In the current digital word, social media represent a relevant tool for marketing and communications strategies, which create new opportunities for firms to engage with their customers (Leeflang, Verhoef, Dahlström, & Freundt, 2013; Lemon & Verhoef, 2016; Libai et al., 2010). Among the sectors that leverage on social media in their communications, the luxury industry represents a main one. As previous research has mainly analyzed the consumer-side (Godey et al., 2016; Jin, 2012; Kim & Ko, 2012) overlooking the firm-side, the aim of this study is to investigate the cross-cultural issues faced by foreign luxury brands in implementing their social media strategies in China by carrying out a qualitative inquiry. China is the setting of analysis as it represents an increasingly relevant luxury market, characterized by the role of digital media as main communications and sales channel. Data collected consist of semistructured interviews with managers from foreign luxury brands operating in China in order to understand the issues faced and the strategies implemented. Moreover, an analysis of their social media presence on Chinese platforms such as WeChat and Weibo is conducted by considering the type of response activated among users. As pointed out by Belk (2017), qualitative advertising research can provide a better understanding of consumer response to advertising also in the rapidly growing field of social media, which have been mainly unexplored by qualitative approaches (Hadija, Barnes, & Hair, 2012). Moreover, an analysis on the firm-side will fill a gap in the existing literature and provide relevant managerial implications for international firms that operate in China.

Customers’ cognitive and affective responses evoked during shopping are closely linked to their attitude toward a brand (Kim, Park, Lee & Choi, 2016). Furthermore, personal traits have been known as important moderators. Studies on the antecedents of customer attitude have focused on the main effects of specific predictors and are yet to examine the combined effect of cognitive and affective responses during shopping and personal traits (Fiore & Kim, 2007). Using complexity theory, this study intends to fill this gap in the research, particularly in the luxury fashion retail context. Employing fuzzy-set qualitative comparative analysis (fsQCA), this study offers 6 combination patterns of cognitive responses, affective responses, and personal traits leading to positive brand attitude. The results reveals three major findings. First, to shape a customer’s positive attitude toward a luxury brand, managing cognitive responses is more important than managing affective responses. Second, results show that avoiding negative feelings is more important than evoking positive feelings. Third, the combinations that lead to positive attitudes differ by the level of brand familiarity. This study contributes to the S-O-R literature by demonstrating the intertwined relationship between components of the organism (O) (i.e., cognition and emotion). The identified configurations can help luxury retail managers recognize patterns of influential factors on customer attitudes and better design retail experiences.

Despite of its strategic role in shaping corporate image, Instagram predicts that 70% of its contents are not seen by users due to content overload and saturation problems. As more than 95 million photos are shared on Instagram on daily basis, when accessing Instagram, users are bombarded with a lot of visual information and consequently tend to selectively choose photos to pay attention to. Therefore, it is important for marketers to design an ads that has the ability to stop consumers and hold their attention for enough time to be processed cognitively before they scroll up or down to see other photos. This study investigates how visual aesthetic, vividness, and message type of pictures posted on Instagram affects customer responses. A content analysis of 3,952 brand content posted between July and December 2017 was conducted from the official Instagram accounts of seven global luxury brands. The top-listed brands on the Luxury Fashion Social Index namely Burberry, Calvin Klein, Chanel, Gucci, Hermes, Louis Vuitton, and Prada; were investigated as they were considered as good representatives of luxury brands with good social media presence. The coding guide in this study included the numbers of consumer responses (likes and comments), visual aesthetic (classical and expressive), vividness (high and low), and message type (literal and symbolic). For the independent variables, binary coding was used. ANOVA was used to test the hypotheses. Findings suggest that brand posts using expressive aesthetic image received more likes and comments on Instagram than the ones with classical aesthetics. Brand posts with high level of vividness receive more likes and comments than the ones with low level of vividness. Brand posts adopting using symbolic message receive more likes and comments than the ones implementing literal message. The results also suggest that there was a significant interaction between visual aesthetics, vividness, and message types in generating likes Brand content on Instagram using a combination of expressive aesthetic, high vivid, and symbolic message generates more likes and comments than any other combinations. Instead, the content adopting a combination of classical aesthetic, low vivid, and literal message produced the least responses. From theoretical perspective, findings can extend and modify media richness theory to luxury brand and social media contexts. Instagram can be used to display brand contents with various levels of vividness. This study imply that luxury consumers favor expressive aesthetics and symbolic message more positively indicating that they tend to have high level of need for cognition in consuming brand messages. Luxury brand marketers can increase their cognitive load by increasing the level of information complexity increasing the number of colors or patterns, using metaphoric statements, or crafting symbolic messages when creating brand posts on Instagram.

The current study aimed to segment Mongolian female consumers based on luxury consumption values and to compare lifestyle, demographic characteristics, purchase behavior, and perceived brand personality among the segments. The survey was administered to consumers who had purchased luxury products in Ulaanbaatar, Mongolia. A total of 184 surveys were used for data analysis. Exploratory factor analysis revealed five luxury values: quality value, hedonic value, conspicuous value, social value, and unique value. Using the five luxury values, clustering analysis was conducted, showing that there were four distinct segments: passive shoppers, showoffs, rational value groups, and hedonists. ANOVAs and chi-square analyses revealed that these four segments differed in consumption values, demographic characteristics, lifestyle dimensions (including appearance consciousness, leisure orientation, life enjoyment, and achievement orientation), and purchase behavior (including purchase frequency, price of products purchased, and product selection criteria). Moreover, value segments showed differences in five dimensions of luxury brand personality: sincerity, professionalism/attractiveness, excitement, materialism, and sophistication. The results suggest that consumption values serve as a significant basis for segmentation. Furthermore, the current study indicates that value segments can be described as consumers’ perceived brand personality. The study concludes with a discussion of the results, theoretical and practical implications, and limitations.

Authenticity is an important topic in business activities and society at large. Sustainability management and marketing activities are required as consumers become more interested in society. The consumer evaluation of brand authenticity is a crucial factor in a brand’s reputation and long-term growth, which affects brand loyalty, electronic word of mouth (eWOM) and purchase behavior. With this latest trend, luxury brands are paying attention to sustainability activities, but consumer confidence in the sustainability of luxury brands is still low. Experts emphasize that building trust with customers by promising authenticity is a key challenge. Meanwhile, luxury brands are actively communicating with consumers through SNS, such as Instagram. Social media marketing directly and indirectly influences brand authenticity, as well as purchase intentions and eWOM. Nevertheless, there is little exposure to sustainability activities in the social media accounts of luxury brands. Therefore, the purpose of this study is to examine the relationship between the sustainability activities on the social media of luxury brands and brand authenticity, as well as the effects of brand authenticity on eWOM and purchase intention. For this study, we conducted an online survey targeting individuals with ages of 20–30 years and who are highly interested in society while actively using social media. The collected data were analyzed using the SPSS 21.0 software package. The main finding of this study reveals that consumers are more aware of brand authenticity when they see an Instagram post that includes messages about sustainability rather than a post without any such messages. In addition, brand authenticity has positive effects on eWOM and purchase intention. These findings suggest that sustainability marketing by luxury brands leads to positive consumer response, and the broadcasting of messages about sustainability via social media is effective for the marketing strategy of luxury brands.

While the luxury goods market has shown a slow growth, brands are becoming devoted when developing strategies optimized for customer’s needs in order to survive in a competitive environment. Face-to-Face (FtF) service is one of the differing strategies that luxury brands pursue in their offline in-store environment. With the advance of digital technologies such as artificial intelligence, this service is expanding also to online. Chatbot is an emerging online communication tool that offers to customers a new, unique and personalized digital service. The traditional way of measuring communication between a luxury brand and the luxury customer has been through face-to-face (FtF) interactions that customers can experience directly at the store. However, there is a lack of researches on chatbot, a new conversational agent. The aim of the present study is to identify the effects of conversational agents marketing efforts on communication outcomes. Second, within this context, the study clarifies how the service provided in-store (FtF) differs from the service provided through online store (chatbot). Last, it verifies how communication outcomes differ according to the customer’s personal traits. Online questionnaires were distributed among individuals aged 20-30 residing in Korea; thereafter, SPSS 21.0 and AMOS 18.0 were used to verify the proposed model and research hypotheses. Results show that luxury brand’s conversational agents marketing efforts have a positive effect on communication outcomes. In addition, communication outcomes that customers experience have difference for both FtF and Chatbot, as well as according to customer’s personal traits. The findings of the study provide meaningful implications for marketers, thus the conversational agents marketing efforts that customers experience in the brick-and-mortar store is also of some value in the digital context.

