• Title/Summary/Keyword: luxury consumption value

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Examining the Relationships among Attitude toward Luxury Brands, Customer Equity, and Customer Lifetime Value in a Korean Context (측시이한국위배경적사치품패태도(测试以韩国为背景的奢侈品牌态度), 고객자산화고객종신개치지간적관계(顾客资产和顾客终身价值之间的关系))

  • Kim, Kyung-Hoon;Park, Seong-Yeon;Lee, Seung-Hee;Knight, Dee K.;Xu, Bing;Jeon, Byung-Joo;Moon, Hak-Il
    • 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.

Brand Awareness, Attributes and Purchase Behaviors for Luxury Products in the Age of McLuxury (명품 대중화 시대의 명품 브랜드 인지도와 주요 속성에 대한 인식 및 구매 행동)

  • Kim, Mi-Sook;An, Soo-Kyung
    • The Research Journal of the Costume Culture
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    • v.18 no.1
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    • pp.133-149
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    • 2010
  • The purpose of this study was to investigate the brand awareness, attributes and purchase behaviors for luxury products in the age of mcluxury. In-depth interviews were conducted to 18 consumers(10 singles, 8 married) in the age range of 20~49 and having purchased luxury products twice in last 1 year. The interviews were directed by a trained mediator according to the interview guidelines and recorded. Interviewees were asked to talk freely and protocols were made for data analysis. Similarities were found regarding the salient attributes, brand awareness of luxury products as known in general; however, the perceived importance of each attribute of luxury products seemed to be changed as mcLuxury has continued. Moreover, the consumers' attitudes toward the luxury products consumption tended to become favorable than before, and the motives to buy luxury products were more value-oriented and self fulfillment rather than display one's wealth. The buying behaviors of luxury products vary among different age groups. However, most of them tended to purchase luxury products at duty-free shops and premium outlets while traveling abroad, or bought them on sale at domestic department stores.

Why Genuine Luxury Brands Are Consumed? Counterfeits? Examining Consumer Identification

  • Suh, Hyunsuk
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.69-102
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    • 2012
  • Owing to increased number of luxury brand users, both genuine and counterfeit luxury product consumption continues to increase every year. Luxury brand is defined as use or display of a particular branded products which brings the ownership prestige apart from its functional utility(Grossmand and Shapiro 1988). Some luxury brands have imitations sold in marketplace due to their popularity. These imitations or counterfeits have been jumping on the bandwagon of the upturn in sales of their originals. The purpose of our study is to understand consumer's underlying motives to consume luxury brands, genuine and or counterfeits. To do this, we propose functional theories of attitudes, decision-making styles, and life attitudes to form the determining causes for different consumption choices of luxury brands: genuine brands, counterfeit brands, both genuine and counterfeit brands, and no consumption on luxury brands types. In proposed causal pathways, we examine moderated effects of socio-psychological factors to further investigate if consumer profiles would exert influences in causal relationships. From the existing theories of functional attitudes: value-expressive and social-adjustive attitudes, we developed and introduced a new measure of rationality-consumptive attitude. From the existing eight decision-making characteristics of consumer styles inventory(CSI), three measures of high-quality, hedonic-shopping, and price-shopping styles were primarily applied in the study along with newly introduced measure of 'high-price' being added, which makes four total. Seven life attitude measures of life purpose, life control, will to meaning, goal seeking, future mean to fulfill, life satisfaction, and religiosity were applied. Finally, such socio-psychological measures as age, gender, marital status, income, and age-gap between couples were assumed to function as moderators. With 430 valid study samples, ages from 20s to 50s, with more females(316) than males(114), with average personal possessions of 5 genuine and 9 counterfeit luxury brands, we conducted questionnaire survey. Results indicated that social-adjustive function is totally disappeared in the relationship due to current social trend of widespread consumptions on both genuine and counterfeit brands which in turn, make consumers feel less special on wearing or carrying them unlike in the past. Self-expressive function and rationality-consumptive functions act as strong catalysts for genuine brand consumption and counterfeit brand consumption, respectively. On consumers' decision-making styles, high-price sublation is the most powerful indicator anticipating counterfeit consumption, even more powerful than personal incomes. In life attitude, the overall model fit was not validated, and only life control and life satisfaction are proven to be significant on both genuine and counterfeit product consumptions. Employment of socio-psychological factors in the model improved understanding of users further. Young consumers tend to go for genuine products over counterfeits. Consumers in different income groups; low, medium and high, all significantly consume genuine products for reasons of different decision-making styles. The results indicated that consumers whose personal disposition is predisposed to consume products in the form of reflection of his or her personality, go only for genuine brands for quality reason, while consumers who rationally consume products for its function or usability, go only for counterfeits for high-price sublation reason. Meanwhile, both product users support for high-price orientation who are not well off.

