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The nature of luxury is constantly changing and this makes it difficult to formulate a universal definition of luxury brands. The current paper aims to enrich the understanding of luxury brand meaning from a consumer perspective. In particular, this paper investigates consumers' perceptions of luxury brands based on the extent to which they associate various attributes to luxury brands. A large-scale survey in the Flemish part of Belgium reveals three facets of luxury brand meaning: an expressive facet that refers to the exclusivity of luxury brands, an impressive-functional facet that refers to premium quality and an impressive-emotional facet that refers to extraordinary aesthetic aspects. In addition, the current study distinguishes three consumer segments (i.e. impressive, expressive and mixed segment) that differ from each other for the importance they attach to these facets of luxury brand meaning. The impressive segment associates luxury brand meaning with both impressive-functional and impressive-emotional facets, while the expressive segment associates luxury brand meaning with the expressive facet, rather than with impressive facets. The third segment, mixed group, thinks both expressive and impressive facets of luxury brand meaning need to be present before a brand can be categorised as luxury brand. In addition, the current study extends previous segmentations by providing a detailed profile of the segments. In particular, this study shows that the views are differentially related to both individual difference variables and various aspects of individual well-being (i.e. self-esteem and negative affect).
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International Journal of Market Research Vol. 55 Issue 3
69
© 2013 The Market Research Society
DOI: 10.2501/IJMR-2013-000
Consumer meaning making
The meaning of luxury brands in
ademocratised luxury world
Liselot Hudders, Mario Pandelaere and Patrick Vyncke
Ghent University
The nature of luxury is constantly changing and this makes it difficult to
formulate a universal definition of luxury brands. The current paper aims to
enrich the understanding of luxury brand meaning from a consumer perspective.
In particular, this paper investigates consumers’ perceptions of luxury brands
based on the extent to which they associate various attributes to luxury brands.
A large-scale survey in the Flemish part of Belgium reveals three facets of luxury
brand meaning: an expressive facet that refers to the exclusivity of luxury brands,
an impressive-functional facet that refers to premium quality and an impressive-
emotional facet that refers to extraordinary aesthetic aspects. In addition, the
current study distinguishes three consumer segments (i.e. impressive, expressive
and mixed segment) that differ from each other for the importance they attach to
these facets of luxury brand meaning. The impressive segment associates luxury
brand meaning with both impressive-functional and impressive-emotional facets,
while the expressive segment associates luxury brand meaning with the expressive
facet, rather than with impressive facets. The third segment, mixed group, thinks
both expressive and impressive facets of luxury brand meaning need to be present
before a brand can be categorised as luxury brand. In addition, the current study
extends previous segmentations by providing a detailed profile of the segments.
In particular, this study shows that the views are differentially related to both
individual difference variables and various aspects of individual well-being
(i.e. self-esteem and negative affect).
Introduction
Since the 1990s, the market for luxury brands has grown considerably
(Nueno & Quelch 1998; Vickers & Renand 2003). Several factors
encouraged this tremendous growth, such as the rising demand for luxury
Received (in revised form): 14 February 2012
Consumer meaning making
70
from emerging luxury markets (e.g. India and China) and the expansion
of the luxury category (Silverstein & Fiske 2003). An increased spending
capacity also encouraged the middle classes to spend more money on luxury
brands. Consequently, the luxury market is no longer the exclusive domain
of the elite (Yeoman & McMahon-Beattie 2006; Wiedmann et al. 2009).
This process is called the democratisation of the luxury market (Dubois
& Laurent 1995; Truong 2009). Due to this democratisation, the nature
of luxury is changing because the exclusive has become commonplace
(Garland, Cornish & Bean 2008). The traditional definition of luxury as
something that is out of the ordinary in terms of daily living needs is no
longer tenable (Vickers & Renand 2003). The present paper therefore
examines (1) consumers’ perception of luxury brands in this democratised
luxury world, and (2) how these perceptions are related to both individual
difference variables (i.e. materialism, prestige sensitivity) and individual
well-being (i.e. self-esteem, positive and negative affect, life satisfaction).
There is a lack of consensus regarding the definition of luxury brands
and there is no single, definite meaning (Chevalier & Mazzalovo 2008).
Although there have been numerous attempts to define luxury products
and services (e.g. Phau & Prendergast 2000; Dubois & Czellar 2002;
Catry 2003; Tynan et al. 2010), these definitions remain rather vague and
difficult to manage because the luxury concept is a constantly evolving
and very subjective concept (Kapferer 1998). Its meaning changes
according to person, place or time (Michman & Mazze 2006; Yeoman &
McMahon-Beattie 2006). This paper uses insights from semiotic theory to
construct a definition of luxury brands from a consumer perspective.