The personal luxury goods market in the Middle-East is the 10th largest in the world, right before Hong-Kong and Russia, which are both well-established markets for luxury products (D’Arpizio, Levato, Zito & Montgolfier, 2015). However, luxury consumer behavior consumption in the Middle-East and its influencing factors have largely been left unexplored. This paper builds on previous research among German luxury consumers and investigates the formation of brand love and its impact on willingness-to-pay among Arab luxury consumers. Compared with the German study, it is found that Arab luxury consumers show weaker brand love tendencies. In addition, materialistic characteristics and tendencies for conspicuous consumption among Arab consumers strongly influence brand love in the context of luxury fashion and accessories, which confirms previous findings. Results further document that for Arab luxury consumers neither conspicuous consumption tendencies nor brand love can be interpreted as a predictor for an increase in willingness to pay. Hence, for those consumers, long-lasting emotional consumer-brand relationships are not responsible for generating additional profits and do not explain why the willingness to pay for luxury goods was significantly higher among Arab consumers. Finally, results indicate that though some elements of luxury consumption are shared among German and Arab luxury consumers (e.g. fashion involvement, the evaluation of particular brands, gender and brand love tendencies) there are significant differences in terms of e.g. brand preferences, general willingness to pay for luxury fashion and accessories and willingness to pay for conspicuous luxury goods. This research provides insights into the formation of brand love among Arab luxury consumers and how it informs luxury consumption. Moreover, it sheds light on similarities and differences across the two samples and increases the understanding of luxury consumption in a broader geographic context.

Recent research has shown that many companies in the fashion industry are increasingly weaving close relationships with the art world, to appropriate art values and meanings to be associated with their own products and brands (Hagdtvedt & Patrick, 2008a; 2008b). Businesses related to the fashion luxury sector have been especially prone to using such strategies to transform their products into true artworks to address the issue of commodification resulting from high production volumes (Dion and Arnoult, 2011; Riot, Chameret & Rigaud, 2013). Over the past two decades, the luxury market has undergone huge structural changes through mergers and acquisitions that have transformed an industry made up of small, family businesses into major financial conglomerates and brand owners (Roux & Floch, 1996; Crane 2012). Secondly, globalization and openness to new fast-growing markets such as Asia, have led these luxury conglomerates to increase sales volumes, failing in one of the basic characteristics of such goods: rarity. But if the real rarity of luxury products is a promise that companies can no longer guarantee their own consumers, the elitism of these products can be ensured through an artificial rarity. Jean-Noël Kapferer used the neologism artification recently introduced by French sociologists Nathalie Heinich and Roberta Shapiro and applied it to the analysis of luxury goods (Kapferer, 2012; 2014; Heinich and Shapiro, 2012; Shapiro and Heinich, 2012). He stressed that a strategy based on art implemented by luxury companies is useful mainly to support the perception of rarity by the final consumer. Artification is based on the notion that art –related objects or persons are associated with positive values. Enhancing a corporate image in the consumer’s mind means building positive ties to the brand that will initiate a form of benevolence towards the brand, providing the legitimization of corporate actions and, in some cases, resulting in the purchase of goods and services produced and distributed by the company (Keller, 1993; Aaker, 1996; Aaker & Joachimsthaler, 2000; Keller, 2003). We decided to analyse the effect of Artification on brand value by focusing on the four dimensions of Awareness, Image, Quality and Loyalty by using the same CbBE ( Customer-based Brand Equity) structure previous authors tested on country of origin effect on consumers, based on the main hypotheses further explained (Pappu, Quester & Cooksey, 2006). The first hypothesis relates to the dimension of Awareness and aims to test the level of brand recognition in final consumers when the logo is modified by an artist. • H1 – Consumers’ awareness remains strong when the brand is ‘artified’. We analyze then the Image, as the second dimension of CbBE. Due to the complexity of this dimension, we posited two hypotheses connected to it: • H2a – Consumers’ free associations to the brand are connected to the artworld when the brand is ‘artified’ (e.g. consumers indicate words as art, contemporary art or the name of the artist). • H2b – Consumers’ evaluation of the brand image points to stronger positive associations when the brand is ‘artified’ The last two hypotheses we mention are connected to the dimensions of Quality and Loyalty: • H3 – Consumers’ evaluation of Quality increases when the brand is ‘artified’.  H4 – Consumers’ Loyalty to the brand increases when the brand is ‘artified’. • The analysis was conducted through a between-subjects randomized experiment and manipulated art presence (with art versus without art). Starting from the same panel, two groups were created: one including the treatment (visual arts) and one including no treatment at all. Furthermore, we limited ourselves in this experiment to images of products and pattern created by Louis Vuitton that are actually on the market, associating them randomly to the research units in order to obtain two statistically consistent groups subjected to the different treatment (with art or without art)4. The two groups were labelled ‘artified’ group and control group, the first grouping the respondents to the questionnaire containing images of Louis Vuitton Logo, pattern and product modified by art collaboration with Yayoi Kusama; and the second grouping the respondents to the questionnaire containing images of Louis Vuitton Logo, pattern and product in its standard design. The questionnaire was distributed between the months of May and June 2015 via Qualtrics survey software. It was divided into four distinct blocks: the first concerned the presentation of the survey, the declaration of authorization signed by the participants and the demographic information; the second and the third blocks of questions were identical, with the same series of questions but based on different images used. There were 880 respondents, 825 of whom correctly filled the questionnaire we submitted to them. The control group was made of 413 respondents, 73.13 % of whom were female and 26.87 % male. The ‘artified’ group was made of 71.60 % female and 28.40 % male. We analyzed the four dimensions of Awareness, Image, Quality and Loyalty individually and in a comparative manner between the control and ‘artified’ groups. In the CbBE model, dimensions are analyzed individually since Awareness and brand Image measures are not comparable because they are collected through different measure methods, respectively through multiple choice and open-ended questions. Such dimensions as Image, Quality and Loyalty which were raised through Likert scales were then subjected to mono multivariate statistical analysis. The main results are shown in table 1. By reading the results for CbBE, Hypothesis H1 [Consumers’ awareness remain strong when the brand is ‘artified’] has been confirmed. The aided brand awareness shows no important differences between the two groups, so visual artists may modify logos or the appearance of luxury products without the fear of compromising brand awareness in the final consumers. Hypothesis H2a [Consumers’ free associations to the brand are connected to the arts when the brand is ‘artified’ (e.g. the word art, contemporary art or the name of the artist)] was not confirmed. Hypothesis H2b was partially confirmed as Generic Associations and Brand Personality were impacted by the use of the visual arts, while Organizational Associations were not. Brand loyalty and Perceived Quality were not impacted by the Visual Arts either, so Hypothesis H3 and H4 were not confirmed. As a main result for CbBE analysis, the Visual Arts have an impact on Customer-based Brand Equity, limited to Brand Image dimensions. The fact that Brand Image is one of the most complex dimensions of brand value opens the way to the development of future analysis and research in the visual arts as external source for brand equity, especially for Brand Personality. The main results of our research show that an artification effect is visible especially at the level of brand image and brand personality, two complex and valuable components of Brand Value from a consumer perspective. This opens to further in-depth analysis of these two components for future research. Large luxury groups (such as Cartier and Prada) have long used an art-based strategy to increase the value of their products, avoiding the risk of a loss of prestige perceived by the final consumer who would no longer recognize the exclusivity of a product that seems to be increasingly more industrial than handmade. Art can therefore contribute to alter and rework the image and market position of a specific brand or an entire product line, ensuring the transition from an ordinary image to a prestigious one, or strengthening the existing prestigious perception (Hetsroni & Tukachinsky, 2005; Lee et Al., 2015). We believe that a strategy based on art implemented by luxury companies is beneficial mainly to support the perception of rarity by the final consumer. Luxury goods would have to be unique or at least not produced in too high volumes precisely because of their craftsmanship and the care with which they are made. Rarity is not compatible with the increase in sales volumes required by the financial holdings that own the same luxury brands (Roux and Lipovetsky, 2003; Kapferer, 2012; 2014; 2015). The artification process we researched would have exactly the dual purpose of improving the brand image of companies that apply it, while increasing the perception of luxury in end consumers. What is more, we believe that the luxury brands from the industry sector that belong to large financial conglomerates now have the strength to simultaneously apply all the components in the artification process, by sustaining activities of sponsorship, philanthropy or generic collaboration with artists. The fact that luxury products are an integral part of the world of visual arts combined with the fact luxury brands have now the strong support base of large financial conglomerates can ensure the right economic and cultural support needed for the application of such a strategy. In the case of fashion companies, we believe artification is a process in itinere. In our experiment free associations to the brand show that only 2 consumers out of 880 remembered or knew the name of the artist (Yayoi Kusama) and 10 people indicated the substantive ‘art’ or ‘contemporary arts’ as free associations in the ‘artified group’ (only 2 in the control group). This shows that luxury brands ‘art-based strategy cannot only concentrate on temporary collaborations with artists. Luxury brands as Louis Vuitton must act as art institutions able to display arts collections to the widest public and bestow art status and global recognition to collaborating artists (Masè and Cedrola, 2017). This strategy relies on LV ability to raise consumers’ awareness of the arts. While the art-oriented public recognizes artistic collaborations, the larger public does not yet is still very much aware of new designs. Novelty is equally perceived by both, but is partially decoded by one category of consumers.

Companies frequently use luxury or green as a brand extension strategy. The present research suggests that the success of the luxury or green brand extension depends on the parent brand’s core attribute-whether the parent brand is primarily luxury or green. In two experiments involving real brands (BMW, Prius, Chanel, Patagonia) across multiple product categories (automobile and bag), we investigated consumers’ evaluation of luxury green extension products (i.e., multi-attribute products with luxury and green attributes) whose parent brand is luxury (e.g., BMW) or green (e.g., Prius). Study 1 showed that luxury green products with luxury roots (i.e., parent brand is luxury) are evaluated more favorably than those with green roots (i.e., parent brand is green). Study 2 investigated the mechanism of perceived fit. Whereas luxury green product with luxury roots was perceived to have a high level of fit, the luxury green product with green roots was perceived to have a lower level of fit. Our findings encourage the luxury parent brand to extend green whereas discourage the green parent brand to extend luxury.

