ASSOCIATION FOR CONSUMER RESEARCH

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A Luxury Perspective Brands: Characteristics, Value, and the Eye of the Beholder Renu Emile, AUT University, Auckland, New Zealand Margaret Craig-Lees, Auckland University of Technology, New Zealand

This study focuses on young adult consumers’ brand choices in relation to the self. It demonstrates the contextual nature of perceptions of luxury. Further, it provides evidence that the concept of luxury can be extended to a range of brands - beyond those traditionally viewed as top of the line or high end haute-couture.

[to cite]: Renu Emile and Margaret Craig-Lees (2011) ,"A Luxury Perspective on Brands: Characteristics, Value, and the Eye of the Beholder", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 307-310.

[url]: http://www.acrwebsite.org/volumes/1009448/volumes/v39/NA-39

[copyright notice]: This work is copyrighted by The Association for Consumer Research. For permission to copy or use this work in whole or in part, please contact the Copyright Clearance Center at http://www.copyright.com/. A Luxury Perspective on Brands - Characteristics, Value, and the Eye of the Beholder Renu Emile, AUT School of Business, Auckland, New Zealand Margaret Craig-Lees, AUT School of Business, Auckland, New Zealand

Introduction uniqueness, premium price, exclusivity of editions, range and dis- This paper is part of a wider study that investigates whether tribution, consistent linking to prestigious communication mediums and how consumers use products or brands to construct, support or and the creation of events linked to the brand. Undoubtedly, the in- communicate aspects of their self to others. A facet of the study is to tention is for the consumer to see the brand as special in some way ascertain if consumers identify luxury brands. If so, what brands do at both the personal and public level; the latter of course using the they speak of? How do they use them in relation to their self? The brand as a ‘Veblen’ good, a means to displaying wealth and status. self is, to a degree, a nebulous concept and difficult to operationalize. Reed (2002) lists six paradigms and also presents a cogent argument Consumers and luxury brands for the notion that ‘the self, social relationships, and social identity’ To date, the handful of studies that investigate consumers’ per- paradigm should dominate consumer research. The self is “a reflec- ceptions of luxury brands and/or products examine brands preselected tive mirror born out of social interaction with the individual’s social by the researcher and assess responses to predetermined scales (Dubi- milieu, as an object that arises out of social interaction; an outgrowth ous and Paternault 1995; Dubois, Czellar and Laurent 2005; Christo- of people’s reactions of appropriate behaviour; as an enacted role for doulides, Michaelidou and Li 2009; Husic and Cicic 2009; Vickers and a particular audience; as a universe of potential different identities Renand 2003; Vigneron and Johnson 2004). To facilitate the identifi- that may guide behaviour” (Reed 2002: 250-251). cation of luxury brands, Vigneron and Johnson developed a brand lux- Reed’s use of the term social identity accords with that of Tajfel ury index (BLI). The BLI items comprise of attributes - non-personal and Turner (1979, 1986). The self, social relationships, and social such as conspicuousness, uniqueness and quality, and personal such identity paradigm does not negate the notion that the self comprises as hedonism and extended self - to form an overall index of luxury. of at least two interacting facets - the persona (the self as denoted by The scale was developed using data collected from a student sample in characteristics and abilities) and the social self (the self as denoted Australia. Christodoulides et al. (2009) tested the scale in the context by roles and status). It recognises that these are interrelated and their of Taiwanese students and report concerns with dimensionality and formation is a function of social interaction. The consumption of contextual issues. They conclude that more research is necessary to product/brand choice is a social activity - irrespective of a public/ determine the viability of the scale. private consumption situation, primarily because the meanings as- Even so, extant studies that examine consumer perceptions of sociated with product/brand choice are socially constructed. luxury brands suggest that consumers are able to identify character- istics of products or brands they associate with the concept of luxury. Characteristics of the luxury brand: The For example, the participants in the Dubious and Paternault (1995) brand manager perspective study associate luxury goods with the attribute of rarity and by defini- Characterising the luxury brand is tricky as luxury is an elusive tion exclusivity. Dubois, Czellar and Laurent (2005) found that their concept. Phau and Prendergast (2000) note the subjectivity of the ‘elitist’ segment, i.e., those consumers who acknowledge the luxury term and the consequential difficulty in the differentiation from the concept also identified rarity and exclusivity as luxury attributes. The ordinary. In other words, the perception of what is or not a luxury exclusivity factor is linked to the notion that only people of refinement brand is context driven and people dependent, and it may be hard and good taste appreciate luxury goods. Vickers and Renand (2003) indeed to categorise products or brands as luxury or non-luxury. Vi- examined how consumers use luxury goods and their findings support gneron and Johnson (2004) contend that even though a brand may the notions of exclusivity, refinement and status, in particular the pub- be perceived as luxurious, not all luxury brands are deemed equally lic conferring of status. Husic and Cicic (2009) also found that the key luxurious. For example, while both a Cadillac and a Rolls-Royce role of the luxury brand is the communication of prestige and status. may be perceived as luxury cars, the Rolls-Royce could be consid- Wiedman, Hennigs and Siebels (2007) developed a framework to ered to be more luxurious than the Cadillac. This being said, the study luxury value perception - a framework that could be used across notion of the ‘luxury’ brand is widely recognised. The decision to cultures. Similar to Vigneron and Johnson, they suggest that when de- position a brand as a luxury brand is of course the province of the termining the value of the ‘luxury’ element, what should be measured brand manager. Once such a decision is made, then specific actions is value in relation to price, quality, usability, uniqueness, self-identity, are required in order to create and maintain this position. hedonic, materialistic, conspicuousness and prestige. These constructs Kapferer (1998) lists product aesthetics, quality, uniqueness, form the nexus of their proposed conceptual framework. sensuality as key attributes that need to be combined with exclusivity - in terms of distribution and permission (i.e., who should be associ- Methodology ated with and/or allowed to use). Central to the luxury brand position This study concerns with examining how young adult consum- is a strong brand identity. According to Keller (2009), a luxury posi- ers use brands in the context of managing aspects of their self. One tion requires actions that will result in a premium image such as a facet of the task is to ascertain if they identify luxury brands. If they selective (exclusive) channel strategy, premium pricing strategy with do, how they do so. The underlying premise is that if brands are strong quality cues and few discounts and mark downs, the use of deemed to be luxury, the attributes should be clearly articulated to high status persons as endorsers, attention to logos, symbols, pack- consumers, and so consumers should have understanding of the ex- aging and consistent linking to prestigious communication mediums plicit and implicit meanings in their decision to use the brand. This and events linked to the brand. Similarly, Fionda and Moore (2009), study explores the degree of consciousness accorded to the notion of based on interviews with managers of luxury brands found that they luxury in relation to products or brands by specifically addressing the advocate attention to quality, and craftsmanship, design signature/ following questions: Do consumers display a conscious awareness of the luxury element in the products/brands they choose to display