Semiotic theory involves the study of signs, sign systems and sign
processes (Chandler, 2007). From a semiotic perspective, a sign is defined
as everything to which an individual ascribes meaning. Correspondingly,
a sign has no meaning in itself. This paper suggests that brands are not
inherently luxurious, but are perceived as luxurious by an individual. In
particular, this paper proposes that the luxury concept can be defined
as a connotation that is ascribed to material (e.g. yachts, private jets,
but also clothes and accessories) and immaterial (e.g. time, experiences,
…) products or services and their brands. However, it is unclear why a
consumer ascribes the luxury meaning to a particular product and thus
which attributes generate this luxury meaning. Moreover, the transient
and subjective status of luxury brands gives the impression that not all
consumers ascribe the same characteristics to luxuries (Kapferer 1997).
The current paper aims to enrich the understanding of consumers’
perception of luxury brands by identifying segments of consumers
International Journal of Market Research Vol. 55 Issue 3
71
according to the meaning they ascribe to luxury brands. In addition,
the current study extends previous segmentations (e.g. Dubois et al.
2005) by providing a detailed profile of these segments. In particular,
this study investigates (1) the extent to which these views are related
to individual difference variables that are closely related to the social
facet luxury consumption (e.g. exclusivity), such as materialism and
prestige sensitivity (Lichtenstein et al. 1993; Rindfleisch & Burroughs
2004), and (2) the extent to which these views are related to various aspects
of individual well-being (i.e. self-esteem, positive and negative affect and
life satisfaction) as previous studies show that luxury consumption
positively affects individual well-being (Hudders & Pandelaere 2012b).
Characteristics of luxury
Luxury brands are connected with several characteristics, such as
exclusivity, uniqueness, scarcity, premium price, excellent quality and
aesthetics (Allérès 1995; Kapferer 1998; Nueno & Quelch 1998; Vigneron
& Johnson 2004; Mortelmans 2005; Chevalier & Mazzalovo 2008).
However, not all luxury brands meet all these criteria and sometimes these
criteria are not sufficient to categorise a brand as luxurious. Following the
dual classification of the functions of luxury brands (i.e. expressive and
impressive; Tsai 2005; Kapferer & Bastien 2009; Truong 2010; Truong
et al. 2010; Hudders 2012a) and taking the features of new luxury brands
into account (Silverstein & Fiske 2003), the physical and psychosocial
attributes of luxury brands can be grouped into two main categories: first,
characteristics referring to exclusivity; and, second, characteristics referring
to excellent quality and aesthetics.
Exclusivity
The concept of luxury is inherently connected with exclusivity, which
implies a premium price and rarity (Nia & Zaichkowsky 2000; Vigneron &
Johnson 2004; Mortelmans 2005; Chevalier & Mazzalovo 2008). Luxury
brands are perceived as rare brands (Mason 1981; Dubois & Paternault
1995). Formerly, rarity referred to the use of valuable materials that were
naturally scarce and not yet widely available (Catry 2003). However,
next to this objective rarity, luxuries now also need to be subjectively rare
(Mortelmans 2005). This implies that a consumer of luxury brands has to
believe that these brands are exclusive, meaning that others cannot afford
them, while the consumer belongs to the select group that can afford
Consumer meaning making
72
these brands. In line with this idea, consumers who never bought a luxury
brand rate that brand as more luxurious, compared to consumers who
already bought the item (Kemp 1998). Moreover, luxury brands are often
perceived as exclusive brands because they are unique. Luxury brands are
special and stand out. They have unique elements that cannot be found
in other brands, such as the imperfections of a hand-blown crystal vase
(Caniato et al. 2009).
However, it is not obvious to maintain this close connection with rarity
because luxury brands are now attainable for more and more people, and
more and more products are categorised as luxury brands. Therefore,
it is very important that marketers offer consumers the impression of
scarcity, because – according to the rarity principle – luxury brands
that are widely owned lose their luxury character (Dubois & Paternault
1995). In this respect, luxury brands have become virtually rare, which
implies that luxury manufacturers offer an impression of rarity by limiting
production in order to create temporary shortages or by offering limited
editions to consumers. In addition, many luxury brand companies create
this impression of rarity by distributing their brands selectively (Phau
& Prendergast 2000; Amaldoss & Jain 2005). This implies that luxury
marketers use exclusive distribution channels and avoid the selling of these
products in cheap stores (Catry 2003; Mortelmans 2005). The rarity can
also be induced by setting a very high price, because luxury products that
are not highly priced will lose their luxury character (Dubois & Duquesne
1993; Nia & Zaichkowsky 2000).
Excellent quality and aesthetic design
As many consumers use the price of a brand as a heuristic for its quality
(Miller 1975; Corneo & Jeanne 1997), expensive luxury brands are often
perceived as high-quality brands. This excellent quality can be obtained in
two ways: by using high-quality raw materials and by detailed workmanship
(Mortelmans 2005; Chevalier & Mazzalovo 2008). Luxury brands are
thus perceived as fine pieces of craftsmanship, with an excellent quality,
performance and durability (Caniato et al. 2009). These brands are refined
and elegant brands, which often have a sophisticated design and offer
great comfort to consumers (Berry 1994). In the past, luxuries were often
handmade, which required great precision and patience. Recently, however,
many luxury manufacturers have outsourced the production of their brands
to low labour-cost countries, such as China (Thomas 2007). In these
production facilities, the brands are produced in large quantities and they are
International Journal of Market Research Vol. 55 Issue 3
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no longer handmade. To ensure the excellent quality of their brands, luxury
marketers now distinguish themselves by offering unique craftsmanship,
innovativeness and sophistication to luxury brand owners (Silverstein &
Fiske 2003; Chevalier & Mazzalovo 2008; Caniato et al. 2009).
