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Article
Publication date: 15 November 2013

Xia Liu, Alvin C Burns and Yingjian Hou

– The purpose of this paper is to compare and contrast the online and in-store shopping behavior towards luxury goods.

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Abstract

Purpose

The purpose of this paper is to compare and contrast the online and in-store shopping behavior towards luxury goods.

Design/methodology/approach

Two studies are presented. Study one is qualitative in nature. It uses a mixed method approach and explores why luxury consumers decide to purchase luxury products online or in-store. The second study is a quantitative one. It tests the hypotheses drawn from the first study and validates the qualitative results.

Findings

Online and in-store luxury shoppers are influenced by different motivational factors. Online luxury shoppers are price-conscious, prefer the online product availability and have a higher level of trust towards online customer reviews. In-store shoppers who are more averse to online risks find it very important to see the product personally before the purchase and value shopping experience and interactions. In addition, differences exist between the online shopping behaviors of regular and luxury shoppers.

Research limitations/implications

It contributes to luxury consumption research and expands shopping motivation literature by investigating luxury buyer behavior in the online context.

Practical implications

Luxury retailers should pay attention to the newly emerging segment of online luxury consumers. Lack of trust prevents more luxury consumers from shopping on the internet and the trustworthiness of the sellers can help attract potential shoppers. Luxury retailers can cater to the needs of different types of luxury buyers.

Originality/value

This paper is the first exploratory, comparative study on luxury consumption in the online and physical store environments. It investigates the motivational factors that drive the shopping behavior of internet and in-store luxury shoppers.

Details

International Journal of Retail & Distribution Management, vol. 41 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 8 June 2015

Elisa Arrigo

– The purpose of this paper is to explore the strategic role of the flagship store geographic location in improving luxury brand positioning.

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Abstract

Purpose

The purpose of this paper is to explore the strategic role of the flagship store geographic location in improving luxury brand positioning.

Design/methodology/approach

Drawing on the literature review on flagship store format, retail geography and place marketing, the study adopted a qualitative research design based on case studies of six luxury fashion retailers. A conceptual framework of flagship store location has been proposed, and the flagship store locations of these case studies have been examined in six worldwide capitals.

Findings

The presence and the geographical proximity of many flagship stores in the same particular urban area contribute to developing a “luxury sense of place” related to their brands. Thus, through a co-branding strategy inherent in the selection of the best site for their flagship stores, luxury firms improve their brands’ positioning by the generated “luxury sense of place”.

Research limitations/implications

The principal limitation of the research is the scale of the case studies, but the findings show the feasibility of extending the research basis to a larger number of luxury retailers.

Originality/value

This study addresses an under-researched area in the retail literature, investigating the relationship between flagship store location and luxury branding. It is the only research to explore the social dimension of the geographic location of luxury flagship stores and the first one to examine cities in terms of flagship store density.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 30 January 2024

Jiayi Lyu, Cora Un In Wong, Zhuo Li and Lianping Ren

This study aims to understand how retailscape of pop-up stores could influence young Chinese tourists’ emotional response and their subsequent shopping intention in the context of…

Abstract

Purpose

This study aims to understand how retailscape of pop-up stores could influence young Chinese tourists’ emotional response and their subsequent shopping intention in the context of luxury retailing.

Design/methodology/approach

A quantitative approach was chosen. Building on the theoretical framework of the stimulus–organism–response (S–O–R) theory, a pop-up store retailscape behavior model was developed to explore the effect of retailscape on young Chinese tourists’ emotional response and patronage intention in a luxury retail setting. In total, 226 structured questionnaires were collected onsite.

Findings

The multiple regression analysis reveals that a luxury pop-up store’s retailscape has a positive influence on young Chinese tourists’ emotional response, but it only has a partial influence on their patronage intention. In addition, the result suggests that young Chinese tourists’ emotional response positively influences their patronage intention in luxury pop-up stores.

Practical implications

The study reveals how retailscape influences behavior among the younger generation, and the results provide important references for the luxury retailers in future design and management of pop-up stores so as to attract and retain the interest of the younger generation.

Originality/value

This study puts retailscape effect under scrutiny in the context of luxury pop-up stores which attract young Chinese tourists, who are regarded as one of the major patrons supporting exclusive retail brands in the world. The stimuli element in the S–O–R model is, thus, reexamined in the context of luxury pop-up stores.

Details

Young Consumers, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 22 August 2023

Diego A. de J. Pacheco, Rodrigo Veleda Caetano, Samuel Vinícius Bonato, Bruno Miranda dos Santos and Wagner Pietrobelli Bueno

Small retail stores in the luxury market face significant challenges due to fluctuations in market demand. This task turns challenging as it requires effectively coordinating and…

Abstract

Purpose

Small retail stores in the luxury market face significant challenges due to fluctuations in market demand. This task turns challenging as it requires effectively coordinating and translating customer needs into specific requirements that align with retail goals and available resources. However, limited empirical research exists investigating how managers can address service value and quality attributes in small retail stores. This article aims to bridge this gap by investigating the role of quality function deployment (QFD) in improving market and quality requirements management in small retail stores.