Advances in Consumer Research 307 Volume 39, ©2011 308 / A Luxury Perspective on Brands - Characteristics, Value, and the Eye of the Beholder aspects of the ‘self’? If so, what brands do they speak of? How do Owen (1984) and Carabine (2001). Essentially this meant identify- they talk about the concept in general and in relation to their self? ing themes, words and phrases for variability and consistency across The study focuses on young adults between the ages of 18 and interviews. To reduce subjective bias, the transcribed interviews 21 and uses a set of interpretive procedures (Denzin and Lincoln, were also analyzed by two independent analyzers. Differences were 2000). The study requires data that is essentially individual inter- sorted by mutual discussion and agreement. pretations and inferences of phenomena, so is positioned within the interpretivist paradigm and adopts a phenomenological oriented ap- Findings & Discussion proach to data collection (Husserl 1970; Schutz, 1970; Thompson, The final sample comprised of twenty eight participants. 12 (42 Locander and Pollio 1989). Participants were instructed to photo- %) were of European ethnicity, 7 (25%) of Maori, 5 (18%) of Indian, graph those products or brands that indicated an aspect of their self 3 (15%) of Chinese, and 1 (3%) of Middle East ethnicity. Partici- such as their personality, characteristics, abilities, attitudes, roles and pants identified brands across fifteen product categories. These were status. The auto-photography approach allows participants to speak - shoes, bags, clothes, Mp3 players, mobile phones, cars, computers, for themselves and reduces researcher bias (e.g., Kjeldgaard 2004; cosmetics, food and drink, electronic equipment, sunglasses, per- Noland 2006; Ziller 1990). Once the cameras were returned and fume, wallet and watches, alcohol and wine, and miscellaneous. Of photographs developed, each participant was interviewed for about the fifteen product categories, eight accord with those identified by an hour. Fionda and Moore ( 2009) as luxury i.e., fashion (couture, ready-to The transcribed interviews were analyzed as per guidelines sug- wear and accessories), perfumes and cosmetics, wines and spirits and gested by Potter and Wetherell (1987), Wetherell and Potter (1988), watches and jewellery (See Table 1).

