Co-creating value for luxury brands (original) (raw)

Understanding the value process: Value creation in a luxury service context

Journal of Business Research, 2020

Value is an important part of the service literature, which increasingly recognizes that value cocreation is a process. The literature on the entire value process remains limited, however, with a lack of empirical evidence on how value is (co)created and what the different activities of service providers and customers are. Addressing this situation, we analyze the joint and separate activities of both the service provider and the customers in the value process. Using an ethnographic case study approach, we combine observations and interviews with managers, service employees, and customers to identify five stages of the value process and offer three main contributions. First, we show that service providers have roles extending beyond mere value cocreation. Second, we describe how customers create value independent of the provider. Third, we extend previous research on customer value-in-use by our focus on escapism as an important part of customer value in luxury services.

Luxury brand strategies and customer experiences: Contributions to theory and practice

Journal of Business Research, 2016

This special issue on luxury brand strategies and customer experiences includes eleven research papers which are valuable for marketers and researchers. Articles are grouped by topic-social media and digital marketing, ingredient branding and value creation, luxury retailing, and luxury consumer experience. The introductory article in this special issue places each article in one of four categories even though some of articles include information relevant to at least one other topic and briefly introduces unique and interesting about each article. This selection of papers written by 34 authors representing ten countries serves to extend the luxury brand research area in need of new developments, theories, and practices in light of the trends toward global luxury industries.

Reality or Relativity: Understanding The Context and The Concept of Luxury Branding & Marketing

Luxury branding and marketing is a new ball-game altogether, both from the perspective of the marketer as well as the consumer. Luxury brands have always been seen as a fascinating space and luxury brand marketing as one of the most complicated areas to develop strategies and marketing mix. Consumer‟s perception of value is changing and their concept of luxury is metamorphosing. It therefore becomes imperative to view it form both angles that is in relation to and isolation from the „regular‟ goods and their marketing strategies. Over time LUXURY meant different things to people in different cultures. It is a conceptual and symbolic dimension mainly irrational and engages strong and intense multi-sensory emotions of consumers. It is also a culture and a philosophy and therefore requires deep understanding of the brand and its profile, before the adoption of business practices because its particulars and marketing mix strategies are fundamentally different from other types (regular) of goods and services. As quoted by Philip Kotler “Luxury is above all a world of brands”. The luxury brands go beyond the object, they are built from the reputation of its creations. It is crucial to listen to the client although consumer‟s attitudes and behaviors towards luxury are ambivalent and for them the most important characteristics are: quality of goods, self indulgence, and ancestral heritage. This paper identifies several key factors for luxury brand success by analyzing its marketing mix and how luxury goods are different from regular goods and then go on to explore some facets and trends of the luxury goods as well as their market and consumers, impact of internet technologies, and Intellectual Property violations. Considering that the luxury concept has shifted to the „new‟ meaning, we look into that aspect to understand the key drivers for luxury brands in today‟s context, as well as in the future.

Doing more with less: toward a parsimonious approach to examining brand luxury

Proceedings of the Australian and New …, 2010

Research relevant to the creation and development of luxury brands is a growing area in the literature. Previous studies have, however, used both many different dimensions of luxury as well as different approaches to luxury, resulting in a lack of clarity with respect to what defines a luxury brand. This paper focuses specifically on this key issue. A meta-analytical approach is utilised to carefully examine the dimensions and relationships underlying the luxury brand. The findings make important contributions to both clarifying the confusion shown in previous luxury brand research and to potentially reducing the vast number of luxury dimensions and approaches previously used-providing a useful framework for further research in this area.

Key Determinants of Luxury Marketing Accordant with Sustainability-Oriented Value Perspectives

Sustainability

Thus far, Luxury as Usual has rested on conventual forms of value, such as rarity, excellence, and uniqueness. Nevertheless, today, luxury value perceptions have been changing dramatically, with the emergence of new luxury consumption patterns as well as sustainability-oriented value perspectives. The overarching aim of the current study is to guide tradition-bound luxury brands in attaining competitive advantage by tapping into the key determinants of sustainable luxury. In tackling the key determinants, the paper aspires to provide a theoretical lens by building on the “Four-Stage Model of Value Creation for Sustainability-Oriented Marketing”. This paper also offers a roadmap for luxury brands in transforming their traditional-oriented marketing strategies by providing a “4 × 6 Matrix for the Key Determinants of Sustainable Luxury”, which codifies and systematizes sustainability-oriented luxury marketing.

Capturing Luxury Customer Values

The New Luxury Experience, 2019

Capturing Luxury Customer Values The perception of luxury value is essential to the enjoyment and the satisfaction of consumers and is consequently of huge significance to luxury brands. The concept of value has always attracted significant interest in customer experience and experiential marketing fields. Most studies have attempted to define value according to consumer perception by identifying several categories of value, ranging from economic utility to emotional value. Customer experience studies have highlighted the importance of the perceived value sought by customers in their shopping and consumption experiences. This chapter aims to examine consumer value as a relevant component that luxury houses should integrate into their strategies and communication campaigns. In fact, one of the big five strategies for attracting consumers and connecting with them is based on capturing luxury consumer values. Given that luxury goods (products and services) are also bought for what they symbolize, it is critical for luxury brand managers to know what kind of outcomes their brands and offerings (products and services) endorse in the eyes of actual and potential customers.

Product Experience and Luxury Values

Designing for luxury is a challenge since it requires knowledge on the concept of luxury and how to transfer this knowledge to product design. Literature on the concept of luxury offers a variety of definitions of the term and discusses the role and meaning of luxury by referring to particular disciplines such as economics, sociology and marketing. These studies occasionally touch upon aspects that are associated with luxury products; however there is no specific research that provides guidelines or frameworks to support designers in luxury product development. This study argues that luxury values found across the literature can contribute to defining dimensions of luxury product experience. Presenting the historical background and the definitions of the term ‘luxury’, this paper explores four different types of luxury values through product examples, and discusses relationships amongst these values. The findings point out a need to study luxury values within different aspects of product design, which can extend the current understanding beyond materialization and into the realms of user-product interaction, design and technology relationships, and design for experience.

Redefining the Essence of Sustainable Luxury Management: The Slow Value Creation Model

This chapter aims to provide the luxury industry and academia with a value creation model, the SLOW (Sustainable Luxury for Overall Well-being) that represents different types of sustainability engagement relevant to luxury industry dynamics. The SLOW model focuses on sustainability strategies and sustainable practices of luxury goods/services companies based on a value creation model that takes into consideration both shareholder value and social value. The vertical axis is built on the luxury goods/services company's need to manage the business with added shareholder value while the horizontal axis is built on the company's need to create social value, as necessitated by today's societal and environmental challenges. The four plots that represent different types of sustainability engagement in the luxury industry are Self-indulgent Luxury, Refined Luxury, Thoughtful Luxury, and Sustainable Luxury for Overall Well-being, respectively. The SLOW value creation model is a theoretical contribution that helps understand and differentiate between four different types of sustainability engagement that lead to varying degrees of shareholder value and social value. The model sets the stage for further empirical research in the sustainable management of luxury.