A Wren Says

Three authors, Ko, Costellow, and Taylor embarked on a research journey. Their goal was to nail down once and for all a definition of a luxury brand. Afterall, it gets pretty tricky to do research on thing that has no clear meaning. So off they went. I previously posted on the five key criteria they came up with. As a refresher here they are:

1. High Quality
2. Authenticity
3. Prestigious Image
4. Premium Pricing
5. Deep Connection/resonance with the consumer

It is important to note that these qualities were then used to develop a scale to survey consumers on their perceptions of a brand. Early on in the paper, the authors write this key line:

“Based on a review of the literature, it is the authors’ assessment that whether or not a brand is considered luxury ultimately depends on consumer evaluations of that brand. Although certain strategic tactics from managers such as premium pricing or superior quality can increase the likelihood of a brand being considered luxurious by consumers, these actions to do not necessarily result in a luxury brand unless consumers perceive it as such.”

Ko, Costellow, & Taylor (2019, p. 406)

The quick summary: A brand isn’t a luxury brand unless consumers think it is a luxury brand.

You can’t just put your product at a premium price point and think that will do the job.

You can’t just use the best quality materials and expect customers will see you that way.

You can’t just shower your customers with glasses of champagne.

You can’t even just use the words luxury, luxurious, or premium and think that will get the job done. You have put in the effort to build the relationship with consumers so they have an elevated opinion of what you provide. Luxury is often described as an illusion. Perhaps that is a fitting description after all. Now go forward, you marketing wizard, to craft most spectacular illusion you can.

Here is the paper, if you would like to review it.

Ko, E., Costellow, J. P., & Taylor, C. R. (2019). What is a luxury brand? A new definition and review of the literature. Journal of Business Research, 99, 405-413.