The Four Effects Of Luxury Brands

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Luxury goods are defined as goods that you use or display with the aim to bring yourself prestige, having no functional utility (Grossman and Sharpiro, 1988). According to Beverland (2004), luxury brands evoke product integrity, high value, a culture and strong history, and rely on marketing and endorsement.
According to Vigneron and Johnson (1999), four effects can explain luxury consumption. The Veblen effect corresponds to the perceived conspicuous value. Veblenian consumers attach more importance to price as an indicator of prestige, with a view to impress others. The Snob effect corresponds to the perceived unique value. Snob consumers perceive price as an indicator of exclusivity and avoid using famous brands. The Bandwagon effect corresponds
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The cyberspace is a world of hyper-interconnectivity. Consumers are only one click away from being connected to thousands of people throughout the world sharing the same passions, values, tastes, ideas and lifestyles.
Besides, globalization have multiplied brand choices for consumers, leading to severe competition (Ryan, 2009). The only way to compete is for marketers to establish and maintain a strong brand identity and to create differentiated brands if they want to get consumers' preference and to turn them into loyalists (Chevalier and Mazzalovo, 2008; Okonkwo, 2007). Moreover, wealthy customers are less and less loyal. Thus, one can no longer rely only on prestigious brand image to retain customers (Choo et al., 2012).
The key element to differentiate oneself is having powerful marketing communications (Fionda and Moore, 2009). Indeed, it is essential to build strong customer-brand relationships through emotional involvement and attachment (Choo et al., 2012; Kapferer and Bastien, 2009). By emotional attachment, I mean customer’s feeling of connection, affection and passion towards a brand (Thomson et al., 2005). Emotional attachment is thus predicated by brand love, brand affection and brand connection. Customers who are strongly attached emotionally to brands are likely to be committed to it and stay in a long-term relationship (Thomson et al.,
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It is possible to maintain favourable brand associations by constantly enriching the consumer experience or by efficiently relying on celebrities (Keller, 1999; Valey, 2009). Brands have to learn how to tell meaningful, inspiring and fascinating stories and marketers have to demonstrate that they perfectly understand their customers’ lifestyles, dreams and ambitions so as to convince them that their brands are life enriching (Thompson et al., 2006). This is the only way they can manage to reach what is called customers' evangelical enthusiasm.

Brands constitute key marketing tools. Branding is constantly evolving and nowadays brands represent much more than markers of quality, trust and reliability. Today, brands offer opportunity for self-expression, self-realisation and self-identity, which are concepts strongly rooted in the fashion industry.
However, the perceived potential benefits of branding and the increased volume of brand-based advertising, expose consumers to a flood of choices in many markets. That is to say that there is a relatively limited scope for differentiation and thus, the emphasis for marketers shifted to symbolic, emotional features that generate more socio-psychological associations. There is a need of offering something bonus, above the functional product
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