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Article
Publication date: 19 September 2023

Jonas Holmqvist, Jochen Wirtz and Amandine Issandou

What role do consumers play in constructing their own luxury experiences? Challenging the dominant product-focus in luxury conceptualizations, this research note conceptualizes…

Abstract

Purpose

What role do consumers play in constructing their own luxury experiences? Challenging the dominant product-focus in luxury conceptualizations, this research note conceptualizes agentic luxury in the context of luxury services. Drawing on extant luxury research, the purpose of this article is to develop how consumers may take on more active roles in enacting their own luxury services experiences.

Design/methodology/approach

This research note is conceptual but builds on managerial insights from the luxury service sector to conceptualize the concept of agentic luxury.

Findings

Our research note develops a conceptual definition of agentic luxury and provides seven research propositions for its impact on luxury service encounters. These propositions detail how consumers engage in constructing their luxury experience; the roles of consumers and luxury service providers in the experience; and boundary conditions of agentic luxury. The authors further develop the role of customer-as-designer and highlight similarities and differences for agentic luxury between luxury goods and services.

Practical implications

The authors combine the recognized specificities of the largely goods-dominated luxury sector with service research to show how luxury service providers can engage customers for more complete and engaging luxury service experiences.

Originality/value

To the best of the authors’ knowledge, this research note is the first to conceptualize agentic luxury. The authors show how agentic luxury fills a gap in the current literature, and our propositions advance the relevance of agentic luxury for luxury service research.

Details

Journal of Services Marketing, vol. 37 no. 9
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 11 April 2022

Philipp “Phil” Klaus and Annalisa Tarquini-Poli

This study aims to address the need to empirically investigate the luxury customer service experiences of the ultra-high-net-worth individual (UHNWI) segment by conducting and…

Abstract

Purpose

This study aims to address the need to empirically investigate the luxury customer service experiences of the ultra-high-net-worth individual (UHNWI) segment by conducting and analyzing interviews with 20 clients flying private jets. The results lead to a conceptualization of the UHNW private aviation customer experience.

Design/methodology/approach

This study applied a three-step method to explore the meaning and domain of the UHNWI luxury service experience. First, the perception and corresponding attributes of customers’ experiences using private aviation services were examined through 20 in-depth interviews and by using the soft laddering technique. Second, this study coded and, subsequently, purified the data by means of a systematic comparison approach and hierarchical coding. Third, a panel of judges, using the emerging consensus technique, scrutinized and validated the emerging dimensions.

Findings

The analysis reveals the customer experience (CX) and motivations differ significantly between business and leisure use, moving from a functional toward an experiential value focus. The findings emphasize the lack of social value for the UHNWI CX and introduce time as a new value dimension.

Research limitations/implications

This study provides multiple contributions to the customer experience, luxury and luxury services literature. This study enhances scholarly understandings of the holistic UHNWI CX in the context of an absolute luxury offering, thus providing a needed conceptualization of an underresearched customer segment, namely, the UHNWI. It delivers insights on the different motivations and experience UHNWI are seeking for according to the context. This study proposes a new luxury value dimension: time.

Practical implications

This study highlights multiple opportunities for UHNWI customer experience improvement. The findings reveal that different clients are looking for different experiences in terms of business versus leisure use. The key drivers and expectations shift from functional (price/availability/flexibility) to experiential factors (comfort/onboard experience/relationship with crew and pilot). Communication, marketing and CX management strategies and tactics need to emphasize this important distinction regarding what drives client behavior in the private aviation setting.

Originality/value

The contribution of this paper is threefold. First, it defines UHNWI characteristics and overall experiences using the unique über-service of private aviation, thus advancing scholarly understanding of both the luxury customer and the luxury customer service experience beyond the proposed traditional drivers of luxury consumption. Second, this study expands the conceptual foundation for the UHNWI “über-luxuryservice experience, which, given the importance of the UHNWI segment, is important. Third, this study contributes to theoretical knowledge by extending customer value perception in the luxury context by introducing the luxury value dimension of time. This study concludes with a discussion of its findings’ implications for luxury research and practice, providing a future research agenda with regard to UHNW.

Details

European Journal of Marketing, vol. 56 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Book part
Publication date: 12 October 2018

Ruiyu Feng, Yao-Chin Wang and Bill Ryan

This chapter conceptualizes a framework that can be applied to examine the service experiences of business tourists at luxury hotels. A synthesized literature review results in…

Abstract

This chapter conceptualizes a framework that can be applied to examine the service experiences of business tourists at luxury hotels. A synthesized literature review results in the identification of three service constructs − surprise, recovery, and sweetness − that constitute the service experiences. In the development of five propositions and in views of emotional appreciation and reciprocity, the chapter posits that emotional value from these three constructs of service experiences can enhance business tourists’ attitude of gratitude and consequently their willingness to pay a price premium. The proposed conceptual framework extends the three service constructs to, and integrates them with, a value–attitude–behavior model.