Table 1: Product categories and brands identified Products Brands Identified Shoes Witchery, , Vans, Nike, Converse, , Bags Lacoste, Louis Vuitton, Adidas, Rip Curl, Clothes Ksubi, Levis, Diesel, Quick Silver, Billabong, Laura Parker, Witchery, Abercrombie and Fitch, Workshop, Dickies, Horley, Supre, True Religion Jeans, Ralph Lauren, Kathmandu, Mossimo, Cosmetics & Hair Elizabeth Arden, Thin Lizzy, Neutrogena, Mac, Revlon, Maybelline, Fantasy cream, products Smash Box, Cetaphil Sunglasses Gucci, Le Specs, Ray-Ban, Dolce & Gabbana, Wayfarer Perfumes Lancome, Christian Dior, Elizabeth Arden, Marc Jacobs (Daisy), Van Cleef & Arpels, Yves Saint Laurent (YSL), Chanel, Kylie Minogue, Jo Malone, Oscar de La Renta Wallets and Watches Ripcurl, Glassons, Guess, Adidas, Omega, Baby-G Alcohol/Wine Lindauer, Malibu, Barbados Rum, Speights, Tui, 42 Below, Smirnoff Vodka, Villa Maria

Whilst most of the brands selected in the product categories the socio-economic status of the sample. Christian Dior and YSL identified in Table 1 are high-end global brands, a few are high-end perfume and/or sunglasses are more accessible to this group than the regional brands, e.g., Billabong and Rip Curl. Thirteen of the high- haute couture linked to this brand. High-end clothing brands that end, global brands selected (italicised in Table 1) feature on a luxury from the way participants talk about them, are considered luxury. brands list (Luxury Brands List, 2010). However, participants also It is evident that participants have an acute awareness of what speak of some others that do not figure on the luxury brands list. selected brands communicate, and use them to clarify who they are These include Ksubi, Laura Parker, Workshop, True Religion Jeans, to themselves and to communicate some aspects of their self to oth- Kathmandu, Elizabeth Arden (See Exhibit 1 for sample extracts). ers. Though not specifically directed to identify brands that could be Christodoulides, Michaelidou and Li (2009) suggest that luxury deemed ‘luxury’, participants talk about their selections in terms of products or brands can be categorised in terms of a hierarchy. At the conspicuousness, exclusivity, quality, refined taste, and status. See, bottom of the hierarchy is accessible luxury which in terms of socio- for example, words highlighted in bold in sample extracts - Exhibit economic dimensions refers to luxury products that are attainable by 1. By speaking of brands in terms of highlighted characteristics, par- the middle socio-economic class. The mid-level hierarchy relates to ticipants reflect the elements associated with luxury brands inthe product purchases by the professional socio-economic class, while literature (e.g., Dubious and Paternault, 1995; Dubois et al., 2005; the top of the hierarchy is associated with an elite socio economic Kapferer, 1998; Phau and Prendergast 2000; Vickers and Renand, class. Though the participants own some high-end luxury brands, the 2003; Vigneron and Johnson 2004; Wiedman et al. 2007). product forms selected, to an extent, accord with the life stage and Advances in Consumer Research (Volume 39) / 309 Exhibit 1: Sample Extracts

This is an Australian brand called Ksubi…umm…they are quite expensive… it is quite expensive, quite upmarket...the designers…they design for people who want to be different (Quote One - Photograph of Ksubi shorts - Jessica) Because Elizabeth Arden is one of those brands that everybody knows and it is quite esteemed and it is quite high up. It is almost exclusive I suppose (Quote Two - Photograph of Elizabeth Arden Perfume - Sarah) This is an Omega watch. It is a well known brand as well...It is a Swiss watch, and Swiss watch is best so it shows me the right time and it says it is a luxury accessory as well…As I told you before I like expensive things and when I can afford them I buy them (Quote Three - Photograph of Omega - Paul ) The reason I took so much pictures of Ralph Lauren is because when people at Ralph Lauren they see ‘he’s a high achiever, he is successful’ and that ‘he is talented and he looks good’…It means they are successful… they are rich (Quote Four - Photograph of Ralph Lauren T-Shirts - Craig) Absolutely, I mean you know a Laura Parker dress has a definite brand standard and social advantages would include like a higher social circle recognising that maybe them going ‘hey she looks cool, I could hang out with her’ (Quote Five - Photograph of Laura Parker Ball Dress - Melissa) The Yves St Laurent perfume (Baby Doll) is special to me because my mum brought it for me, but I love it, it smells really good and all my friends, every time I wear it, are like “you smell really good”. It’s just perfume I suppose… it appeals to mostly girls my age (Quote Six - Photograph of Yves St. Laurent perfume - Laura)

