The motivations underlying consumers¡¦ purchase of luxury brands are valued in the industry and in the research field. On the other hand, consumers not only could buy luxury brands from luxury brands¡¦ store, but could buy them from second-hand store or just rent them. They even could buy counterfeit luxury brands which almost have the same performance with luxury brands. There are also many extant literatures about these consumers¡¦ behavior. But it still lacks the discussion about the differences between consumers who have different consumption behaviors. The motivation of this research is to fill up this research gap and to discuss the differences between consumers who have different consumption behaviors for luxury brands. Perceived risk theory is adopted in this research. The purpose of this research is to explore the differences in performance risk, financial risk, psychological risk, social risk and time risk between consumers who have different consumption behaviors for luxury brands. This research is verified through the survey study. Collectively, the results support that: the consumers who have different consumption behaviors for luxury brands have different combinations of perceived risk.

Despite of global economic depression, the luxury-goods industry has been thriving in the recent years. Luxury brands build brand images such as fashion, classy, and elegance. In this mature market, especially under the domination of 4 major luxury products groups , it is very difficult for a new luxury brand to survive as a late entry. In this paper, based on First-Mover Advantage Theories(Schnaars, 1986; Lieberman and Montgomery, 1988¡Ketc) and the New Business Model(Hamel, 2000), we develop a structural model to discuss how could a new luxury brand succeed competing with existing brands and go international. Shawnyï, a new French-Taiwanese luxury brand, is taken as our study case. Several important findings are as following: 1. No first-mover advantage is found in luxury-goods industry. What make a successful luxury brand should be business activities such as creative concept of designer and efforts on managing brands. 2. First-movers in luxury-goods industry benefit from their long-history brand images, their new designers also bring their brands new images from time to time to lead the fashion. 3. Fashion industry moves from Europe, through America, into Asia, in the meanwhile melts new concepts and creativity. 4. New luxury brands could reach global market by merging with luxury products groups.

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.

An emerging literature stream posits that drawing on users rather than internal designers in new product creation may benefit firms because the resulting products effectively satisfy consumer needs. Four studies conducted in the context of the luxury fashion industry uncover an important conceptual boundary condition of this positive user-design effect. Contrary to extant research, the results show that being "close" to users does not help but rather harms luxury fashion brands. Specifically, the authors find that user design backfires because consumer demand for a given luxury fashion brand collection is reduced if the collection is labeled as user (vs. company) designed. The results further reveal the underlying rationale for this reversal: user-designed luxury products are perceived to be lower in quality and fail to signal high status, which results in a loss of agentic feelings for the consumer. The authors explore several strategies luxury brands can pursue to overcome this negative user-design effect. Finally, they find that negative outcomes of user design are attenuated for luxury fashion products that are not used for status signaling - that is, product categories of a luxury brand that are characterized by lower status relevance for the consumer. (authors' abstract)

Marketing research indicates a robust industry for luxury brands with ever-increasing consumer demand. However, studies indicate no correlation between the booming luxury industry and the value of luxury as perceived by the consumers. Against the backdrop of growth in this industry and its contributions towards the economy of a nation, it is imperative to understand why consumers buy luxury accessories brands from an academic and managerial perspective. It is equally important to understand the reasons as to why consumers hold certain brands dear and how their perception of luxury affects their buying decisions. Previous market research done in this regard highlighted the need for luxury brand managers to adopt a focused approach when selling luxury goods. Consumers should be able to perceive certain value in the luxury accessories brand that justifies its high cost, especially during periods of economic recession. To obtain a quantifiable and sustainable competitive advantage, it is prudent for the luxury industry to investigate and analyse the consumer value of their products. Therefore, it is crucial to study the types of value required and their impact on consumer behaviour. To bridge this gap, the present study proposes generating an in-depth explanation of how consumers’ luxury value dimensions determine their overall luxury brand value in an accessories context. Subsequently, these influence their repurchase intention through direct and indirect routes, by establishing and testing an integrated model of the determinants and consequences of luxury accessories value from the perspective of Gulf Arab tourist. To meet the requirements of this research, a mixed methodology was deployed. This combined all quantitative and qualitative data, in a sequential manner, to deduce the results. An explorative qualitative phase was used at the preliminary level of research. This required various focus groups to set out the scope of the model and devise topics for the questionnaire. This was followed by a quantitative research phase that compiled and evaluated all data generated from the self-administered questionnaires. Hypothesis testing was estimated using Structural Equation Modelling (Smart Partial Least Square (PLS) v.3) on 397 Gulf Arab tourists who have an experience in luxury accessories. The results confirm that Gulf Arab tourists consider emotional, social, self-identity, relational and financial value when developing their overall value of luxury accessories. Effectively, this shapes their repurchase intention only indirectly through brand trust and preferences. The uniqueness of this research is elicited from being the first to use the theory of consumption values to construct a model that uncovers overall value for luxury accessories brands and tests its influence on repurchase intentions. This model develops the narrow view of consumption-value theory in terms of the value components that affect only consumption choice decisions. The research model cultivates this view by integrating a set of value components as a basis on which to explain consumer preferences and purchase decisions for luxury accessory brands. Thus, the theory of consumption values may go beyond choice decisions to include behavioural outcomes. In addition, this study reiterates the experimental view of consumption, as proposed by Holbrook and his colleagues. The study states that cognitive and affective components work in collaboration to determine the overall value of luxury accessories brands. The research provides supplementary data to the assumptions of the traditional rationality models. Combined with such models, this research intends to enhance the prediction of the value of consumer luxury accessories. Methodologically, the existing empirical research relies on small student samples, used conventionally in similar studies. Consequently, a significant number of respondents lacked the necessary purchase experience, essential for this research. However, the present research contributes by using actual consumers of luxury accessories brands; thereby, enhancing the validity of the empirical findings. Another significant contribution of this research is the use of a mixed-methods approach to understanding consumer behaviour. This allowed the researcher to obtain a better understanding of the Consumer Value theory within the context of luxury accessories, branding and endorsements. The qualitative and quantitative aspects of such consumer values have never been explored before. Therefore, this research anticipates providing a benchmark for all future research under the same topic. Pragmatically, regarding emotional, social, self-identity, relational and financial dimensions, marketers will be able to base their selling strategies based on this model. Furthermore, it facilitates the improvement of purchase value for their luxury accessories and help them target consumers in different market segments. Consumers may differ with respect to their perceived values for luxury commodities, but prefer a prticular luxury brand to satisfy their emotional and cognitive needs. This model is also useful from a market position, while enhancing the overall Marketing efficiency for luxury accessories. Alternatively, luxury accessories brand managers will be required to build strong brand value and a continual relationship with their consumers to prevent them from searching for and investing in alternate brands and substitutes; thereby encouraging cross-shopping.