Details

Quality Services and Experiences in Hospitality and Tourism
Type: Book
ISBN: 978-1-78756-384-1

Keywords

Article
Publication date: 30 June 2020

Jochen Wirtz, Jonas Holmqvist and Martin P. Fritze

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…

6232

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Practical implications

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).

Originality/value

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.

Details

Journal of Service Management, vol. 31 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

Book part
Publication date: 25 January 2022

Jacqualine Spence, Pierre Benckendorff and P. Monica Chien

Luxury tourism is an emerging area of research and deserves consideration for its implications for tourism and hospitality management and policy development. This chapter reviews…

Abstract

Luxury tourism is an emerging area of research and deserves consideration for its implications for tourism and hospitality management and policy development. This chapter reviews the phenomena of luxury tourism in the academic literature and in particular, its links to the concepts of high yield, sustainability and tourist experiences. The global hiatus caused by the COVID-19 pandemic has presented an opportunity for tourism policymakers and industry stakeholders to reconsider how luxury tourism can contribute to optimal economic, social and environmental outcomes with desired yield and sustainability aspirations. A renewed understanding of luxury tourism in terms of its production and consumption processes, as well as the associated value, emotion and narrative, is therefore of critical importance. The value of this chapter lies in synthesising a number of strands of inquiry across disparate bodies of literature to identify a research agenda. Areas that are proposed for further research include the conceptualisation of luxury tourism, the evolving nature of luxury experiences; value co-creation across all stages of luxury tourism; and the nexus between luxury tourism and destination image. Managerial implications of luxury tourism are also discussed, including the necessary conditions for cultivating luxury tourism; the need to measure the social and environmental impact of luxury tourism; and the important relationships between luxury tourism, innovation and market leadership.

Details

The Emerald Handbook of Luxury Management for Hospitality and Tourism
Type: Book
ISBN: 978-1-83982-901-7

Keywords

Article
Publication date: 11 April 2022

Mona Mrad, Maya Farah and Nour Mehdi

The purpose of this study is to explore the pros and cons of WhatsApp communication service and its likely effects on consumer behavior and one’s perception of luxury brands.

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Abstract

Purpose

The purpose of this study is to explore the pros and cons of WhatsApp communication service and its likely effects on consumer behavior and one’s perception of luxury brands.

Design/methodology/approach

This study conducted 27 in-depth interviews with UK-based participants. This study used NVivo12 to thematically analyze the collected data.

Findings

The findings indicate that perceived communication convenience, searching for prepurchase information, intimate consumer–brand relationship, perceived self-worth and the thrill of a new service positively contribute to luxury customers’ acceptance of WhatsApp communication usage. Nevertheless, many factors including push promotional strategy, poor service quality, brand “massification” effect, deficient sensory experience, fear of financial risk and deceptive practices, all curbed the participants’ acceptance of this communication platform. When service is poor, all these factors jeopardized the luxury image, causing an impaired brand image, accompanied with negative word of mouth and in some instances, unexpected anticonsumption reactions.

Research limitations/implications

This study carries the limitations of any exploratory and qualitative research. Therefore, future research should replicate this study in other areas and for other instant messaging platforms.

Practical implications

The implications of this study serve as a reference for luxury brands’ managers when managing their WhatsApp service. This study provides important insights into the risk of using WhatsApp by luxury brands to communicate with customers. The overall conclusion is that WhatsApp communication service requires a close, supervised and innovative use to benefit luxury brands.

Originality/value

To the best of the authors’ knowledge, the topic of WhatsApp usage as a communication mean in the luxury industry is still largely underexplored, hence filling a gap in the literature that needs to be addressed given its significant implications.

Details

Qualitative Market Research: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1352-2752

Keywords

Book part
Publication date: 25 January 2022

Anni Ding and Tiffany S. Legendre

This chapter aims to introduce luxury brand management strategies applied in the hospitality industry and illustrate how luxury hospitality business operators can create…

Abstract

This chapter aims to introduce luxury brand management strategies applied in the hospitality industry and illustrate how luxury hospitality business operators can create, communicate and sustainably manage luxury brands. This chapter introduces the definitions and dimensions of luxury brands, followed by an exploration of the concept and importance of luxury brand sustainability. This chapter then explores how to maintain long-term luxury hospitality brand sustainability by applying a luxury brand framework. This chapter uses a case study featuring the Four Seasons Hotels and Resorts (FSHR) to understand how a luxury brand communicates and maintains its sustainability through its various dimensions through the process of brand creation, communication and management. The chapter ends by providing practical implications for existing luxury hospitality brand organisations in the arena of customer service.