Cornell (2002) notes that luxury is difficult to define but that it Conclusion involves a strong element of human involvement; that luxury goods This paper provides evidence for the notion that luxury as a con- represent value to both the individual and their reference groups. cept is context dependent and is a function of demographic factors The extracts in Exhibit 1 demonstrate that participants are cognizant such as age, life stage and income. It identifies a range of fashion of the social benefits that luxury goods afford. They are well aware brands that young adult consumers speak of in terms of luxury con- that the message communicated is that they are persons of taste and notations in the literature. Even though some may not be formally refinement, successful, and that they are members of an elite group. classified as luxury either in the scholarly literature or in industry They are able to clearly articulate what the brands represent to them- rankings, young adult consumers perceive luxury value in the choic- selves and what they think the brands communicate to others. They es they make. They use the brands to communicate that they are per- value the hedonic and sensory benefits of the brands they identify; sons of taste and social class. In other words, luxury lies in the eyes whether the sensory pleasure is enhanced by the brand image is not of the beholder. Last and importantly, the study emphasizes the con- clear, however, there is a distinct link between perceptions of quality nection between brand management, especially communication and and the brand. The central value of the perfume in Quote Six, for positioning, and perceptions of luxury as one of vital significance for example, is the smell and the value accorded by Laura’s reference branding practitioners. group. Whilst the brands that the participants link to the attributes References that research suggests are associated with luxury brands are global Bryman, Alan and Bell Emma (2007), Business Research Methods, and feature on accredited lists as luxury brands, some do not. The Oxford: Oxford University Press, Oxford. Elizabeth Arden, Kathmandu, Ksubi, Workshop, and True Religion Carabine, Jean (2001), “Unmarried motherhood 1830-1990: A Jeans though high-end brands, their status as luxury brands is debat- genealogical analysis”, in Discourse as data: A guide for able. Even so, participants talk about them in terms of luxury at- analysis, eds. Margaret Wetherell, Stephanie Taylor and tributes suggesting that what is a luxury brand is also contingent on Simeon J. Yates, Sage, London, 267-310. the consumer’s frame of reference. This means that future research Christodoulides, George, Michaelidou, Nina and Li, Ching Hsing should take into account variance across groups - in particular socio- (2009), “Measuring perceived brand luxury: An evaluation of economic factors that determine the elite hierarchies. Such research the BLI scale”, The Journal of Brand Management, 16 (5-6), would not only contribute to a better understanding of the relativity 395-405. of the term ‘luxury’, but would also provide insightful findings for Cornell, Andres (2002), “Cult of luxury: The new opiate of the both academics and practitioners alike. masses”, Australian Financial Review, 27 April, 47. The study also suggests a strong link between brand manage- Denzin, Norman K., and Lincoln, Yvonna S. (2000), “The ment - particularly positioning and communication in the creation of discipline and practice of qualitative research”, in Handbook brand value - and thus the directions as to how the brand can be used of qualitative research, eds. Norman K. Denzin and Yvonna S. and what it means. It may well be that the brands spoken of in terms Lincoln, Sage, London, 1-57. of luxury do give unambiguous information to young adult consum- Dubois, Bernard, Czellar, Sandor and Laurent, Gilles (2005), ers, and therefore, evoke luxury related associations more readily in “Consumer segments based on attitudes toward luxury: comparison to other brands. The implications for practitioners lie Empirical evidence from twenty countries”, Marketing Letters, in matching up their brand offerings with the potential and needs of 16 (2), 115-128. various target markets. Dubois, Bernard, and Paternault, Claire. (1995), “Observations: Understanding the World of International Luxury Brands: The “Dream Formula””, Journal of Advertising Research, 35 (4), 69-76. 310 / A Luxury Perspective on Brands - Characteristics, Value, and the Eye of the Beholder

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