Emotional sharing of brand has a power of connecting brand and consumer brand and consumer by transcending rational reason.

The market for luxury is changing with new competitors to the market, more modest growth, and new types of customers (Kim and Ko 2012, Ko, Phau and Aiello 2016) as well as the ubiquity of digital marketing channels (Okonkwo 2009). Moreover, social media has transformed the logic of fashion marketing by providing new ways of engaging, interacting, and connecting with customers (Dhaoui 2014) as well as enabling consumers to participate in branding process (Burman 2010). As a consequence, also luxury brands need to develop experience-based marketing strategies that emphasise interactivity, connectivity and creativity (Atwal and Williams 2009). What is more, despite of growing importance of social media marketing in luxury industry, extant research on the topic still remains quite limited (Ko and Megehee 2012). While the previous studies have well documented the benefits of luxury marketing on social media (Kim and Ko 2012, Kim and Ko 2010, Brogi et al. 2013, Kontu and Vecchi 2014, Godey et al. 2016), and their implications on luxury brand management (Dhaoui 2014, Larraufie and Kourdoughli 2014), and even co-creative marketing practices (Choi, Ko and Kim 2016, Tynan, McKehnie, and Chuon 2010), no studies to this date have looked at co-creation from consumer-perspective. This article provides a novel perspective on luxury branding, by following the resource-based theory of consumer (Arnould, Price and Malshe 2006) to study the brand identity as co-created in social media. To do this, visual frame analysis (Goffman 1974, Luhtakallio 2013) is applied on consumer generated images downloaded from Instagram feed of brand exhibition staged by luxury brand Louis Vuitton. Based on the analysis, a typology of co-created brand identities is proposed. The findings indicate that in the branded exhibitions, consumers co-create brand identity by utilising resources available in the experiential brandscape by taking and posting these objectifications of brand on social media (Presi et al. 2016) and in so doing create symbolic/expressive, and experiential/hedonic value (Tynan et al. 2010). Theoretically, this article provides a novel perspective on luxury brand as co-created and in so doing, demonstrates the dynamics of firm-consumer co-creation. What is more, to extend the emerging stream of visual analysis of luxury (Kim et al. 2016, Freire 2014, Megehee and Spake 2012), an application of novel is demonstrated in the article. Managerially, this explorative study provides new insights on luxury marketing in social media by suggesting that branded experiences should be designed in a manner that engages the consumer to actively use the resources available to them. The financial implications of this shift are also significant as according to McKinsey study, three out of four luxury purchases are influenced by social media (Hope 2016)

The aim of this exploratory research is to investigate whether luxury brands social media activities (Kim & Ko, 2012) – which are online activities that could potentially engage customers in digital environment (Sashi, 2012) – are capable of transmitting the sense of heritage of such brands to the customers. Moreover, the authors will observe whether the aforementioned activities are capable of transmitting the sense of exclusivity, which will be measured through the customers’ perceptions of the brand prestige (Hwang & Hyun, 2012), to the latter. In order to explore such a phenomenon, the authors have selected structural eqation modeling (SEM) as the main methodology of the research (Bagozzi & Yi, 1988). The theoretical foundations of the present research are related with three streams of marketing literature, namely (1) luxury brands social media marketing activities (Kim & Ko, 2010; Kim & Ko, 2012), (2) luxury brands heritage (Ciappei, Zollo, Boccardi, & Rialti, 2016; Hudson, 2011; Rialti, Zollo, Boccardi, & Marzi, 2016) and, finally, (3) luxury brands customer-based prestige (Napoli, Dickinson, Beverland, & Farrelly, 2014). In particular, building on the concept of social media marketing activities (Kim & Ko, 2010), we aimed at observing how the latter could influence customers’ perceptions of the brand by engaging them in online activities and conversations (Sashi, 2012; Zaglia, 2013). Specifically, we investigated if engagement in online activities or in online communities is related with a positive perception of luxury brands’ heritage and prestige. Hence, customers’ online engagement deriving from social media activities has been considered as an antecedent of customer perceived heritage and prestige (Phan, Thomas, & Heine, 2011; Hamzah, Alwi, & Othman, 2014; Riviezzo Garofano, & Napolitano, 2016). Luxury brands have been selected as the context of research since heritage and prestige have emerged as relevant strategic marketing levers for luxury brands’ brand strategist. As a proof of that, recently, luxury brands’ strategist and product managers are increasingly focusing brands’ strategies on the history of the brands in order to transmit customers a feeling of exclusivity and elitism (Hudson, 2010; Balmer, 2011). Thus, luxury brands heritage perceived by costumers emerged as a fundamental component of brand identity and, in addition, it may be considered as a form of competitive advantage increasing brand equity (Van Riel & Balmer, 1997). The main findings of the present research are related with the fact that social media marketing activities may engage customers online (Sashi, 2012). Moreover, it emerged how social media strategies are capable to engage customers and transmit them the sense of heritage and prestige. Hence, social media marketing strategies focused on developing a relationship with customers emerged as crucial in order to enhance customers’ perceptions of a brand heritage and prestige. Finally, the development of such a kind of social media marketing strategies is the principal implication for marketing managers. Due to the aforementioned results, this exploratory research contributes to online luxury brand management literature (Kim & Ko, 2010). In particular, due to our results it is possible to assess that social media activities, which are capable to engage customers online, are able to transmit the sense of heritage and of prestige. Future researches should explore better this phenomenon. In particular, on the one hand we suggest scholars to investigate through qualitative methodologies which kind of communications are capable to transmit sense of heritage and prestige. On the other hand, we suggest scholars to compare traditional form of communications with online form in order to understand which one is more capable to influence customers’ perceptions. The principal limitation of this research is related with its exploratory nature and with the traditional limitations of SEM methodology.

Despite the positive outcomes of brand-consumer interactions on social media documented in the literature, an important question still remains: Are active brand-consumer interactions always beneficial to luxury fashion brands? This study argues that such interactions may undermine the core perceptions of the brands by making consumers feel too close to the brands. Drawing upon construal level theory of psychological distance, the purpose of this study is to examine the negative effects of brand-consumer interactions on perceptions of luxury fashion brands (i.e., social perception, uniqueness perception, quality perception) in a social media context. Two experimental studies were conducted. The purpose of Study 1 was to test the hypothesis that luxury brands, compared to mainstream brands, will be perceived as more psychologically distant and abstract. Study 1 used a 2 (brand category: luxury vs. mainstream) x 2 (brand replicates) mixed-model design in which the brand category was a between-subject factor and the brand replicates were a within-subject factor. Fifty-nine subjects recruited from Amazon MTurk participated in the study. The results of Study 1 revealed that luxury brands are inherently psychologically distant than mainstream brands. The purpose of Study 2 was to test the impact of brand-consumer interactions (i.e., high vs. low) and the mediating role of psychological distance on the three perceptions of luxury brands (i.e., social perception, uniqueness perception, quality perception) on social media. A single factor between-subjects design was used, and a total of 74 participants were recruited from Amazon MTurk. To manipulate the level of consumer-brand interaction (high vs. low), two versions of a luxury brand’s mock Facebook pages were created. For the high interaction condition, the brand responded to consumers’ posts in a friendly way and displayed the images of user photos. For the low interaction condition, the brand did not respond to consumers’ posts and displayed no images of users. As predicted, the results showed that participants indicated lower brand perceptions when the brand’s social media page displayed a high level of interactions than a low level of interactions. Moreover, formality, a measure of psychological distance, partially mediated the relationship between brand-consumer interactions and all the three brand perceptions. The findings of this study provide empirical evidence that active consumer-brand interactions on social media do not necessarily benefit luxury fashion brands, rather they can damage consumer perceptions of the brands. This study provides important implications that luxury fashion brands should maintain a sacred distance on social media; otherwise it will undermine important perceptions of the brands such as status signaling, exclusivity, and quality.

