand attitude. This study utilizes online survey results of four hundred prestige brand community users in China. The results reveal the positive effects of customer engagement on customer psychological empowerment and flow, the positive impacts of customer psychological empowerment and flow on community identity and brand attachment, the positive effects of community identity on purchase intentions, and the positive effects of brand attachment on purchase intentions and brand attitude. Furthermore, the results show that community types and fashion involvement partially moderate customer engagement. This study provides theoretical suggestions for relationship marketing in the luxury brand community environment. Last, this study presents practical implications that companies could utilize to create an emotional connection with their community members, resulting in an increase of customer support.