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Article
Publication date: 11 August 2022

Sheetal Jain

Despite the fact that online is predicted to become the major channel for luxury purchases by 2025, there is scant literature related to online luxury buying behavior, mainly in…

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Abstract

Purpose

Despite the fact that online is predicted to become the major channel for luxury purchases by 2025, there is scant literature related to online luxury buying behavior, mainly in the context of Generation Y (Gen Y) consumers in emerging societies like India. Therefore, the primary objective of this study is to empirically test the theoretical framework developed to assess the factors influencing luxury consumers' online shopping behavior based on the stimulus-organism-response model and technology acceptance model (TAM).

Design/methodology/approach

Data were collected from 233 Gen Y luxury consumers in India via purposive sampling method. The study used AMOS and PROCESS SPSS Macro to establish the overall fit of the measurement model and examine the hypotheses.

Findings

The findings revealed that perceived usefulness of buying online, perceived ease of buying online, economic benefit and webstore quality have significant impact on online luxury purchase intention. The perceived experiential values and perceived functional values mediate the influence of antecedent variables on online luxury purchase intention. Bandwagon luxury consumption behavior (BLCB) moderates the relationship between perceived functional values and online purchase intention.

Originality/value

This is one of the pioneer studies conducted to understand the influence of BLCB on value–intention relationship in online space among Gen Y luxury consumers. This study will help luxury retailers to create targeted strategies for this segment.

Details

South Asian Journal of Business Studies, vol. 13 no. 1
Type: Research Article
ISSN: 2398-628X

Keywords

Case study
Publication date: 12 July 2023

Ram Subramanian and Grishma Shah

To understand how certain cultural dynamics play out in the case, the main attributes of Hofstede and Meyer’s work are first highlight. While Hofstede focuses on national culture…

Abstract

Theoretical basis

To understand how certain cultural dynamics play out in the case, the main attributes of Hofstede and Meyer’s work are first highlight. While Hofstede focuses on national culture, Meyer’s uses culture as a tool by which to gauge behavior within organizations, teams and individuals. Below the main elements of their work are highlighted. Hofstede’s cultural dimensions are detailed in IM Exhibit 1. Note there are six dimensions on a scale of 0–100. The higher the number, the higher that element of that dimension. For example, the individualism score for the USA is 91, whereas China’s score is 20, suggesting that Americans are much more individualistic, whereas the Chinese are much more collectivist. Students can find where the USA, France and China, the three countries discussed in the case, stand at the Hofstede’s website noted below. For reference, these are also noted in IM Exhibit 2.

Research methodology

All of the information in the case was gathered using publicly available secondary sources (i.e. news articles, annual reports and executive/employee interviews). All sources are cited at the end of the Case/IM.

Case overview/synopsis

On April 12, 2022, LVMH Moet Hennessy Louis Vuitton (LVMH), the global leader in the personal luxury goods, released first quarter earnings for 2022, highlighting their latest acquisition, the New York City-based Tiffany & Co (Tiffany). Tiffany had performed well due to growth in demand in the USA following two difficult years because of the global COVID-19 pandemic. This underscored the fact that Tiffany was still largely dependent on the US market, which was a cause for concern for CEO, Anthony Ledru, who was brought in by the parent LVMH to elevate Tiffany and exploit the high growth market for personal luxury goods in China and other parts of Asia-Pacific. LVMH’s acquisition of Tiffany had been completed on January 7, 2021, and LVMH was expecting the turnaround of the largely US-centric Tiffany to show results by shifting focus to higher-end and more iconic jewelry lines and greater expansion in China. Nonetheless, Ledru’s ability to address the China market for Tiffany was constrained by culture clashes between the company’s French owners and management team and its large cadre of US-based employees. Employees chaffed at what they felt was a rigid and autocratic management style and at the company’s insistence on limits to a work-from-home policy that was instituted in early 2020 because of the pandemic. Ledru and his top management team had to quickly overcome the internal clashes and employee issues to make significant inroads in the China market.