This study aims to investigate the role of luxury brand attachment on consumer brand relationship by examining the relationship with trust, commitment, satisfaction and loyalty. This also examines the interrelationships among trust, commitment, satisfaction and loyalty from luxury branding context which provides a good number of theoretical and practical implications. Introduction The global luxury market exceeded $1 trillion in the year 2015 with a 5% annual growth (Bain & Co., 2015). However, industry experts predict that the luxury industry will face challenges in upcoming year primarily due to the economic instability and turmoil in the global foreign exchange market (Robert, 2015). Therefore, the luxury brand executives should carefully target their future consumer segment to sustain the current growth (Luxury Society, 2015). Earlier studies demonstrate that consumers seek various types of emotional benefits from luxury brands such as status seeking (Nelissen & Meijers, 2011), hedonic pleasure (Tsai, 2005), feeling good (Aaker, 1999), pleasurable experience (Atwal & Williams, 2009), mental peace (Silverstein & Fiske, 2003), and impressing others (Wiedmann, Hennigs, & Siebels, 2009). Moreover, these emotional benefits create a comprehensive and memorable experience in terms of ownership and consumption of luxury brands (Choo et al., 2012). Therefore, luxury brand marketers should emphasize more on emotional attachment for building a long term and sustainable customer relationship (Orth et al., 2010). Research Gap Existing literature on consumer-brand relationship mostly considers cross-cultural issues (Chang & Chieng, 2006), reviving brand loyalty (Fournier, 1997), consumer attitude (Aggarwal, 2004), satisfaction (Sung & Choi, 2006), self-brand connection (Cheng et al., 2012), trust-based commitment (Hess & Story, 1995) and such other dimensions on brand evaluation (e.g. Swaminathan et al., 2007). Few studies have considered luxury products (Hodge et al., 2015) and the role of emotional aspects (Hwang & Kandampully, 2012) in the consumer-brand relationship. Still, there is a lack of empirical support for understanding the role of luxury brand attachment into the construct. This research will attempt to fulfil these research gaps. Conceptual Model and Hypotheses Psychological theories explain attachment as the tie between a person and an object or any other components (Bowlby, 1979; Hazan & Shaver, 1994). Brand attachment is defined as a long-term and commitment oriented tie between the consumer and the brand (Esch et al., 2006). The conceptualization of luxury brand demonstrates that the inherent traits of luxury brands are distinctiveness, high transaction value, superior quality, inimitability, and craftsmanship; and luxury brand consumption is mostly emotion laden (Nueno & Quelch, 1998). Based on the existing attachment concepts and theories, we define luxury brand attachment as the emotional bond that connects a consumer with a specific brand and develops deep feelings toward the brand. Several past studies have found that brand attachment reinforces brand trust and there is a positive relationship between brand attachment and trust (e.g. Belaid & Behi, 2011). In addition, Esch et al. (2006) argue that brand satisfaction and brand attachment are interrelated and satisfaction results long-term consumer-brand relationships (Gladstein, 1984). Moreover, strong commitment from the consumers has been identified as a critical factor of long lasting brand relationship (Li et al., 2014; Sung and Choi, 2010). Further, Thomson et al. (2005) find that brand attachment creates behavioural loyalty for which consumers are also willing to pay higher prices. Expecting similar relationship from luxury branding context, we propose that H1: The higher the luxury brand attachment, the greater the consumers trust in that brand. H2: The higher the luxury brand attachment, the greater the consumer satisfaction for that brand. H3: The higher the luxury brand attachment, the greater the consumer commitment to that brand. H4: Higher luxury brand attachment leads to higher behavioural loyalty to that brand. Scholars explain that satisfaction is an essential element of brand loyalty and both the constructs are positively related (e.g. Agustin and Singh, 2005). Past researches find that highly satisfied consumers demonstrate repeat purchases (e.g. Bennett et al, 2005). Past studies also show that trust toward the brand results brand loyalty and strengthen the relationship (Bansal et al., 2014; Belaid & Behi, 2011). Fournier (1997) identify brand trust as the key determinant of brand loyalty. Thus, we propose that H5: Higher satisfaction to the luxury brand leads to higher behavioural loyalty to that brand. H6: Higher trust to the luxury brand leads to higher behavioural loyalty to that brand. Ganesan (1994) argue that a satisfied customer develop trust toward a specific brand. In support of this, Belaid & Behi (2011) state that if a brand becomes successful in fulfilling the promise with consistence performance, the consumer will have satisfaction and positive feeling about the brand. In addition, the authors find a positive relationship between brand commitment and behavioural loyalty. Expecting similar relationship from luxury branding context, we propose that H7: The higher the trust in luxury brand, the more customer satisfaction in that brand. H8: Higher commitment to the luxury brand leads to higher behavioural loyalty to that brand. Summary of the hypothesised relationships are illustrated in Figure 1. Methodology The simple random sampling will ensure proper representation of the target population and eliminate the sampling bias (Cook & Campbell, 1979; Zikmund, 2002). The sample population will be 300 young Australian consumers aged between 20-30 years. Previous studies have found that there is a growth in luxury brand purchase by individuals in younger age groups e.g. 20 – 30 (Hung et al., 2011). Therefore, this is representative of the possible drift in the ages of consumers in the market for luxury brand purchase (Han et al., 2010). A consumer panel from Qualtrics database will be used and the sample frame consists of consumers who have higher brand likeability (Martin & Stewart, 2001). Established scales will be used to measure the constructs. All items will be measured on a seven-point Likert scale with 1 representing “strongly disagree” and 7 representing “strongly agree”. Research Significance This would be the very first study to investigate the role of luxury brand attachment in consumer brand relationship. This research will provide meaningful insights for the brand managers, brand strategists and advertising managers. This research will assist luxury brand managers in allocation of resources for the action plans that will ensure a stronger tie with the consumers in a cost efficient way. For brand managers luxury brand attachment may help them with segmentation process and well as providing direction on improving attachment to the consumers to influence trust, commitment, satisfaction, and loyalty.

As a contemporary, postmodern marketing strategy, digital storytelling is the virtual means by which a story can be organized. Less traditional than a conventional beginning, middle, and end narrative, the genre suggests that individuals connect the dots of a story by comparing their reading with others. This research examines Christian Dior’s Secret Garden IV campaign film as it is broadcasted on YouTube for six weeks and diffused through Instagram. Through a grounded theory approach we measure and analyze audience engagement and key themes expressed through user-generated content on YouTube and Instagram. Manual coding and three computer-aided text analysis programs are used to analyze the data and triangulate results. This research contributes to the literature on consumer engagement in digital storytelling, online brand communities, and celebrity endorsement. Introduction Digital technologies have improved the aesthetics of content creation, enabling brands to develop deeper levels of engagement with consumers through social channels (Merrilees, 2016). Every day hundreds of millions of hours of video are consumed on YouTube and the number of high performing channels has been increasing by 50% per year (YouTube, 2017). Instagram’s monthly active users have grown from 300 million in December 2014 to 600 million in December 2016 (Statista, 2017). Within the social media sphere, commercial and individual users connect through multiple platforms and devices to share ideas and information without the constraint of time and space (Gruzd & Wellman, 2014). The digitization of visual culture provides users with so much content that it may even result in information overload (Babin et al., 2017). This research focuses on the fashion sector and social media platforms that cater specifically to visual imagery and video content. The logic is twofold: the fashion industry is inherently visual and research on a study of eighty-three fashion brands indicates a shift from traditional advertising to video products, especially on social media (L2 Inc., 2016). We examine elements of French luxury goods company, Christian Dior’s Secret Garden omni-channel marketing campaign. As a collection of short films shown on YouTube and in other media, the campaign had four annual installments beginning in 2012. The Secret Garden series explores the brand’s past and present within the context of the 21st century Palace of Versailles. Our focus is on Secret Garden IV, launched in May 2015, featuring singer/songwriter Rihanna as the protagonist. Dior’s portrayal of Versailles throughout the Secret Garden series reflects undertones of its monarchial heritage and its high fashion prestige. In Secret Garden IV, there is a juxtaposition to this theme when Rihanna’s subculture persona and celebrity status (Fleetwood, 2012) presents a misalignment between luxury ideals and Rihanna’s position in popular culture. Table 1 provides an overview of the history of the campaign. This research measures and analyzes audience engagement and key themes expressed through users’ comments on YouTube and Instagram for the pre-launch and launch of the Secret Garden IV campaign. Through a grounded theory approach we identify, analyze, and validate keywords and group them into themes utilizing both manual coding and computer-aided text analysis (Lai & To, 2015). We utilize three software programs (Tableau, NVivo 11, and Leximancer) to triangulate results. The scholarly literature on fashion luxury goods is scant and this methodological approach is sound (Neuendorf, 2017). Five recent scholarly articles on luxury fashion goods and social media were identified. One relates to storytelling and is visually-focused (Megehee & Spake, 2012); three develop models (Kim & Ko, 2010; Kim & Ko, 2012; Brogi et al., 2013); and one uses the case study approach (Phan et al., 2011). This research fills both a theoretical and a methodological gap. We examine a digital storytelling campaign across social media platforms with the prospect of new theoretical insights. According to Snelson (2016) there is scant social media research on YouTube and Instagram and social media research using a grounded theory approach is also limited. Theoretical background Digital Storytelling Digital storytelling uses technology as an extension of oral and written stories “…to solidify our cultures and share knowledge for the future” (Irwin, 2014, p. 40), placing engagement with digital media as an extension of the self. People naturally think in narratives and stories, rather than arguments and paradigms (Megehee & Spake, 2012) and may use digital storytelling to order otherwise disconnected experiences into interrelated, meaningful episodes (Vannini, 2012). By connecting the dots of a story on social media users have the opportunity to formulate meanings of their own and build interpretations by comparing their “reading” with that of others. Social media has empowered the consumer by enabling communication that is multi-way, multi-directional, and led by the consumer (Tuten & Solomon, 2015). The fashion film on the internet has been viewed as “a genre that is not is not simply a tool to stimulate consumption, but is something that is set to change our notion of fashion as a moment in time” (Khan, 2012, p. 236). In her review, “100 Years of the Fashion Film,” Marketa Uhlirova posits that contemporary technologies aimed at a film’s “potential to promote fashion” turned into “the medium’s ability to recast consumption as seductive visual entertainment,” devaluing a fashion film’s potential for not only entertainment and visual pleasure, but also for experimentation and innovation (Uhlirova, 2013, p. 140; p. 153). Online Brand Communities As a hub of value creation in the consumer marketplace, brand communities are an enthusiastic, passionate group of customers who express similar commitment towards a brand or product and may not be geographically bound (Muniz Jr. & O’Guinn, 2001; McAlexander et al., 2002). In brand communities created by marketers, organizations may stimulate engagement, brand loyalty and the expression of positive emotions and trust (Bagozzi & Dholakia, 2006; Jung et al., 2014). Customer engagement behaviour pertains to a variety of online and offline behaviours (e.g. word of mouth, blogging, customer reviews) that are not transactional, but can be measured (Verhoef et al., 2010). Although positive word of mouth and brand advocacy are not guaranteed, an organization’s most engaged social customers have the potential to communicate messages that are perceived as more credible than those generated by the organization (Kozinets et al., 2010). A high level of engagement may be described as delight or joy. Engagement requires strong emotional and relational bonds (commitment and trust), and may transform customers into loyal “fans” or co-creators of value (Hawkins & Davis, 2012). A study of customer engagement behaviour in a social media environment is complex because engagement behaviour in different channels may vary considerably, with a different effect on value creation or purchase intent. For example, if a customer tweets on a mobile device his/her engagement and purchase intent may differ from engagement and purchase intent as a result of interaction with a video or blog (Libai et al., 2010). Celebrity Endorsement A celebrity endorsement is defined as “an agreement between an individual who enjoys public recognition (a celebrity) and an entity (e.g., a brand) to use the celebrity for the purpose of promoting the entity” (Bergkvist & Zhou, 2016). Celebrity endorsements previously were associated primarily with consumer goods and services advertised through traditional media, such as print and television. More recently, these endorsements encompass any mode of communication as well as business-to-business goods and services. This update is significant considering the addition of advertising on the Internet, in social media, “stealth marketing” on TV talk shows (Kaikati & Kaikati, 2004) and red carpet appearances (Carroll, 2009). Theories related to celebrity persuasion that have application to the fashion industry have examined the way consumers process information from marketing communications and relate it to their self-concept (Carroll, 2009). To the consumer, the celebrity represents a meaning, based on the recognition s/he has received in the symbolic environment and his/her persona. This meaning is transferred to the product when the celebrity is seen in the marketing communication. In the final stage, the meaning moves from the product to the consumer, who transfers the meaning into his/her notion of the self-concept (Carroll, 2009). This transference effect benefits the brand (Tuten & Solomon, 2015) and the consumer who may use products to reveal their self-concept to others (Babin, et al., 2017), especially in high involvement consumption situations (Ahuvia, 2005). Method Sample Instagram and YouTube data were collected using Netlytic (Gruzd, 2016) for the period May 14 – June 24, 2015 for the purpose of capturing data before and after the official release of the film (May 18, 2015). A total of 8,986 records (uncleansed) are in the Instagram (#SecretGarden4 and @Dior) database and 426 records (uncleansed) in the YouTube database. Multiple URLs were used for YouTube because there were four previews, and short and long versions of the film. Procedures The data was cleansed (236 YouTube posts; 6,763 Instagram posts). To measure sentiment and engagement, a text analysis was performed using an adaptation of Dann’s Twitter (2010) classification. Through a grounded theory approach (Lai & To, 2015) key words, concepts and themes were identified and triangulated using Tableau, NVivo 11, and Leximancer software programs. Concluding Remarks As a multi-year campaign, Dior’s Secret Garden was meticulously crafted to project an understanding of Dior’s brand image and to create an air of anticipation for consumers. Within the context of digital storytelling we delve deeply into how the last installment of this campaign resonated with consumers who watched the film on social media and responded to Dior’s Instagram initiatives. Through our mixed methods research approach, we develop theoretical and methodological contributions that benefit academics and fashion marketers.