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An Analysis of the Effects of Luxury Brand Consumers on the Re-purchase Intentions, Behavioral and Risk Perception (명품브랜드 소비자의 재 구매의도에 미치는 영향 분석 -온라인 해외직업구매 이용동기, 행동의도, 위험지각을 중심으로-)

  • Yoon, Seonyoung;Lee, Seunghee
    • Journal of Fashion Business
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    • v.22 no.5
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    • pp.1-14
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    • 2018
  • The purpose of this study was to define the purchase behavior of online luxury fashion brand consumers that soon became new luxury consumption trends. To investigate online luxury fashion brand consumer's purchase behavior, three variables were suggested based on advanced researches. These variables include economic value, item variety and pleasure. Purchasing luxury online was not common but as cross-border online shopping market became popular, consumers began to purchase luxury items through online shopping platforms. Preliminary surveys was conducted on 20~40-year-old consumers who have experience in online shopping for luxurious items. Total 238 questionnaires were used for analysis. By using SPSS, frequency analysis, factor analysis, reliability analysis, correlation analysis, regression analysis, t-test and ANOVA were conducted. The results of the study were as follow; first, consumer's purchase behavior appeared to be influenced by the order of pleasure of shopping, economic value and item variety. Repurchase intention appeared to be affected by the order of economic value, item variety, and pleasure of shopping. Second, online luxury fashion consumers perceived that risk does not affect purchase intention and repurchase intention. Third, as purchase intention increases, repurchase intention also increases. Fourth, shopping value, age and channel risk also indicated meaningful differences. As an early study of luxury fashion brand products purchased directly online, the academic significance can facilitate an overall understanding of consumer behavior such as usage motive, risk perception, behavioral intention.

A Study on Korean and Japanese Consumers' Attitudes and Consumer Knowledge about Luxury Brands (한국과 일본 소비자의 명품 브랜드에 대한 태도 및 소비자 지식에 관한 연구)

  • Park, Jin-A
    • Journal of the Korean Society of Clothing and Textiles
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    • v.34 no.8
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    • pp.1303-1318
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    • 2010
  • This study is to understand the characteristics of Korean and Japanese consumers by analyzing the relation among consumer attitudes, concepts, and knowledge about luxury brands. In addition, the present study is to help to establish more effective marketing strategies for luxury companies by providing new data based on consumer knowledge. The author conducted a survey on a total of 816 male/female Korean and Japanese subjects ranging in age from 20 to 50s. The results of this study are as follows: First, Korean consumers have more positive attitudes toward luxury brands than Japanese consumers. Second, regarding the concepts about luxury brands, Korean consumers have concepts of luxury such as "involvement" "symbol of status" "scarcity" and "hedonism"and Japanese consumers have concepts such as "involvement" "ostentation" "high value"and "ornamentation" Third, Korean consumers are more confident in their knowledge and experiences about luxury brand consumption than Japanese consumers. The subjective knowledge has positive impacts on consumer attitudes toward luxury brands and becomes one of the reasons for the friendlier attitudes of Korean consumers toward luxury brands, compared to Japanese consumers. Fourth, the level of objective knowledge of Korean and Japanese consumers is high; but there is no statistically significant difference in the two countries.

An Identification of Determinants to Ambivalent Purchase Intention of Fashion Luxury Brand Expanded Cosmetic for MZ Generation (패션 명품 확장 브랜드의 코스메틱에 대한 MZ세대의 양면적 소비 의도에 미치는 영향 변인에 관한 연구)

  • Song, Ji-Ahn;Jang, Seong-Ho
    • The Journal of the Korea Contents Association
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    • v.21 no.3
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    • pp.47-67
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    • 2021
  • The purpose of this study is to identify antecedent factors influencing the two-sided consumption intention tendencies observed in MZ generation from the viewpoint of consumption value in the cosmetic consumption scene of fashion houses. In order to verify the research model and hypotheses proposed in this study at the level of statistical significance. a survey was conducted for MZ generation, and data collected from a total of 286 samples were analyzed through a structural equation model. As a result. emotional and social consumption value was identified as a variable that had a great influence on the consumption intention of MZ generation. First, self-esteem had an effect on the emotion consumption value at the statistical significance level. Second, materialism had a significant influence on emotional and social consumption values. Third, public self-consciousness was found to have an effect on social consumption value. That is, MZ generation pursues the beauty trend presented by the fashion house's beauty brand and perceives it as a high consumption value. In addition, it was confirmed that MZ generation exhibited a conspicuous consumption tendency that they could be socially differentiated by using fashion house cosmetics.

