När ett företag väljer att utvidga sitt varumärke kan det av olika anledningar antingen gynna eller missgynna varumärkets värde. Risken att strategin påverkar varumärket negativt är större hos varumärken och det är svårt att implementera strategin rätt för att det inte ska skada imagen. Flera lyxvarumärken har någon typ av varumärkesutvidgning för att kunna öka sin tillväxt och det finns olika sätt att utföra strategin. Den här studien har fokuserats på vertikal varumärkesutvidgning nedåt hos lyxvarumärken inom modebranschen där utvidgningen erbjuder alternativ med lägre priser. Genom varumärkesutvidgningar kan det uppstå problem när företag sänker priset för att nå nya segment. Det kan då komma till en punkt där varumärket överexpanderas och exklusiviteten i märket påverkas negativt och därmed försvagas. Syftet med den här studien var att undersöka hur konsumenters attityder förändras när företag utvidgar sitt varumärke med ökad tillgänglighet för konsumenter till följd. I den teoretiska referensramen beskrivs begreppet varumärkesutvidgning och vilka faktorer som påverkar när det uppstår negativa effekter. Relevanta artiklar hjälper till att förstå bakgrunden till fenomenet och tidigare forskning visar hur varumärkesutvidgning kan vara ett problem för just lyxvarumärken. Metoden som har använts är av kvalitativ form där tio stycken intervjuer genomfördes. Respondenterna bestod av kvinnor i åldern 20-30 år och frågorna fokuserades på deras attityder mot varumärkesutvidgning som strategi och hur uppfattningen kring ett lyxvarumärke kan förändras när tillgängligheten ökar. Resultatet visar att det fanns både positiva och negativa uppfattningar om lyxvarumärken som blir mer tillgängliga. Respondenterna menade att då det skapas nya produkter till lägre priser får de själva möjlighet att konsumera märket, men samtidigt kan det också skada värdet och exklusiviteten. Ökad tillgänglighet kan ge nya målgrupper vilket också kan riskera att skada företagets image hos den ursprungliga målgruppen. I Resultatdiskussionen analyserades intervjuerna och tidigare teorier om varumärkesutvidgning kopplades till respondenternas svar. Diskussionen blev uppdelad utifrån resultatets fem olika kategorier där varje kategori analyseras enskilt. I avsnittet om studiens trovärdighet visas hur tillförlitlig undersökningen är i förhållande till det slutgiltiga resultatet. Där diskuteras kritiska synpunkter men också hur studien på ett positivt sätt kan bidra till vidare forskning. Slutsatsen från denna undersökning är att vertikal varumärkesutvidgning nedåt fungerar, under förutsättning att det finns en noggrann strategi för prisnivå och nya målgrupper. Förslagsvis kan strategin baseras på en ingående marknadsundersökning och med rätt underlag kan målgrupp och pris fastställas, för att undvika att varumärkets image skadas. / When a company chooses to extend their brand can it either favor or disfavor the brands’ value. The negative risk with this strategy is bigger when it comes to luxury brands and it is hard to implement the right strategy without damaging the image. There are several luxury brands that use some kind of brand extension to be able to increase the profit and there are different ways to perform the strategy. This study was focused on downward brand extensions for luxury brands in the fashion industry where the extension offers alternatives to a lower price. When a company that offers luxury brands lowers the price to reach new segment, problems can easily be developed. It can come to a point where the brand overextends and the exclusivity in the brand can be affected negatively and therefore be diluted. The purpose with this study was to investigate how consumers’ attitudes change when companies extend their brand and make it more accessible for everyone. The concept of brand extension is described in the theoretical framework and what factors affect when negative effects develop. Relevant articles assist to understand the background to this phenomenon and earlier research show how brand extension can be a problem specifically for luxury brands. The method that has been used is qualitative and ten interviews were made with women in the age of 20-30. The questions were focused on the respondents’ attitudes towards brand extension as a strategy and how the perception about a brand can change when it becomes more accessible. The result shows that there were both positive and negative perceptions about luxury brands when accessibility increases. The respondents meant that when new products are created to lower prices they get the opportunity to consume the brand themselves, but at the same time it can still damage the value and the exclusivity. An increase in accessibility can crate new target groups, which can also risk damaging the image of the company among the individuals in the original target group. In the results discussion the interviews were analyzed and earlier theories about brand extension were connected to the answers of the respondents. The discussion was divided into the five categories from the result where every category was analyzed separately. In the part where the methodology discussion is presented, it shows how reliable the research is relative to the final result. The critical standing points were discussed but also how the study in a positive way can contribute to further research. The conclusion from this study is that downward vertical brand extension works, subject to there is an accurate strategy for price level and new target groups. As a suggestion the strategy can be based on a more thorough market research and with the right foundation both target groups and price can be determined, to avoid damage of the brands’ image.

