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Examining the influences of perceived exclusivity and perceived rarity on consumers' perception of luxury

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Abstract

Purpose The purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers' perceptions of luxury. Further, it examines whether exclusivity and rarity can function as distinct marketing strategies in today's luxury market environment. Design/methodology/approach Online questionnaires were administered by adapting developed scales from prior research. Research stimuli were chosen from three luxury categories including bags, wine and cruise. Confirmatory factor analysis and multiple regressions were used to test the hypotheses. Findings The results confirmed that exclusivity, natural rarity and virtual rarity were perceived as relatively distinct constructs among our sample. Findings also highlighted that perceived natural rarity (PNR) has consistently emerged as a positive and significant contributor to consumers' perceptions of luxury across all three luxury categories. The influence of perceived exclusivity (PE) on perceptions of luxury has also shown to be significant for two product categories (luxury bag and luxury wine), whereas perceived virtual rarity (PVR) did not show any significant effects across all three categories. Practical implications The results indicate that consumers perceive natural rarity, virtual rarity and exclusivity as relatively distinctive marketing strategies. This suggests that luxury businesses can adopt each strategy independently to achieve desired marketing outcomes. Originality/value This study offers theoretical support for the proposition that exclusivity and rarity may have different functions in luxury marketing implementations. It provides empirical evidence showing the distinctiveness of perceived exclusivity and perceived rarity, which have not be done in previous research.

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... Similar are the findings of Wang et al. (2022). The authors' research focused on exclusivity and found that perceived quality directly impacts exclusivity because masstige items create a sense that acquiring a product gives consumers a distinguished identity. ...
... The product exclusivity concept is highly significant in consumer purchase intentions (Kumar et al., 2020). The investigation by Wang et al. (2022) also revealed that product exclusivity impacts the consumer purchase intention positively. The exclusivity and rarity shape the overall luxury perception of the product and positively influence the overall purchase intention. ...
... In this regard, the study affirms the literature regarding a positive relationship between perceived product quality and product exclusivity with a P-value of 0.01, which is less than the significance level of 0.05, thus accepting the hypothesis. The literature also supports this stance as Wang et al. (2022) stated the same and found out that exclusivity and product quality moves together. Kim et al. (2019) further added that the products that are considered exclusive tend to have high quality. ...
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This study tends to add value to the existing literature by empirically discussing whether the consumer perception of prestige value, i.e., associating prestigious value with a product, tends to overshadow the attributes and quality or positively influence them. Similarly, purchase intention is an essential determinant for buying a masstige product, how it is shaped by functionality, product price, and exclusivity. With the help of 31 31-item Likert scale questionnaires that were purposively distributed using online mediums, 177 usable responses were collected. The Smart-PLS structural equational model was then implemented to find the relationships between the variables. This research study rejects the stance that perceived product quality has a positive relationship with consumer purchase intention. This research has dismissed another hypothesis, i.e., product exclusivity has a positive relationship with consumer purchase intentions. This research study affirms that perceived prestige value positively influences product functionality. Similarly, perceived value and product exclusivity have a positive relationship. Specifically for perceived product quality, this research affirms that it has a strong relationship with exclusivity, functionality, and price rather than with the consumer purchase intentions for products in the masstige category.
... menjadi pendorong tingginya permintaan akan produk konsol baru yang dikembangkan (Magrino, 2008). Sehingga bisa dikatakan bahwa perceived value yang dirasakan konsumen dari game ekslusif, dapat meningkatkan keinginan mereka untuk menggunakan teknologi cloud gaming milik Xbox (Alverönn Oresvärd et al., 2021;Sari & Kusuma, 2014;P. Wang et al., 2021;X. Wang et al., 2022) ...
... Game exclusive yang ditawarkan, membuat sebuah game seakan menjadi barang yang berharga dan rare (X. Wang et al., 2022). Karena barang tersebut dinilai berharga maka manfaat yang diterima juga dirasa menjadi lebih tinggi dibandingkan biayanya. ...
... Limitasi tersebut, membuat sebuah game seakan menjadi barang yang berharga dan rare (X. Wang et al., 2022). Ketika rasa mendapatkan value tinggi meningkat, maka niat untuk terus menggunakan juga meningkat. ...
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Teknologi cloud gaming merupakan sebuah inovasi yang cukup baru dalam industri game di dunia. Implementasinya secara bertahap meluas dan mencapai Indonesia pada saat ini. Namun pertumbuhan penggunanya cenderung lambat, padahal pemain game di Indonesia mencapai 105 juta orang. Jika pengguna cloud gaming dapat menjadi lebih besar tentu akan menguntungkan bagi perusahaan penyedia dan negara Indoenesia. Oleh sebab itu penelitian ini dilakukan untuk memahami faktor-faktor yang memengaruhi penerimaan teknologi cloud gaming dengan studi kasus Xbox cloud gaming. Pada penelitian ini menggunakan model utama Unified Theory of Acceptance and Use of Technology (UTAUT) ditambahkan variabel perceived security dan perceived value. Metode pengumpulan data yang digunakan adalah survei online menggunakan google form. Jumlah sampel yang dikumpulkan mencapai 120 orang pemain game. Analisis regresi berganda dan sub-grup analisis digunakan menguji hipotesis-hipotesis yang diajukan pada penelitian. Berdasarkan hasil analisis ditemukan bahwa semua hipotesis terdukung. performance expectancy, effort expectancy, social influence, facilitating condition, perceived security dan perceived value berpengaruh pada behavioral intention pengguna untuk tetap menggunakan Xbox cloud gaming. Hasil dari penelitian ini diharapkan mampu membuat penyedia layanan cloud gaming terutama Xbox, untuk dapat meningkatkan kualitas pelayanan berdasarkan saran yang diajukan oleh penulis.