The foremost argument of this research is that self concept is of fundamental influence in the choices consumers make when purchasing luxury clothing brands. The objective of this research was to determine the relationships between self concept and the experience, attachment and loyalty that consumers have towards brands. The research further sought to confirm the role that identity theory plays in brand consumption. Sixty-nine respondents were surveyed via an electronic tool to understand how they view the role that self concept plays in the experiences they encounter with clothing brands. Experts were also interviewed to gain deeper insights into brands and the importance that communication and branding strategies play in developing brands for consumption. Ttests and bivariate regression was performed in order to determine relationships amongst the constructs. The findings show that consumers place a relatively high importance on the brand experience and self concept constructs. Marketing and advertising companies have an enormous responsibility to ensure that the right messages are communicated to consumers in order to give consumer a positive brand experience. A robust brand strategy and Communications strategy plays a pivotal role in successful delivery of the essence and image of luxury brands. Identity and self concept theory are central to understanding consumer behaviour and consumption decisions. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

The market for luxury brands has outpaced other consumption categories through its growth, and has been found in continuous development. As there is an increasing amount of luxury categories, the consumption of luxury fashion brands account for the largest proportion of luxury profits, and the marketing costs for such brands has shown to surpass those of other fashion categories. Consumer researchers have throughout decades emphasized how individuals participate in consumption behavior to form their self-concept in relation to brands. However, previous research has disregarded the multidimensional perspective regarding the theory of self-concept when examining the consumption of brands. Hence, the current research paper aims to strengthen the existing self-concept theory by exploring the role in which luxury fashion brands have by focusing on how the consumption of such brands relate, and contribute, to the consumer’s self-concept. By applying a qualitative method to investigate such purpose, and involving the existing theory of self-concept, brand image, and brand personality, it appeared that luxury fashion brands has a function to operate as a confidence booster for young consumers’ perception of their self-concept. In terms of the theoretical contribution of this paper, this research further illustrates how the theoretical explanation of brand image and brand personality relates to two different dimensions of the consumer’s self-concept. The consumption of luxury fashion brands has shown a significant role in individuals’ consumption behavior by emphasizing a striving, and motivating, part in the self-concept of young consumers.

Title: Luxury Brands’ Storytelling on Social Media Date of Submission: 29th of May 2019 Authors: Klara Ekebring, Catarina Mellqvist Supervisor: Leon Caesarius Course: 2FE840, Master Thesis, 30 ECTS Purpose: The purpose of this thesis is to explore how luxury brands are communicating through brand storytelling on social media. Hence, this study is conducted from the perspective of luxury brands with the aim to provide academic and managerial indications of how luxury brands perceive storytelling of luxury value on social media platforms. Methodology: This thesis performs qualitative research and utilises an abductive research strategy in order to conduct exploratory research. Data is collected through the use of both primary and secondary data sources. The primary data collection is made by the implementation of semistructured interviews that are formed and analysed through a thematic method of analysis and the satisfying principle. The secondary data is collected through observation of social media accounts of the brands taking part in this study. Empirical findings: The data collected present features on social media that the brands are recognising when communicating through storytelling on the platforms. By informing followers about the brand by telling stories, emotions, mental connections and meaning are established. Further, the interaction that is supported on social media platforms is considered by the luxury brands and influences the role followers to have in the communication process. Conclusions: The present study has found indications that the luxury values’ brands communicate through storytelling remains unchanged and how luxury values are told through stories are adjusted to the context of social media platforms. This suggests that luxury brands communicate their luxury value through storytelling on social media platforms by recognising the features of the context and the interaction, which is argued to be fundamentally supported on the platforms. Hence, elevating the role followers have in the communication process.