Details

The Emerald Handbook of Luxury Management for Hospitality and Tourism
Type: Book
ISBN: 978-1-83982-901-7

Keywords

Article
Publication date: 25 October 2022

Damini Goyal Gupta, Hyunju Shin and Varsha Jain

The luxury experience is a growing and crucial component of luxury marketing. Experiences inspire consumers to engage with luxury brands. Although several research studies have…

5691

Abstract

Purpose

The luxury experience is a growing and crucial component of luxury marketing. Experiences inspire consumers to engage with luxury brands. Although several research studies have shed light on the origin, development, and prominence of luxury experiences among consumers, there is a scarcity of research that analyzes the current knowledge holistically. As a result, this study uses a systematic literature review technique to better understand the trends in the luxury experience and consumer behavior literature and suggests future research directions to further develop the subject area.

Design/methodology/approach

Using the theory-context-characteristics-methodology (TCCM) framework, this study examines 130 articles on the luxury experience and consumer behavior.

Findings

Most research on luxury experiences has focused on the luxury service experience in the context of hospitality and tourism. Future researchers should explore avenues for providing luxury experience to consumers in the luxury products industry. In addition, more research is needed into the influences of the recent COVID-19 outbreak and technological advancements on consumers' luxury experiences.

Originality/value

The study is unique as it (1) presents a state-of-the-art understanding of the luxury experience and consumer behavior literature by analyzing the applied theories, research contexts, study characteristics, and methods used in the past studies and (2) suggests future research opportunities to advance the field. The findings will also assist luxury brand managers in designing a consumer's exceptional luxury experience.

Details

Marketing Intelligence & Planning, vol. 41 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 10 June 2021

Nguyen Thi Cam Le, Vo Thi Quy and Hoang Thi Kim Quy

This research aims to investigate the effect of personal values on customer satisfaction and whether positive experiences lead to positive word of mouth (WOM) about the luxury

Abstract

Purpose

This research aims to investigate the effect of personal values on customer satisfaction and whether positive experiences lead to positive word of mouth (WOM) about the luxury hotel service from the Confucian perspective.

Design/methodology/approach

This research developed a structural equation model for testing. Research data collected from Confucian participants who have used luxury hotel services in Vietnam, where Confucianism is the dominant cultural paradigm.

Findings

The results show that there is a positive relationship between Confucian customer personal values and satisfaction, as well as between customer satisfaction and positive WOM; personal values had no effect on positive WOM.

Research limitations/implications

This research implies that the personal values of Confucian consumers constitute the lens through which they view the world, thus the service personal values reflect their priorities on luxury hotel service consumption. A key to success for luxury hotel service providers lies in providing services that enhance Confucian customer personal values, which allow service providers to intercommunicate with the Confucian consumers’ core.

Originality/value

This research is significant because there is little research on personal values from the cultural mechanism of Confucian culture. This research also comes up with a richer understanding of the relationship between customer personal values and behaviors within the luxury hotel segment.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 15 no. 4
Type: Research Article
ISSN: 1750-6182

Keywords

Article
Publication date: 27 December 2022

Attila Pohlmann, Franklin Velasco, Eva M. Guerra-Leal and Cesar J. Sepulveda

Place identity refers to the combination of physical setting, social interactions, emotions and associated meanings. This research paper aims to broaden knowledge about boutique…

Abstract

Purpose

Place identity refers to the combination of physical setting, social interactions, emotions and associated meanings. This research paper aims to broaden knowledge about boutique concepts and to examine the role of advertisement types suited to generate a heightened sense of place for customers. The design and delivery of tangible and intangible components of the boutique service experience are investigated to better understand business-relevant customer outcomes.

Design/methodology/approach

An introductory qualitative study explores the key features and managerial relevance of the boutique appeal as a means to communicate personalization and a sense of place. Interviews with managers of a boutique catering service are conducted and thematically analyzed. A quantitative follow-up study examines the effect of the boutique appeal on hotel image, purchase intention and willingness to pay.

Findings

A boutique hotel appeal is more attractive to customers (compared to traditional luxury appeals) when it is advertised using visually engaging virtual tours because it augments customers’ sensation of place identity. The mediating psychological mechanism, place identity, represents the essential emotional component evoked by boutique concepts and its positive effect on managerially relevant customer outcomes.

Originality/value

This paper provides insight for the design and management of boutique concepts to better shape and predict consumer responses in various luxury hospitality industries. The process by which customers identify with the location where the service is provided, socialize with staff and attach meaning to these settings evokes a sense of place identity, a critical resource in the process of value co-creation.

Details

Consumer Behavior in Tourism and Hospitality, vol. 18 no. 1
Type: Research Article
ISSN: 2752-6666

Keywords

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