... Jealousy is a threat to consumer identity. Mainly because brand exclusivity is missed which is an important feature while buying and consuming luxury brands (Wang et al., 2022). Notably, fashion consumers' threat to identity can lead to negative consequences for brands (Cronje et al., 2016) where brand hate as a negative consequence is no exception. ...
... There is ample research supporting a similar argument. For instance, a lack of exclusivity is found to trigger negative consumer-brand emotions of guilt (Ki et al., 2017) and other unwanted consequences (Wang et al., 2022). An emotion of guilt is different than hate since it is aroused when a brand is not meeting social and moral standards (Mittal et al., 2022). ...
... In the context of luxury fashion brands where consumers have spent a fair amount of time and effort, their sensitivity is much stronger (J. Kim et al., 2021;Wang et al., 2022). It entails their emotions are stronger too and can be triggered ...
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There is a limited amount of research to investigate emotional transition (i.e. love to hate) among consumers. Moreover, can value-expressiveness motivate consumers to not to share negative word of mouth (NWOM) despite hating a brand? This study aims at addressing these important research questions. Survey-based data is collected from 413 Indian luxury fashion consumers and analyzed via structural equation modelling technique, using AMOS 27.0. Findings reveal that brand jealousy mediates the relationship between brand love and brand hate. Furthermore, when value expressiveness is low, the relationship between brand hate and negative word of mouth is stronger. Brand marketers should strengthen symbolic brand identity to sustain positive consumer-brand emotions. Moreover, some relationship dyads can be used to establish the brand image in a family-oriented, collectivist culture. The mediation of brand jealousy and the moderation of NWOM are unique contributions of this study in an Indian context.
... Consequently, exclusivity carries implications of scarcity as perceived by consumers [46]. Although previous studies have demonstrated that exclusivity and scarcity are distinct concepts [47], it has become a prevalent marketing strategy to imply a sense of scarcity in exclusive advertisements [46]. Building upon the definitions and operationalizations provided by prior scholars, this paper categorizes advertisements emphasizing "rare" and "unique" as their primary selling points as exclusive appeal advertisements [17]. ...
... Firstly, this study extends the existing research on authenticity and exclusive advertising. Previous studies have mainly focused on defining authenticity and exclusivity [19,46,47], or have predominantly concentrated on specific products or product categories. For instance, Ewing examined the impact of indexing and iconic cues on consumers' identification of "real" green products [83], while Xie and Muralidharan primarily discussed the exclusivity of non-fungible tokens (NFTs) [7]. ...
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The global economic integration in the digital era, crafting marketing messages that resonate across diverse cultural landscapes poses a significant challenge for businesses. This study examines how consumers’ power distance beliefs and the use of exclusivity and authenticity in marketing communications influence their preferences. Through Study 1a and 1b, we find that the interaction between power distance beliefs and marketing appeals significantly impacts consumer purchase intentions. Further, Study 2 demonstrates these results and sheds light on the underlying psychological mechanism. This research contributes to the extant literature by elucidating the complex dynamics between power distance beliefs, advertising appeal, and cross-cultural consumer behavior in the digital economy. Additionally, it offers practical insights for firms aiming to craft effective marketing messages for culturally diverse audiences through digital marketing and e-commerce.
... Alternatively, product rarity is sometimes related to purposeful production in which a manufacturer only produces a limited number of a particular product for reasons that could be due to a lack of mass production capabilities, wanting to ensure quality, or initiating scarcity to increase demand and price. Whichever the case, the rarity of a product or service has been shown to increase perceived luxury, exclusivity, and purchase intentions (Wang et al., 2022). ...
... Sociability was measured using a five-item scale derived fromJin et al. (2017).Color, graphic vividness, and 3D authenticity were all measured using two-item scales adapted fromPapagiannidis et al. (2013). Virtual product rarity was measured with four items adapted fromSung et al. (2023) andWang et al. (2022). Social value was measured with six items derived fromShang et al. (2012). ...
Article
This paper develops the metaverse quality (MV‐Qual) scale and explores the various factors that may impact consumers' perceptions of quality and value when purchasing virtual products in a metaverse world. Utilizing Flow Theory and SERVQUAL as theoretical lenses to conduct our research, a framework was developed and tested, demonstrating how various factors are interconnected and impact consumers' shopping experiences in the metaverse. Data were collected from a national sample of 322 metaverse users in the United States and analyzed using partial least squares structural equation modeling in SmartPLS, complemented by a neural network causal analysis in Neusrel. The results demonstrated that several factors impact metaverse store quality and perceived virtual product value, including control, vividness, avatar design, rarity, and resale value. Subsequently, metaverse store quality and perceived virtual product value positively impact the intention to purchase virtual products in metaverse. This research contributes to the advancement of understanding consumer behavior in the metaverse and adds to the emerging marketing literature on the metaverse. Furthermore, the MV‐QUAL scale developed serves as a practical tool that both marketing researchers and practitioners can use to enhance understanding and discover new ways to improve the metaverse consumer experience.