Complexity academic level

This case is appropriate for undergraduate and MBA courses addressing dynamics of global business, strategy and culture, such as cross-cultural management, international business, global strategy and organizational behavior. At both levels, its is found that the case will be valuable in generating a lively discussion on organizational and strategic challenges grounded in often lesser discussed issues around cultural fit. In most courses, the case should be positioned toward the end, mainly because it examines both cultural challenges (French ownership of a quintessentially American company) and strategic initiatives (how to grow the brand itself along with geographic expansion, i.e. China), assuming that the module has covered one or the other/or both at different points in the course.

Details

The CASE Journal, vol. 20 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 9 February 2024

Ekta Aggarwal, Anurupa B. Singh and Richa Misra

The young generation (Gen Z and Millennials) has a different set of values that the brand needs to interpret better. There is evidence of a correlation between luxury brands and…

Abstract

Purpose

The young generation (Gen Z and Millennials) has a different set of values that the brand needs to interpret better. There is evidence of a correlation between luxury brands and sustainability. The purpose of this study is to assess the impact of consumers’ consumption values (functional, experiential, and symbolic) and ethical values (ascribed responsibility) through flow experience (FE) on consumers’ attitudes towards sustainable luxury brands (SLB) in the young generation based on stimulus-organism-response theory.

Design/methodology/approach

The research design consists of Studies 1 and 2. Study 1 used a structured questionnaire on a sample of 396 respondents based on the scales of luxury consumption values. For Study 2, the authors collected 30 qualitative responses from the target group (young Indian shoppers who indulge in luxury fashion shopping frequently) via open-ended essays. PLS-SEM was used to test the hypothesised relationship.

Findings

As per the results, functional values are the most significant predictors of FE, followed by AR, experiential values and symbolic values. The study also discovered that FE has a substantial influence on the formation of attitudes towards sustainable luxury fashion brands. The qualitative findings were in line with the quantitative findings, except that the respondents have reservations with respect to the authenticity of sustainable initiatives by the brands.

Practical implications

As the young consumer represents the future development of the luxury market, it is crucial to fully comprehend their view with respect to consumption value and AR in an emerging economy like India, which constitutes one of the highest populations of young consumers. The new research framework will also assist luxury brand managers in the formulation of efficient brand marketing strategies for sustainable luxury apparel.

Originality/value

Previous studies have mainly focused on FE in the context of the service industry. There are limited studies exploring the impact of achieving FE in framing the attitude towards sustainable luxury fashion brands. Academic research in the area so far has limited its scope to quantitative and a few qualitative studies, but this study provides a mixed-methods approach in a luxury setting, contributing to the study’s distinctiveness.

Details

Journal of Consumer Marketing, vol. 41 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 10 April 2024

Paula Rodrigues, Ana Sousa, Ana Pinto Borges and Paulo Matos Graça Ramos

This study aims to fill various gaps detected in the literature on mass prestige (hereafter referred to as masstige) theory. The originality of the work stems from the…

Abstract

Purpose

This study aims to fill various gaps detected in the literature on mass prestige (hereafter referred to as masstige) theory. The originality of the work stems from the multidimensional application of Paul’s (2015) model, the introduction of brand addiction as a construct from the consumer-brand relationship (CBR) theory within the context of wines and the exploration of a new and less studied sector in masstige strategies.

Design/methodology/approach

A structured questionnaire was distributed to collect data from masstige wine brand buyers in Portugal, of whom 166 completed the questionnaire correctly. A conceptual model was developed and tested using partial least squares structural equation modelling.

Findings

The findings include that only two dimensions of Paul’s (2015) masstige scale affect brand addiction: brand knowledge and excitement and status. Brand addiction has a positive effect on brand loyalty and electronic word of mouth (eWOM), and brand loyalty has a positive impact on eWOM. Theoretical and managerial implications were explored.

