The Concept of Luxury Brands and the Relationship between Consumer and Luxury Brands

Abstract

The study aims to articulate a definition of luxury brands, to propose a framework for consumer luxury brand relationships and to provide empirical evidence of the proposed model. The study conducted two surveys in Portugal and the United States in 2009 and 2013 for selected luxury brands. The study employs factor analysis and structural equation modelling techniques to test the hypotheses. The study finds a link between luxury products and consumer's psychological association represents in a hierarchical order of: cognitive attributes at its base level, extrinsic attributes on a secondary level and intrinsic attributes at the advance level. The findings suggest a concept for luxury brands from three dimensions of: luxury product characteristics, consumer's psychological characteristics, and consumer's psychological association with the luxury product. The research was conducted in Portugal and the United States so that there is always a potential criticism concerning the ability to generalize research results to a broader international population. The findings provide a holistic perspective in the understanding of luxury brand constructs and a definition of luxury brands in the way why consumers involve symbolic consumption. The successful application of the findings in a brand setting would be of particular interest to marketers and brand strategists.

Principles of reshoring development in luxury goods sector1

“…Over the centuries, luxury products have been associated with outstanding quality, brand heritage, master craftsmanship, high price, uniqueness, polysensuality, and scarcity [Vigneron and Johnson, 1999;Phau and Prendergast, 2000;O'Cass and Frost, 2002;Okonkwo, 2007;Kapferer and Bastien, 2009]. Superfluous, yet desired, luxury products can bring pleasure, increase self-confidence, and improve social status [Berry, 1994;Dubois and Paternault, 1997;Wong et al, 1999;Tsai, 2005;Becker et al, 2018]. The high price is the substantial cost for this palette of functional, social, and individual benefits associated with luxury goods or services.…”

“…Due to the rapid global expansion, luxury goods lose their exclusiveness, which is an imperative to price these items highly and call them luxury [Phau and Prendergast, 2000;Dubois and Czellar, 2002;Kapferer and Bastien, 2009]. Luxury goods, traditionally characterized by uniqueness expressed in design, highquality materials, precision, craftsmanship, high price, and a social desire [Tsai, 2005;Chevalier and Mazzalovo, 2008;Cristini et al, 2017;Becker et al, 2018], are subject to aggressive brand extensions, going along with a marked increase in the volume of production. The reason for this expansion is the rapid increase in demand for luxury goods from aspiring consumers living in emerging, fast-growing markets .…”

The Ocular-centric Obsession of Contemporary Societies

“…As stated earlier, visual importance is attached to commodities in contemporary societies that overlooks other aspects of a product linked to a humane aspect. Therefore, designed leather handbags and leather products produced using exploitative and inhumane treatment of both workers and animals are favored in entrenched capitalist environments (Becker, Lee and Nobre, 2018). The companies' record-breaking revenue performances are achievable despite the fact that leather production involves overworking employees, the inhuman killing of animals, environmental pollution, forced and trafficked labor.…”

The self-concept in consumer behaviour based on the example of luxury brands

“…Most of the luxury brands are able to offer their consumers a very emotional experience and a special indulgence due to their impression (van der Westhuizen, 2018). Brands which communicate precisely defined values over long periods of time are qualified to express the current or ideal self (Becker, Lee, & Nobre, 2018).…”