The impact of increased brand penetration on luxury desirability: a dual effect

Jean-Noël M. Kapferer () and Pierre Valette-Florence
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Jean-Noël M. Kapferer: INSEEC Business School
Pierre Valette-Florence: Grenoble-IAE

Journal of Brand Management, 2018, vol. 25, issue 5, No 3, 424-435

Abstract: Abstract Despite some temporary slowdowns, variations by region, and slower growth rates in recent years, the modern luxury market has shown striking growth worldwide since 1994. One determinant of this growth is luxury brands’ efforts to sell not just function or performance but also dreams of a privileged, exclusive life, achieved through the ownership or consumption of hedonistic products, services, and experiences that feature the marks of well-known brands with high symbolic capital. Yet ever-growing sales seemingly might dilute the desirability of luxury brands. Using the perceptions of 1286 affluent Western consumers of 60 luxury brands, this study conducts a partial least squares structural equation modeling analysis to unveil a dual effect of increased brand penetration on the luxury dream: It empowers product-related brand perceptions, but it endangers the extrinsic facet of brand prestige. This study recommends some solutions to rebuild the luxury dream and offset the potential for eroded desirability of luxury brands.

Keywords: Luxury; Prestige; Brand equity; Rarity; Conspicuous; Desirability; PLS (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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DOI: 10.1057/s41262-018-0091-7

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