The price of social status desire and public self-consciousness in luxury consumption

Balabanis, George; Σταθοπούλου, Αναστασία

doi:10.1016/j.jbusres.2020.10.034

Cited by 50 publications

(41 citation statements)

References 73 publications

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“…Subakti (2013) reports that a restaurant is not only a place where food is served and the customer eats but also a venue to socialize. Buying luxury products is related to customers’ desire to showcase their social status (Ajitha and Sivakumar, 2017; Balabanis and Stathopoulou, 2021; Sun et al , 2016). Therefore, social value could be a strong stimulus for customers to visit Michelin-starred restaurants.…”

Section: Discussionmentioning

confidence: 99%

Does Michelin effect exist? An empirical study on the effects of Michelin stars

Bang

Kyuwan

Kim

2022

IJCHM

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Purpose Receiving Michelin stars is considered an effective marketing tool and a prestigious certification in the restaurant industry. However, the direct effects of Michelin stars on restaurant performance remain unclear. To bridge this gap, this study aims to empirically validate the “Michelin effect” on the consumption values of restaurant patrons before and after receiving Michelin stars. Design/methodology/approach The data, collected from OpenTable, consist of over 160,000 reviews written for 218 restaurants, including 109 Michelin-starred (treatment group) and 109 nonstarred restaurants (control group). The authors measure perceived consumption value using the collected user-generated review data. The authors estimate fixed-effect difference-in-differences regressions to validate the Michelin effect. Findings Michelin stars enhance social, hedonic and service quality values, which are nonfunctional values. However, no significant effects on functional consumption values, such as economic, food quality and ambience quality values, are observed, even though Michelin stars are pure awards for kitchen performance. Practical implications Michelin stars can be an effective marketing tool for fine-dining restaurants because customers consider emotional and nonfunctional benefits such as hedonic and social values, which are more important than functional benefits such as food value. Furthermore, Michelin effects are heterogeneous depending on the number of stars awarded, price range and customers’ gastronomic involvement. These offer a strong rationale for monitoring social media, which may help managers better understand their customers and improve their performance. Originality/value This study extends the current literature on the Michelin effect by quantifying consumption values using user-generated review data. To the best of the authors’ knowledge, this study offers the first empirical evidence that directly validates the Michelin effect.

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Section: Discussionmentioning

confidence: 99%

Does Michelin effect exist? An empirical study on the effects of Michelin stars

Bang

Kyuwan

Kim

2022

IJCHM

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“…Attitudes related to luxury goods are associated with the presentation of prosperity and symbolic meanings. Status consumption realizes one's hedonic consumption desires (Balabanis & Stathopoulou, 2021). By consuming status goods as symbols, people communicate importance about themselves to their reference groups.…”

Section: Status Consumption and Purchase Intentionmentioning

confidence: 99%

“…It also helps show brand loyalty among luxury individuals (Giovannini et al, 2015). Generally, luxury brands have their webpage on social media that they regularly update for their individuals who follow these pages to look for the new design, newest stocks, advancements, and rebates that develop the brand consciousness among luxury individuals (Balabanis & Stathopoulou, 2021). The valued consumer–brand relationship proves beneficial to the consumer, such as product or service quality, price, and superior management (Liao et al., 2014).…”

Section: Status Consumption and Purchase Intentionmentioning

confidence: 99%

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The role of status consumption and brand equity: A comparative study of the marketing of Indian luxury brands by traditional and social‐media

Husain

Ahmad

2022

Glob Bus Org Exc

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This research is a comparative study of the marketing of luxury brands by social media and by traditional media. It examines the influence of status consumption and brand equity and shows how they impact on the purchase intention of luxury brands. The research is based on the Indian luxury brand market, a sector that has yet to be studied in any depth. It uses a questionnaire with a convenience sampling strategy that targeted followers of prominent luxury brands in four of India's largest metropolitan cities; 453 usable responses were obtained.The research provides both a model and identifies a number of managerial and theoretical implications. The results show that status consumption and brand equity positively affect the purchase intention, with this being more significant in social media marketing activity than in traditional marketing activities. The research indicates that it would be wise to use a blend of both social and traditional media for marketing luxury brands. For social media campaigns, luxury brand managers should focus on status consumption and brand equity, which should lead to increased intention to purchase.

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“…Luxury goods have been important objects of study in the most diverse areas, with the reasons driving their consumption being among the main topics researched (e.g., Kastanakis & Balabanis, 2012; Tseng et al, 2021). The investigation of consumers' choices (Kauppinen‐Räisänen et al, 2018), feelings (Amatulli et al, 2018), and reactions (Liu et al, 2021) gained in prominence, as the search for superior quality (Wiedmann et al, 2009) and social status (Balabanis & Stathopoulou, 2021) support – at least partially – the high value attributed to luxury brands (Stokburger‐Sauer & Teichmann, 2013). Whereas studying the psychological (Prestini & Sebastiani, 2021), economic (Zhan & He, 2012), and sociological (Wong & Ahuvia, 1998) aspects that influence the demand for luxury is critical, understanding those factors that may harm it is equally important.…”

Section: Introductionmentioning

confidence: 99%

(Mis)managing overstock in luxury: Burning inventory and brand trust to the ground

Park¹,

Nunes²,

Paiva

2021

J of Consumer Behaviour

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Traditionally associated with demands for superior quality and social status, luxury consumption is expected to undergo important transformations in the coming decades. Following a series of societal changes, the environmental impacts generated by companies have become decisive factors in purchasing decisions. Authors have also been stressing the effect of sustainability performance on assorted dimensions of B2C relationships, thereby putting pressure on companies to incorporate these trends. While luxury brands have sought to adapt their business models, a series of unsustainable practices continue to be part of their day‐to‐day operations. Among the most controversial is the burning of unsold products as a way of preserving brand value. In addition to attracting unwanted attention from the media, the destruction of fully functional products often triggers harsh reactions from environmentalists, as well as from consumers who are more sensitive to these issues. The prospect of growing demands for environmental responsibility, coupled with the perception that any failure in this regard represents a risk to the reputational assets of luxury companies, makes the investigation of inventory burning in relation to stakeholders' perceptions an urgent task. Aiming to offer new insights into the future of sustainable luxury consumption, we assess the impact of this practice on two key components of consumer perception. Through two scenario‐based experiments with a total sample of 492 participants, we investigate the effects of inventory burning on consumer trust and avoidance of luxury brands. Our results indicate the need for luxury brands to further incorporate environmental demands as they seek to serve increasingly demanding eco‐conscious consumers.

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The price of social status desire and public self-consciousness in luxury consumption

Cited by 50 publications

References 73 publications

Does Michelin effect exist? An empirical study on the effects of Michelin stars

Does Michelin effect exist? An empirical study on the effects of Michelin stars

The role of status consumption and brand equity: A comparative study of the marketing of Indian luxury brands by traditional and social‐media

(Mis)managing overstock in luxury: Burning inventory and brand trust to the ground

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