The Effects Of Luxury Brand And Value On Consumer Behavior

Luxury is uniqueness, attitude and ethnicity. Internet is purely a medium of communication for Luxury brands. The industry has been showing less dedication towards integrating complex technologies and its associated interactive and digital tools in marketing and overall commerce strategies. There is also a push to be present on the internet to evolve consumer needs and expectations. The initiation of internet as a universal supply channel provided an unparalleled medium by which to boost brand awareness and recover market share. This proposal provides an outline for exploratory research in sustaining the luxury brands online. The study overlaps research findings on internet marketing and consumer behavior for luxury brands.

Hermes, Chanel, Gucci, LV, Prada, Armani, and Ralph Lauren, when most people hear those names, they may automatically connect them with luxury, expensive, rich, fancy, and exclusive. The marketing on those luxury brands did an excellent job implanting their names and logos into people’s lives. Even though the world is still recovering from the economic crisis in 2008, the global industry for luxury products is constantly growing. A report from Arpizio (2014) on luxury good s shows that in years 2014, the overall global luxury market exceeded one trillion, showing healthy growth of 7% over all. Definition from the business dictionary (2015) explains luxury goods as products which are not necessary but which tend to make life more pleasant for the consumers. Luxury goods are not ordinary goods like water, food, clothes and other

The changing landscape of the luxury industry challenges brands to find a new approach to reach out to their core costumers. Brands like Louis Vuitton, Gucci or Burberry are about to jeopardize their true customers and their image by overexposing themselves to a mass luxury clientele. Thus, a new approach must be found to bring back the feeling of true luxury, personal attention and to create a bond to their core

Maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market. is very critical. Therefore, of all the criteria mentioned above, we have determined the brand image is the most important criterion on which we will base our recommendation.

Coach Inc. operates in the luxury goods industry where it sells high quality leather handbags, accessories, and other leather products. The scopes of the products within this market are rated high in their “quality, style, and value” (Gamble, 2015, Page 71). The qualities of these luxury goods are rare, desirable, hard to replicate, and have a strong brand reputation. Firms within this market choose to compete domestically, in North America, and globally, in Europe, and more recently Asia. Within the luxury goods market, there are three sub-categories: haute couture, traditional luxury, and accessible luxury. When Krakoff joined Coach in 1996, he implemented a successful strategy to develop the “accessible luxury” segment. By 2000, Coach was dominating the sub-category market over its new competitors DKNY, Dolce & Gabanna, Giorgio Armani, and etc. The luxury goods industry had a direct bearing on Coach’s profit potential. This effect can be explained by looking at the environmental layers in detail, moving from Coach’s general environment to its task environment.

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

In the article “Type of Luxury Consumers”, the author, Robert Frank, tries to deal with the issue of the behaviour of luxury consumers. He introduces the readers that the consumers will spend their money lavishly to show wealth and status based on their economic ability. They are willing to buy expensive items with a good branding compared to the low-end product that lack of explicit markers. The author argues every type of luxury consumer has their own desire and taste to follow the trend and the effect of these consumers towards the brand management. The author agrees with the research made by the USC Marshall School of Business about this issue. This can be proved when his thought is always parallel with the study.

Luxury branding is one of the great magics of this age. By applying sophisticated psychological principles, whole peoples accept what is essentially a powerful delusion. The marketing wizards persuade a man that is sitting in a business meeting that his Rolex watch gives him a leg up on the other managers in the room. It says to everyone in the room, ‘my superior professional skills have allowed me to purchase this watch,’. No words are exchanged just a quiet confirmation of superiority.

As the article mentioned Louise Vuitton (LV) is one of the most famous and recognizable brands in the world. Louis Vuitton opened up his first store in 1854 in Paris and sold handmade excellent value trunks and luggage (Kotler & Keller, 2012). However, the label is more famous for its LV monogram, which is presented on all the recognizable leather items, purses, shoes, watches, jewelries, sunglasses and accessories. Louis Vuitton is one of the highest ranked luxury brands in the world. Today Louis Vuitton “holds a brand value of $26 billion according to Forbes and is ranked the 17th most powerful brand according to Interbrand” (Kotler & Keller, 2012). However, the question is “How does an exclusive brand such as LV grow and stay fresh while retaining its cachet?” In order to answer to this question we need to understand the marketing strategies of Louis Vuitton that makes it an outstanding brand among top luxury brands.

This model demonstrates the components of a brand identity. In this paper we will take each component and connect it to the luxury industry.

Okonkwo (2007) defiend luxury as the necessity that commence when necessity ends. This reading emphasizes the fashions brands such as clothing and provides some factor that may stimulat the consumers to purchse luxury fashion brands like Gucci, Dior or Louis

Moreover, when it comes to customers, the standard of living and consumption are still growing, demand for luxury goods is growing as well. Analysis of the demand for luxury goods in the crisis of 2008-2009, indicates that the demand for luxury goods not fell, and even

Currently, luxury product can be found everywhere and the demand of them is high (Kapferer and Bastien, 2008: 311). Each company wants its products to be

It clearly says that affordability, quality, availability, celebrity, self-satisfaction, image and social status are the key drivers to the migration of consumers to Luxury brands from value middle tier branded goods. It confirms the view that brand perception and purchase value is, apart from socially oriented motives of buying to impress others also affected by financial, functional, and individual aspects. It would seem that the dimensions presented in this paper are appropriate variables for segmenting the market for branded items.

A myth eluding the luxury brand market for years has been that customers with their discriminating preferences and choices would not buy expensive goods online. They would opt for the personalized customer service and tactile shopping experience provided by the mono-brand brick and mortar stores. A major shift in this behavior of the customer had opened up doors for the luxury brands to capture a larger market share through e-commerce. Customers are not only willing to buy luxury goods online but are also comfortable with the undiscounted rates.