Branding - Luxury Goods Flashcards
No other brand has the same status/prestige. Not simply an expensive price, the company has to have a strong, prestigious brand that has worth, people make inference about others based on their possession which can reflect others’ success. changes based on socioeconmic status – if you are lower class, then luxury items are special, but high class they become everday goods
Luxury goods
___ _____. Volvo logo bigger in their new crossover: they want as many people as possible to see it and make the positive attribution but this isn’t always true. You Can’t magically create a luxury good overnight
Brand Prominence
Consumers will pay a higher price for a functionally equivalent good because they crave the status. Higher prices are not equal to luxury. Brands are used to signal who you are, who you want to/don’t want to be and who you associate with
Pricing and status
Various conspicuousness of brand identification
Extent of the product having visible markings help ensure observers recognize the brand.
Manufacturers produce a product with loud/conspicuous branding or subtle/quiet/discreet. Goal is to appeal to diffeen types of consumers. Some consumers prefer quiet versus loud branding , seek to associate dissociate with different groups of consumers
Brand Prominence
Use luxury goods to signal our association with others. The higher the income, the higher the propensity to purchase luxury goods. Self presentation leads consumers to avoid a product associate with a dissociative reference group. Products w/o logos are less apt to serve social function of self-expression and self-presentation
Purpose of luxury brand
Hans, et al. 1/4. P word. (low desired prestige, high finances)
- Pay a premium to have quiet branding - Subtle branding = horizontal signaling to other patricians that only they can interpret - You want to avoid being perceived as someone who uses luxury brand to differentiates
Patricians
Hans, et al. 1/4. P word. (high finances, high desired prestige)
- High wealth, but lack knowledge to interprets subtle signals
- New money
- Want to signal to everybody that they’ve made it
- They want obvious branding (hey, not everyone can afford this)
- Unlikely to recognize more quiet luxury brand signals
○ Can afford the quiet brands, but crave status
Goal: differentiate from the have nots and associating themselves with the haves
Parvenurs
Hans, et al. 1/4. P word. (low finances, high prestige) Want to consume to establish status but lack the financial means
- Was to associate with those that they perceive are affluent and dissociate with less affluent
- Prone to buying counterfeit luxury goods
Brand status is important but unattainable, the person is likely to turn to counterfeit
Poseurs
Hans, et al. 1/4. P word. (low finances, low prestige) Lower SES and less status consceious
Not driven to buy a purse to send a message to others, worried about practicality
Proletarians
Han, Nunes, and Dreéze, 2010. Study ___. looking at the price and brand prominence for handbags, cars, and men’s shoes
Hypo: price up, brand prominence goes down for luxury goods.
Take home message: quieter branding is more expensive
Study #1
Han, Nunes, and Dreéze, 2010. Study ___. Counterfeit market should consist primarily of lower priced, louder handbags parvenus carry desired by posers
Results: Counterfeiters chose to recreate the loud bags as opposed to the not loud bags
Study #2
Han, Nunes, and Dreéze, 2010. Study ___. Evaluate how patricians/non-patricians perceive brand, brand prominence, and signal recognition.
Patricians correctly ranked the bags from most to least expensive without brand names. Non-patricians ranked all there loud bags higher than the quiet bags when no brand names are present. When brand names are present, the loud LV and Coach bags fell in the ranking.
Overall take-homes: ability to recognize signals is different between different categories: patricians and other classes
Irony of spending thousands of dollars is that you’re telling the old money people that you aren’t one of them
Study #3
Han, Nunes, and Dreéze, 2010. Study ___. If your friend was buying a loud fake would you buy it? Do you own a fake?
- Least likely is patricians, proletarians are indifferent between loud and quiet - Parvenurs and posers show a likelihood own a counterfeit bag
You’re wearing a fake pair of glasses, and you know this, then you do a task that can be cheated on – more likely to cheat earlier in the study and more cheating (versus “real” glasses - cheating not as often)
- You’re also more likely to think that others around you are cheating
Psych concept: “foot in the door” you are committing to cheating on a small level - you know you’re cheating others through your image
Study #4
