The impact of price display on perceptions of luxury: a masstige perspective

Béatrice Parguel (), Thierry Delécolle and Pierre Valette-Florence ()
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Béatrice Parguel: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Thierry Delécolle: ISC Paris - Institut Supérieur du Commerce de Paris
Pierre Valette-Florence: CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique, UPMF - Université Pierre Mendès France - Grenoble 2, UGA IAE - Université Grenoble Alpes - Institut d'Administration des Entreprises - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: Based on two experimental studies in which college students participated, this paper investigates the impact of price display in the luxury sector on low-end brands perceived luxury and attitude. In Study 1, we show that price display is associated with higher perceived quality, uniqueness, and conspicuousness for a fictitious low-end brand. In Study 2, we confirm this positive influence for a real low-end brand, and show that it transfers to brand attitude through perceived quality and conspicuousness. In addition, Study 2 indicates no negative effect of price display on perceptions of luxury for a higher level brand. In a pioneering attempt to evaluate the effects of price display in the luxury sector, this paper adds value to the body of literature on luxury brand management. Besides, it provides insight to managers of luxury brands of different range levels on the effects of price display, a practice that develops as more and more luxury companies engage in masstige strategies or open commercial websites.

Keywords: Price; brand luxury; brand attitude; downscale extension (search for similar items in EconPapers)
Date: 2014-02-18
New Economics Papers: this item is included in nep-ipr, nep-pr~ and nep-mkt
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