This thesis investigates whether luxury handbags in secondary markets make for viable invesments. Reasoning for the investment potential of designer handbags is primarily based on the excessive retail price increases of luxury goods. Prices of handbags were collected from FashionPhile, a source that provides product authentication. The analysis attempts to understand characteristics of the FashionPhile market and how prices changed from April 28, 2006 to March 2, 2011. This thesis identifies which brands and models of handbags had the highest returns and which brands have the highest resale potential. Insight into when the highest and lowest market prices for handbags occurred for each brand is also included.

<p>Luxury is a particular sector that is difficult to define. However it can be characterized using these following adjectives: high price product, exclusivity, prestige, and niche market. Aluxury branding offers a high quality product associated to a superb level of service to customers looking for pleasure, experience, but also social identification. Internet is a mass media using by 1,596 million of people around the world taht permit physical interactionbetween users. Despite this, the authors asked themselves why a mass media without physical contact possibility was used by an industry of niche whose the pillars are high service levels and relationship.</p><p>The aim of the study was firstly to understand and show that the internet is a medium equal to the luxury industry's demands and needs in terms of communication and distribution. the second objective was to describe how luxury brands should design and build their websites in order to respect their luxury' specificities and reach their goals.</p><p>The paper starts with a definition of the luxury sector in order to equip  the readers with the subject in concern. Besides it, an overview of the relevant concepts about marketing tools and Internet applications available to online brands is made. Then, the concept of Web experience is reached giving the four important elements in a website conception: technology, interactivity, trust and services. Nexr, we audited eight French and American luxury websites using these same four elements in order to observce current practices and support our literature review.</p><p>By making comparison between theoretical and empirical findings, we observed that there are many marketing tools and Internet applications that are actually used. Viral Marketing, Relationship marketing, Customer Relationship Management and Web 2.0 applications are some examples of what permit to improve the four online elements and thus provide a real luxury web experience.</p><p>After this study, we concluded that the Internet medium was equal to the luxury industry's requirements and needs because it actually permits them to provide a service of high level and to build relationship with online customers. Secondly, we precised which elements of a website, in concrete terms, have to be improved at their maximum during the website conception.</p><p>The contribution of this thesis is mainly a feedback for luxury brand managers and web-designers in order to inform them about what is really possible to realize online nowadays and what is actually done in France and in the USA</p>

Luxury is a particular sector that is difficult to define. However it can be characterized using these following adjectives: high price product, exclusivity, prestige, and niche market. Aluxury branding offers a high quality product associated to a superb level of service to customers looking for pleasure, experience, but also social identification. Internet is a mass media using by 1,596 million of people around the world taht permit physical interactionbetween users. Despite this, the authors asked themselves why a mass media without physical contact possibility was used by an industry of niche whose the pillars are high service levels and relationship. The aim of the study was firstly to understand and show that the internet is a medium equal to the luxury industry's demands and needs in terms of communication and distribution. the second objective was to describe how luxury brands should design and build their websites in order to respect their luxury' specificities and reach their goals. The paper starts with a definition of the luxury sector in order to equip  the readers with the subject in concern. Besides it, an overview of the relevant concepts about marketing tools and Internet applications available to online brands is made. Then, the concept of Web experience is reached giving the four important elements in a website conception: technology, interactivity, trust and services. Nexr, we audited eight French and American luxury websites using these same four elements in order to observce current practices and support our literature review. By making comparison between theoretical and empirical findings, we observed that there are many marketing tools and Internet applications that are actually used. Viral Marketing, Relationship marketing, Customer Relationship Management and Web 2.0 applications are some examples of what permit to improve the four online elements and thus provide a real luxury web experience. After this study, we concluded that the Internet medium was equal to the luxury industry's requirements and needs because it actually permits them to provide a service of high level and to build relationship with online customers. Secondly, we precised which elements of a website, in concrete terms, have to be improved at their maximum during the website conception. The contribution of this thesis is mainly a feedback for luxury brand managers and web-designers in order to inform them about what is really possible to realize online nowadays and what is actually done in France and in the USA