Have you ever seen images of an elegant woman dressed in period clothes, threatening to stab another woman through the neck; a model facing a leopard behind a mannequin hand; or a lady using a hook to fish a purse out of a pool, while a seemingly dead man is floating in the water? The descriptions of these scenes might sound dark and absurd, and provoke disgust or displeasure; but the fact is, these images have been used in real advertisements for prestigious fashion brands such as Gucci and Dolce & Gabbana, and were featured heavily in various fashion magazines. Recently, advertisers have sought to differentiate their products by using grotesque imagery in their ads as a strategy to get consumers’ attention and stimulate their curiosity. Although growing attention is being paid to ads that are not conventionally ‘pretty’, very little research has tried to empirically document the effect of grotesque imagery on the persuasiveness of luxury brand advertising, or unveil the psychological mechanism underlying the effect. The purpose of this research is to investigate how grotesque imagery used for luxury products appeal to consumers, and why the ads affect the consumers’ behavior. We empirically demonstrated that the grotesque imagery used to promote luxury products enhances consumers’ purchase intention because it facilitates consumers to better experience the brand by transporting them to the narratives that are portrayed in the ads. This process occurs because a correspondence between grotesque imagery and luxury branding generates the fit effect, which leads to fluent processing and feel right experience, and in turn induces engagement to the ad. Grotesque Advertisement Grotesque was the word indicating the style of ancient decoration that depicted fantastic combinations of human and animal forms, interwoven with strange fruits and flowers. The Cambridge Dictionary of English now defines grotesque as a general adjective that describes anything “very strange and unpleasant, especially in a ridiculous or slightly frightening way.” Evolutionary psychology provides us a hint for the reason why emotionally provocative and fear-evoking grotesque imagery captures consumers’ attention. The faster attention to negative stimuli than to positive stimuli is an automatic tendency developed as means of evolutionary adaptedness for survival because negative stimuli signal danger and cause alert to prompt defensive reaction (Ohman, Flykt and Esteves, 2001; Schoemaker 1996; Tan 2008). Another explanation for grotesque imagery’s attention grabbing power arises from our complex emotional system—i.e. human enjoys fearful horror or heartbreakingly sad films, because such negative emotions often stem from a challenging situation filled with risks, threats, and tension and generate an active interest in it (Bartsch, Apple and Stroach 2010; Oliver 1993; Tan 2008). Frightening, disgusting, or tragic emotions are mixed with a relief that comes after a perception of reality. Because human has an ability to distinguish their real life and the situation in the film or drama, we feel interests while being frightened or disgusted or heart-broken with pleasurable enjoyment (Tan 2008). Prior research by Phillips and McQuarrie (2010) brought to light the concept of grotesque in the context of fashion marketing. They described grotesque imagery using words with common etymological meanings—bizarre, surreal, deviant, absurd, discrepant, peculiar, and odd—and suggested that it could lead viewers to engage in the ad through transportation or immersion to the story world of the ad. Through the narrative transportation, grotesque imagery persuades consumers to better experience the brand featured in the ad. Based on their conceptualization of grotesque and its persuasive power, we empirically test whether grotesque imagery used in an ad might work as a strong trigger of fantasy, stimulating viewers to be transported into the narrative depicted in the ad image. Transportation Transportation is defined as ‘a convergent process where all mental systems and capacities become focused on events occurring in the narrative’ (Green and Block 2000, p. 701); it represents the extent of absorption into the narrative flow of the story as it unfolds. Transportation occurs whenever the consumer experiences a feeling of entering a world brought to mind by the story, because of their empathy for the story characters and imagination of the story narratives (Van Laer et al. 2014). Previous research suggests that transportation induces favorable attitudes toward the related product (Escalas 2004), and enhances the persuasiveness of advertising messages through the connection between the self and the ad content (Escalas 2004). Fit Between Grotesque Imagery and Luxury Branding The effect of fit, which means a relevant and logical connection between ad contents, has been widely studied in advertising and marketing literature. Fit messages are readily accessible, and processed through simple cognitive information processes. Macinnis and Park (1991) argue that the fit effect is caused by consumers’ perception of the stimuli in ads as a whole, rather than distinct individual elements. The processing of fit (vs nonfat) messages is easier, so more fluent (Lee and Aaker 2004; Labroo and Lee 2006), and fluent processing of fit messages offer a feel right experience (Camacho, Higgins, and Luger 2003; Lee, Keller, and Sternthal 2009). This subjective experience of feeling right increases engagement (Lee, Keller, and Sternthal 2009), willingness to pay, favorability of brand attitudes, and brand choice (Lee and Higgins 2009). In this research, we posit that persuasive effect of grotesque ads is more likely to occur when grotesque imagery is used for advertising luxury brands. Previous research explained the motivations to purchase luxury brands as scarcity, uniqueness, distance, high price (Dion and Arnould 2011; Dubois and Duquensne, 1993), and signaling of social status (Belk 1988; Zhou and Belk 2004; Han, Nunes, and Drèze 2010), which intersect with the characteristics of grotesque. People purchase luxury goods because they are relatively exclusive and limited, providing the consumer with more emotional distance from mass produced products (Hansen and Wänke 2011). In addition, positioning a brand using mythical and abstract concepts is known to be more effective in building strong prestigious brands (Arsel and Craig 2011). Because grotesque is perceived to be distant from reality, incongruent, and discrepant, these characteristics of luxury branding could overlap with that of grotesque. Furthermore, support for our prediction of a fit between grotesque imagery and luxury branding can be found in some other common features of both. Dion and Arnould (2011) argue that luxury brands possess hedonic appeals based on multisensorial pleasure, artistic aura, and charismatic stories which transport consumers into the magical world of the luxury brand. In support, Kim, Lloyd and Cervellon (2015) found that luxury brand advertising stimulates fantasy, and this is one of the dominant themes through which consumers were engaged with the brand. They showed that being part of the narratives in the ads, participants experienced escaping from their everyday lives, traveling around the fantasy world, and feeling that their myth, fantasies or dreams become real. As luxury brand advertising has a power to transport consumers into fantasy, grotesque imagery also carries consumers away into magical world through narrative transportation (Phillips and McQuarrie 2010). Hypotheses In light of the prior research, we posit that when grotesque imagery is used in ads for luxury brands, the fit generates feel right experience and easy and fluent processing of messages, because grotesque imagery and luxury brand advertising commonly have a power to transport viewers to fantasy world distant from reality. In addition, previous research has suggested positive downstream effects for transportation to enhanced brand experience. As the level of experience is enhanced, familiarity and satisfaction with the brand are heightened as well (Ha and Perks 2005). A deeper level of brand experience generates brand trust and accelerates loyalty to brands (Lglesias, Singh, and Batista-Goguet 2011). Thus, we propose the following hypotheses: H1: Luxury brand advertising with grotesque imagery will facilitate transportation, which will in turn enrich brand experience and increase purchase intention of the featured product. H2: There will be a perceived fit between grotesque imagery and luxury branding. H3: The fit between grotesque imagery and luxury branding will enrich brand experience which in turn enhance purchase intention. Study 1 The goal of Study 1 was to show that a grotesque ad is perceived to be better-matched with brands described as prestigious. Stimuli. We designed two versions of a print advertisement for a fictitious fashion brand to manipulate grotesque (vs. non-grotesque) ad style. We created the ad by modifying the content from an existing Jimmy Choo advertisement. The print ad featured a man, a girl, a car, and a handbag placed in the middle of a desert. In the grotesque imagery condition, the girl is placed in the truck of a car, appearing dead since the man sitting next to her is holding a shovel that he seemingly used to dig a hole in the ground to bury her. In the non-grotesque imagery condition, we replaced the shovel to a cane. In the prestige condition, we introduced the brand as one with a prestigious image similar to those of Louis Vuitton and Hermes. In the non-prestige condition, the brand was described as having a brand image similar to Zara and H&M. Procedure. 