Session 3 - Consumer Behavior in Luxury

The consumer purchasing process (Maslow)

  1. Self-actualization
  1. Self-esteem
  1. Social needs
  1. Safety & Security
  1. 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)

  1. Brand identity => created by Managers
  1. 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)