Segmentation studies in luxury research
Various studies attempt to segment consumers according to their ability
to purchase luxuries (e.g. Silverstein & Fiske 2003; Hader 2008). While
Dubois and Duquesne (1993) predict luxury penetration by combining the
effects of income and attitude towards cultural change, Dubois and Laurent
(1995) distinguish three different segments according to their access to
luxury brands: affluent people (i.e. people with unlimited access to luxury
brands), excluded people (i.e. people with no access to luxury brands)
and excursionists (i.e. people with intermittent access to luxury brands).
However, due to the democratisation of luxury consumption, and because
most luxury consumers are excursionists (Stegeman 2006), traditional
segmentation methods using income as main segmentation variable are no
longer sufficient. In addition, for targeting purposes, it is important for
luxury marketers to distinguish different segments of consumers according
to their perception of luxury brands as this determines which aspects (e.g.
excellent quality or exclusivity) of luxury brands need to be emphasised in
marketing campaigns.
Some studies indeed started to segment consumers on the basis of their
perception of (Kapferer 1998; Wiedmann et al. 2009) and their attitude
towards luxury (Dubois et al. 2005). Dubois and Duquesne (1993) suggest
that the market for luxury brands might be divided into two segments:
while some luxury brands act as standards of excellence, other luxury
brands act as social symbols. Kapferer (1998) distinguishes four consumer
segments that differ from one another in the relative importance they
attach to each luxury brand characteristic. The first segment attaches
great importance to the beauty of the object, the excellence of the product
and its uniqueness. For this segment, Rolls-Royce is a prototypical luxury
brand. The second segment underscores the importance of creativity and
sensuality, and perceives Gucci as a prototypical luxury brand. The third
segment attaches great importance to the beauty and magic of the product
and its classic value; they view Louis Vuitton as a prototypical luxury
brand. The fourth segment lists the uniqueness and the exclusivity of the
product as the most important components, and perceives Chivas as a
prototypical luxury brand.
Consumer meaning making
74
SRI consulting business intelligence (Gardyn 2002) has identified
three groups of consumers who can be classified on the basis of what
luxury means to them. The functional group buys luxury for its superior
quality and functionality. The reward group buys luxury brands because
these brands are perceived as status symbols that symbolise success and
wealth. Finally, the indulgence group buys luxury brands for the emotional
benefits. These studies suggest that consumers of luxury brands might have
a different perception of the characteristics of luxuries. Based on a scale to
measure consumers’ attitudes towards luxury consumption, Dubois et al.
(2005) distinguish three segments that appear to have a different attitude
concerning luxury consumption. The first segment, the elitists, believes
that luxury is preserved for the happy few that are able to own luxury
brands and, additionally, possess the requisite cultural capital to fully
appreciate those luxuries. The second segment, the democrats, believes
that luxury might be attained by many people. The third segment, the
distance segment, believes that luxury is a different world to which they
do not belong. This distinction between democrats and elitists suggests
that consumers indeed differ in their opinion about the attributes that
characterise luxuries.
Finally, Wiedmann et al. (2009) use a combination of both buying
motives and attitudinal items to construct luxury value dimensions. They
distinguish four types of values consumers often link to luxury brands:
functional, financial, social and individual. In addition, they use these
value types to segment consumers. In particular, they distinguish four
segments that differ in the values ascribed to luxuries. First, materialists
attach most importance to the materialistic – possessions as status signal
– and usability value of luxury goods. Second, rational functionalists
attach most importance to the quality, uniqueness and self-identity
value. Third, extravagant prestige seekers attach most importance to the
social value – possessions as symbol of membership to reference groups
– aspects of luxury consumption. Finally, introvert hedonists attach
most importance to the hedonic value aspects of luxury consumption.
However, these studies did not make a psychological profile of the
target groups.
Research aims
To enrich the understanding of luxury brand meaning and investigate its
importance, the current study extends the above-mentioned segmentations
by identifying segments of consumers according to the meaning they ascribe
International Journal of Market Research Vol. 55 Issue 3
75
to luxury brands, and by providing a detailed profile of these segments.
Important is that this study distinguishes buying motives and attitudinal
items (for profiling) from luxury brand attributes (for segmentation; Heine
2009). This paper thus first investigates if a more general population of
consumers can be segmented on the basis of their perception of luxury
(RQ1); more specifically, the study measures to what extent consumers
differ from one another in terms of the attributes they ascribe to luxury
brands. Second, this paper provides a detailed socio-demographic and
psychographic profile of these segments by linking these segments to
various buying motives, attitudinal items, psychographic variables and
socio-demographic factors (RQ2).