171 undergraduates (average age = 22.8 years; 171 females) participated in the study for a course credit. Participants were informed that they would be asked to complete an ad evaluation study, and were randomly assigned to be presented with one of the four print ads featuring a handbag. Participants were asked to indicate how likely they would be to purchase the handbag product (1 = very unlikely; 7 = very likely), and how well-matched the ad is to the product and the brand image on two items (‘the ad goes nicely together with the handbag’ ‘the ad looks well-matched with the image of the brand’; 1 = not at all ~ 7 = very much). Then, they completed two item transportation measures (‘While I was looking at the ad, I could easily picture the events in it taking place,’ ‘I had a vivid image of the man sitting next to the woman’; 1 = strongly disagree ~ 5 = strongly agree) adapted from Green and Brock (2000). Next, participants responded to twelve items of brand experience measure from Jos ̆ko Brakus, Schmitt, and Zarantonello (2009) (e.g. ‘This brand results in bodily experiences’, ‘This brand stimulates my curiosity and problem solving’; 1 = strongly disagree ~ 7 = strongly agree). They also rated how grotesque the ad was on seven items (‘bizarre,’ ‘surreal,’ ‘deviant,’ ‘absurd,’ ‘peculiar,’ ‘odd’, ‘discrepant’; 1 = not at all ~ 7 = very much). To rule out an affective account for participants’ evaluation, we assessed participants’ mood (1 = negative mood, bad mood, sad, irritated ~ 7 = positive mood, good mood, happy, relaxed) and their arousal (1 = not at all aroused ~ 7 = very aroused). Results: Perceived fit. The two perceived fit items were averaged to form a fit index. A two (ad style: grotesque vs. non-grotesque) by two (brand reputation: prestige vs. non-prestige) between-subjects ANOVA revealed a significant ad style by brand reputation interaction effect (F(1, 167) = 5.69, p = .018). Planned contrasts indicated that, in the grotesque imagery condition, participants rated the ad as more well-matched when the product was described as a prestigious brand (M = 4.14) than when it was a non-prestigious brand (M = 3.53; F(1, 167) = 4.15, p = .043). In contrast, in the non-grotesque imagery condition, participants rated the ad as less well-matched when it was described as a prestigious brand (M = 3.60) rather than non-prestigious brand (M = 4.00), but the effect was not significant (F(1, 167) = 1.79, p = .183). Because the perceived fit results confirmed that participants rated the ad as more well-matched when the product was described as a prestigious brand, we created an imagery fit variable coding the well-matched conditions (grotesque imagery for prestige brand and non-grotesque imagery for non-prestige brand) to be 1, and the less well-matched conditions (grotesque imagery for non-prestige brand and non-grotesque imagery for prestige brand) to be 0. As predicted, an ANOVA revealed that the well-matched conditions showed higher perceived fit (F(1, 169) = 5.79, p = .017), such that those in the matched condition (M = 4.07) rated higher on perceived fit than those in the mismatched condition (M = 3.57). Transportation. Participants’ ratings on the two transportation items were averaged to form transportation scores. A two way ANOVA revealed a significant ad style (grotesque vs. control) by brand reputation (prestige vs. non-prestige) interaction effect on transportation (F(1, 167) = 4.35, p = .039). Planned contrasts indicated that, in the grotesque condition, participants reported higher transportation scores when the product was described as a prestigious brand (M = 3.22) than a non-prestigious brand (M = 2.78; F(1, 167) = 4.28, p = .040). In contrast, in the non-grotesque condition, participants reported lower transportation scores when it was described as a prestigious brand (M = 2.62) rather than a non-prestigious brand (M = 2.81), but the effect was not significant (F(1, 167) = .78, p = .378). Mediation Effect of Transportation on Brand Experience. Participants’ ratings on the brand experience scale were averaged to form brand experience scores. A series of regressions showed that the ad style by brand reputation interaction activated transportation (β = .632, p = .034), which then yielded greater brand experience (β = .360, p <.001). The bootstrap procedure for a conditional mediation model (PROCESS Model 7; Hayes 2013) using 5,000 samples revealed a significant conditional indirect effect of grotesque imagery on brand experience through activation of transportation when the product was described as a prestigious brand (95% CI [.067, .390]). This conditional indirect effect was not significant when the product was described as a non-prestigious brand (95% CI [–.189, .138]). Multiple Mediation Effect. Our prediction was that grotesque imagery used in luxury brand advertising would lead to higher perceived fit, which facilitates narrative transportation and in turn enhances brand experience leading to greater purchase intention. Multiple mediation analyses using PROCESS Model 6 (Hayes 2013) with 5,000 resamples confirmed that the perceived fit → transportation → brand experience path mediated the effect of imagery fit on purchase intention. The imagery fit variable was created as a binary variable (1 = grotesque imagery for prestige brand or non-grotesque imagery for non-prestige brand; 0 = otherwise). First, the path from imagery fit to perceived fit was significant and positive ( = .504, p = .017), as was the path from perceived fit to transportation ( = .149, p = .007), the path from transportation to brand experience ( = .326, p < .001), and the path from brand experience to purchase intention ( = .344, p = .014). The 95% CI of the bootstrap procedure ([.001, .030]) confirmed that the indirect effect of imagery fit on purchase intention through the three mediators—perceived fit, transportation and brand experience—was significant. Study 2 The objective of Study 2 was to test the robustness of the mediating role of transportation for the effect of grotesque imagery fit with luxury brand. In addition, we checked whether the grotesque manipulation affected the extent to which participants perceived the brand as luxurious. Stimuli. Two versions of print advertisement were created to manipulate grotesque (vs. non-grotesque) ad style by modifying an existing Dolce & Gabbana ad campaign. The print ad featured two women, a man, and handbags placed on the floor of a classically decorated room. In the grotesque imagery condition, one of the girls wearing a ball gown is holding a knife and seemingly about to stab another girl. In the non-grotesque imagery condition, we replaced the knife with a bottle of perfume. All participants were provided with the print ad that contained a cover story about the ad evaluation task, describing the brand as either a prestigious brand that is similar to Louis Vuitton and Hermes or a brand with an image that is similar to Zara and H&M. Procedure. 165 undergraduate students (average age = 23.8; 66 females) were randomly assigned to one of the four experimental conditions. Participants were first asked to indicate how likely they would be to purchase the featured handbags (1 = very unlikely; 7 = very likely). Then, they responded to two transportation items (‘I wanted to learn how the story in the ad ended’, ‘The story in the ad affected me emotionally’, ‘I found myself thinking of ways the story in the ad could have turned out differently’; 1 = not at all ~ 5 = very much). Next, participants responded to the same twelve-item brand experience scale, seven item grotesque measure, four mood items, and an arousal item used in Study 1. In study 2, they were also asked to rate their impression of the product as luxurious, prestigious, and high class (1 = not at all; 7 = very much). Results. The grotesque manipulation did not affect the extent to which participants perceived the brand as luxurious, and when the product was described as a prestigious brand, participants in the grotesque condition reported higher transportation scores than those in the non-grotesque condition. Multiple mediation analyses reconfirmed that the transportation → brand experience path mediated the effect of imagery fit on purchase intention. General Discussion Through two studies, we demonstrated that grotesque ads can be effective in persuading consumers to purchase luxury fashion items. We found that grotesque ads trigger transportation when the brand is described as prestigious, enriching brand experience, and in turn heightening consumers’ purchase intention.

