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The purpose of the study is to introduce the idea of arena-relevant marketing capabilities and examine their impact on firm performance. Arena-relevant marketing capabilities are capabilities particularly relevant for success in a specific competitive arena in which rivals from different industries try to satisfy customer needs with alternative products and services. The authors focus on the luxury arena and pose the following research questions: Which are the arena-relevant marketing capabilities in the luxury competitive arena (i.e. luxury-arena-relevant capabilities)? (2) What is the relative importance of luxury-arena-relevant vs general marketing capabilities for firm performance in the luxury competitive arena?

To identify luxury-arena-relevant marketing capabilities, the authors conduct a qualitative study among 21 top managers of luxury brands. A subsequent large-scale managerial survey empirically tests the effects of luxury-arena-relevant vs general marketing capabilities on firm performance.

The study identifies four luxury-arena-relevant marketing capabilities: perfection in product creation, exclusive pricing, luxury-congruent storytelling and luxury brand inspiration. It confirms empirically that they have a higher impact on firm performance within the luxury competitive arena than general marketing capabilities.

The study takes an innovative perspective on marketing capabilities by linking them with the concept of a competitive arena and underlines the academic relevance of the concept of arena-relevant marketing capabilities for explaining firm performance.

The purpose of this paper is to introduce a new perspective on ambidextrous innovation orientation looking at how the current digital transformation is accepted in the fashion industry in Italy. Precisely, the objective of the paper is to test whether the use of social media platforms positively influences ambidextrous innovation orientation in fashion companies.

Empirical quantitative research was carried out on a sample of 853 small- to medium-sized enterprises (SMEs) operating in the fashion industry in Italy. Using a logistic regression methodology, four hypotheses were tested to verify the correlation of four dimensions of social media platforms with an ambidextrous innovation orientation among fashion firms.

The four hypotheses were validated: the structural dimension, the relational behaviour dimension, the cognitive dimension and knowledge transfer practices of social media platforms were proven to positively influence ambidextrous innovation orientation in fashion firms.

Though this is one of the few research studies that offers a quantitative analysis in this field, it could be further developed, for instance by extending the sample of firms to SMEs operating in other countries or by comparing multinationals with SMEs.

This paper provides an original contribution to studies on the use of social media to promote ambidexterity in firms, which has only been studied to a limited extent in the extant literature. From this perspective, the originality of the study is further strengthened by the unique context of analysis, namely, the fashion industry in Italy.

The purpose of this paper is to identify the defining characteristics of the extreme luxury fashion business model (ELFBM) and the relationship between this business model and the process of firm internationalization. The paper examines the potentially positive outcomes of differences and distances in the internationalization process of extreme luxury fashion companies.

The paper presents and discusses the data collected during a five-year case analysis of an Italian luxury company. The main characteristics of the business model are identified in terms of products, manufacturing and sourcing, distribution channels, marketing communications and overall characteristics of consumers. The internationalization process is described, with a focus on the Russian market as an emblematic case, highlighting the role of distances – geographic, psychic and cultural – and liabilities, namely foreignness and outsidership in the international expansion of the firm.

The findings of this paper highlight the main features and specific traits of the ELFBM characterized by a global and unique approach to the offer. This business model has in its origin the demand from certain foreign markets, and the elements of the country of origin of the firms coexist and are enhanced by the presence of specific characteristics of the destination countries in terms of niche consumers with economic and cultural characteristics and a strong perception of “Made in” and luxury goods.

The paper contributes to previous studies on the relationships between business models and internationalization. It provides a framework for the “ELFBM,” in which internationalization is a constitutive element of a specific business model rather than a strategy for a business model already defined. Examining the positive side of differences and distances in the internationalization process of firms adopting such business model, the paper contributes to the international business theory and practice. It also expands research on luxury fashion defining an international company which is under-investigated, the extreme luxury fashion company, and the elements that constitute its business model.

