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1 – 10 of over 7000The purpose of the study is to identify critical value-creating elements of luxury services expressed in ratings and reviews posted on third-party sites and examine cross-cultural…
Abstract
Purpose
The purpose of the study is to identify critical value-creating elements of luxury services expressed in ratings and reviews posted on third-party sites and examine cross-cultural differences. To this end, the research analyzed online ratings and reviews of luxury hotels posted on TripAdvisor from customers of four European regions (East, North, South and West).
Design/methodology/approach
Eight hundred thirty-eight online user-generated ratings and reviews of luxury hotels were analyzed quantitatively using MANOVA and qualitatively using text analysis.
Findings
The study findings support (a) that product and physical evidence are the most critical experiential elements of luxury hotels' offerings and (b) cultural differences among tourists from various regions of Europe in their hotel ratings and reviews. Specifically, Eastern and Northern Europeans are more generous in their review ratings than western and southern Europeans. Moreover, eastern Europeans value the hotel's physical evidence/environment whereas western Europeans prioritize the core product (room and food) followed by the physical environment/servicescape. Southern Europeans and Northern Europeans value most the personnel, followed by the physical environment and the core product, respectively.
Practical implications
Cultural differences provide several implications with regard to luxury services segmentation, social media management, service marketing mix development and hotel promotion.
Originality/value
The value of this study originates from studying post–purchase customer behavior in luxury services from a cross-cultural perspective. Moreover, identifying critical aspects of value-creating customer experience in a luxury context adds to the available literature.
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The spending capacity of the middle-income class increases with growing economies. With this increase, luxury goods are not only consumed by rich people alone. For this reason…
Abstract
The spending capacity of the middle-income class increases with growing economies. With this increase, luxury goods are not only consumed by rich people alone. For this reason, luxury brands are expanding their target population and enriching their products and services accordingly. Thus, the luxury market which addresses the middle- and upper-middle-income groups is changing and its importance is increasing. In this chapter, the definition of luxury, the classification of luxury goods, the requirements of the luxury marketing mix (product, price, distribution and promotion) and applied strategies are examined. This chapter also covers how luxury products have authentic features, premium and masstige brands, fake luxury products that are the exact copies of original luxury brands, and how and why this fake luxury market grows. At the end of the chapter, the luxury market in Turkey, which has been growing rapidly, especially in recent years, is examined in detail and all the features of the market are presented. It is expected that this market will continue to grow in the future, as a large number of tourists from nearby regions, Central Asia and Arab countries come to Turkey to buy luxury branded products and services.
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Abstract
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“Masstige marketing” is considered as a market penetration strategy for medium and large enterprises, particularly in foreign markets. The author redefine “masstige marketing”…
Abstract
Purpose
“Masstige marketing” is considered as a market penetration strategy for medium and large enterprises, particularly in foreign markets. The author redefine “masstige marketing” strategy in this paper and map the concept as a new model for brand building. Second, the author examine the effectiveness of “masstige marketing” strategy with reference to marketing mix theory (Four Ps=product, price, place and promotion). The purpose of this paper is to introduce a theoretical model to help the companies to implement “masstige marketing” strategy.
Design/methodology/approach
The author introduce a scale, called “Masstige Mean Score Scale” to measure the mass prestige value of brands. Both secondary and primary data used in this study. The author collected data from 590 young women consumers living in Japan and France to measure the “masstige” value using the new scale developed. The marketing strategy of European luxury sector multinational brand LV, has also been discussed as a method.
Findings
Masstige value is the best indicator of long-term brand value. In other words, higher the masstige value (MMS) of a brand, the higher the likelihood to succeed. The author also found that a brand can create mass prestige with “masstige marketing” strategy by appropriately mixing the four Ps in marketing – Product, Price, Promotion and Place in a distinct and culturally different market.
Originality/value
The author develop a pyramid model and measurement scale for “masstige marketing” as a theoretical framework to stimulate further research and as a tool for practitioners for better decision making. Besides, the author posit that higher the Masstige Mean Score (MMS) of a brand, higher the likelihood that potential customers recall that as a “top of mind” brand. Lower MMS implies that the firm has to go long way in their efforts to build the brand.
