Luxury Brands
Part 1
Discussion Post 1
How Luxury Brands are Different from Traditional Brands
The exclusivity of luxury brands differentiates them from traditional brands. Cowan & Kostyk (2018) elucidate that luxury brands create unique identities that consumers love. With their exclusivity, consumers will prefer their products to the traditional common brands. Summarily, luxury companies’ distinction distinguishes them from conventional brands.
The Effect Luxury Brands Have on Positioning and Perceived Value
Luxury brands create value in their products through marketing. These brands maximize visibility to create value for their products (Shao et al., 2019). They market with pictures that showcase individuals that consume their products. As a result, potential customers will desire to purchase them. Equally, creating connections with individuals outside the target market elevates the brands’ perceived value. When a luxury brand produces cheaper high-quality products, consumers will familiarize themselves with the brand (Dall’Olmo Riley et al., 2015). As a result, the luxury brands will have a set bar on their value. Indeed, luxury companies alter the perceived value and positioning through their unique marketing strategies.
How Congruency Theory Relate to Luxury Brands
Congruency theory avers that individuals will consume products that meet their self-identity. Wealthy people will desire to consume high-end products that will affirm their high societal status. Therefore, they will consume products that satisfy their ego (Vigneron & Johnson, 2004). Indeed, individuals consume luxury brands to identify with their societal status.
Discussion Post 2
Elements of a Luxury Brand
A luxury brand offers unique, expensive, and innovative products. Keller (2017) indicates that a luxury brand employs premium pricing strategies, selected distribution channels, exclusive products, and copyrights. With these factors, it becomes easier to distinguish a luxury brand from other products. Kapferer & Bastien (2012) outline that power, elitism, and quality distinguish premium brands from other companies. Indeed, unique products, creativity, high quality, elitism, high competitive advantage, and limited distribution channels are the main characteristics of a luxury brand.
Why Fake Brands are Popular Among People
Fake brands are popular among people that are trying to meet the status they cannot afford. Han et al. (2013) aver that individuals would purchase fake brands to match certain societal positions. These consumers desire to have high status in the community that comes with consuming luxury products. However, since they cannot afford the original pieces, they opt for counterfeits. Indeed, consumers’ desire to meet societal standards forces them to consume counterfeit luxury brands.
What Fake Brands Do to the Self-Perception of Their Customers
Fake brands trigger their customers to perceive themselves as fake. When people consume counterfeit products, they have a false feeling of wealth. Ahmed et al. (2018) note that continuous consumption of counterfeit products may make consumers perceive themselves as fake. They will feel guilty for faking their life and lying to themselves and others on the products they consume.
Part 2
Response
I agree with the concept that luxury brands strive to increase their products’ value by differentiating them and maintaining a solid consumer base. They achieve their objectives by apply unique and accurate marketing and branding strategies. I agree that luxury products are marked with innovation, exclusivity, distinction, top-notch quality, and high pricing. I concur with the analogy that luxury consumption is imperative in creating social and personal identities. For illustration, I would buy apparels that portray me as a fashion icon. Therefore, advertisement and the luxury brand’s presence within consumers’ vicinity influences them to consume the products for their value. I affirm the notion that luxury brands should note the intrinsic and extrinsic value that their products offer in their marketing strategies.
I agree with the notion that luxury marketing differs from traditional marketing in terms of availability, pricing, and public presence. Luxury marketing connects with people and displays product consumption. As a consumer, I would prefer buying products with visible consumption than private consumption. Equally, when a product is a limited edition, consumers will deem it as valuable. For example, if a specific dress’s availability is limited, consumers want to purchase it for uniqueness. I concur with the concept that the brand chooses the product price. Since the products are few, most celebrities would like to use them. As a result, ordinary people would be inspired to use the product. They would be willing to pay any amount to consume it. However, the leading question luxury brands should include when pricing their products is; what if consumers are not willing to spend more money on products to which they can find cheaper alternatives?
References
Ahmed, F., Valette-Florence, P., & Grenoble, I. A. E. (2018). “I Don’t Want to be Fake!” How Psychological Distance and Self-Perceptions can Lead to Authentic Luxury Consumption?. In LVMH-SMU LUXURY RESEARCH CONFERENCE 2018.
Cowan, K. L., & Kostyk, A. (2018, July). Modern Versus Traditional Luxury Brand Digital Strategy. In 2018 Global Marketing Conference at Tokyo (pp. 257-262).
Dall’Olmo Riley, F., Pina, J. M., & Bravo, R. (2015). The role of perceived value in vertical brand extensions of luxury and premium brands. Journal of Marketing Management, 31(7-8), 881-913.
Han, Y. J., Nunes, J. C., & Dreze, X. (2013). Signaling status with luxury goods: The role of brand prominence. International Retail and Marketing Review, 9(1), 1-22.
Kapferer, J. N., & Bastien, V. (2012). The luxury strategy: Break the rules of marketing to build luxury brands. Kogan page publishers.
Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury branding. In Advances in luxury brand management (pp. 179-198). Palgrave Macmillan, Cham.
Shao, W., Grace, D., & Ross, M. (2019). Investigating brand visibility in luxury consumption. Journal of Retailing and Consumer Services, 49, 357-370.
Vigneron, F., & Johnson, L. W. (2004). Measuring perceptions of brand luxury. Journal of brand management, 11(6), 484-506.
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