The Effects of Luxury Brand Marketing Mix on the Formation of Customer Equity - Focusing on Luxury Brand's Product Consumers in 20~40's - (럭셔리 브랜드 마케팅 믹스가 고객자산 형성에 미치는 영향 - 20~40대 럭셔리 브랜드 제품 소비자를 중심으로 -)

  • Hwang, Yookyung
    • 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.

A Comparative Study on Consumer Groups based on Consumers' Attitude and Purchase Intention of Luxury and Masstige Brands, and Counterfeits (명품과 매스티지 브랜드, 복제품에 대한 태도 및 구매의도에 따른 소비자집단 비교연구)

  • Bang, Junghae;Kim, Min Sun
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.22 no.3
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    • pp.303-309
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    • 2021
  • This study examined how consumers in their 20s and 30s perceive luxury goods, masstige brands, and counterfeits, which have high social value, and whether the propensity for conspicuous consumption and conformity can explain them. Consumers were classified based on the similarity of attitudes toward these brands and purchase intentions. The groups were compared on the sub-dimensions of conspicuous consumption and conformity. Clustering analysis identified four groups, and the MANOVA result confirmed the differences among the groups. Personality (F=4.282, p=.006) and brand orientation (F=23.178, p=.000) were positively related to luxury and masstige brands. Fashion orientation (F=8.376, p=.000) was high for both groups, which likes luxury and masstige brands very much, and which likes counterfeits. High-price orientation did not make any significant difference among the groups. Conformity (F=3.537, p=.015) was high for all the groups, except for the group that liked luxury and masstige brands and did not like counterfeits. This study comprehensively examined the attitudes and purchase intentions of luxury and masstige brands and their counterfeits and can be the groundwork for further research on brand categorization.

A study on the influence of customer engagement on Chinese consumers' purchase intention and brand attitude of the luxury brand community (럭셔리 브랜드 커뮤니티에서 고객 인게이지먼트가 중국 소비자의 구매의도 및 브랜드 태도에 미치는 영향)

  • Danyang, Liu;Kim, Hyojung;Park, Minjung
    • The Research Journal of the Costume Culture
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    • v.28 no.5
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    • pp.621-638
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    • 2020
  • Luxury companies are striving to improve their communication with customers while paying attention to online promotion and marketing activities. As companies interact with customers in luxury brand communities via various channels, they yield consumers higher value throughout the effective consumption process. In addition, this connection enhances customers' understanding of the company, making it easier for companies to acquire empathy from customers. This study aims to analyze the value factors that affect luxury brand community members' purchase intention and brand attitude. This study utilizes online survey results of four hundred prestige brand community users in China. The results reveal the positive effects of customer engagement on customer psychological empowerment and flow, the positive impacts of customer psychological empowerment and flow on community identity and brand attachment, the positive effects of community identity on purchase intentions, and the positive effects of brand attachment on purchase intentions and brand attitude. Furthermore, the results show that community types and fashion involvement partially moderate customer engagement. This study provides theoretical suggestions for relationship marketing in the luxury brand community environment. Last, this study presents practical implications that companies could utilize to create an emotional connection with their community members, resulting in an increase of customer support.

Socio-cultural meaning of Apartment TV advertisement: Focusing on KCC Switzen (아파트 TV광고의 사회문화적 의미: KCC스위첸을 중심으로)

  • Shim, JungWon
    • Journal of Korea Multimedia Society
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    • v.24 no.9
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    • pp.1285-1298
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    • 2021
  • Among the diverse apartment brand TV Ads, KCC Switzen uses a unique advertising strategy. Unlike their competitors, KCC Switzen uses a strategy without fancy rhetoric such as luxury, premium or high-tech to enhance the value of their housing. In order to define the value of contemporary housing this paper analyses the socio-cultural messaging of KCC Switzen's television advertisements using Qualitative content analysis and Floch's Semiotic Square of Consumption Values method. As a result of this analysis, KCC Switzen's advertisements are shown to contain both intrinsic values of housing and cultural humanism by asking ablout the daily lives of real families and their relationships with neighbors. This directly contrasts with the standard advertisements that focus on the investment value of residential housing. The unique KCC Switzen advertising strategies are expected to change the paradigm of residential housing.