• Journal of Global Scholars of Marketing Science
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• v.20 no.1
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• pp.27-34
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• 2010

During the past 10 years, sales of luxury goods increased significantly to more than US$ 130 billion in 2007. In this industry, more than half of the revenue comes from Asia where the average income has risen significantly, and the demand for luxury products is forecast to grow rapidly. Purchasing luxury brands appears to be an intriguing social phenomenon that is profitable for companies in this region. As a newly developed country, Korea is one of the most attractive luxury markets in Asia. Currently, a total of 120 luxury fashion brands have entered the Korean market, primarily in luxury districts in Seoul where the competition is fierce. The purposes of this study are to: (1) identify antecedents of attitude toward luxury brands, (2) examine the effect of attitudes toward luxury brands on customer equity, (3) determine the impact of attitudes toward luxury brands on customer lifetime value, and (4) investigate the influence of customer equity on customer life time value. Previous studies have examined materialism, social need, experiential need, need for uniqueness, conformity, and fashion involvement as antecedents of attitude toward luxury brands. Richins and Dowson (1992) suggested that that materialism influences consumption behavior relative to quantity of goods purchased. Nueno and Quelch (1998) reported that the ownership of luxury brands conveys information related to the owner's social status, communicates an image of success and prestige, and is a determinant of purchase behavior. Experiential need is recognized as an important aspect of consumption, especially for new products developed to meet consumer demand. Since luxury goods, by definition are relatively scarce, ownership of these types of products may fulfill consumers' need for uniqueness. In this study, value equity, relationship equity, and brand equity are examined as drivers of customer equity. The sample (n = 114) was undergraduate and graduate students at two private women's universities in Seoul, Korea. Data collection was conducted using a self-administered questionnaire survey in March, 2009. Data analysis included descriptive statistics, factor analysis, reliability analysis, and regression analysis using SPSS 15.0 software. Data analysis resulted in a number of conclusions. First, experiential need and fashion involvement positively influence participants' attitude toward luxury brands. Second, attitude toward luxury brands positively influences brand equity, followed by value equity and relationship equity. However, there is no significant relationship between attitude toward luxury brand and customer lifetime value. Finally, relationship equity positively influences customer lifetime value. In conclusion, young consumers are an important potential consumer group that tries different brands to discover the ones most suitable for them. Luxury marketers that use effective marketing strategies to attract and engender loyalty among this potentially lucrative consumer group may increase customer equity and lifetime value.

• Journal of the Korea Fashion and Costume Design Association
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• v.13 no.2
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• pp.89-101
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• 2011

The economy blocking and price competitiveness caused by globalization has generated an on-going controversy of global sourcing among high-priced luxury brands. The consumers in the global market purchase luxury goods based on both craftsmanship and the reputation of luxury brands. Factors such as the origin, brand and pricing can affect the intention of consumers to buy luxury goods. This study analyzed the optimum brand combination using conjoint analysis. The analysis was based on the selection of origin, brand name and price as extrinsic factors among attributes of customer choice. These factors were subdivided into Italian and Chinese origins, Gucci, Prada, and Miu Miu in terms of brand names, and 450,000, 750,000, and 1,500,000 Won in terms of price levels. The result showed that origin was considered the most important factor followed by brand name and pricing. This tendency tells us that customers consider origin, brand name and price in that order when purchasing luxury brands. In regards to each factor, respondents preferred Italian to Chinese origins, the Gucci to Miu Miu brand name, and 750,000 to 450,000 won for price level. Generally, women in their 20s and 30s preferred products from advanced nations at a medium-level price.

• Journal of the Korean Society of Clothing and Textiles
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• v.44 no.4
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• pp.749-763
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• 2020

This study examined how viewers perceived luxury haul videos, what factors made them experience vicarious pleasure and gain relative deprivation when watching them. This study conducted an interview with 20 viewers of luxury haul videos. The content obtained from the interview was analyzed by classifying it into academic terms. Cases of vicarious pleasure arose when viewers had sufficient empathy when watching videos, which was intensified by YouTubers' behavior and visual stimulation in videos. A person's relative deprivation due to her financial capabilities or appearance occurred when she compared herself with YouTubers. The more viewers perceived luxury haul as a source of information, the more they felt relative deprivation; in addition, the more they perceived it as entertainment, the more they felt vicarious pleasure. Viewers who had a high level of involvement in luxury goods tended to feel vicarious pleasure; however, viewers with a high level of involvement in YouTubers tended to feel relative deprivation. This study helps luxury brands and YouTubers understand viewers' perception of their products and programs as well as helps in the development of fashion haul videos that are beneficial to viewers.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.7
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• pp.249-256
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• 2017

Luxury goods products have a steady stream of consumers, and the latest trend is the sell and purchase markets. The consumers age groups also vary widely. This research examined the mediating effect of self-construal of the relationship between brand consistency and intention to purchase luxury fashion products. The analysis classified the brand consistency of luxury fashion products as social, actual, and the deal. First, the order of consistency that had an effect on self-construal appeared in the order of social cohesion, actual coincidence, and ideal coincidence. Second, an analysis of mediating effect of self-construal showed that only self-construal appeared to have a partial mediating effect on the relationship between the intention to purchase and the actual and ideal consistency. Such result can be interpreted as that when purchasing luxury fashion products, consumers have a tendency to desire that the brand would express their personal image and that it would match the perception they had of the brand, rather than a tendency to perceive the brand as a tool to help them perform their desired social role. These results suggest that consumers who consume the brand desire to have their personalities and subjective environmental conditions well expressed.