Originality/value

This research added a CBR perspective to masstige theory and applied masstige theory to wine brands for the first time. These three distinctive aspects collectively contribute to the novelty and significance of the research, opening up exciting possibilities for future investigations and providing a valuable contribution to the academic community and the wine industry alike.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 22 April 2024

Nermain Al-Issa, Nathalie Dens and Piotr Kwiatek

This study aims to examine differences in the perceived value of luxury as drivers of luxury purchase intentions between individualist and collectivist cultures (at a country…

Abstract

Purpose

This study aims to examine differences in the perceived value of luxury as drivers of luxury purchase intentions between individualist and collectivist cultures (at a country level) and consumers of Muslim versus Christian religious backgrounds. Moreover, this study investigates how consumers’ acculturation to the global consumer culture (AGCC) impacts their perceived luxury values.

Design/methodology/approach

The authors conducted two online survey studies. The first study compares Muslim consumers in Kuwait versus Muslims consumers in the UK. The second study compares the UK Muslim sample to a UK Christian sample. The authors collected data from 600 and 601 respondents, respectively. Partial least square structural equation modeling was used to test this study’s research hypotheses.

Findings

The perceived personal values of luxury primarily drive consumers’ luxury purchase intentions. The hedonic value of luxury impacts luxury purchase intentions significantly more for Muslims in the UK than in Kuwait. No significant differences were observed between religions. Consumers’ AGCC exerts a positive impact on all included perceived luxury values and more strongly impacts perceived uniqueness for Muslims than for Christians.

Originality/value

The paper builds on an integrative luxury values framework to examine the impact of luxury values on consumers’ purchasing intentions by studying the moderating effect of culture and religion on these relationships. The study is partly set in Kuwait, an understudied country, and investigates a Muslim minority in the UK.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 11 August 2022

Sujo Thomas, Viral Bhatt and Ritesh Patel

This study examines the influence of consumer skepticism on cause-related marketing (CRM) campaign participation intentions of Generation Z consumers from emerging market…

Abstract

Purpose

This study examines the influence of consumer skepticism on cause-related marketing (CRM) campaign participation intentions of Generation Z consumers from emerging market perspective. This study was undertaken due to the paucity of relevant literature in the public domain to directly investigate whether and how consumers' skepticism affects CRM participation intentions, specifically in the luxury retailing context.

Design/methodology/approach

A survey was conducted among 552 Generation Z consumers and path analysis was used to examine the direct and indirect effects of skepticism. The mediation and moderation analysis was used to explore and test the authors' hypotheses via partial least squares structural equation modeling (PLS SEM).

Findings

The authors' findings provide empirical evidence that corporate social responsibility, religiosity and cause involvement positively affects consumer participation intentions, and this link is also established indirectly through skepticism toward the CRM campaign. These findings provide novel theoretical contributions by establishing skepticism's complex role in determining the CRM participation intention in the Generation Z consumers' context. This study further demonstrates the moderating effect of gender and luxury store format on consumer skepticism and CRM participation intentions.

Originality/value

The Generation z group will represent a quarter of the Asia–Pacific region's population by 2025. However, little is known about Generation z consumers' CRM participation intentions. This research would help practitioners, including luxury retailers, CRM managers and advertising professionals, to effectively design CRM campaigns. The paper contributes by highlighting the theoretical implications and managerial implications based on the current findings in the emerging market context.

Article
Publication date: 6 July 2023

Alice Guzzetti, Roberta Crespi and Glyn Atwal

The purpose of this exploratory study is to identify the antecedents of brand hate in respect to luxury brand gamification marketing activities.

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Abstract

Purpose

The purpose of this exploratory study is to identify the antecedents of brand hate in respect to luxury brand gamification marketing activities.

Design/methodology/approach

Five gamified product placements characterized by the ad hoc design of luxury co-branded virtual and/or physical products were selected for the research study. Content analysis was used to identify patterns and classify negative comments shared online into categories.

