Storytelling and Social Networking: Why Luxury Brand Needs to Tell Its Story

Recently, luxury brands are selling their products to consumers using their own direct online channels. In the online channel, marketing strategy through storytelling is needed because consumers do not have enough product experience. Therefore, luxury brands are actively utilizing social media and delivering stories includes their birth and growth. Unlike mass media, social media communicates with consumers more quickly and frequently and delivers the story of brand naturally. This study classifies luxury brands into four groups based on story recognition of luxury brands and self-esteem, and analyzes and materializes each group of the propensities of luxury brand consumption. It also tries to draw strategic implications for effective SNS advertising by analyzing narrative transportation on SNS advertising, interests in videos, and the interests in story based on these typified groups of luxury consumption. The result of the analysis shows that there is a difference in consumption propensity among consumers who were classified into four groups according to story cognition of luxury brands and self-esteem. There is also a difference in the response to narrative images through SNSs, such as narrative transportation, interests in videos, and interests in brand stories.