... Both exclusivity and rarity are found to influence consumers' perceived luxuriousness for a brand, indicating the importance of their applications in luxury businesses (Wang et al. 2021). It was found that consumers place higher value on rarity as it satisfies their need for distinctiveness (Park and Park 2014), whereas exclusivity is highly valued because it signals consumers' social status (e.g. ...
... Septianto et al. 2020). The differentiation of rarity and exclusivity has been demonstrated in Wang et al. (2021)'s paper, suggesting that luxury rarity emphasises the scarcity and "limited availability" of products as shown in limited-edition releases, whereas luxury exclusivity strategy focuses on restricting accessibility by setting higher barriers as indicated in VIP invitation-only events. However, very limited literature has specified their distinctive effects on important luxury concepts such as consumers' perceived value. ...
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The purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers’ perceived value (functional, social and emotional) for luxury. Data were collected through an online panel. Luxury product categories including bags, wines, shoes and jewellery were selected as research stimuli. Structural equation modelling was used to test the hypotheses. Results showed that perceived natural rarity was a positive and significant predictor for all three types of consumers’ perceived value and across all four product categories. Perceived virtual rarity was a positive and significant predictor only for perceived functional value. Perceived exclusivity did not show any significant effects on value across all categories. This study is the first to provide theoretical support that exclusivity and rarity may have different functions in luxury marketing implementations. It provides updated empirical evidence showing traditional marketing tactic, such as natural rarity, still receive positive social and emotional evaluations among contemporary consumers.
... Even though some ads use casual and humorous language, such as in "MAS YANGUN DIBIKIN EMOSI," there is still an emphasis on unparalleled enjoyment, illustrated by phrases like "ngiler abies" and "sabar yaa." In marketing contexts, metaphors and hyperboles used to describe taste experiences can reinforce perceptions of product exclusivity (Druta et al., 2023;Pérez-Hernández, 2019;Wang et al., 2022). Moreover, in ads like "IMLEKAN BARENG EATSAMBEL," phrases like "kumpulin angpaonya buat borong Eatsambel" integrate cultural aspects with marketing messages. ...
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This study aims to analyze how prestige value is built through Eatsambel product advertisements on Instagram, focusing on thematic, schematic, and semantic aspects. A qualitative approach is used, where Teun A. van Dijk's critical discourse analysis is applied to explore the key elements used in the advertisement. The data was taken from Eatsambel's Instagram posts in the period from November 2023 to January 2024, covering various advertising campaigns. The results show that themes such as quality of ingredients, authenticity of the manufacturing process, and rich culinary culture are used to build a prestigious image. Elegant visual schemes and narratives relevant to everyday life were also found to be strategies to reinforce the image of exclusivity. Semantic aspects, such as word choice that emphasizes the superiority of taste, also play a role in shaping the perception of the product's prestige in the eyes of the audience. The combination of these elements creates a comprehensive marketing approach, where prestige value is not only built through exclusivity, but also through proximity to the audience. The findings have important implications for marketing strategies in the culinary industry, demonstrating that the integration between digital elements and prestige imagery can increase product appeal and strengthen emotional connections with consumers. The research encourages the development of dynamic and relevant advertising narratives, combining traditional and innovative elements to reach a wider market segment.
... According to Pathak et al. (2017), the appeal of luxury brands is based on the perception of rarity and exclusivity, which enhances their luxurious image. Wang et al. (2021) add that the perception of natural scarcity, created through marketing strategies, heightens the sense of luxury. Products such as luxury cars, watches, or handbags are often produced in limited editions, enhancing their sense of prestige. ...
... Brand exclusivity could be defined as the positioning of a brand that can offer products at prestige pricing [9]. Price is the beginning aspect of representing luxury, where then exclusivity follows [10]. Since price has the power to differentiate peers who can afford and not, as it separates the rich from the poor, price is considered the main factor in enhancing the exclusivity of a product and the perceived status of the buyers [11]. ...
Chapter
This study analyses the influence of discount promotions on the exclusivity of a brand and the perceived quality of a high-end Japanese restaurant in Jakarta. The objectives of this study consist of evaluating the impact of discounts on brand exclusivity and perceived quality, investigating the correlation between brand exclusivity and perceived quality, and analyzing the moderating impact of discount promotions on this correlation. Utilizing a quantitative approach, an online survey employing convenience sampling was conducted. The data was processed using statistical analyses such as paired t-tests, Pearson correlation, and moderation analysis in SPSS. The findings indicate that the utilization of discount promotions reduces both the exclusivity of the brand and the perceived quality of customers. Furthermore, a direct relationship between brand exclusivity and perceived quality is established, with a more pronounced association detected before the implementation of discounts. The results of this study highlight the side effects of discount implementation to a restaurant’s brand exclusivity and perceived quality.
... Studies byWu et al. (2012),Chen and Sun (2014), and Dwivedi et al. (2018) indicate a strong association between perceived uniqueness and buying behavior, including purchase intention and decisions. However, this positive relationship can differ between mass-market and luxury brands(Cereda, 2020;Wang et al., 2022). For luxury products, perceived ...