• Journal of the Korean Society of Clothing and Textiles
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• v.30 no.9_10 s.157
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• pp.1445-1454
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• 2006

The purpose of this study was to examine the effects of consumer-brand relationship on purchasing attitudes toward counterfeits. 341 female college students who had purchased fashion luxury brand products were surveyed. For data analysis, descriptive statistics, factor analysis, pearson's correlations, ANOVA, and multiple regression were used. As the results, consumer-brand relationship was classified into three factors; commitment relationship, trust relationship, and emotion relationship. Also, higher consumer-brand relationship was correlated with higher preference and satisfaction, and lower purchasing attitudes toward counterfeits. Also, among the three groups(heavy/middle/low) of consumer-brand relationship, the heavy group had higher preference and satisfaction, and lower purchasing attitudes toward counterfeits. Also, results revealed that 'commitment relationship' and 'emotional relationship' accounted for 32% of the explained variance in 'favorableness', while 'trust relationship' and 'emotional relationship' accounted for 26% and 29% of the explained variance in 'trust toward product quality'. Based on these results, fashion luxury brand marketing strategy would be suggested.

• Journal of Distribution Science
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• v.11 no.10
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• pp.5-15
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• 2013

Purpose - With the increase in fervor to purchase luxury brands, new social problems have arisen, such as excessive preoccupation with luxury brands and high preference for forged luxury goods. Therefore, the issues related to luxury brands, termed "Luxury Syndrome," have emerged as an area of great interest for researchers and practitioners. However, previous studies neglect to categorize this preference for luxury brands. Therefore, this study aims to identify the different purchasing behaviors of consumers using the types of luxury brands preferences as parameters. Research design, data, and methodology - This study arranges a causal relationship model assuming that purchase behaviors positively (+) affect typified preference for luxury brands and purchase intentions. We administered a questionnaire survey to the purchasers who bought luxury brands from department stores to secure additional data necessary to verify the hypotheses in this study. We then processed the data using SPSS 19.0. We further analyzed the basic data using frequency and descriptive statistical analysis, and verified the measurement tools through feasibility and reliability analyses. Moreover, this study uses multiple regression analysis to verify the hypotheses. Further, this study tests the path effect between luxury brand purchase attitude and purchase behavior, with non-intrinsic preference and intrinsic preference as the mediating variables. Results - Based on the results, the impact of tendencies of conspicuous consumption and self-monitoring on non-intrinsic preference was significantly positive (+), while the impact of tendencies of pursuit of a reference group, conspicuous consumption, and self-monitoring on intrinsic preference and purchase intentions was significantly positive (+). Further, non-intrinsic and intrinsic preferences positively (+) influence purchase intentions and the impact of non-intrinsic preference took an absolute portion. However, the tendency of dependence on brands negatively (-) impacts purchase intentions. The results showed that self-monitoring and conspicuous consumption tendencies have greater effect on purchase intention, which is mediated by non-intrinsic preference. In contrast, reference group following tendency has a greater effect on purchase intention, which is mediated by intrinsic preference. Conclusions - Based on the results, the study verifies that the consumption of luxury brands in Korea has not yet entered the settling period. The tendency for conspicuous consumption and the tendency for pursuit of the reference group were relatively important aspects for the consumers who prefer luxury brands non-intrinsically and intrinsically, respectively. Especially, it was found that the purchase intentions for forged brands originate from the tendency to depend on brands. Based on these findings, this study suggests the measures to develop and mature the luxury brands market, and reinforce marketing performance at the three levels, that is, government, distributors, and manufacturers. The luxury brands manufacturers should devote themselves to the production and design of products to catch the attention of mature consumers of luxury brands. The luxury brands distributors should then raise the level of Customer Relationship Management (CRM) for opinion leaders. Finally, the Government should prepare effective policies for the development of luxury brands and provide a variety of economic support.