Design/methodology/approach

Based on the case study, a customer survey was initially conducted to gather information on critical characteristics valued in the luxury retail segment. QFD was used to assist the company in identifying and prioritizing key quality attributes to meet customer requirements effectively.

Findings

The findings demonstrate that implementing QFD in small luxury retail stores empowers managers to identify previously neglected product and service quality aspects. The article shows that QFD informs organizational adaptations that align with the demands of the retail market, leading to an improved ability to meet customer expectations and enhance customer value through the development of enhanced products and services. The study showcases the efficacy of the tested methodology in effectively capturing and prioritizing both tangible and intangible customer needs in retail.

Practical implications

Findings offer valuable insights to retail managers of small luxury stores, providing actionable market-oriented strategies. By implementing the recommended practices, managers can improve the store’s competitiveness and better cater to the customer base.

Originality/value

This study contributes to bridging persistent knowledge gaps by addressing the unique context of small luxury retail stores and introducing the application of QFD in this setting. The insights gained from this research are relevant to both retailing and quality management literature. Considering the growing prevalence of transformations in the retail industry, the study provides practical implications for retail managers in effectively navigating these changes.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 9 November 2012

Karinna Nobbs, Christopher M. Moore and Mandy Sheridan

Since the concept of the flagship store format was first introduced to retailing in the 1970s, both its form and function have evolved considerably. The highest concentration of…

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Abstract

Purpose

Since the concept of the flagship store format was first introduced to retailing in the 1970s, both its form and function have evolved considerably. The highest concentration of flagships can be seen in the luxury fashion market. This paper aims first to define the flagship concept in terms of its key characteristics, and second to outline the academic and industry developments, thereby charting its evolution.

Design/methodology/approach

Research was undertaken qualitatively due to the exploratory theory building nature of the subject area and the absence of accepted theoretical frameworks. This took the form of non participant observation and in‐depth interviews with brand representatives within seven major fashion capitals.

Findings

The research identifies essential elements of the luxury store format: its scale and size which usually exceeds functional need; it is derived and built on the twin features of exclusivity and uniqueness; it seeks to offer the customer a justification for their visit. The format evolves and adapts to find new ways of generating and communicating differentiation.

Research limitations/implications

The findings provide direction for future research in the area, in particular, an opportunity to investigate how luxury flagship stores adapt in order to accommodate market conditions.

Originality/value

The paper delineates the characteristics of the luxury flagship store format and identifies a new characteristic of this format.

Details

International Journal of Retail & Distribution Management, vol. 40 no. 12
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 11 November 2021

Ken Kumagai and Shin'ya Nagasawa

The study explores the influence of shopping channels on the hedonic shopping experience, contributing to subjective well-being (SWB) based on the purchased branded product. It…

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Abstract

Purpose

The study explores the influence of shopping channels on the hedonic shopping experience, contributing to subjective well-being (SWB) based on the purchased branded product. It also assesses the variations in these effects according to brand luxury. The purpose of the paper is to provide strategic suggestions for building luxury apparel distribution tactics that balance maintaining brand luxury with business growth through both physical stores and digital stores (e-retail).

Design/methodology/approach

Based on 418 samples collected in Japan, consumers' perceptions of hedonic shopping value and SWB are examined according to two channel factors, such as physical retail vs e-retail and mono-brand stores vs multi-brand stores. Additionally, the moderation effects of brand luxury are discussed.

Findings

Multi-group path analyses reveal that physical mono-brand stores contribute to hedonic shopping value. In addition, this experiential value is found to increase SWB, especially when the brand luxury level is high.

Practical implications

These findings suggest that managers should place a high level of importance on consumers' shopping experiences via physical direct retail especially in the case of a higher luxury level, even in today's highly developed digital environment.

Originality/value

The current study uniquely discusses the effects of shopping channels and experiences on SWB based on an acquired branded product, i.e., an evaluation of the outcome of shopping behavior and product acquisition. The study also reinforces the importance of physical stores suggested in previous luxury research.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 9
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 22 February 2013

Veronica Manlow and Karinna Nobbs

Luxury shopping touches upon many facets of experience, ranging from the strategic objectives of the brand to the subjective, interpersonal experiences of individuals. The purpose…

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Abstract

Purpose

Luxury shopping touches upon many facets of experience, ranging from the strategic objectives of the brand to the subjective, interpersonal experiences of individuals. The purpose of this paper is to investigate the flagship's form and appearance: including architecture, decor, arrangement of space, symbolic elements, location, and its function to better understand the role of the aesthetic environment of the flagship as a means of communicating the brand's objectives, which are mediated by a consumer's perception of the brand and store, the goals he or she brings to the experience, and the situational determinants of the shopping experience.

Design/methodology/approach

The authors explore the strategic role and customer experience of flagships in major international locations through interviews with luxury flagship managers and customers. Site visits were made to multiple brands. Ethnographic research on the consumer experience was carried out in two locations of a major brand's flagship store.

Findings

The authors arrive at definite characteristics comprising branding strategies, retail practices, and the consumer experience. The findings contribute to a more comprehensive delineation of the meaning and purpose of luxury flagships.

