Key Factors of Emerging Luxury Brand Construction: Empirical Case Study of Korloff

Zhiqing Jiang; Shin’ya Nagasawa

doi:10.20965/jaciii.2016.p0607

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JACIII Vol.20 No.4 pp. 607-614

doi: 10.20965/jaciii.2016.p0607

(2016)

Paper:

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Key Factors of Emerging Luxury Brand Construction: Empirical Case Study of Korloff

Zhiqing Jiang and Shin’ya Nagasawa

Graduate School of Commerce, Waseda University
No.11 Building, 3F, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, Japan

Received:

January 31, 2016

Accepted:

April 29, 2016

Published:

July 19, 2016

Keywords:

luxury, emerging luxury brand, case study, Korloff

Abstract

The luxury goods market has been expanding worldwide since the early 1990s. In the marketplace, there are new entrants (emerging luxury brands) reputed to be leading luxury brands, especially designer brands, which neither provide new luxury like Coach, nor are similar to traditional luxury brands, such as Louis Vuitton. In this research, an emerging luxury brand also refers to a brand that provides luxury goods in or above the intermediate level of the luxury goods products hierarchy and was established in or after the 1970s. The purpose of this paper is to propose a conceptual framework for emerging luxury brand construction. It (1) defines luxury and emerging luxury brand, (2) reviews the theoretical basis of luxury goods and the brand strategy of luxury goods, (3) frames the nexus between luxury brand attributes and brand image, (4) conducts consumer survey and data mining, and (5) discusses and concludes the research. This research includes qualitative research (a semi-structured interview) and quantitative research (exploratory factor analysis and regression analysis). The results show that the location and atmosphere of luxury stores, E-commerce, online ads and newsletters, origin, iconic products, symbols, and PR events have positive effects on consumers’ impression of emerging luxury brands.

Cite this article as:

Z. Jiang and S. Nagasawa, “Key Factors of Emerging Luxury Brand Construction: Empirical Case Study of Korloff,” J. Adv. Comput. Intell. Intell. Inform., Vol.20 No.4, pp. 607-614, 2016.

Data files:

References

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This article is published under a Creative Commons Attribution-NoDerivatives 4.0 Internationa License.

[1] [1] J. L. Nueno and J. A. Quelch, The mass marketing of luxury, Business Horizons, Vol.41, No.6, pp. 61-68, 1998.

[2] [2] S. Wetlaufer, The perfect paradox of star brands: an interview with Bernard Arnault of LVMH, Harvard Business Review, Vol.79, No.9, pp. 116-123, 2001.

[3] [3] M. Chevalier and G. Mazzalovo, Luxury Brand Management: A World of Privilege, Singapore: Wiley, 2008.

[4] [4] A. Radón, “Unintended Brand Endorsers’ Impact on Luxury Brand Image,” Int. J. of Marketing Studies, Vol.4, No.1, pp. 108-115, 2012.

[5] [5] A. O’Cass and H. Frost, “Status brands: examining the effects of non-product-related brand associations on status and conspicuous consumption,” J. of Product and Brand Management, Vol.11, No.2/3, pp. 67-88, 2002.

[6] [6] M. Silverstein and N. Fiske, “Luxury for the masses,” Harvard Business Review, Vol.81, No.4, pp. 48-57, 2003.

[7] [7] P. Letelier, E. Navarro, and V. Anaya, “Customizing Traceability in a Software Development Process,” O. Vasilecas, W. Wojtkowski, J. Zupanvcivc, A. Caplinskas, W. G. Wojtkowski, and S. Wrycza, (Eds), Information Systems Development Advances in Theory, Practice, and Education, Boston, MA: Springer Science Business Media, pp. 137-148, 2004.

[8] [8] J. N. Kapferer and V. Bastien, The luxury strategy- break the rules of marketing to build luxury brands, London and Philadelphia: Kogan Page, 2009.

[9] [9] F. Dall’Olmo Riley, W. Lomax, and A. Blunden, “Dove versus Dior: extending the brand extension decision-making process from mass to luxury,” Australasian Marketing J., Vol.12, No.3, pp. 40-55, 2004.

[10] [10] K. L. Keller, Strategy Brand Management: Building, measuring and Managing Brand equity, New Jersey: Prentice-House 2003.

[11] [11] C. W. Park, B. J. Jaworski, and D. J. MacInnis, “Strategic brand concept image management,” J. of Marketing, Vol.50, No.10, pp. 135-145, 1986.

[12] [12] E. Ditcher, “What’s in an image,” J. of Consumer Marketing, Vol.2, No.1, pp. 75-81, 1985.

[13] [13] M. Chevalier and G. Mazzalovo, “Pro Logo: Brand as a factor of progress,” New York: Palgrave Macmillan, 2004.

[14] [14] U. Okonkwo, Luxury fashion branding- trends, tactics, techniques, New York: Palgrave Macmillan, 2007.