In particular, this paper investigates to what extent these different views
are related to individual difference variables that are closely connected to
luxury consumption. In this respect, it proposes that the segments will differ
in their level of materialism as materialists readily engage in conspicuous
consumption, the overt display of expensive luxury brands, because they
believe that possessions signal success (Rindfleisch & Burroughs 2004).
This may imply that materialistic consumers may link luxury brands more
often to expressive facets than to impressive facets (Hudders 2012a).
This might also be the case for highly prestige sensitive consumers as
they attach a lot of importance to high-priced possessions because they
believe that these brands are functioning as signals for success and status
(Lichtenstein et al. 1993). Second, this paper investigates to what extent
these different views are related to various aspects of individual well-being
(i.e. self-esteem, positive and negative affect, and life satisfaction) as
previous studies showed that luxury consumption may generate more
positive and fewer negative feelings, enhance one’s satisfaction with life
and his/her level of self-esteem (Mandel et al. 2006; DeLeire & Kalil
2010; Sivanathan & Pettit 2010; Zhong & Mitchell 2010; Hudders &
Pandelaere 2012b, 2012c).
Method
Participants and procedure
This study uses a quota sample (i.e. proportional representation in terms
of gender and age) of Flemish consumers (i.e. Dutch-speaking part of
Belgium) to investigate consumers’ perception of luxury brands. A total
of 1308 respondents participated in this study (655 males; Mage = 41.1;
SD = 17.6).
Consumer meaning making
76
Measures
Sixteen physical and psychosocial attributes are selected that are
frequently associated with luxury brands in various conceptual (e.g. in
definitions of the luxury concept; Berry 1994; Kapferer & Bastien 2009;
Wiedmann et al. 2009) and empirical studies (Vigneron & Johnson
2004; Dubois et al. 2005; Tsai 2005; Tynan et al. 2010): rarity, excellent
quality, refinement, craftsmanship, uniqueness, durability, exclusivity,
inaccessibility, expensiveness, conspicuousness, elegance, sophistication,
creativity, innovativeness, comfort and handicraft. For each attribute,
respondents indicated on a seven-point Likert-scale (ranging from
1 = Not at all to 7 = Very much) the extent to which they ascribe this
attribute to luxury brands. As suggested in the ‘Literature’ section, people
differ in the extent to which they view particular attributes as central
in their definition of luxury brands. The ratings for the 16 attributes
allow segmenting respondents into clusters with similar definitions of
luxury brands.
The current study also measures some additional variables that should
enable us to further characterise the different clusters obtained. First,
several items probed respondents’ attitudes to and consumption of luxury
products. We measured the frequency of luxury brand consumption on a
six-point Likert-scale ranging from 1 (never) to 6 (always). In addition,
respondents had to indicate on a 1 (never) to 6 (always) scale to which
extent they choose for luxury brands in three experiential product
categories (i.e. wine, food and travel; α = 0.68) and five material product
categories (i.e. clothes, cars, home decoration, watches and accessories;
α = 0.79). We measured respondents’ attitude towards luxury brands
using a shortened version (i.e. eight items, cf. infra: Table 2) of the scale of
Dubois et al. (2005), on a 1 (strongly disagree) to 7 (strongly agree) scale.
Because luxury consumption is associated with materialism and prestige
sensitivity, we measured these constructs using existing scales (18-item
Richins and Dawson materialism scale (1992), α = 0.83; nine-item
Lichtenstein et al. (1993) prestige sensitivity scale, α = 0.83). In addition,
we measured various well-being variables that may be affected by luxury
consumption (see Hudders & Pandelaere 2012b, 2012c). In particular,
we measured self-esteem (Rosenberg 1965; α = 0.88), satisfaction with
life (five items (Diener et al. 1985), α = 0.80) and positive (ten items,
α = 0.80) and negative (ten items, α = 0.81) affect (PANAS; Watson et al.
1988).
Finally, respondents had to indicate their gender, age, marital status,
income level, place of residence (city or countryside) and education level.
International Journal of Market Research Vol. 55 Issue 3
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Results
Perception of luxury brands
Many respondents perceive luxury brands as refined, elegant, comfortable,
exclusive and premium-priced brands, with an excellent quality and
durability, and that are the result of craftsmanship (see Figure 2). In
the sample, luxury brands are not strongly linked to conspicuousness,
handicraft and inaccessibility.
A PCA factor analysis using Varimax rotation revealed that the 16
attributes can be grouped into three factors, explaining 48.2% of the
variance (see Figure 1). The first factor covers the expressive facet of
luxury brand meaning and refers to the exclusivity of luxury brands.
This factor contains the items uniqueness, exclusivity, expensiveness,
inaccessibility, rarity and conspicuousness (α = 0.72). The second factor
covers the impressive-functional facet of luxury brand meaning and refers
to the premium quality of luxury brands. This factor contains the items
excellent quality, craftsmanship, refinement and durability (α = 0.72).