The phenomenon which called Trading Up was rising in early 21st century. And it has become a common sense in today¡¦s world showing the global consumer behavior change. At 2003 year the Boston Consulting Group senior vice president Michael J. Silverstein and Neil Fiske present a new concept of New luxury, and he pointed out that the new luxury is a profitable new business model, it puts the high-quality products to the middle market. And it makes the consumer willing and eager to pay the premium price, and put these products first choice in their mind. In our reaserch finding, the new luxury management in the academic literature and practice are mostly made form Western countries.Asian countries, however, is on the rise in the luxury market and it occupies a very important position. Now many emerging countries, consumers are increasingly value the pursuit of self-importance, and the purchase of luxury goods to reward their purchase or to show their unique taste and style. In our reaserch we think that the good quality and low price strategy in New luxury goods must appeal consumers in the Asian market. Therefore, this research background and explore the following three points: First, finding the key elements of a new luxury brand in the fashion industry's of brand. Second, investigate the key elements influence of a new luxury brand to the brand equity.Third, investigate the difference of different types of new luxury brand to influent the brand equity Finally, the study found that¡G First, there are four key elements of a new luxury brand which is quality, perceived price, luxury doctrine and uniqueness. And they are arranged by the important influence of the uniqueness, quality, luxury doctrine, the final is perceived price. Second, the four key elements of brand new luxury brand is positively impact on association ,brand loyalty and brand awareness Third, in the band equity of new luxury brand, the brand association and brand loyalty have a positive impact on brand equity, but the impact of brand awareness to brand equity is not significant. Four different types of its new luxury brand for impact to brand equity is different.

Thesis (M.B.A.)--University of Hong Kong, 1996. / Includes bibliographical references.

This qualitative study contributed to the growing body of research in luxury brand management by constructing a framework that can be utilized by luxury companies and conglomerates to develop their business strategies. The purpose was to examine: (a) how the chosen luxury firm is addressing the changing business environment of the luxury goods industry and the changing consumer environment targeted by that industry, (b) how the firm is managing growth trade-offs, and (c) how the firm is adapting its marketing orientations to become consumer-centric and experiential. Six research questions guided the study, and data collection and analysis took place in two parts. Methods for this study included and in-depth review of literature, an exploration of the business environment, and a case study. The study concluded with the formation of a strategic management framework specific to the luxury goods industry. Data analysis included an in-depth exploration of the evolution of the business environment of the luxury goods industry from the mid-1800s to the first decade of the 2000s, and a case study of the sample luxury goods company, Louis Vuitton. A historical review was conducted beginning with the company's inception in 1854 and continuing through the formation of the LVMH conglomerate in 1987. Exploration brand management successes and failures helped identify information relevant to variables in selected business categories (business environment, corporate environment, marketing strategy). Analysis of the case study resulted in the refinement of the four brand management variables: corporate, brand management, trade-off, and strategic planning. Environmental determinism and the zeitgeist were evidenced to be important factors that shaped the business strategies of LVMH and its brands. Strategic planning and strategic management response were identified as ongoing strategies that helped LVMH and its brands to effectively address and respond to environmental changes. Both environmental determinism and the zeitgeist and the use of strategic management response were incorporated into the luxury brand management framework as overarching themes for explaining the influences and responses for the four management indicators. / Ph. D.