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Service robots have the potential to enhance customer experiences with their innovative technology, but many people still feel uncomfortable around them. While some customers are open to being served by robots, most still prefer interacting with humans. This inconsistency highlights the need to explore why consumers choose robotic service restaurants over conventional ones. This study aims to extend the existing literature by examining the need for uniqueness and perceived uniqueness as critical determinants of attitudes and willingness to pay more. To the best of the author's knowledge, there are few studies that explore these factors in the context of service robots, particularly in Indonesia. We surveyed 308 customers who dined at restaurants with robot waiters. Our analysis, using regression and Sobel, revealed that the need for uniqueness doesn't significantly affect how consumers feel about these restaurants or their willingness to pay more. However, perceived uniqueness positively affects both consumer attitudes and willingness to pay more, both directly and indirectly. This means that while the need for uniqueness can motivate consumers to explore novel experiences like dining at a restaurant with robot waiters, restaurants must ensure that the overall experience meets or exceeds customer expectations to enhance positive attitudes and willingness to pay more.
... The advent of fashion ushered in a modern era in which a need for innovation, coupled with rapid shifts in taste, upended a long history of well-established dressing habits and the value placed on clothing. Before the introduction of social media, designers and fashion houses were the ones who determined what was shared to the public, always reinforcing the exclusivity aspect of fashion shows (Wang et al., 2022). The attendance of these shows was limited to an elite society whose members received exclusive invitations. ...
... Luxury handbags have been chosen as a representational product to study customers' luxury values and luxury brand purchase intention in previous studies due to their function, social symbolism, and in-store purchasing experience (Hung et al., 2011;Mamat et al., 2016;Wang et al., 2022). Moreover, handbags have been described as "the engine that drives luxury brands" (Mamat et al., 2016). ...
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This research aims to determine the Chinese millennials’ dominant value perception on their purchase intention of luxury fashion goods. A survey was used to analyse the importance of luxury values such as quality, uniqueness, self-expression, prestige, and brand image when purchasing luxury fashion handbags. Analytical hierarchy process (AHP) was performed to measure the priority of the values. The results indicate that self-expression (e.g. of self-image and aesthetic beauty) is the most dominant value for Chinese millennial participants when purchasing luxury fashion handbags, whereas the prestige value (i.e. the conspicuous presentation of a social identity) has less influence on their purchase intention. This research provides new insight into consumers’ luxury value perceptions, consumers’ luxury value priorities, and the influence of luxury values on consumers’ purchase intention toward a luxury good. This study contributes to luxury fashion businesses and product developers a better understanding of the Chinese millennial consumers’ luxury values, which can contribute to product design development and marketing strategies. This study’s results were limited to five luxury values, and further research can draw additional results by evaluating other relevant values.
... In some respects, travel is an experience of luxury for some seniors, particularly those with limited mobility. There is no consensus for the definition of luxury tourism, but there are some necessary characteristics common in luxury tourism, namely exclusivity, rarity, authenticity, excellent service, and high quality, with an emphasis on satisfying the needs of a demanding and highly segmented tourist group (Correia et al., 2020;Wang et al., 2021). The vulnerability of senior tourists with impaired mobility places higher requirements on tourism products and services, such as customization, security, and care services (Patterson et al., 2021). ...
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Rapid aging is already one of the most significant trends of the 21st century, and this demographic shift poses enormous challenges for society. There is a community-wide effort to promote healthy aging, but the role of tourism as an important service industry in this process has been underappreciated. Based on an interdisciplinary literature review, this paper presents a conceptual model suggesting that tourism, as part of a healthy lifestyle, could contribute to healthy aging. Tourism can help older adults to optimize their functional abilities to perform activities of daily living and maintain quality of life through physical, cultural, sporting, and recreational activities , social participation, nutrition, and positive emotions, thereby extending their healthspan. Critical reflections on future interdisciplinary research and implications for eight key stakeholders (i.e., academics, aging tourists, destination operators, tourism and hospitality practitioners, healthcare practitioners, host communities, government, society) are outlined to highlight the big impact and potential of this area.
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Grounded on the social constructionist theory, this paper intends to compare the perceptions of the realities of high-end consumers and fashion designers on high-end brands. The main aim is to understand how the perception of luxury brands is socially constructed by designers and consumers and to explore the impact of the social interaction, specifically, the designers’ realities impacting consumers’ realities. The research consists of two studies. Study 1 comprised sixteen interviews with worldwide high-end fashion designers, while Study 2 considered three consumer samples (A) consumer interviews (B) consumers’ tweets (n =145,986) specifically on sixteen high-end fashion brands, and (C) consumer online questionnaire (n =330). We found that high-end fashion designers had more negative (less positive) sentiments compared to the consumers. Designers defined different characteristics that comprise luxury brands. They tend to classify their brand category lower than the consumers. Corroborating the social constructionist theory, we found that the value of high-end brands is constructed by the designers’ and consumers’ interactions. Consumers gave lower value to a luxury brand if they knew that the designers were unsatisfied and critical of their work, compared to when they were satisfied and confident about it. Therefore, high-end fashion brand managers should consider the different realities of designers and consumers and their interaction in the strategic planning process to ensure designers are satisfied with their work and aligned with the brand’s values and image to maintain its luxurious status and appeal to consumers.