The third factor covers the impressive-emotional facet of luxury brand
meaning and refers to the aesthetic aspects of luxury brands. This factor
contains the items sophistication, innovativeness, creativity, elegance,
comfort and handicraft (α = 0.69).
A repeated measures ANOVA to investigate the relative importance of
these three facets reveals that luxury brands are more often linked to the
impressive-functional (M = 5.8) and the impressive-emotional (M = 4.8)
Figure 1 Luxury brand meaning
Impressive dimension Expressive dimension
Physical
attributes
Premium quality
Psychosocial
attributes
Luxury brand
meaning
Aesthetics
Psychosocial
attributes
Exclusivity
Consumer meaning making
78
facets than to the expressive facet (M = 4.4, F(2, 2187) = 831, p < 0.001)
of luxury brand meaning (RQ 1).
Segmentation of consumers according to their perception of luxury
A cluster analysis reveals individual differences between respondents for
their perception of luxury brands based on the three facets of luxury brand
meaning. The objective of cluster analysis is to group cases on the basis
of a number of characteristics. The primary goal is to group cases in such
a way that there are few differences between respondents within a cluster
for the selected characteristics, while the differences between respondents
of different clusters are maximised (Hair et al. 1998). However, there
is no objective selection procedure to determine the number of clusters.
Therefore, a hierarchical cluster analysis using Ward’s method gives
an indication of the number of clusters. The cluster solutions provide
evidence for a three-cluster solution, although cluster solutions with two,
four or five clusters are also acceptable (see Figure 3).
Four cluster solutions using K-Means clustering are computed to
determine the best solution. K-Means clustering shows that the solution
with three clusters produced the most stable and interpretable results.
Figure 2 Physical and psychosocial attributes of luxury brands
4.4
5.2 4.9
3.5
5.1
3.5
6.2 5.8 5.5 5.5 5.4
4.6 4.7
5.4
3.9
4.9
1
2
3
4
5
6
7
Rarity
Expensiveness
Uniqueness
Conspicuousness
Exclusivity
Inaccessibility
Excellent quality
Craftsmanship
Durability
Renement
Elegance
Sophistication
Innovativeness
Comfort
Handicraft
Creativity
Mean
Expressive Impressive-functional Impressive-emotional
International Journal of Market Research Vol. 55 Issue 3
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Based on this cluster solution the following three segments can be
distinguished: an expressive segment, an impressive segment and a mixed
segment (RQ1; see Figure 4).
First, the impressive group (N = 373; 29.3%) perceives luxury brands
as high-quality, refined, elegant, sophisticated, creative and innovative
brands, which offer a lot of comfort. They consider luxury brands as
durable brands that are the result of craftsmanship. Strikingly, this segment
attaches less importance to the expressive facet of luxury brands. This group
may also be perceived as the new luxury consumers. Second, the expressive
segment (N = 341; 26.8%) perceives luxury brands as unique brands
that are rare, exclusive, conspicuous, inaccessible and very expensive.
This group attaches least importance to the impressive-emotional facet
Figure 3 Hierarchical clustering (dendrogram)
1
2
3
Consumer meaning making
80
of luxury brands. These consumers may be perceived as the old luxury
consumers. Finally, the mixed segment is the largest segment (N = 561;
44%). This group thinks luxury brands should be exclusive and should
have an excellent quality and a high aesthetic value (see Table 1). This
group attaches a lot of importance to both expressive and impressive facets
of luxury brand meaning.
Profiling: relationship between luxury perceptions and individual
difference variables and individual well-being
Individuals who perceive luxury brands as exclusive and premium-quality
brands with a high emotional value are more materialistic and more
prestige sensitive than individuals in the other two segments (see Table 2).
Possessions have a central place in the lives of this segment, and they
believe that possessions indicate success and lead to happiness more than
do the other two segments. While the impressive and expressive segment
put (luxury) possessions equally central in their lives, the expressive
segment believes more than the impressive segment that possessions are
the road to happiness and indicate success. This segment is also more
sensitive to prestige than the impressive segment.
The three segments do not differ for the number of positive feelings
they’ve experienced the last month and their general satisfaction with
life. However, the expressive segment experienced more negative feelings
the past month and a lower self-esteem score compared to the impressive
segment.
Figure 4 Cluster means (K-means clustering)
3
3.5
4
4.5
5
5.5
6
6.5
Expressive facet Impressive-emotional
facet
Impressive-functional
facet
Expressive segment
Impressive segment
Mixed segment
International Journal of Market Research Vol. 55 Issue 3
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When comparing the three segments on the attitude scale of Dubois
et al. (2005), the impressive segment has a more democratic vision and
perceives luxury brands as brands that are not preserved for the minority.
Both the mixed and the expressive segment have a more elitist vision on
luxury, and believe luxury brands should inevitably be very expensive
and cannot be mass produced. Moreover, they believe that those who buy
luxury products are refined people.