Findings

A content analysis of the negative comments (n. 2,321) related to the perception toward gamification of luxury fashion in videogames revealed the following seven domains: monetization of the game; promotion of inappropriate behavior; unethical placement; games commodified by brands; predatory monetization; perceived incongruence; poor product performance.

Research limitations/implications

The exploratory research study revealed how the perception of gamification activities trigger negative emotions toward luxury fashion brands. It was significant that many of these emotions fall within the antecedents of brand hate.

Practical implications

Luxury companies and game developers need to be aware and manage the antecedents of brand hate in respect to luxury brand gamification activities in videogames. Moreover, luxury brands need to consider customers’ influencing behavior via online word-of-mouth and the potential to impact attitudes and behaviors of other consumers toward brands.

Originality/value

The ethics of gamification within a marketing context have largely escaped inquiry. The study provides evidence that luxury brands need to align the fundamentals of luxury brand management in the digital world of gaming.

Details

Journal of Business Strategy, vol. 45 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Case study
Publication date: 24 April 2024

Kimberly A. Whitler, Graham D. Wells and Gerry Yemen

Few cases allow the student to understand the relationship between brand strategy, marketing strategy, implementation, and analysis. While some conceive of the process as being…

Abstract

Few cases allow the student to understand the relationship between brand strategy, marketing strategy, implementation, and analysis. While some conceive of the process as being sequential, this case demonstrates that in fact, this process is more fluid, and that implementation and analysis impact subsequent strategy.

This field-based case provides a rare glimpse into the turnaround of a brand that was all but dead. After Buick suffered more than five decades of declining business results and an inferior brand image versus all rivals, few thought that the brand could be resuscitated. This case provides a valuable under-the-hood look at how the Buick team, over time, progresses through a series of marketing improvements all anchored on an evolved strategy. Specifically, Buick introduced a shift in brand strategy behind an evolved brand essence statement (i.e., brand positioning), improved product lineup, new-to-the-world innovation, enhanced dealership service, and more compelling advertising. The results led to a record number of product awards, significantly improved advertising measures, improved service ratings, and better business results.

Despite significant improvement across multiple dimensions of the business, Buick still trailed key competitors on one of the most important measures Buick tracked—the brand momentum rating—suggesting that there was still more work needed to complete the brand turnaround. The case introduces Molly Peck, the new marketing director on Buick, who is wondering what more, if anything, Buick should do. The material allows for instruction around marketing strategy and the process of converting it into implementation through the use of a creative brief.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

Article
Publication date: 2 April 2024

Halil Erdem Akoğlu, Kadir Yildiz and Sushant Kumar

Although extant literature exists on luxury consumption, limited studies have focused on motivation and values to consume luxury brands among athletes. The study aims to uncover…

Abstract

Purpose

Although extant literature exists on luxury consumption, limited studies have focused on motivation and values to consume luxury brands among athletes. The study aims to uncover the motivations that guide athletes’ decision-making processes to consume luxury brands.

Design/methodology/approach

The study utilized the theory of prestige consumption to develop a model. The model posits that bandwagon, snob and veblen motivations guide athletes to seek social and conspicuous values in their consumption of luxury brands. A survey-based questionnaire approach was used to collect data from 343 athletes from Turkey by considering brands from different product categories.

Findings

Findings indicated that bandwagon and veblen motivations are associated with social and conspicuous values. The findings also suggested that bandwagon, snob and veblen motivation are positively associated with luxury consumption intentions. Also, the social and conspicuous values of athletes determine their intentions to consume luxury. The mediating effects of social and conspicuous values are also confirmed.

Originality/value

The study's findings are first to empirically examine the influence of motivations on social and conspicuous value among athletes. The results show that the luxury consumption motivations of the athletes have a strong role in their intention to purchase luxury products. The findings also offer novel managerial implications.

Details

Marketing Intelligence & Planning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-4503

Keywords

Expert briefing
Publication date: 22 April 2024

Strong household demand, now restored to pre-war levels, mitigated the impact on GDP of falling exports last year. The consumer market is profoundly changed, with new brands from…

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