Measuring Consumers’ Luxury Value Perception: a Cross-Cultural Framework

DIBB, S. SIMKIN L, L. PRIDE, W.M. and FERELL, O.C. Marketing: Concepts and Strategies. Fourth European ed. Boston: Houghton Mifflin, 2001

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

Armstrong, G & Kotler, P. Marketing: An Introduction, Seventh Edition. (2005). New York: Prentice Hall.

This paper was prepared by Bruce S. Silver for Marketing Management 6013, taught by David Gregorich, MBA, Ed.D.

During the period of globalization (the 1990s) the role of luxury as the historical phenomenon has changed: from the cultural factor it turns into the industrial factor, the factor of production that brings added value. Luxury moves the long way from a reserved craftsmanship available only for the elite to the luxury industry. In the luxury industry, the capitalization of the following sociocultural phenomena takes place: values, social norms and

Donnelly, J. & Peter, J. (2014). A Preface to marketing management (14.th ed.). New York, New York.

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

Received: 26 January 2010 / Accepted: 29 September 2010 / Published online: 20 October 2010 # Academy of Marketing Science 2010

Received: 26 January 2010 / Accepted: 29 September 2010 / Published online: 20 October 2010 # Academy of Marketing Science 2010

The global luxury goods’ marketplace in the past decade has experienced nothing short of a complete evolution and transformation. This industry has endured global economic downturns in advanced economies such as the United States requiring them to branch out of their comfort zones and expand into emerging markets specifically the BRIC countries. These Asian nations possess high GDP rates that are anticipated to increase significantly in the upcoming years. Luxury goods were once a possession of strictly the wealthy, brand conscious consumer with a high disposable income. Within these developing economies reside a “new breed of young entrepreneurs and noveau riche consumers”, offering large potential within the

Students: Michael Lukas Andelfinger, Lucy Marcella Baird, Naomi Hannah Griffiths, Shady Haddad, Alexander Pilz, Rainer Monteagudo Santi

Fashion and luxury have always been one of the biggest topics to discuss about. When we ask questions like, “what is luxury?” or “what does it really mean in the past and today as we have more access to various materials?”, we may not have exact answers for those questions because the word of “luxury” has so many meanings due to questioning, such as who, what, when, where,etc. Simply, asking these questions, we can find out how this word exceeds to different fields in our society, such as the hierarchy of possession, can be defined by ethical differences of wealthy and poverty between layers of people, who have completely different life conditions. The word “luxury” can be defined differently among individuals due to different point of views each one has. Do we a material people, who live in material world? Do we, people, really need that much from in and out all polished with the Swarovski crystal? To understand today’s situation, we must understand how the system worked in the past. Does contemporary luxury fashion industry satisfy consumers’ needs? If on the high street market is full of fast fashion companies that try to persuade people their goods are shorter uses , but promise up-to-date latest trendy goods at the lowest price tags. What is the future for young creative fashion

Dr. Reinhold Decker is Professor of Marketing at the Department of Economics and Business Administration of the University of Bielefeld P. O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-6913 / 3936 Fax: +49-(0)521-106-6456 E-Mail: rdecker@wiwi.uni-bielefeld.de Xuemin Zhao is Ph.D. student of the Graduate School for Economics and Management at the University of Bielefeld (BiGSEM) P.O. Box 10 01 31 D-33501 Bielefeld Germany Phone: +49-(0)521-106-4863 Email: xzhao@wiwi.uni-bielefeld.de

‘Business Week’（1991）believed that the reasons that the marketing costs is transferred from advertisements to promotions lie in the number of consumers who only buy famous brands decreased from seventy-seven per cent in 1975 to sixty-two per cent in 1990. Many corporations now believe that promotions lead to consumers’ allergy to prices. Thus it

The objective of this study is to verify the positioning of the new luxury brands in relation to traditional luxury brands and middle range brands, and to draw implications for both academics and practitioners. In other words, to show that in terms of perceived prestige new luxury brands are substantially closer to traditional prestige brands than middle-range brands. In terms of price, however, they are substantially closer to middle-range brands than traditional luxury brands.