The clusters also differ from one another for the frequency with which
they purchase luxury brands. The expressive segment tends to purchase
luxury brands less often than the impressive and mixed segment. This
might be because this segment perceives luxury brands as very exclusive
and expensive, and thus they are less able to purchase such brands. Second,
these clusters differ for the frequency they choose luxury brands in both
experiential and material product categories. The expressive segment tends
to choose fewer luxury brands in experiential product categories than the
Table 1 Cluster means and ANOVA table (K-means clustering)
Luxury
brand
meaning
Physical and
psychosocial attributes
Expressive
segment
Impressive
segment
Mixed
segment
F-value
(2,1272) p-value
Expressive
facet
Expressive 4.53 3.27 5.13 817 0.001
Rarity 4.54a3.09b5.14c207 0.001
Uniqueness 4.65a3.77b5.72c229 0.001
Exclusivity 5.02a4.04b5.88c247 0.001
Inaccessibility 3.73a2.21b4.16c196 0.001
Conspicuousness 3.77a2.34b4.14c175 0.001
Expensiveness 5.46a4.19b5.74c174 0.001
Impressive-
functional
facet
Functional 4.78 6.01 6.16 486 0.001
Excellent quality 5.38a6.42b6.49b172 0.001
Durability 4.22a5.92b5.95b261 0.001
Refinement 4.74a5.60b5.94c136 0.001
Craftsmanship 4.79a6.11b6.24b242 0.001
Impressive-
emotional
facet
Emotional 3.84 4.87 5.31 438 0.001
Elegance 4.11a5.76b5.83b243 0.001
Sophisticated 3.82a4.39b5.28c119 0.001
Creativity 3.84a5.09b5.36c149 0.001
Innovativeness 3.75a4.68b5.21c124 0.001
Comfort 4.41a5.78b5.68b125 0.001
Handicraft 3.13a3.55b4.48c90 0.001
Note: a, b, c superscripts indicate significant mean differences between clusters; clusters that do not
differ significantly have an identical superscript.
Consumer meaning making
82
other two segments, while the mixed segment tends to choose more luxury
brands in material product categories than the other two segments.
The segments significantly differ from each other according to their
age (F(2, 1269) = 7; p < 0.001). The expressive group is slightly younger
(M = 38.1) than the impressive (M = 42.9) and mixed segment (M = 41.2).
Next, the segments differ from each other according to their place of
residence (χ2(2) = 10, p = 0.006). As such, more respondents in the mixed
segment live in the city (54.2%) compared to respondents living in the
countryside (45.8%), while more respondents in the impressive segment
live in the countryside (56.6%) compared to respondents living in the city
(43.4%). There are no differences in place of residence for the expressive
segment (city = 50.1%, countryside = 49.9%). Finally, the segments do not
significantly differ from each other for their level of income (χ2(2) = 0.137,
p = 0.934), marital status (χ2(8) = 12, p = 0.142), education level (χ2(10) = 8,
p = 0.554) or their gender (χ2(2) = 4, p = 0.130).
Discussion and conclusions
In the past, luxuries were the preserve of the very rich, who did not hesitate
to spend large sums of money on exclusive luxury products. However,
Table 2 Psychographic profile of the segments
Expressive
segment
Impressive
segment
Mixed
segment F-value p-value
Materialism 3.56a3.46a3.74b18 0.001
Success 3.12a2.93b3.32c18 0.001
Centrality 4.09a4.05a4.29b10 0.001
Happiness 3.35ab 3.26a3.47b 5 0.007
Prestige sensitivity 3.01a2.78b3.24c32 0.001
Individual
well-being
Self-esteem 5.14a5.34b5.28ab 5 0.005
Life satisfaction 4.59a4.65a4.70a 1 0.311
Positive affect 3.41a3.45a3.44a0.34 0.716
Negative affect 2.22a2.11b2.20ab 3 0.038
Luxury
consumption
Purchase
frequency 2.91a3.06ab 3.11b 5 0.007
Experiential luxury 2.71a2.92b3.01b10 0.001
Material luxury 2.37a2.52a2.74b16 0.001
Dubois et al. 3.61a3.39b4.05c87 0.001
Note: a, b, c superscripts indicate significant mean differences between clusters; clusters that do not
differ significantly have an identical superscript.
International Journal of Market Research Vol. 55 Issue 3
83
recently, luxuries have become more commonplace (Silverstein & Fiske
2003). More and more brands are receiving the luxury status, and more
and more people can now afford a luxury brand. Consequently, the nature
of luxury is constantly changing, which makes it difficult to formulate
a universal definition of luxury brands (Frank 1999; Mortelmans 2005;
Thomas 2007). The current paper aims to contribute to the existing
literature on luxury by adopting a consumer-orientated and semiotic
approach to develop a definition of the luxury concept. In particular, the
luxury concept is defined as a connotation that is ascribed to material
(e.g. yachts, private jets, but also clothes and accessories) and immaterial (e.g.
time, experiences, …) products or services and their brands. However, for
now, it remains unclear which aspects elicit this luxury meaning and to
what extent consumers differ from one another in terms of the meaning
they ascribe to luxuries.
