Session 3 - Consumer Behavior in Luxury
The consumer purchasing process (Maslow)
- Self-actualization
- Self-esteem
- Social needs
- Safety & Security
- Physiological needs (survival)
Self-identity = thoughts and feelings about oneself
Self-gift giving to feel good
Self-uncertainty & Subjective sense of belonging (Optimal Distinctiveness Theory)
Developing strong brands in luxury
Value Creation for the consumer (warranty, quality, composition; consistency...)
Optimal Distinctiveness Theory => individual's need for similarity and distinctiveness within social groups
Optimal Distinctiveness Theory
Creation of «social communities»
Value creation for the company
Customer loyalty, Lower Price Elasticity, Competitive advantage, Price premium...
Luxury brands
Distinctive sign => differentiates a company G from competitors’ G + guarantees the origin
in Luxury = emotional associations w/ rational evaluation of performance
Mental Associations attached to the brand attributes, benefits, values, culture, personality, user profile
Sources of value in luxury = Experiential value (brand meaning to indiv.), Symbolic value (brand meaning to others), Functional value (brand's physical attributes)
- Brand identity => created by Managers
- Brand image
Brand identity Prism - Kapferer representation
Helps businesses build strong, enduring brands by identifying & understanding the 6 key elements that make up brand identity
Brand authenticity => Brand individuality, consistency, continuity, perceived value, brand trust
Brand individuality
Brand uniqueness, distinctive, & own personality, style, and values
Brand continuity
Maintaining a consistent brand image (ensuring that the brand's personality, messaging, & visual identity are recognizable + consistent)
Reinventing one’s identity (Fashion => trends, innovation, & modernity; Tradition => Keep iconic elements, invented years ago)
Brand consistency
Deliver on one’s promise (quality, performance & dedication, passion)