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Once upon a time, luxury goods were only accorded to and afforded by the elite social-economic class. This distinction conferred characteristic and spiritual symbolic meanings through the highest-quality material products and services; with its hedonic and utilitarian value understood across cultures of other elite bodies. Eventually, the hedonistic potential of this distinction had become appealing to the other portions of the population; thus, by virtue of an evolved democratic economic ideology in the global marketplace, luxury brands were compelled to extend their offerings into markets not of the original luxury paradigm. Such an extension has resulted in the use of business strategies that perpetuate an oversaturated market presence of purported 'luxury' items; thus, denigrating the perceived meaning of 'luxury' among the original target market. With the mass market appearing to have dominated the luxury market, category fit of the associated business innovations seem to suffer because brand cues have become inconsistent with the original brand concept. This brand delusion situation leads to the erosion of the relationship between luxury brands and the identity of their original target market, while mass consumers forfeit the potential wisdom endowed by the market segment boundaries delineated by businesses in the construction of original brands' identities. This work is licensed under a Creative Commons Attribution 4.0 International License.
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Purpose This paper aims to examine the relationships among two distinct yet interconnected forms of value orientations, namely, terminal and instrumental values, brand consciousness and behavioral intentions. This study validated the conceptual model for branded fashion apparel consumption in an emerging market, e.g. India. Design/methodology/approach The research design followed a two-step approach to test the measurement and structural models for partial least squares structural equation modeling with SmartPLS (v.3.0) as recommended by Anderson and Gerbing (1988). Findings The results illustrated that both the instrumental and terminal values influence brand consciousness and, consequently, brand consciousness had an impact on behavioral intentions for fashion apparel consumption. Instrumental values had a greater influence on brand consciousness and behavioral intentions than terminal values. Brand consciousness mediated the relationship between instrumental/terminal values and behavioral intentions. Research limitations/implications This study defined two value orientations (i.e. instrumental versus terminal) using cross-sectional data from an emerging market. Future studies may examine the research findings’ generalizability using diverse data sets (longitudinal and cross-sectional) and evaluate the value orientation and customers’ favorable behavioral intentions for luxury fashion consumption. Practical implications This study provides insights into luxury marketers and practitioners to understand the contribution of instrumental and terminal values on brand consciousness and behavioral intentions for luxury fashion apparel. The findings would assist in developing marketing strategies for an emerging market, i.e. India. Social implications With the rapid proliferation of materialism, the Indian market has witnessed the dawn of a new era of luxury fashion acceptance. The research offers evidence that in emerging markets such as India, consumers exhibit value orientation toward luxury brands while holding a sense of fashion involvement in their consumption behavior. Originality/value This study is a pioneering attempt to understand the relationships between the value orientation, namely, instrumental and terminal values and their underlying influence on brand consciousness and behavioral intentions toward fashion apparel. Rokeach’s (1973) two-dimensional value dichotomy was adapted to understand luxury apparel consumption in an emerging market context, specifically India.
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Purpose The purpose of this study is uncovering the connotative and symbolic meaning of “luxury-lite brands” [轻奢]. Design/methodology/approach Applying mixed methods, this study conducted two studies: (1) a semiotic analysis of a focus group discussion and 10 interviews on luxury-lite brands and (2) a content analysis of 248 Weiblog posts from 10 luxury-lite brands in a two-month period. Findings Study 1 showed that luxury-lite brands are interpreted as foreign brands that serve people's needs for social presence, and symbolize youthfulness, tastefulness, and aspirations. Other descriptors of luxury-lite brands included unique design, and less than the best quality offered by luxury brand. Study 2 suggested brands are missing out on a wide range of stories that resonate with their core segments in their social media advertising. Practical implications Based on the definition of luxury-lite brands in the context of China proposed by the researchers, we recommend that managers broaden topics of stories, make more effort to create desirable symbolic brand meaning, and use social media to excite these young crowds. Originality/value Luxury-lite brands have been a cultural sign in the Chinese market projected to grow into an over 90 billion USD business by 2025. Therefore, an insightful understanding of the masstige market of China is a must for any Western masstige brand to be successful and competitive.
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Purpose This study investigates drivers and dynamics of preferences for brand prominence among the Chinese little emperors (LEs) residing in the US, a unique but powerful consumer group with dual-cultural characteristics. Design/methodology/approach Using an online survey, the proposed model was tested with a convenience sample of the Chinese LE generation residing in the US Findings Susceptibility to normative influence was a significant cultural driver of conspicuous, social, and unique value perceptions of luxury consumption among the Chinese LE generation residing in the US Perceived conspicuous and social values of luxury consumption were the primary drivers of this group's brand prominence preference for luxury fashion bags. However, perceived unique value of luxury consumption did not necessarily lead these consumers to prefer prominent logos or marks on a luxury bag. Furthermore, sociodemographic factors (gender, age, and time lived in the US) significantly affected perceptions and preferences related to luxury consumption among this consumer group. Research limitations/implications This study advances the luxury literature by examining the drivers and dynamics of brand prominence preference among the Chinese LE generation residing in the US By testing the role of different sociodemographic factors, we demonstrate heterogeneity within this group and the evolving nature of their perceptions and preferences related to luxury consumption as they are acculturated to Western culture. We used a convenient sample and focused on luxury fashion bags for measuring preference for brand prominence, limiting the generalizability of the findings. Practical implications Luxury brands should effectively convey conspicuous and social values in product designs, advertising and promotions as these values play integral roles in determining the Chinese LE generation's preference for brand prominence. Our findings also highlight the importance of fine-tuned approaches to different segments within the LE generation cohort. Originality/value This study fills several gaps in the luxury literature by empirically investigating various factors affecting preference for brand prominence among the Chinese LE generation residing in the US, an important but under-researched luxury segment.
