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Multisensory marketing in the luxury hotel industry: effects on brand experience and customer perceived value by Klaus-Peter Wiedmann, Janina Haase, Franziska Labenz, Nadine Hennigs Abstract: In the luxury industry, multisensory marketing as a basis for value creation and unique experiences is increasingly gaining in importance. Luxury hotels in particular may apply various sensory stimuli to stand out from competition and provide memorable stays. The study confirms all stated causal relationships between multisensory marketing, brand experience, customer perceived value, brand perception, and consumer behaviour, using partial least squares structural equation modelling. The results reveal visual, acoustic and gustatory perception to be the most effective sensory drivers and financial aspects to be the most relevant value driver. The findings further show that multisensory marketing is most effective in creating experiences when linked to relevant values. Finally, brand experience and customer perceived value are most powerful in affecting consumer behaviour via a positive brand perception. Keywords: luxury hotel industry; luxury consumption; multisensory marketing; brand experience; customer perceived value; individual value; financial value; functional value; social value; brand perception; consumer behaviour; structural equation modelling.
Quality Management in the Italian luxury industry: an empirical investigation on cashmere. by Alessandro Brun, Chiara Lideo Abstract: The luxury sector is characterized by several Critical Success Factors, including Premium Quality. Although Quality Management (QM) has been deeply studied in recent years, few authors explicitly addressed QM with regard to luxury industry as a whole, let alone the idiosyncrasies of Italian approach to luxury. The contribution of the present study is twofold: (1) first of all, it introduces a novel and rigorous research protocol to study the QM organization, system and practices of companies in the luxury sector; and (2) secondly, the protocol is applied to cashmere, worldwide synonymous with luxury, and a symbol of Italian excellence, to understand how Italian producers of cashmere garments are implementing QM. The research demonstrates that the cashmere luxury sector is characterized by an extremely high commitment towards quality both inside and along the Supply Chain, yet to some extent excellence is pursued through an informal approach to quality improvement. Managers in different fields could learn from the lessons learned in this sector and apply the best practices to their companies. Keywords: luxury; cashmere; supply chain; italy; quality management.
The Rise of Inconspicuous Consumption: Insight into the Luxury Context by Lama Halwani Abstract: Much of the early theoretical work on luxury elaborated on the socially oriented and the conspicu-ousness aspect of luxury consumption. More recently, researchers and practitioners have begun to chal-lenge traditional views on conspicuous luxury consumption. Against this background, the present qualita-tive study sets to gain an in-depth understanding of the luxury consumer perceptions in a German context. Six prominent dimensions were identified that seem to convey how consumers perceive luxury brands: self-control and balance, discreet luxury, symbolic value of luxury, sustainable luxury, functional luxury and contemporary designs. The findings of this study illustrate the complexity of the luxury evaluation process. Participants seem to be trying to reconcile their need for self-restraint, social equality and envi-ronmental sustainability with some of the innate characteristics of luxury such as excess, conspicuousness and overindulgence. Away from generalized portraits of the conspicuous luxury consumer eager to display social status to inspire envy and to dissociate themselves from others, this article also points to the rise of inconspicuous consumption among luxury consumers. Keywords: Luxury Brand Perception; Inconspicuous consumption; German consumer; Green Luxury; Functionality.
Cross Cultural Analysis of Purchasers Intention to Wear a Counterfeit Luxury Product in Varying Social Situations by George Miaoulis, Ivan Manev, Martina Rauch, Kelly Kimball Abstract: Recent research regarding counterfeit luxury products has focused primarily on the motivations for consumption. However, there is little research regarding consumers actual occasions of use of counterfeit luxury goods. We conducted a cross-cultural exploratory study among 432 millennial women in the United States and Europe to examine 12 social contexts where millennial women wear a counterfeit fashion purse. The findings provide new insights toward 1) understanding the consumption of counterfeit luxury fashion wear, 2) understanding the incidence of product usage as social importance increases, 3) exploring cross-cultural differences, and 4) outlining the implications for luxury brands.rnrn Keywords: luxury products; counterfeit products; fashion brands; occasions of usern.
Segmentation proposal of counterfeit luxury consumers regarding the purchase intention by Sahar Farhat, Amel Chaabouni Abstract: Nowadays, both academic and professional have proven with early statistics the frustrating degree of damage caused by counterfeit luxury products. So, this study aims to specify the consumers counterfeit luxury purchase intention in function of their sociodemographic characteristics. An empirical survey was adopted using online surveys posted on luxury brands virtual communities, which allowed having 245 respondents from different nationalities. The results of the counterfeit luxury purchase intention classification and the Chi-square analysis showed that intention is a relevant segmentation criterion and the consumers education level is able to specify their purchase intention. These findings allowed us to provide luxury brands managers with constructive recommendations. Keywords: Counterfeiting; purchase intention; sociodemographic characteristics.
Growing luxury brands by increasing the price: Does the Veblen effect exist? by Martin Fassnacht, Jil-Marie Dahm Abstract: The growth of the global luxury market is mostly attributed with volume effects, which risks luxury brands rarity and dilutes their desirability. The Veblen effect, i.e. when an increase in price leads to an increase in demand, is thus the ideal opportunity to strike a balance between growth and rarity. Although it is a widely known price phenomenon, research has neglected the Veblen effect over the past decades. The present article empirically analyses its existence through eight experiments and determines which intrinsic and extrinsic luxury purchase motivation(s) drive(s) the Veblen effect across different luxury product categories. The authors derive that the Veblen effect exists, yet it varies between hard and soft luxury goods whether intrinsic or extrinsic purchase motivations dominate respectively. This article attempts to start the discussion about the Veblen effect again for luxury academics and managers because it is an invaluable future growth opportunity for luxury brands. Keywords: Veblen effect; luxury pricing; price increase; demand; willingness to buy; luxury purchase motivation; luxury brand management; luxury goods; purchase decision; hedonist; perfectionist; snob; bandwagon.