Before segmenting consumers according to their perception of luxury
brand meaning, this paper first identified the major facets of luxury brand
meaning as perceived by consumers. In particular, 16 attributes, such as
exclusivity, innovativeness, sophistication and excellent quality are selected
on the basis of an extensive literature review and presented to a large
sample of Flemish (i.e. Dutch-speaking region of Belgium) consumers. The
respondents had to indicate to what extent they ascribe these attributes to
luxury brands. The results of this study reveal that luxury brand meaning
consists of three major facets.
First, the impressive-functional facet refers to the excellent quality of
luxury brands. Brands are perceived as luxurious by individuals if they offer
them a high perceived quality, durability, refinement and craftsmanship.
Second, the impressive-emotional facet refers to the aesthetic qualities of
luxury brands. Brands are perceived as luxury brands by individuals if
they are perceived as highly sophisticated, innovative, creative, elegant,
handcrafted and comfortable. Finally, the expressive facet refers to the
exclusivity of luxury brands. Brands are perceived as luxury brands by
individuals if they are perceived as highly unique, scarce, conspicuous,
exclusive and inaccessible.
These facets can be linked to the six luxury facets distinguished by
Dubois et al. (2001). The impressive-functional facet corresponds to the
excellent quality and ancestral heritage facets. The impressive-emotional
facet corresponds to the aesthetics and poly-sensuality facet. Finally,
the expressive facet corresponds to the premium price, superfluousness
and scarcity and uniqueness facets. Moreover, these facets can be
linked to previous segmentations. In this respect, the functional group
Consumer meaning making
84
distinguished by SRI consulting attaches a great deal of importance to the
impressive-functional facet of luxury brand meaning, the reward group
attaches a lot of importance to the expressive facet and the indulgence
group attaches a lot of importance to the impressive-emotional facet
(Gardyn 2002). Similarly, while democrats attach least importance to
expressive facets of luxury brand meaning, elitists attach least importance
to impressive facets (Dubois et al. 2005).
In general, this study reveals that luxury brands are most often linked to
both impressive facets. Although precisely these facets are often forgotten
in previous studies, they appear to be more important than ever in the
contemporary luxury world. As the luxury market is democratised and
many new luxuries have appeared that are defined as well-designed and
well-crafted goods that are produced in larger volumes, excellent quality
and aesthetically appealing design are now basic characteristics of luxury
brands for many consumers.
However, the results of this study also provide further evidence for
the subjective nature of the luxury concept as not all consumers ascribe
the same meaning to luxury brands. Therefore, this paper relies on
semiotic theory, which argues that a brand is not inherently luxurious,
but receives the luxury meaning, indicating that luxury brand meaning is
context-dependent. This theory can account for the fact that some brands
are perceived as luxury brands by some individuals but not by others (e.g.
Diesel), and that some products were perceived as luxurious in earlier
times, but are not perceived as luxurious any more in contemporary
times (e.g. spices, such as salt and pepper). Following this line of thought,
this study distinguished three segments of consumers who differ from
one another for the meaning they ascribe to luxuries: the expressive
segment, the impressive segment and the mixed segment. The impressive
group considers luxury brands as high-quality brands that are elegant,
sophisticated, refined and comfortable. These consumers attach a lot of
importance to both impressive facets when defining luxury brands. These
results suggest that this impressive segment consumes luxury brands to
indulge rather than to fulfil extrinsic needs.
The expressive segment, on the other hand, considers luxury brands as
unique brands that are very expensive, exclusive and conspicuous. This
segment attaches a lot of importance to the expressive facet when defining
luxury brands. The results suggest that this expressive segment consumes
luxury brands to impress others, express their identity to others, conform to
group norms or dissociate from others, rather than to fulfil intrinsic needs.
Finally, the mixed segment, which is the largest segment, thinks luxury
International Journal of Market Research Vol. 55 Issue 3
85
brands must have an excellent quality that renders into both indulgence
and distinction characteristics. Accordingly, this segment attaches a great
deal of importance to all three facets of luxury brand meaning.
Moreover, this study shows that these groups with a different perception
of luxury brands also have a different level of materialism and prestige
sensitivity on the one hand and individual well-being on the other. In
particular, although both expressive and impressive segments attach equal
importance to possessions, the expressive segment sees possessions as an
indicator for success and a road to happiness more than does the impressive
segment. Furthermore, the mixed segment appears to be more materialistic
and more prestige sensitive than the expressive and impressive luxury
segment. This implies that individuals with a different perception of luxury
brands also have a different purchase motive. Future research should
investigate whether other variables are related to these luxury perceptions.
As Rucker and Galinsky (2009) suggest that high-powered individuals have
a stronger preference for quality appeals, while low-powered individuals,
who are generally younger than high-powered individuals, have a stronger
preference for status appeals, it might, for instance, be interesting in future
studies to investigate the relationship between power and perceptions of
luxury brand meaning.
