Luxury customer value

Abstract

PurposeThe purpose of this paper is to conceptualize luxury customer value and empirically test the reliability and validity of the proposed structure of it. In addition, it aims to identify luxury customer value factors that influence brand relationship and behavioural intention.Design/methodology/approachA thorough literature study produces a comprehensive model of luxury consumer value. For an empirical test of the model, a web‐based on‐line survey is performed using a consumer sample in Korea. Statistical tests including CFA, second order factor analysis and structural model testing using covariance analysis are conducted.FindingsThe findings show that the luxury customer value represents a second‐order construct. The results provide satisfactory support for the four‐value structure model composed of utilitarian, hedonic, symbolic and economic values. Utilitarian value includes excellence and functional values, whereas hedonic value encompasses aesthetic, pleasure and experiential values. Symbolic value is reflected in self‐expressive and social values. Regarding the effect of luxury customer value on relationship quality, customers who perceive high symbolic, economic and functional values for luxury brands are more likely to develop a positive relationship with the brands.Originality/valueIn an attempt to confirm the luxury customer value structure in an emerging economy under a collective culture, this study expands previous studies on the conceptualization of luxury customer value. Through the empirical phase of the study, measures with both high reliability and validity for luxury customer value are produced, which will provide great benefits for further studies in the subject area. The association between customer value and brand relationship is examined.

Influences of Country-Of-Origin on Perceived Quality & Value According to Saudi Consumers of Vehicles

“…PV is one of the most important sources of competitive advantages (Mulki & Jaramillo, 2011). Customer value, as an individual's enduring feature in the consumption context, is different from the actual value (Choo et al, 2012). Customer value as "an interactive relativistic preference experience" and it is multifaceted (Munnukka & Jarvi, 2012).…”

“…It represents an overall mental evaluation of product (Beneke et al, 2013). It includes the evaluation of product's attributes through the consumption process (Choo et al, 2012) and (Munnukka et al, 2013). The value perceptions are a cognitively-oriented appraisal that precedes customer satisfaction (Mulki & Jaramillo, 2011).…”

“…Customer satisfaction is reached when the perception of benefits received meets or exceeds expectations (Mulki & Jaramillo, 2011). Common features of value includes the trade-off between costs and benefits (trade-off between quality and price; Rahikka et al, 2011;Choo et al, 2012;Mulki & Jaramillo, 2011;Smith, 2013) and the overall assessment of subjective worth, while taking into consideration suitable competitor alternatives (Beneke et al, 2013). Customers get benefits, quality, worth and utility.…”

“…"Value" is one of the most widely and frequently used words in various disciplines of social science (O'Sullivan & McCallig, 2012). In the marketing domain, value has been considered a key concept in understanding and predicting customer behavior (Choo et al, 2012). Customer value is the key determinant of marketing decisions (Munnukka et al, 2013).…”

What Influences the Repurchase Intention for Luxury Brands?-The Relative Impacts of Luxury Value Dimensions

“…Luxury market is a central research area in the literature of marketing in general (Vigneron & Johnson, 1999 and retailing in particular (Jung et al, 2012;Li et al, 2012). Beyond the dynamics of growth in the global luxury brands, it is a critical subject for marketers to understand the underlying mechanism of customer's perception of luxury value and motivation for buying luxury brands and how to utilize the information gleaned from customer provide managers to gain competitive advantage and develop marketing programs, effective campaigns etc.…”