There has been an emerging interest in the effective luxury advertising, which has been conducted within and across national borders. Unlike earlier studies on luxury brands that focused on the behavior and opinions of luxury consumers (e.g., luxury motivations, value perceptions, etc.), this nascent stream of research queries an important role that advertising exerts on luxury consumers (Freire, 2014). Informed by these developments, our study examines how luxury brand marketers can design effective social media messages for their consumers. In particular, we draw on recent research in consumer psychology to shed new light on (1) how consumer feelings about the psychological distance of luxury consumption may influence their evaluation of different types of message appeals on social media and their intention to share these messages with others; and (2) we address how this process varies depending on (a) the perceived tie strength between consumers on social media, the functional attitudes of luxury brands, and across different cultural milieus.

This conceptual paper discusses the influence of brand knowledge through various components of personal luxury products’ towards the purchase intention. Rapid shifts in luxury consumers’ behaviours is one of the predominant drivers contributing to the growth of the modern luxury market. In response to this, luxury consumers’ characteristics and profiles need to be reexamined. In recent years, there has been a rapid increase in global luxury consumption with the rise in number of luxury consumers from 140 million to 350 million globally (Bain & Company, 2015). Such a phenomenal growth in the luxury market leads to a widely increased interests among researchers across all disciplines (Truong et al., 2008; 2009, Tynan et al., 2010; Kapferer & Valette-Florence, 2016). In particular, personal luxury goods market is forecast to continue to grow between 2-3 percent through 2020 (Bain & Company, 2016). Despite the fact that personal luxury goods is a major driver of the entire market, there is a limited research in this product category. Two factors of this fast-growing trend stimulate the need for additional research into consumers’ behaviours. First, there has been a shift in luxury consumers’ profile (Hanna, 2004; Fionda & Moore, 2009) and purchasing patterns (Bain & Company, 2015; 2016) where social influences (Dubois et al., 2001; Berthon et al., 2009; Cheah et al., 2015; Yang and Mattila, 2014; Kapferer & Valette-Florence, 2016) and people’s needs for materialism, appearances to enhance their ego and self-concept (Phau & Prendergast, 2000; Kapferer, 2006) are having greater impact on how consumers make their luxury purchase decisions. Second, it appears that the characteristics of the traditional luxury consumers as well as old marketing models from many decades ago need to be redefined (Bain & Company, 2015). Danziger (2005) indicates that the changes in luxury consumers’ purchase decision has created a dramatic shift in the purchase behaviour as a whole, making it difficult for luxury marketers to recognise the trend. To date, existing literature on luxury purchase intention focuses mainly from the cultural, economic, psychological perspectives (Leibenstein, 1950; Veblen, 1899; Bian & Forsythe, 2012; Liu et al., 2012; Wong & Ahuvia, 1998; Vigneron & Johnson, 2004; Shukla, 2012; Cheah et al., 2015) but remains limited on investigating luxury consumers’ behaviours through the integration of brand knowledge domain. Major works from marketing scholars on luxury value perceptions (Wiedmann et al., 2007 and 2009; Vigneron & Johnson, 2004; Shukla, 2012; Shukla & Purani, 2013; De Barnier et al., 2006; Hennigs et al., 2012 and 2013) suggest that they are important in explaining the whole picture of luxury consumption but insufficient in explaining purchase intentions (Shukla, 2012). Kapferer (2006) discusses that it is typical for consumers to identify which brand belongs to the luxury category, however, it could be more complex for the precise definition of luxury to be identified and understood. Therefore, this study seeks to incorporate the branding aspects into the investigation on the significance of brand knowledge towards the intention to purchase personal luxury products. Literature Review The concept of luxury is first explained by Veblen (1899) that the consumption of luxury goods is primarily considered by the affluent consumers with the desire to display their wealth to the relevant significant others. Even though the concept of luxury remains obscure, the clearer definition of luxury is given by Nueno & Quelch (1998) as the “ratio of functional utility to price is low while the ratio of intangible and situational utility to price is high” and that luxury products are beyond an ordinary expensive goods but “an ephemeral status symbol”. Shukla (2010) also defines luxury as the consumption that is not for just oneself but a socially-oriented type of consumption that fulfils the consumers’ own indulgence as well as to serve the “socially directed motives”. The aforementioned definitions of luxury show it is an “elusive concept” (Kapferer, 1998) with “fuzzy frontiers” (Kapferer, 2006). The luxury concept is describes as “incredibly fluid, and changes dramatically” over time and varied among different cultures (Yeoman and McMahon-Beattie 2006). As consumers become richer (Fionda & Moore, 2009) and are able to afford more luxury brands (Nueno & Quelch, 1998), luxury is no longer reserved for the rich but also includes the rising number of aspiring middle-class consumers (Shukla, 2012) who enjoy material comfort (Yeoman & McMahon-Beattie, 2006; Yeoman, 2011: Granot et al., 2013). This change makes the term luxury even more difficult to define (Shukla, 2010) and will continue as an ongoing debate among research scholars (Kapferer & Valette-Florence, 2016). Dubois & Paternault (1995) mention that “luxury items are bought for what they mean, beyond what they are”, this statement defines the nature of luxury brands where consumers often purchase luxury products not merely because of their outstanding quality but because of the name and the symbolic identity the brand provides. Kapferer (1998) recognises the importance in exploring the perception of luxury brands from the end-users themselves because they know best. This also adds to the ongoing complexity and difficulties in giving luxury a discreet definition (Kapferer, 1997 and 1998). The work of Grotts & Johnson (2013) investigates the status consumption of millennial consumers and indicates that it is highly possible that the consumers may not express any interest on the quality of the products but are placing greater emphasis on the ability of the handbags to be recognised and generate attention from their reference groups. With regard to marketing strategy, luxury marketers react to the rapid increase in demand to maintain their position of exclusivity by increasing the price every year in order to secure their clientele (Kapferer, 2015b). Louis Vuitton, Rolex, and Christian Dior increase the price of their products every year to sustain the dream value of the consumers (Kapferer, 2015a; 2015b). It is apparent that most luxury companies are managing the dilemma of maintaining the exclusivity of its products while increasing brand awareness as well as focusing on securing more market share and revenue (Kastanakis & Balabanis, 2012; Berthon et al., 2009). Despite the recognisable shifts in luxury consumption pattern, the sector will continue to grow with the majority of affluent consumers as discussed by Steve Kraus of Ipsos (King, 2015). The most recognisable shift in luxury marketing strategy is on the increasing number of luxury companies offering lower-price products in response to the rising level of demand for luxury consumption by the enthusiastic middle class consumers (Truong et al., 2008; Kastanakis & Balabanis, 2012). Luxury was once reserved for the “happy few” (Veblen, 1899) but this notion is no longer practical for today’s luxury environment where luxury products are “consumed by a larger aspirational segment” (Granot et al., 2013). Democratisation of luxury refers to when luxury brands create a lower-priced accessory items in order to appeal to the broader market, making luxury accessible to those “who could never afford to purchase the principal items in the line” (Nueno & Quelch, 1998) or the new luxury consumers who seeks recognition from luxury purchase. Han et al. (2010) discusses that different classes of consumers can now be distinguished by the brands of purses, watches, or shoes that they own. They let the brands speak for them, whether they prefer the loud Gucci logo or displaying the consumption of a “‘no logo’ strategy” by carrying a Bottega Veneta bag (Han et al., 2010). As Husic & Cicic (2009) state, an important question on today’s luxury consumption that if it is possible for everyone to obtain luxury items, are the brands still considered luxury? This is one of the important agendas concerning luxury consumption that prompts researchers to investigate this changing behaviours and perceptions of luxury consumers. It is also significance to note that the increase in global demand in luxury market is not necessarily positive but could be negative if the demand is not being managed efficiently (Hennigs et al., 2015). Despite frequent changes in luxury consumption patterns, Kapferer & Valette-Florence (2016) argues that it is vital to understand how consumers behave in order for the brands to create and maintain trust and reputation among its consumers. Danziger (2005) argues that the notion of “past behaviour predicts future behavior” may not be applicable to the luxury market. However, the foundation remains where the marketers need to understand the basics about the past and present behaviours in order to offer the products and services at the price that luxury consumers are willing to pay. It is partly due to the minimisation of the possible risks that might occur in purchasing luxury products as stated by Kapferer & Valette-Florence (2016) that “in luxury, no one wants to buy the wrong brand”. In light of these changes in the demand and strategies, a new framework of luxury purchase intention will be presented. This framework integrates brand knowledge in order to accommodate the traditional consumer, who appreciates the brand and its exclusivity, as well as the new buyer who wants recognition. This attempt in merging the two groups of luxury consumers together will highlights how traditional and new luxury consumers make their purchase decisions based on different components of luxury product characteristics as well as different value perception, or that is to say, based on a different levels of brand knowledge. Conceptual Framework Over several decades scholars attempted to agree on a single comprehensive definition for the term ‘luxury’ but have not yet reached that goal because the concept of luxury is highly individual and the market itself is heterogeneous (Hennigs et al., 2013). The definition of luxury, therefore, is very complex to define (Vigneron & Johnson, 1999; Dubois & Duquesne, 1993) due to its “subjective character” (De Barnier et al., 2012) with many diverse facets (Phau & Prendergast, 2000). This study provides a new perspective by looking at the factors that influence luxury purchase intention. Based on the original work of Keller (1993), it is important to understand the structure and content of brand knowledge because these dictate what comes into the consumer’s mind when they think about a brand and what they know about the brand (Keller, 2003). Consumer brand knowledge is defined as the “personal meaning about a brand stored in consumer memory, that is, all descriptive and evaluative brand-related information” (Keller, 2003). Strong, unique, and favorable brand associations must be created with consumers (Kotler & Keller, 2012 and 2016). In luxury consumption, different consumers seek different emotional and functional benefits from luxury brands (Kapferer, 1998), which makes it relevant and significant to investigate the level of influences of brand knowledge and value perceptions on the intention to purchase luxury products. The proposed conceptual framework for this study is presented in Figure 1 in the Appendix section. Managerial Implications This study provides both theoretical and managerial implications. On theoretical grounds, this study provides an enhanced model in investigating the influence of luxury brand knowledge towards luxury purchase intention considering luxury brand characteristics and luxury value perceptions. On managerial perspective, this study provides an update in the modern luxury consumers consumption pattern in terms of what specific characteristics of luxury products they would consider when they intend to purchase. At the same time, this study analyses the types of luxury value perceptions acknowledge by modern luxury consumers towards their purchase decision. In addition, the proposed conceptual framework will take into account the behaviours of traditional luxury consumers, who seems to have been lost due to the increased demand among the new luxury consumers. According to Keller et al. (2012), the marketers of the brand needs to acknowledge the insights to how brand knowledge exists in consumer memory. From the model, marketers can plan and execute efficient marketing and communication strategies for modern luxury consumers given their fast-changing preference in luxury consumption. Following the suggestion from Kapferer & Valette-Florence (2016) which indicates that “luxury is made by brands” and apart from selling luxurious products, the dream is what is attached to the brand logo and name. Therefore, by investigating the relationship between luxury products characteristics along with luxury value perceptions, this study aims to provide a refreshing analysis of today’s luxury consumers and what stimulates them to buy personal luxury products. Further Research A questionnaire will be developed by the integration of the established measurements and scales from the existing luxury consumption and branding literature. A draft of the questionnaire will be reviewed against the literature and the practical insights obtained from the sales associates and experts in the luxury industry for the suitability and clarity of the questions. The final draft of the questionnaire will be pre-test on a small number of respondents from the target audience. The target population for the study is among general luxury consumers. The data collected from the survey will be analysed using Structural Equation Modelling (SEM) approach to model decision process and validate the proposed conceptual framework. Cluster analysis will be used to identify segments of consumers as recommended by Aaker et al. (2013). The anticipated research findings will expand on the degree of influences of the brand knowledge towards the willingness to purchase of personal luxury goods. It is also expected that the research findings will be useful in redefining the existing types of luxury consumers to represent today’s luxury consumers.