[15] [15] J. T. Plummer, “How personality makes a difference,” J. of Advertising Research, Vol.40, No.6, pp. 79-83, 2000.

[16] [16] J. Van Rekom, G. Jacobs, and P. W. J. Verlegh, “Measuring and managing the essence of a brand personality,” Marketing Letters, Vol.17, No.3, pp. 181-192, 2006.

[17] [17] J. N. Kapferer, Strategic brand management, New York: The Free Press, 1992.

[18] [18] J. N. Kapferer, The new strategic brand management: creating and sustaining brand equity long term. London: Kogan Page, 2008.

[19] [19] K. L. Keller, “Conceptualizing, measuring, and managing customer-based brand equity,” J. of Marketing, Vol.57, No.1, pp. 1-22, 1993.

[20] [20] P. Kotler and K. L. Keller, “Marketing Management (12th Ed.),” Upper Saddle River, NJ: Prentice Hall, 2006.

[21] [21] D. Alleres, “Luxe – Strategies Marketing,” Economica, Vol.1, pp. 35-47, 1990.

[22] [22] F. Hirsch, “The Social Limits to Growth,” London: Routledge and Kegan Paul, 1977.

[23] [23] S. Kvale, Interview: an Introdution to Qualitative Research Interviewing, London: Sage, 1996.

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[34] [34] C. M. Moore, A. M. Doherty, and S. A. Doyle, “Flagship stores as a market entry method: the perspective of luxury fashion retailing,” Paper presented at AMA/ACRA Conf., Orlando, FL., November, 2006.

[35] [35] J. Bowen, “Brand culture: going beyond brand position to enhance consumer loyalty and trust,” Paper presented at the conference of Brand environments organised by the strategic Research Institute, Orlando, Florida, Decmeber 3-4, 1998.

[36] [36] Blue is the Color, The Economist, Available at: http://www.economist.com/node/133190, [Accessed June 4, 2014]

[37] [37] F. Gastaldi, “Internet, social media and luxury strategy,” In J. Hoffmann and I. Coste-Manière (Eds.), Luxury strategy in action, London: Palgrave Macmillan, pp. 108-123, 2012.

[38] [38] E. Roux and J. M. Floch, “Gérer l’ingérable: La contradiction interne de toute maison de luxe,” Décisions Marketing, Vol.9, pp. 15-23, 1996.

[39] [39] Sidney J. Levy, “Symbols for sale,” In D. W. Rook (Eds.), Brands, Consumers, Symbols and Research: Sidney J. Levy on Marketing, Thousand Oaks, Calif.: Sage (Reprinted from Harvard Business Review, New York: Harvard Business School Publishing, Vol.37, No.7/8, pp. 117-124, 1959), pp. 203-212, 1999.

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[41] [41] E. Y. Lin, “A Cross-Cultural Study of Luxury e-Branding: Standardization vs. Adaptation, Product Category, and Country-of-Origin,” Ying Xiao Ping Lun, Vol.9, No.1, pp. 91-120, 2012.

[42] [42] F. Piron, “Consumers’ Perceptions of the Country-of-Origin Effect on Purchasing Intention of (in) Conspicuous Products,” J. of Consumer Marketing, Vol.17, No.4, pp. 308-319, 2000.

[43] [43] A. Rahnamaee and P. Berger, “Investigating consumers’ online purchasing behavior: Single-brand e-retailers versus multi-brand e-retailers,” J. of Marketing Analytics, Vol.1, No.3, pp. 138-148, 2013.

[44] [44] R. Hansen and N. Bjørn-Andersen, “Cube Assessment Framework for B2C Websites Applied in a Longitudinal Study in the Luxury Fashion Industry,” J. of Theoretical and Applied Electronic Commerce Research, Vol.8, No.2, pp. 1-20, 2013.

[45] [45] J. A. Narcum and J. Coleman, “You can’t fool me! Or can you? Assimilation and contrast effects on consumers’ evaluations of product authenticity in the online environment,” J. of Asian Business Strategy, Vol.5, No.9, pp. 200-207, 2015.

[46] [46] H. Kim, Y. Choi, and Y. Lee, “Web atmospheric qualities in luxury fashion brand web sites,” J. of Fashion Marketing and Management, Vol.19, No.4, pp. 384-401, 2015.

[47] [47] A. Geerts and N. Veg-Sala, “Le luxe et Internet: évolutions d’un paradoxe,” Revue Management and Avenir, Vol.71, pp. 111-128, 2014.

[48] [48] P. E. Bertea and A. Zait, “Perceived risk vs. Intention to adopt e-commerce – a pilot study of potential moderators/odnos izmedu percipiranog rizika i namjere usvajanja e-trgovanja – pilot studija potencijalnih moderatora,” Trziste=Market, Vol.25, No.2, pp. 213-229, 2013.