• Journal of the Korean Society of Costume
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• v.61 no.6
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• pp.131-145
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• 2011

The purpose of this study is to provide preliminary data on strategies to create a domestic prestige brand based on Korean traditional designs. This study also deals with how to promote this brand around the world. The two points mentioned above will be accomplished by examining the characteristics of the brand '3.1 Phillip Lim' which succeeded in both design and marketing during a short period of time. The method of the study will be followed. Firstly, the basic design and philosophical background of Phillip Lim was investigated, after reviewing the global luxury market and current status of overseas expansion of Korean designers through paper study and antecedent workups. Secondly, for the practical stage, design characteristics and marketing strategies were reviewed with the collections of '3.1 Phillip Lim'. Three factors found in '3.1 Phillip Lim's design success are as follows: First, practical and simple designs using fabrics of high quality. Second, handcraft elements and interesting details that differentiates his design identity. Third, femininity expressed in the feminine silhouette and color. The marketing elements that made '3.1 Phillip Lim' as a successful brand are: First, differentiated positioning as a luxurious contemporary brand. Second, brand promotion through various collaborations. Third, the gradual expansion of women's, men's, kids' apparel to accessory, lingerie and the stable flagship stores. Thus, '3.1 Phillip Lim' has combined modern and classic styles using high quality fabrics and practical designs with unique details. Through it's differentiated marketing strategy targeting New York's market, which prefers popular 'luxury contemporary brand's rather than high-end luxury brands, this brand's creativity and commercial aspects contributed to make '3.1 Phillip Lim' into a luxury brand that represents New York fashion. Korean designers who seek to enter the global fashion industry should consider applying Korean traditional designs on global designs to make favorable products and localize these products according to regional characteristics.

• Journal of Fashion Business
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• v.24 no.2
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• pp.100-118
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• 2020

The purpose of this study was to identify the characteristics and meaning of collaboration with artists who have been with Louis Vuitton, focusing on bags, which are representative products of the luxury Louis Vuitton brand, -The research method was literature research and case studies. The theoretical study was based on previous studies and literature examine the concept and type in collaboration and to examine the trend in fashion and art collaboration. The case study was conducted after 2000 by collecting collaborative works between Louis Vuitton and artists based on their homepage, fashion information, and collection sites. Five artists and six artists(Sam Falls, Urs Fischer, Nicholas Hlobo, Alex Israel, Tschabalala Self and Jonas Wood), including Stephen Sprouse, Richard Prince, Takashi Murakami, Kusama Yayoi, and Jeff Koons, were analyzed for the art collaboration cases and contents that were conducted mainly on bags. This study found the following collaboration characteristics: first, classic image innovation: fun and lightness; second, deviating from the boundaries of fashion bags: the art of life, and third, building high-end luxury brand differentiation: scarcity and the introduction of authorism. It is expected that the basic data will be presented in the study of art collaboration design of fashion bags as well as academic data on the differentiation of luxury brands and the artisticization of products in the future.

• Journal of the Korea Fashion and Costume Design Association
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• v.21 no.4
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• pp.139-152
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• 2019

This study aims to find out the influence of brand awareness and preference of collaboration products created by SPA and luxury brands using specific examples of collaborations, which are now becoming prevelent in the fashion industry. For this study, data collection was carried out through a distribution of 350 copies of the questionnaire, 333 responses were used for data analysis. Using a statistical package program with SPSS, a frequency analysis, a factor analysis, and a multiple regression analysis were conducted. The results of this study are summarized as follows. Awareness and preferences of the SPA and luxury brands lead collaboration products to be preferred. In addition, consumers happen to have more favorable attitudes regarding the purchase of collaboration products. This means that matching brands with high preference is a very important factor to create profits from the collaboration products as awareness and the preference are important factors for the success of projects. In particular, the recognition and preference of luxury brands was found to have greater impact on the preference and recognition of collaboration the SPA brands. Accordingly, brands should expand and actively collaborate through a variety of methods and support proper collaborations that fit their image.

• Fashion & Textile Research Journal
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• v.15 no.1
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• pp.103-115
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• 2013

This study identifies how the luxury brand marketing mix affects customer equity drivers and suggests intangible equity management strategies so that companies can make long-term profits through luxury brands based on empirical studies of Korean luxury consumers. The results of the study are as follows: First, this study classified the properties that use 8 key factors (product integrity, heritage, exclusivity, premium image, environment and consumption experience, premium price, luxury communication strategy, and brand signature). Second, it shows that product integrity and luxury communication strategy have a positive effect on all customer equity drivers, that brand signature has a positive effect on value equity and brand equity, and that premium price has a negative effect on relation equity. It is important to provide products and services equipped with high quality and luxurious designs based on excellent craftsmanship in order to establish brand equity and value equity. Brand identity needs to be maintained and unique brand signatures need to be developed based on the long history of luxury brands against a traditional backdrop. A diversified communication strategy improves brand recognition while playing a part in facilitating brand association and brand image. In order to improve relationship equity, actions such as a loyalty program to strengthen brand loyalty, need to be taken as well as measures to maintain and enhance customer trust through a reasonable price strategy.