This article aims to provide a conceptual foundation for luxury disposition behavior in relation to luxury customer value and switching costs. The results of a study involving 398 luxury consumers in South Korea demonstrate the distinct typologies of luxury customer values and switching costs in cognitive (financial) and emotional (relational) dimensions as well as luxury disposition behavior as four different types. In addition, the conceptual framework on luxury disposition behavior reveals how luxury customers recognize customer value of luxury goods in perceiving switching costs upon disposition, which leads to different choices in disposition behavior. Theoretical and managerial implications are discussed for marketers or retailers in luxury fashion industry.
Today's consumers tend to focus on uniqueness and on personal and intangible values when making purchase decisions. Thus, companies undertake such innovative strategies as brand collaborations, especially in the fashion industry where brands collaborate with artists, celebrities or other brands to raise awareness, build relationships and achieve competitive advantage through differentiation. However, researchers have not yet focused specifically on luxury and SPA brands to examine how certain fashion collaboration types affect consumer responses and long-term company-customer relationships. In this study, the authors consider luxury and SPA fashion brand collaboration cases and defines their impacts on consumer response and relationships in terms of customer equity drivers, customer lifetime value and customer loyalty. The paper concludes with several academic and industry-related implications to enable further growth of this profitable and innovative brand strategy.
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