The Concept of Luxury Brands and the Relationship Between Consumer and Luxury Brands
Kip Becker, Jung Wan Lee, Helena M. Nobre / Journal of Asian Finance, Economics and Business Vol 5 No 3 (2018) 51-63
14 Pages Posted: 10 Oct 2018
Date Written: July 30, 2018
The study aims to articulate a definition of luxury brands, to propose a framework for consumer luxury brand relationships and to provide empirical evidence of the proposed model. The study conducted two surveys in Portugal and the United States in 2009 and 2013 for selected luxury brands. The study employs factor analysis and structural equation modelling techniques to test the hypotheses. The study finds a link between luxury products and consumer’s psychological association represents in a hierarchical order of: cognitive attributes at its base level, extrinsic attributes on a secondary level and intrinsic attributes at the advance level. The findings suggest a concept for luxury brands from three dimensions of: luxury product characteristics, consumer’s psychological characteristics, and consumer’s psychological association with the luxury product. The research was conducted in Portugal and the United States so that there is always a potential criticism concerning the ability to generalize research results to a broader international population. The findings provide a holistic perspective in the understanding of luxury brand constructs and a definition of luxury brands in the way why consumers involve symbolic consumption. The successful application of the findings in a brand setting would be of particular interest to marketers and brand strategists.
Keywords: Luxury Brand, Luxury Product, Brand Personality, Consumer Behavior, Brand Strategy
JEL Classification: M11, M31, M37
Suggested Citation: Suggested Citation