Pivots in the Luxury Business

Abstract

Consumer behavior is continuously evolving, and with it, so is the business of luxury. Besides other societal and economic changes, digital technology and social networks have affected how people search for information, buy products, and relate to luxury brands. As a growing number of people use social networks, an abundance of social data can be analyzed to detect shifts in perception and behaviors, generating insights that can benefit luxury brands. There is a need for theoretical conceptualizations and, based on these, strategy frameworks to help identify relevant sources of social data and derive actionable insights by using social media intelligence in a strategic, structured, and impact-oriented manner. With their conceptual study, the authors aim to close this gap and contribute towards marketing management literature by proposing a conceptual social listening framework. Their framework highlights the benefits of using social data and explains the basic steps of turning data into valuable insights that drive managerial action based on relevant theory and technology.