Research limitations/implications

The exploratory study focused broadly on managers’ views, and on the customer experience of one brand in two major cities. Comprehensive interviews and survey research should be conducted in targeted stores with a focus on customers at these flagships.

Practical implications

The paper yields practical information which can be used by brands to more effectively provide a satisfying customer experience. The paper adds to the empirical research on the aesthetic dimensions of flagship stores, its function in relation to the brand, and the experience it provides customers.

Social implications

This empirical study explores the meaning and usage of branded spaces and retailing strategies to those who experience the environment: managers and customers.

Originality/value

The paper explores the phenomena of the luxury flagship experience along two pivotal points: the point of view of managers who are charged with promoting the goals set forth by the brand and that of customers who experience the luxury environment on their own terms, as well as responding to the sensorial environment they encounter.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 17 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 12 March 2020

Charles Jebarajakirthy, Rambalak Yadav and Amit Shankar

The purpose of this study is to investigate whether customer intention to purchase luxury products from the online stores of fashion luxury retailers varies depending on their…

1995

Abstract

Purpose

The purpose of this study is to investigate whether customer intention to purchase luxury products from the online stores of fashion luxury retailers varies depending on their degree of corporate image and showrooming strategy, when the retailers do not have a wider store network in the region where customers live.

Design/methodology/approach

Two scenario-based, between-subject experimental studies were conducted to test the hypotheses.

Findings

Findings showed that both building corporate image and showrooms are effective in enhancing customer intention to purchase from online stores, without widely increasing the number of stores; however, building corporate image is more useful to high corporate-image retailers and showrooms are more appealing to low corporate-image retailers.

Practical implications

The findings are useful to fashion luxury retailers, particularly those based in Western countries who seek to target customers in other regions, particularly those in developing countries.

Originality/value

This study contributes to the literature on online fashion luxury consumption and multichannel retailing.

Details

Marketing Intelligence & Planning, vol. 38 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 15 November 2013

Marie-Cécile Cervellon and Rachael Coudriet

This research aims to investigate the factors which contribute to the power of luxury brands in the stores and the means through which brand power meaning transfers to the…

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Abstract

Purpose

This research aims to investigate the factors which contribute to the power of luxury brands in the stores and the means through which brand power meaning transfers to the clients.

Design/methodology/approach

The research protocol follows a phenomenological approach, through analyses of narratives of customers with lived shopping experiences in luxury stores. Data were collected in two phases: first, a collection of experiences from clients with different cultural backgrounds in the same store; second, a comparison of experiences for the same client in thirty-three luxury stores around the world. This cross-examination procedure enhances the trustworthiness of the findings.

Findings

Although French and Raven ' s typology of power (referent, reward, coercive, legitimate, expert) is relevant when studying the luxury brand-client relationship, it is not sufficient to explain entirely the sources of the luxury brand power. Through the brand cathedral (the flagship store), the brand ambassadors (sales representative), the brand protocol (rituals and selling ceremony) and the brand treasures (the products), the luxury brand exerts an auratic power which achieves the sacralization of the brand.

Practical implications

These marks of power are difficult to transfer virtually through internet websites. To establish this power, luxury brands need a control over their operations, at least the visual merchandising and the customer relationship. This reinforces the importance of retailing in the luxury industry and the strategic role of company-owned-stores, particularly in “new luxury markets” where the auratic power of the brand is not necessarily established. Additionally, when there is power asymmetry in a service encounter, the customer becomes “hyper-vigilant” regarding the service provided. In luxury stores, the salespersons should be trained to deliver a luxury service, personalized to the very needs of the client.

Originality/value

To the authors ' knowledge, this research is the first to investigate consumers ' perception of luxury brand power.

Details

International Journal of Retail & Distribution Management, vol. 41 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 12 August 2014

Zhiqing Jiang, Shin’ya Nagasawa and Junzo Watada

The purpose of this paper is to reveal how store design influences luxury brand image building in a competitive market through the case study of two luxury fashion brands – Bally…

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Abstract

Purpose

The purpose of this paper is to reveal how store design influences luxury brand image building in a competitive market through the case study of two luxury fashion brands – Bally and Tod's.

Design/methodology/approach

Quantitative (questionnaires) and qualitative (interview) approaches are both utilized in this research study. The authors interviewed brand managers of Bally and Tod's Japan and then conducted questionnaires to 57 consumers and six brand managers. Correspondence analysis, multidimensional analysis, and rough set theory were utilized to analyze the data obtained from questionnaires in order to draw the positioning maps of brand image and store image, calculate the distance of images between managers and consumers and derive and compare inference structure.

Findings

The “Brand Dimensions Scales” created by Aaker (1997) can enable to measure luxury brand and store image in a scientific way. The results clarify that there is a big gap between consumers’ and managers’ cognition; the architect who designs the building could be a efficient way of advertising a luxury brand and its building to the public; and location and store atmosphere should influence luxury brand image building through non-verbal communication.

Originality/value

This research study on luxury brand image building provides a way to measure brand image and assesses the impact change in brand image as well as its stores.

Details

Management Decision, vol. 52 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

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