The market for luxury products and services plays a significant role in the world economy. The luxury hotel market is a crucial segment within the global market for luxury products and services. Luxury hospitality recorded a 5% growth rate along with demand for luxury cruises recording the growth of 7%, the highest among all luxury segments. The remarkable performance of luxury products and services over a period is attributed to the laudable marketing communication strategies of luxury marketers. In this research, we aimed to analyse how a multi-brand hospitality firm differentiates its luxury brand with other luxury brands in the portfolio, using textual messages aimed to communicate the uniqueness of the brands in its official websites. The case study method and content analysis are adapted to achieve the research objective. The study results show that different luxury brands under the brand portfolio of Marriott International can communicate the differences through the textual contents. Most of the differentiation relies on brand-specific features, traditions, services, location of the hotel and metadata on the Internet, followed by branded differentiators. It may be concluded that Marriott has been successful to an extent in using text contents in the website to differentiate its luxury brands.

Past research on luxury is fragmented resulting in challenges to define what the construct of luxury means. Based on a need for conceptual clarity, this study aims to map how research conceptualises luxury and its creation.

This study presents a scoping review of luxury articles published in peer-reviewed journals. Of the initial 270 articles discovered by using the database of Scopus, and after control searching in Web of Science and reference scanning, 54 high-quality studies published before the end of 2020 were found to meet the inclusion criteria and comprised the final analytical corpus.

The findings demonstrate that research approaches luxury and its creation from three different perspectives: the provider-, consumer- and co-creation perspectives. In addition, the findings pinpoint how the perspectives differ from each other due to fundamental and distinguishing features and reveal particularities that underlie the perspectives.

The suggested framework offers implications to researchers who are interested in evaluating and developing luxury studies. Based on the identified luxury perspectives, the study identifies future research avenues.

The study contributes to the luxury research stream by advancing an understanding of an existing pluralistic perspective and by adding conceptual clarity to luxury literature. It also contributes to marketing and branding research by showing how the luxury literature connects to the evolution of value creation research in marketing literature.

This paper aims to examine how collaborative supplier development (SD) activities, supplier capabilities and buyer–supplier relationship interrelate in technology-based, luxury product business contexts characterized by small volumes, difficult targets and resource constraints relative to those targets.

Using inductive case research method, the authors investigate multiple embedded cases involving six dyadic buyer–supplier relationships of two luxury product manufacturers in the motorcycle and automotive industries. Each dyad represents an important sub-system for which the buying firm committed significant SD efforts to help the supplier successfully achieve difficult targets.

The analysis reveals how paradoxical tensions might emerge as the firms engage in successful SD activities, which could lead to decreasing relationship commitment ultimately resulting in the termination of the relationship. The authors utilize the “value co-creation and value capture” paradox framework to understand the SD and relationship dynamic and characterize it as developing-leveraging paradox to explain its dualities, i.e. commitment-based SD efforts (increasing value co-creation), and unilateral leveraging of the newly acquired capabilities (increasing value capture) by both the buyer and the supplier. Overemphasis on value capture by one of the exchange partners spurs a detrimental vicious cycle leading to the decline of the relationship.

The study explains the paradoxical dynamics that may emerge in SD activities of innovative, technologically complex, luxury product firms. The findings contribute to the SD literature by highlighting how learnings from SD activities could contribute to the dark sides of buyer–supplier relationship. The technologically complex, luxury product contextual characteristics of the study may limit the generalizability of the study findings.

The study provides novel insights into the emergence and management of paradoxes in buyer–supplier relationships, in terms of virtuous and vicious dynamics of developing-leveraging.

Employing the qualitative method, this paper sets out to investigate the role and function of flagship stores as a market entry mechanism employed by luxury fashion retailers.

The paper employs an interpretive research position, utilising qualitative techniques in the form of semi‐structured interviews with élite informants. In total, 12 luxury fashion retailers form the empirical focus of the work.

The paper identifies the defining characteristics of luxury retailers' flagship stores. It finds that luxury flagship stores represent a strategic approach to market entry that is employed to support, enhance and develop distribution activities within a foreign market. The interdependence of flagship stores and the wholesaling method of distribution is highlighted. The importance of the flagship store in reinforcing and enhancing the retailer's luxury status and enhancing and maintaining relationships not only with customers but also with distribution partners and the fashion media is found to be significant.