Poucas categorias de produtos e serviços são tão interessantes para os profissionais de marketing como os produtos de luxo. Esse interesse deriva da sua capacidade de corporificar significados sociais e individuais, bem como de sua carga simbólica e emocional. Admitindo que os objetos luxuosos expressem os desejos e emoções humanos, por meio deles pode-se conhecer um pouco dos valores, crenças e atitudes dos consumidores. Este trabalho tem por objetivo descrever aspectos do comportamento de consumidores brasileiros de produtos e/ou serviços de luxo ou sofisticados, em termos de atitudes, emoções e comportamento de consumo. Para atingir tal objetivo, partiu-se de um resumo dos conhecimentos teóricos já desenvolvidos sobre o tema, passando por aspectos de marketing específicos ao segmento e pelas descobertas de estudos empíricos sobre o comportamento dos consumidores com relação a produtos e serviços de luxo. Terminou-se com uma discussão sobre a proposta de valor das empresas atuantes no mercado do Novo Luxo. A segunda parte da dissertação compreende um estudo empírico quantitativo descritivo, com 290 consumidores brasileiros de marcas sofisticadas, visando a descrever suas atitudes, emoções e comportamento de consumo. O estudo de campo revelou a existência de três grupos com perfis diferenciados em termos de atitudes e crenças com respeito ao luxo. Os resultados também indicam que o consumo do luxo pode ser relacionado à tradição social, imagem ou expressão pessoal ou a um mecanismo de premiação. Buscou-se como contribuição acadêmica o enriquecimento dos conhecimentos teóricos sobre o assunto. As descobertas da pesquisa empírica podem também contribuir com as empresas para suas estratégias e programas de marketing. / Very few product and services categories are as interesting for marketing professionals as luxury products. Such interest derives from luxury\'s capacity of embodying both social and individual meanings, as well as symbolic and emotional content. Admitting that luxurious objects can express human wishes and emotions, they are able to reveal aspects of consumers´ values, attitudes and beliefs. The goal of this dissertation is to describe behavioral aspects of Brazilian consumers of luxury and upscale product and/or services, in terms of their attitudes, emotions and buying behavior. With this in mind, the work begins with a summary of the extant theoretical literature, including specific marketing aspects and the findings of empirical studies on luxury consumers´ behavior. It ends with a discussion of the value proposition of the New Luxury segment. The second part of this dissertation comprises a quantitative descriptive empirical study, with 290 Brazilian consumers of upscale brands, to describe their attitudes, emotions and consumption behavior. The field study revealed the existence of three groups differentiated according to their attitudes and beliefs toward luxury. The results also indicate that luxury consumption can be related to social tradition, personal image or expression or to compensation mechanisms. In terms of academic contribution, this dissertation seeks to enrich the extant knowledge on the theme. The findings of the empirical study can also help firms with their marketing strategy and programs.

The world of luxury products for many years was reserved only for the selective and exclusive audience. It looked like it was impossible to experience it or to get in for someone from outside. Marketers of luxury brands have created such an environment where clients could feel exclusivity and enjoy timeless quality, values, history and heritage of the brand. It is very important to maintain the traditional values for luxury brands but in order to stay in touch with the target audience, luxury producers have to face and adapt to rapidly changing environment. There are a lot of debates about comparability of the Internet and luxury, as digital world is too impersonal comparing with core competence of luxury: exclusivity, outstanding experience and human touch in everything including craftsmanship, personal selling and customer relations. In current environment luxury companies cannot ignore the importance of the Internet as a communication and transaction tool and have to stay in touch with its target audience. The main contribution of this dissertation thesis is an analytical framework "features of importance for online luxury consumer satisfaction" that will help luxury marketers to understand online luxury consumers, their motivations, behavior and preferences. Additionally, framework presents the up-to-date data that can be executed while creating digital marketing communications strategy. The influence of content, social, process and technology gratifications on the online luxury consumer satisfaction was investigated. By incorporating the quantitative approach it was possible to make a deep analysis of the research problem. To obtain the necessary data the group structured questionnaire was used to analyze the proposed research model. A total of 133 respondents were accepted for the investigation. Analysis of correlation proved the positive relation between gratifications and luxury consumer satisfaction, even thought, proposed gratifications had different influence on the satisfaction. Content and technology gratifications had the most strong and positive influence on the satisfaction. However, from the obtained results it is visible that social gratification had the least important but still positive effect on the luxury consumer satisfaction. The obtained results are a valuable asset for the luxury companies as research revealed the main directions and themes on which luxury marketers should stress while creating online communication strategies.

There must be a human factor to explain the lack of logic in luxury consumption. This irrational behavior is subject to explanation in this thesis, using values to map a framework where hopefully, conclusions can be drawn regarding how values drive people to consume luxury clothing. An individual’s luxury value perception and the motives for luxury clothing consumption are not simply tied to a set of social perspectives of displaying status, success, distinction and the human desire to impress other people, but also depend on the nature of the financial, functional and individual utilities of the certain luxury brand (Wiedmann et al., 2007). The values are divided into different dimensions with “sub-dimensions”: financial “price”, functional “usability, quality and uniqueness”, individual “self-identity, hedonic and materialistic” and social “conspicuousness, prestige and contextual”. The different values presented and the conceptualized framework might provide some insight into the matter of why we consume luxury goods and the underlying reasons behind consumer behavior, what values motivate us to consume and explain the paradox of luxury consumption.