Consumers’ perception of advertisements can affect brand attitudes, brand trust, and brand image (Meenaghan, 1995; Sheinin, Varki, & Ashley, 2011). Therefore, strategic selection of elements in advertisements becomes important, especially for luxury brands. Luxury brands tend to position themselves as artisans of a particular category or a product and highlight exclusivity (Fionda & Moore, 2008). When a luxury brand is known for a specific product, a less-known product of the brand in an advertisement would be perceived differently. The present study focused on exploring the different effects of iconic products and less-associated products of a luxury brand in the context of advertisements. Categorization theory, typicality effects, and conceptual fluency provided theoretical foundation in understanding the relationships. Typicality effects, simply put, occur when members in a category are graded, “with members ranging from very good (typical) members of a category to very poor (atypical) members of a category” (Loken, Barsalou, & Joiner, 2008, p. 153). In consumer studies, typicality had been examined in various dimensions and showed to effect consumer attitude (Goedertier, Dawar, Geuens, & Weijters, 2015; Loken & Ward, 1990; Ward & Loken, 1988). However, to our knowledge, the subject had not been covered in the luxury brand advertisement context. To test the effects of typicality, the study examined whether typical products in luxury advertising have a higher level of advertisement liking, pleasantness, and novelty than atypical products (H1), whether consumers’ advertisement attitude from luxury advertising have a positive effect on brand attitude (H2), and whether consumers’ product involvement moderated the relationship between product typicality and advertisement attitude. Before the main test, two pretests were performed; the first to select the luxury brand and products to be used in the main test; the second to ensure the brand-product association of the advertisements. A total of 123 undergraduate students participated in the experiment, a (typical vs. atypical) between-subjects design. Participants were exposed to one of the two experimental conditions and were asked to complete a questionnaire. They were provided with questions measuring advertisement liking, pleasantness, novelty, brand attitude, demographical questions, and manipulation checks. All questions, apart from the demographics and certain questions in the manipulation checks, were measured on a 5-point Likert scale. Reliability analysis, multivariate analysis of variance, and multiple regression analysis were used in hypothesis testing. Results of the study revealed that typical brand products in luxury brand advertisements have a higher level of advertisement liking, pleasantness, and novelty. Additionally, advertisement liking and novelty have a positive effect on brand attitude but pleasantness had no effect. Finally, product involvement did not moderate the effects of product typicality on advertisement attitude. The study shows significance in that it supports the typicality effect in categorization theory by showing that there are certain products that consumers link with brands, and the closer the link, the more positive advertisement attitude becomes. Based on the results, it is recommended that luxury brands take caution in product placement and include iconic products in advertisements. There should also be focus on which products are in the advertisement, not the individual consumer’s involvement in a product. For future research, experiments exploring whether presenting typical products with atypical products in advertisements would strengthen the relationships between brands and atypical products is suggested. Also, studies on how luxury brands can elevate the status of atypical products to typical products by educating consumers would provide practical strategies for luxury brand marketers.

The counterfeit market makes up as much as seven percent of worldwide trade and is estimated as a $650 billion industry. Due to consumer demand, this phenomenon has grown over 10,000% in the past two decades and presents a serious threat to the global economy. Many luxury brand managers assume that counterfeiting damages brand image, however some experts have indicated that luxury houses use counterfeit sales to predict demand for their own brand. In this sense, brands are reacting to the effects of counterfeit purchase and need to develop a proactive strategy for preventing it. By understanding consumers’ perception of brands and how it relates to their counterfeit consumption, brand managers can better plan their marketing strategies to build relationships with consumers for increasing loyalty and preventing possible loss in sales. The purpose of this study is to understand the effect of branding on non-deceptive counterfeit consumption of luxury brands by proposing that brand equity plays a moderating role in the relationship between attitudes toward counterfeits and purchase intentions and in the relationship between social factors and purchase intentions. Specifically, this study conceptualizes the customer-based brand equity model with the Theory of Reasoned Action to develop strategic marketing implications for luxury brands. Previous research has resulted in managerial implications for combatting the counterfeit phenomenon, but it is more effective to prevent the increase in demand for counterfeits than to react to that demand. This study examines the role of brand equity to help brand managers focus their marketing strategies on specific levels of customer-based brand equity to build stronger relationships with consumers and reduce the demand for counterfeit products. Previous studies have examined the effects of counterfeits on brands, but research on the effects of brands on counterfeit consumption is very limited. This study adds to literature on counterfeits by understanding how branding can affect counterfeit purchase. Studies have used the Theory of Reasoned Action for understanding consumers’ intention to purchase counterfeit products. Drawing on the customer-based brand equity model, this research proposes brand identity, brand response, brand meaning, and brand relations as moderating variables in addition to the basic constructs of the model to extend previous literature, as no previous research has used customer-based brand equity for understanding counterfeit consumption. Previous studies have conceptualized customer-based brand equity for building relationships with customers, but this concept has never been used in the counterfeit context. This study is the first to use brand equity for understanding consumers’ counterfeit purchase intentions. This study suggests important implications for luxury brand marketers. By understanding how consumers associate with a brand, marketers can target specific levels of brand equity as part of their marketing strategies to deter counterfeit purchase. The proposed model serves as an initial step for understanding how brand equity affects non-deceptive consumption of counterfeit luxury goods. Future studies include empirically testing this proposed model and quantifying how much each level of customer-based brand equity contributes to consumer’ perception of brands. Future studies could also test the impact of branding on specific product types to analyze differences in consumers’ brand associations based on product category, as some product categories are more favorable to counterfeit consumers than others.