The paper provides practical information to luxury retailers on the role and importance of flagship stores as a method of entering international markets.

Flagship stores are a pivotal aspect of any luxury fashion retailer's internationalisation strategy. For the first time in the literature, the paper provides insights into their form and function and an understanding of why they are crucial to the international development of luxury retailers despite their prohibitively high cost.

The purpose of this study is to develop and empirically test a theoretical framework that captures the impact of corporate branding on customer emotional attachment and brand loyalty in the luxury fashion market.

Cross‐sectional data were collected from 282 customers who purchased luxury brands. Structural equation modelling was used to test the hypotheses of the framework developed for the study.

Findings found limited effect of corporate branding on customer emotional attachment and brand loyalty. Among the six corporate branding dimensions examined, only corporate association, functional benefits, and symbolic benefits were found to have a significant impact on emotional attachment. Further, the impact of corporate branding on brand loyalty was only evident through functional benefits and corporate associations.

This study offers new empirical support for the proposition that corporate branding efforts have a role, thought limited, in building customer emotional attachment and loyalty towards luxury brands. As such, findings from this study can provide managers with a guide to managing their branding strategies so that customer emotional attachment and brand loyalty can be built in the most cost‐effective manner.

This is the first study to examine the relationship between corporate branding, emotional attachment, and brand loyalty in the luxury fashion context. The examination of the differential effects of corporate branding dimensions on emotional attachment and loyalty has contributed to a better understanding of the mechanism that underlies the operation of an effective corporate branding strategy.

The market for luxury is growing rapidly. While there is a significant body of literature on luxury goods, academic research has largely ignored luxury services. The purpose of this article is to open luxury services as a new field of investigation by developing the theoretical and conceptual underpinnings to build the luxury services literature and show how luxury services differ from both luxury goods and from ordinary (i.e. non-luxury) services.

This paper uses a conceptual approach drawing upon and synthesizing the luxury goods and services marketing literature.

This article makes three contributions. First, it shows that services are largely missing from the luxury literature, just as the field of luxury is mostly missing from the service literature. Second, it contrasts the key characteristics of services and related consumer behaviors with luxury goods. The service characteristics examined are non-ownership, IHIP (i.e. intangibility, heterogeneity, inseparability, and perishability), the three additional Ps of services marketing (i.e. people, processes, and physical facilities) and the three-stage service consumption model. This article derives implications these characteristics have on luxury. For example, non-ownership increases the importance of psychological ownership, reduces the importance of conspicuous consumption and the risk of counterfeiting. Third, this article defines luxury services as extraordinary hedonic experiences that are exclusive whereby exclusivity can be monetary, social and hedonic in nature, and luxuriousness is jointly determined by objective service features and subjective customer perceptions. Together, these characteristics place a service on a continuum ranging from everyday luxury to elite luxury.

This article provides suggestions on how firms can enhance psychological ownership of luxury services, manage conspicuous consumption, and use more effectively luxury services' additional types of exclusivity (i.e. social and hedonic exclusivity).

This is the first paper to define luxury services and their characteristics, to apply and link frameworks from the service literature to luxury, and to derive consumer insights from these for research and practice.

This paper aims to explore a theoretical relationship among perceptions of consumer social class, the perceived legitimacy of customer requests for service and the delivery of intangible services. It focuses the discussion on service firm encounters with non-traditional consumers seeking to purchase from luxury brands.

The paper reviews the literature for current trends in strategies of luxury brands and characteristics of evolving global and Asian consumer markets for luxury and neo-luxury goods and draws a theoretic model with propositions.

Evidence suggests that service providers can improve efforts to expand services to the newly rich and trading-up neo-luxury consumer markets by focusing on the intangible elements of the service delivery system. Particular emphasis is placed on enhancing employee treatment of neo-luxury customers during service encounters by understanding the influence of employee perceptions of consumer social class and evaluations of the perceived legitimacy of customer requests for service.

The paper contributes to the theoretical discussion in luxury brand management by suggesting that employees are influenced by impressions of customer worth and other attributes when determining responses to customers during service encounters. Implications for practitioners and future research directions for academics based on the framework are presented.