AbstractBackground: Countries can be seen as brands (nation brands) with brand values that transmitto the country’s products. Country-of-origin (COO), the brands nationality, links the productto an associative network of cultural shared national stereotypes. Through associating thebrand with a country or a region, the credibility of the brand can increase and strengthen thebrand. Therefore COO is used in marketing to position a brand.Purpose: The purpose of this study is to examine how luxury fashion brands communicatetheir national identity through analyzing their advertising. The brands examined in the studyare the French brand Chanel and the British brand Burberry. To be able to answer the researchquestion, the brands’ advertising campaigns were analyzed to see whether they contain abrand personality built on a national stereotype or if there is a clear national theme or storieslinking to the national identity.Methodology:The national stereotypes of the two countries were examined through a pilotstudy. The advertising campaigns were analyzed by using an analyze model that wasdeveloped from image analyzing theories. It was then connected to the theory and the nationalstereotypes that evolved from the pilot study.Results: The results revealed in this study shows that the two different brands use theirnational identity in different ways. While Burberry has a clear British theme in theirmarketing, Chanel uses stories to link their brand personality with that of the founder CocoChanel, whom is associated with the stereotype of France. / <p>Sammanfattning</p><p>Bakgrund: Länder kan ses som varumärken (nation brands) som har varumärkesvärden som</p><p>överförs till ländernas produkter. Country-of-origin (COO), varumärkets nationalitet, länkar</p><p>produkten till ett associativt nätverk av kulturellt delade nationella stereotyper. Genom att</p><p>associera ett varumärke med ett land eller en region, kan trovärdigheten för varumärket öka</p><p>vilket förstärker varumärket. COO kommuniceras därför i reklam för positionering.</p><p>Syfte: Huvudsyftet med denna studie är att undersöka hur lyxvarumärken inom mode</p><p>kommunicerar sin nationella identitet genom att analysera deras reklamkampanjer. De</p><p>varumärken som studerades var franska Chanel och brittiska Burberry. För att svara på syftet</p><p>prövades om varumärkenas personlighet bygger på den nationella stereotypen.</p><p>Reklambilderna analyserades även för att se om det finns ett tydligt nationellt tema eller</p><p>berättelser som länkar till den nationella identiteten.</p><p>Metod: Genom en förstudie undersöktes de olika ländernas nationella stereotyper.</p><p>Reklambilderna analyserades med hjälp av en analysmodell som utvecklades från</p><p>bildanalysteorier. Analysen kopplades till teorin samt de nationella stereotyper som</p><p>framkommit genom förstudien.</p><p>Resultat: Resultatet och det som framkom i studien var att de olika varumärkena använder sig</p><p>av sin nationella identitet på olika sätt. Medan Burberry har ett tydligt brittiskt tema i sin</p><p>marknadsföring, använder Chanel berättelser som länkar varumärkespersonligheten till</p><p>grundaren Coco Chanel, som kan sammankopplas med den franska stereotypen.</p><p>Program: Textilekonomutbildningen magister</p>

AbstractThe fashion industry is today one of the most interesting, exciting and fast-moving industriesin the world. On the streets we can see people wearing all kind of brands, both fast fashionbrands and luxury brands. Some people mix different brands, while some people stick toeither fast fashion or luxury brands. Today people wear different brands to express theirpersonal style but also social and class relationships.The purpose of this study is to find out why some consumers prefer to purchase luxury brandsinstead of fast fashion and what added value is given to them so they choose luxury. It alsodeals with what kind of people purchase luxury brands and if there are any differences. Tosucceed with this study I have therefore made a qualitative study where interviews were madewith several store managers at luxury brand stores in central Stockholm and observations.I found from this research that the consumers of luxury brands purchase luxury because of thequality that they receive and the service. The consumers are very quality conscious andbelieve it is more sustainable to purchase something that has good quality than buyingsomething that is cheap with poor quality. They also choose luxury brands because ofexpertise from the personnel, and personal contact between the store assistants and theconsumer. Consumers purchase a whole concept when they choose luxury. They chooseluxury because of the experience they receive that cannot be given at fast fashion stores.I also found from this research that there is a mixture of consumers who purchase luxurybrands. There is all kind of consumers, everything from upper class, brat wannabes, andmiddle class, younger consumers to old grand parents. Some purchase luxury brands for thequality and some for the status it gives them.Besides of why consumers choose luxury brands and what consumers who actually purchase Ifound that consumer of luxury brands have changed in the past ten years. It used to be onlyupper class but more and more luxury brands have widen their target group by offeringproducts that are less expensive so more people can afford it, but still in the frame of what isluxury.Key definitions: Fast fashion, luxury brands, upper class, brat wannabes, and social class. / Program: Magisterutbildning i fashion management med inriktning modemarknadsföring