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Abstract Purpose – The primary aim of this paper is to bridge together seemingly disparate yet interconnected paradigmatic antecedents of e-tailing and servicescape i.e., product assortment, order fulfillment, shopping assistance and its consequences for shopping efficiency. Design/methodology/approach – The proposed conceptual model is well grounded in the extensive literature from e-tailing as well as retailing domain and to assess the plausibility of the model. Total 246 female online apparel shoppers were surveyed from an Indian university and the data were analyzed using structural equation modeling (SEM) through SmartPLS. Findings – The outcomes of the study indicate that the e-customer may derive a substantial share of shopping assistance and service interface through product assortment offered by e-tailing sites. Customer-perceived performance of this e-shopping process – a crucial element of e-tail servicescape – directly affects the shopping assistance, but also through order fulfillment capability of retail scope. Research limitations/implications – The study used a sample of graduate students at a north-west university in India, which limits the generalizability of the research to other consumer groups. The paper links a significant body of literature within a conceptually developed framework and identifies key research areas in the e-tailing realm. Practical implications – By better understanding the role of product assortment as a value added feature in online value co-creation process, the e-tail managers can leverage the proposed integrated capability to improve e-tailing performance and customer outcomes in form of business. Social implications – With rapid advancements in Internet led communication, we are witnessing the dawn of a new era of e-tail innovations around us which is expected to change the way people experience shopping. Originality/value – This research is an attempt to enrich the level of understanding about online shopping environment in light of relationships among virtual and physical facets of e-tail i.e., product assortment, order fulfillment, shopping assistance and shopping efficiency. We investigate customer perceived product assortment performance in e-tailing and its significances on shopping outcomes.
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This study explored the importance of luxury value in the context of first-class flights. More specifically, it was proposed the role of luxury value in the formation of outcome variables. In addition, the moderating role of alternative attractiveness was suggested during the theory-building process. Lastly, this study tried to investigate significant differences in luxury value based on first-class passengers’ demographic characteristics. Data were collected from 201 first-class passengers in the United States. The results indicated that three dimensions of luxury value (i.e. functional, individual, and social values) have a positive influence on first-class attachment, which in turn positively affects both willingness to pay a price premium and word-of-mouth. In addition, alternative attractiveness plays an important moderating role in the relationship between first-class attachment and word-of-mouth. Lastly, there were significant differences in luxury value according to demographic characteristics such as gender, age, education, income level, and occupation.
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The purpose of this article is to reconceptualize the term “masstige” (Mass Prestige) marketing, develop a masstige model for brand management, and extend the use of the Masstige Mean Scale (MMS). The study was conducted based on the data from 600 individuals living in the United States, France, and India using a structured questionnaire consisting of different factors/sources of brand equity, such as mass prestige, brand knowledge, and perceived quality. On the basis of the findings, we establish that the greater the brand's Masstige Mean Index (MMI) value (“MMIV”), the higher the potential customers' top-of-mind brand awareness. Low MMIVs imply that firms have a long way to go to build their brands. We argue that MMI may allow firms to measure brand equity in different regions, within a country or in foreign countries, to derive insights into the popularity of their brands. We posit three theoretical propositions and develop two theoretical models (i) a hexagon model and (ii) a three-stage model for masstige marketing to define, reconceptualize, and explain the phenomenon.
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Human adults often show a preference for scarce over abundant goods. In this paper, we investigate whether this preference was shared by 4‐ and 6‐year‐old children as well as chimpanzees, humans’ nearest primate relative. Neither chimpanzees nor 4‐year‐olds displayed a scarcity preference, but 6‐year‐olds did, especially in the presence of competitors. We conclude that scarcity preference is a human‐unique preference that develops as humans increase their cognitive skills and social experiences with peers and competitors. We explore different potential psychological explanations for scarcity preference and conclude scarcity preference is based on children's fear of missing out an opportunity, especially when dealing with uncertainty or goods of unknown value in the presence of competitors. Furthermore, the results are in line with studies showing that supply‐based scarcity increases the desirability of hedonic goods, suggesting that even as early as 6 years of age humans may use scarce goods to feel unique or special.
Chapter
Despite the fact that different industries have been putting efforts into promoting sustainability in their businesses, little effort was initially shown in the luxury industry. Even though some companies have included responsibility and sustainability as a source of competitive advantage, thus becoming central to their strategic vision, the sector has been regularly criticized for its lack of sustainable development imperatives. It has led to an extensive discussion in the academic field on whether luxury and sustainable development are by nature compatible or not. It is the objective of the present chapter to challenge this hypothesis, confronting it with the market perspective. Studying the views of Western regular luxury consumers toward the two concepts should ultimately help luxury managers design more efficient, and hopefully effective, strategies to promote sustainability in their companies.
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The relationship between luxury and digitalisation, has been and still is problematic. Literature evidenced the challenging situation for luxury goods and online purchase with respect to exclusivity and identity. China has shown impressive orientation towards the digitalise world and a steady increase in Internet use in every business sector. Chinese market has its own socio-cultural norms and its luxury and fashion purchasing habits seemingly in constant evolution. The situation in China has indicated that luxury fashion brands and digitalisation have not fully revealed its development in relation to its “Chineseness” – or the specificity of the Chinese luxury and fashion market. As a result of the very limited research on digitalisation, luxury and China, this study will try to provide an understanding on the emerging issues – derived from the Chinese consumer market – which influence digitalisation strategy for luxury brands in China.