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Kaushalya Nallaperuma, Felix Septianto and Argho Bandyopadhyay
The concepts of luxury and pro-environment may be viewed as being in contradiction with each other. Consequently, it is unclear how to promote pro-environmental luxury brands. The…
Abstract
Purpose
The concepts of luxury and pro-environment may be viewed as being in contradiction with each other. Consequently, it is unclear how to promote pro-environmental luxury brands. The present research seeks to develop effective advertising strategies for pro-environmental luxury brands by employing mixed emotional appeals.
Design/methodology/approach
Two experimental studies were conducted to test two hypotheses. Study 1 examines the effects of mixed emotions (happiness and sadness vs. happiness alone) on intentions to purchase a pro-environmental luxury product. Study 2 replicates the findings of Study 1 using a different product and extends it by establishing the underlying mechanism.
Findings
The results reveal that an advertisement featuring mixed emotions of happiness and sadness (vs. happiness alone) enhances intentions to purchase a pro-environmental luxury product. Further, the effect is mediated by cognitive flexibility.
Originality/value
The present research tests a novel perspective on how mixed emotional appeals can leverage the advertising effectiveness of pro-environmental luxury brands.
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Jeannette Paschen, Ulrich Paschen and Jan Henrik Kietzmann
The status of icewine as a luxury item is largely undisputed in popular perception. Despite this, icewine has received very little attention in the management literature. This…
Abstract
Purpose
The status of icewine as a luxury item is largely undisputed in popular perception. Despite this, icewine has received very little attention in the management literature. This paper aims to close this gap by developing a theoretical framework to segment the luxury wine and spirits market with a focus on icewine.
Design/methodology/approach
This paper is conceptual in nature. The authors adapt Berthon et al.’s (2009) aesthetics and ontology (AO) framework for luxury brands to provide a theoretical lens for segmenting the luxury wine and spirits market into four distinct segments.
Findings
The main contribution of this paper is a theoretical framework for segmenting the market for luxury wines and spirits into four distinct segments: cabinet collectors, cellar collectors, connoisseurs and carousers. The authors then apply their framework to the icewine category and outline considerations for the marketing mix of icewine producers.
Practical implications
The AO framework for luxury wines and spirits is beneficial for icewine producers to help differentiate their current and future market segments. In addition, this paper outlines practical implications for icewine maker’s marketing mix that could enhance their competitive position today and in the future.
Originality/value
This is the first paper examining icewine in the context of luxury marketing.
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Huifeng Bai, Julie McColl and Christopher Moore
From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.
Abstract
Purpose
From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.
Design/methodology/approach
Using case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.
Findings
Both standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.
Research limitations/implications
As the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.
Practical implications
The study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.
Originality/value
This paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.
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Maria Petrescu, John Gironda and Kathleen Bay O'Leary
This paper aims to evaluate and structure the basic heuristics consumers use in evaluating word-of-mouth (WOM) about luxury hotel brands while analyzing the impact of deception in…
Abstract
Purpose
This paper aims to evaluate and structure the basic heuristics consumers use in evaluating word-of-mouth (WOM) about luxury hotel brands while analyzing the impact of deception in online consumer reviews.
Design/methodology/approach
The research used a two-study mixed-methods approach, using interpersonal deception theory and social proof theory as lenses to conduct our analysis. For the first study, a qualitative conceptual mapping analysis was conducted, examining online consumer reviews to identify key concepts and their relationships in the context of luxury hotel brands. In the second study, the themes were further examined using a fuzzy-set qualitative comparative analysis to analyze their causal complexity and association between variables to determine how they influence the perceived helpfulness of online reviews for luxury hotel brands.
Findings
The results underline the importance of functional, objective variables, such as the number of reviews and stars, as social proof heuristics and other factors, including clout, authenticity and analytic tone, as interpersonal communication heuristics. Therefore, consumers use a combination of social and interpersonal communication heuristics to extract information from reviews and manage deception risk.
Research limitations/implications
The paper contributes to the consumer–brand relationship literature by assessing the heuristics consumers use in evaluating online reviews and provides additional information for research in online reputation management.
Practical implications
This study’s results can help marketing practitioners and brand managers manage their online reputations better. It can also aid managers in improving their messaging on hotel websites to entice consumers to complete bookings. Heuristics play an essential role in such messaging and understanding them can help marketers appeal directly to their target market.
Originality/value
This study contributes to the literature on consumer–brand relationships by providing a framework of heuristics that consumers use when evaluating luxury service brands and contributes to WOM and online reputation research by highlighting factors that may make online reviews more helpful.
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