Does luxury have a minimum price? An exploratory study into consumers' psychology of luxury prices

Jean-Noël Kapferer, Cindy Klippert and Lara Leproux
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Jean-Noël Kapferer: HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales
Cindy Klippert: HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales
Lara Leproux: HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales

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Abstract: Consumer studies show that luxury evokes high prices. However, the remarkable growth of this sector is based on its extension to the middle class, with affordable prices. This is a paradox: luxury needs to be expensive, yet grew being accessible. Hence the question: If consumers want to access to luxury, below what price would they consider that it is no more luxury? Is there a minimum price? This research explores how consumers decode luxury prices, how are lower prices compatible with luxury. Strong brands have indeed a larger latitude for accessible pricing than new luxury brands.

Keywords: luxury; price; conspicuous; dilution; status; masstige (search for similar items in EconPapers)
Date: 2014-02
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Citations: View citations in EconPapers (15)

Published in Journal of Revenue and Pricing Management, 2014, 13, pp.2-11. ⟨10.1057/rpm.2013.34⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00977169

DOI: 10.1057/rpm.2013.34

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