Article
Purpose This study aims to test Lamberton and Rose’s (2012) commercial sharing utility model of access-based consumption use in three different contexts: car-sharing, room-sharing and household goods purchases. More importantly, this research extends the model by examining the effects of emerging adulthood as a life-stage on perceived value of social applications that facilitate and promote transaction utility, called shareaids. Design/methodology/approach A questionnaire designed to evaluate the effects of emerging adulthood and sharing utilities on intention to use sharing services was developed and administered to 345 respondents at a Midwestern US university. The data were analyzed using partial least squares structural equation modeling. Findings Results indicate that flexibility utility had the strongest direct impact on intention to use sharing consumption while also having indirect effects in all contexts examined. The emerging adulthood life-stage was found to affect transaction utility and shareaids as predicted, and shareaids positively influenced consumers’ perception of the social utility value of access-based consumption. Research limitations/implications The generalizability of this study is limited by its use of a student sample. Also, the study suffers from inherent limitations linked to self-reported survey research. Practical implications Sharing services that have a strong social component could use shareaids to gain a competitive advantage. Examples of shareaid application include split bills for multiple payments to split fares among friends and social media transaction tools. Shareaid applications can enhance consumers’ perception of social value and the overall shareability value of the sharing service. Originality/value This is the first known study to test the effects of emerging adulthood as a life-stage on perceived value of social applications that facilitate and promote transaction utility, called shareaids.
Chapter
Although the definition of a ‘luxury’ brand is open for debate, the natural evolution of luxury, with luxury brands first being adopted by the affluent and wealthy before inevitably being translated and reinterpreted down to mass markets, raises new challenges for marketing strategists. Luxury brands need to stay in front of luxury consumers, through the discovery of new and different ways to give expression to their desires. This chapter discusses the fundamental difference between communication and connection, and identifies a means of assuring the greatest long-term success for luxury marketers by connecting with the luxury consumer using brand-related experiences
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In spite of considerable prior research on luxury branding, no widely accepted definition of "luxury brand" exists. The purpose of this paper is to review the literature in order to: a) summarize the state of knowledge on luxury brand marketing; and b) provide a new and usable definition of a luxury brand. A literature review was conducted with a focus on developing a more useful definition of "luxury brand," outlining key theoretical perspectives that have been used in this area, and summarizing key research findings. Ko and Megehee's (2012) framework for understanding consumption of luxury brands is used as the guiding conceptual framework for the review. Directions for future research are provided.
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This article discusses the role of brand and product line extension strategies in balancing exclusivity and accessibility in the fashion luxury industry. Many luxury brands have long considered mass consumers as an important driver for their business growth, and their importance has kept increasing in the past two decades partly due to the emergence of e-commerce. However, many argue that going too mass could be a dangerous move because it may damage their luxury brand image in the long run. To manage the balance, it is essential that luxury brands maintain their perceptions of exclusivity and uniqueness by carefully designed marketing strategies. In this article, we discuss two common price-segmentation approaches that allow luxury brands to control the balance: brand and product line extensions. We first review conceptual theories on these extension strategies. We then examine the current industry practices using data on product prices and category membership from ten fashion luxury brands in 2015. Our data analysis reveals patterns that are mostly consistent with theoretical predictions. In particular, most of the luxury brands in our sample use distinct product and pricing strategies for their original product category and extension categories so as to control the balance between exclusivity and accessibility. We provide further discussions and managerial implications for the balancing role of brand and product line extension strategies.
Chapter
Economic theory stipulates that companies compete as a natural force of the free market system. Within the same theory, assumptions about how consumers respond to supply and demand fluctuations are made without due consideration for many tenets of consumer behavior like perceptions or attitudes. Only recently have researchers begun to explore the “human” effect of supply and demand, concentrating on scarcity-based situations (Brannon and McCabe 2010; Lynn 1989). These studies have focused largely on scarcity’s ability to increase desirability for goods, suggesting this occurs through mechanisms of perceived value (Lynn 1991), and consumers’ needs for uniqueness (van Herpen et al. 2005), since people who desire individuality recognize that owning scarce goods can create this distinction. Research indicates that advertisements with scarcity appeals lead to enhanced value perceptions and purchase intentions for scarce goods (Eisend 2008), because they create a sense of “missing out.” Behaviorally, the scarcity effect influences people’s tendency to attempt acquisition of resources that are scarce or becoming scarcer (Cialdini 1995). Evidence of this can be found with respect to auctions (Ariely and Simonson 2003; Ku et al. 2004), Black Friday shopping (Harrison, Reilly, and Gentry 2010), and special retail events (Nichols 2010).