Moreover, the study shows that, although the three groups do not differ
in their level of positive affect and satisfaction with life, they do differ
in their level of self-esteem and negative affect. The impressive luxury
segment, for instance, reported higher self-esteem levels and experienced
less negative feelings in the past month compared to the other segments.
As previous studies show that luxury consumption might have positive
consequences for one’s well-being level (e.g. Hudders & Pandelaere
2012b), it might be interesting to investigate in future studies whether
differences in luxury perception moderate the positive effect of luxury
consumption on well-being.
Moreover, the three segments differ from one another for the frequency
they purchase luxury brands and their attitude towards luxuries. The
expressive segment, for instance, purchases luxury brands less frequently
than the other two segments. This may be caused by the fact that they have
a very elitist view of luxuries, and perceive such brands as very expensive
and exclusive. Therefore, it is possible that they are not able to purchase
such expensive brands as the three segments do not differ from each other
for their level of income.
The current paper provides further evidence for individual differences in
perception of luxury brands. However, it also has several limitations. First,
Consumer meaning making
86
the current study did not make a distinction between different product
categories when measuring the attributes of luxuries. It might be interesting
to investigate if, for example, luxury cars are connected with different
attributes compared to luxury food or cosmetics. Next, the survey was
conducted in Belgium, a western European country. Future research should
extend the present research in other countries and continents, such as Asia,
because previous research has shown cultural differences in the motives
for luxury consumption (Wong & Ahuvia 1998). Consequently, cultural
differences might exist in the perception of luxury brands.
Finally, the results of this study also have some practical implications
for luxury companies and marketing practitioners. As such, it is important
to understand how consumers perceive luxuries, and why they perceive a
certain brand as a luxury brand, to be able to successfully posit a brand
as a luxury brand and, accordingly, to develop successful marketing
campaigns (Bain & Company 2011). As many ordinary brands try to
take advantage of the dream value of luxury brands and the high profits
in this sector by associating their brand with luxury (e.g. Nivea, generally
perceived as a non-luxury cosmetics brand, put the Nivea Visage Expert
Lift Day and Night Cream in a white gold jar, set with 441 diamonds),
real luxury brands have to develop effective strategies to come out on the
right side (Kapferer & Bastien 2009). This specificity of luxury brand
management is emphasised by Patrick Heiniger, CEO of Rolex, thus: ‘Why
do I need to know how the watch market is doing, I’m in the business
of luxury.’ Luxury companies need to take the three facets into account
when positioning their brand as a luxury brand. If a brand scores high on
perceived functional and emotional value, and on perceived exclusivity, it
is more likely to be perceived as a luxury brand by consumers.
The current segmentation might be used to develop effective marketing
strategies for luxuries, because each of these segments has a different
perception of luxury. For expressive luxury consumers, for example, it
is important to emphasise exclusivity, while impressive luxury consumers
prefer aesthetic and high quality luxuries. This way, impressive luxury
consumers might be convinced to purchase luxuries with large advertising
campaigns that are emphasising the excellent quality or aesthetic value of
the brands, while expressive luxury consumers might be more effectively
reached by using exclusive distribution channels, and by emphasising the
uniqueness and exclusivity of the brands. In future research, it would
be interesting to examine which strategies are preferred by the different
segments identified in the current research.
International Journal of Market Research Vol. 55 Issue 3
87
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About the authors
Liselot Hudders is a post-doctoral research and teaching assistant working
at the department of Communication Sciences at Ghent University
(Belgium). Her research interests include persuasive communication
and consumer behaviour. In particular, her research focus lays on how
consumption affects an individual (e.g. well-being), and on how children
and youngsters cope with (new) advertising techniques. She participated
in many international conferences and published in international journals.
Mario Pandelaere is Associate Professor of Marketing at Ghent University,
Belgium. His research interests include persuasive communication, social
and interpersonal influence and materialistic consumption. He has
published in Journal of Consumer Research, Journal of Consumer
Psychology, Journal of Public Policy and Marketing, International
Journal of Research in Marketing, Journal of Advertising, Psychological
Science and Journal of Experimental Social Psychology. He has taught
Public Relations, Persuasive Communication, Marketing Communication,
Advertising and Advanced Research Methods. He has reviewed for
academic journals in business, psychology and communication sciences
and he currently serves on the editorial board of the International Journal
of Research in Marketing.
Consumer meaning making
90
Patrick Vyncke is Associate Professor of Communication Management
and Semiotics at the Department of Communication Sciences – Ghent
University, Belgium. His research interests include evolutionary
psychology, advertising processing, consumer behaviour and nonverbal
communication. He is especially interested in the role and functions of
costly signals and supernormal stimuli in human behaviour. He has taught
courses on Advertising Processing and Consumer Behaviour, Marketing
Communication, Corporate Communication, Social Marketing and
Semiotics. He is a regular reviewer for academic journals in communication
sciences and for international marketing communication conferences.
Address correspondence to: Liselot Hudders, Ghent University, Dept. of
Communication Sciences, Korte Meer 9, 9000 Ghent, Belgium.
Email: Liselot.Hudders@Ugent.be
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