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Specialty media outlets such as The Wall Street Journal, Forbes, and Business Insider have increasingly featured articles that stress the growth of the affordable luxuries market. However, “affordable” and “luxury” are two terms that do not conform to luxury goods literature. While the concept of luxury has been traditionally associated with expensive, difficult to find, and exclusive products, the aforementioned business periodicals seem to suggest that a number of products such as specialty coffee, chocolate, and other commodities can be considered affordable luxuries. We conducted an exploratory investigation to determine whether millennial consumers differentiate between the terms “luxury” and “affordable luxury,” which products they perceive to be affordable luxuries, and the price range they are willing to pay for affordable luxuries. Our exploratory study (1) shows that consumers hold similar quality expectations for luxury and affordable luxury products, (2) reveals differentiating descriptors for luxury and affordable luxury products, (3) suggests that consumers see these products as a way to enhance one's image, and (4) offers pricing guidelines for such products.
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This paper provides a systematic review of the current state of luxury research by mapping the research landscape to identify key research clusters, publications, and journals that have relevance to the luxury subject across disciplines. Thereby, it contributes to the literature by providing a state-of-the-field review of the broader luxury research field. Using the ISI Web of Knowledge Core collection, this study conducts a document co-citation analysis of 49,139 cited references from 1,315 publications that study luxury. The combination of bibliometric methods and a systematic review allows this study to overcome barriers of traditional literature reviews by integrating a large set of publications across various disciplines and leveraging the insights of the larger scientific community. It identifies ten major research clusters that characterize the different research streams and discusses their intellectual foundations. Moreover, this research develops a conceptual framework that can be a valuable guide for researchers and practitioners.
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This special issue on luxury brand strategies and customer experiences includes eleven research papers which are valuable for marketers and researchers. Articles are grouped by topic- social media and digital marketing, ingredient branding and value creation, luxury retailing, and luxury consumer experience. The introductory article in this special issue places each article in one of four categories even though some of articles include information relevant to at least one other topic and briefly introduces unique and interesting about each article. This selection of papers written by 34 authors representing ten countries serves to extend the luxury brand research area in need of new developments, theories, and practices in light of the trends toward global luxury industries.
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Purpose The authors' research was carried out with the aim of analyzing perception of luxury and luxury brands among an international sample of young people. Design/methodology/approach This article was based on an empirical study among 233 respondents. First, a qualitative analysis of content using the respondents' own words was conducted. Then, to show whether there are differences between countries and significant groups of countries, an analysis of variance (one‐way ANOVA) was performed and analyzed with Fisher F ‐test and post‐hoc Duncan tests. Findings Beyond the belief in the existence of two stable groups of developed and developing countries with regard to luxury, this study shows a situation that requires further analysis. The main results show some strong cross‐cultural differences in the perception of luxury, which is multi‐faceted as demonstrated by previous studies in this field. Research limitations/implications Results of this exploratory study confirm that the concept of luxury presents multiple facets, and the authors' analysis provides an in‐depth survey of the main categories and attributes that can be used to describe this concept. Although this study was only exploratory in nature, a number of comments can be made to highlight the congruence between the concept of luxury for young people and recent academic literature. Practical implications To maintain their brand equity, companies in the luxury sector seek to improve their image within younger targets. Managerial implications of the authors' research indicate that international luxury companies should take into consideration the multi‐faceted concept of luxury in general, but also the main differences between countries in the continuum between the “status” and “emotional” dimensions of luxury. According to the authors' research, luxury companies cannot adopt a global strategy when addressing the six countries analyzed. Some managerial recommendations are developed in this perspective. Originality/value The additional value of this article stems from its reliance on a cross‐cultural in‐depth study between six countries (Italy, France, Germany, China, Japan, and USA). The balance between qualitative and quantitative techniques makes this article particularly relevant when drawing both conceptual and managerial conclusions.
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Caught between the conflicting priorities of satisfying the rising demand for luxury brands in the global marketplace and the effort to protect the uniqueness and exclusivity of their products, brand managers face serious challenges in the luxury market. What is the optimal balance between brand growth and brand over-exposure? And what are the basic drivers of customer brand perception that influence luxury brand strength? In an attempt to answer these questions, this study focuses on the conceptualization and empirical investigation of antecedents of luxury brand perception and hypothesized effects on luxury brand strength. The results support the assumption that consumers’ individual luxury brand perception is based on financial, functional and social considerations. Besides, consumers’ brand perception is significantly related to the cognitive, affective and conative components of luxury brand strength.
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This study examines the impact of low, medium, and high prices on luxury brand choices by consumers very high versus very low in chronic desire for conspicuousness (CC) on selection of a luxury brand, namely, as well as the combination of very high versus very low chronic desire for rarity (CR). The research design tests and confirms the nomological validity of a system of relationships among chronic and manipulated conditions. High versus low manipulated desire for conspicuousness (MC) and manipulated desire for rarity (MR) conjoined with high versus low chronic desire for conspicuousness (CC) and chronic desire for rarity (CR) moderates the typically hypothesized negative main effect of price on demand and may cause a positive main effect of price on luxury brand choice across a relevant range of price-points. These findings confirm the applied theory that for some consumers, chronic psychological states in combination with manipulated related states allow for—perhaps demand that—merchants to charge higher prices to increase sales of luxury brands.
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Following a broader perspective in exploring customer perceptions of and motives for purchasing luxury brands, it is not sufficient to explain the whole picture of luxury consumption in terms of socially oriented consumer motives and the desire to impress others. The main contribution here is to explore a multidimensional framework of luxury value as a general basis for identifying value-based consumer segments. The empirical results can be seen as a first step toward a better understanding of consumers' luxury value perceptions as based on social, individual, functional, and financial aspects. ©2009 Wiley Periodicals, Inc.