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Trading-up mass-market goods to luxury products

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  • Heine, Klaus
  • Phan, Michel

Abstract

This paper addresses the current lack of consensus on what defines a luxury product. It demonstrates the adequacy of a consumer-oriented approach anchored in a list of product attributes. These attributes were identified from the literature and a study of 31 German millionaires with high spending on luxury goods. A combination of five research methodologies was employed including open interview, the repertory grid method (RGM), the preference differences technique, the critical incident technique and the projective technique. The findings suggest that consumers distinguish luxury products using six major characteristics: price, quality, aesthetics, rarity, extraordinariness, and symbolic meaning. The paper concludes with practical implications for luxury brand managers and for those who wish to trade up their mass-market goods. Suggestions for further research directions are also offered.

Suggested Citation

  • Heine, Klaus & Phan, Michel, 2011. "Trading-up mass-market goods to luxury products," Australasian marketing journal, Elsevier, vol. 19(2), pages 108-114.
    • Handle: RePEc:eee:aumajo:v:19:y:2011:i:2:p:108-114
    DOI: 10.1016/j.ausmj.2011.03.001
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    References listed on IDEAS

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    Cited by:

    1. Kilsheimer Eastman, Jacqueline & Iyer, Rajesh & Babin, Barry, 2022. "Luxury not for the masses: Measuring inconspicuous luxury motivations," Journal of Business Research, Elsevier, vol. 145(C), pages 509-523.
    2. Loureiro, Sandra Maria Correia & Jiménez-Barreto, Jano & Romero, Jaime, 2020. "Enhancing brand coolness through perceived luxury values: Insight from luxury fashion brands," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    3. Nobre, Helena & Simões, Cláudia, 2019. "NewLux Brand Relationship Scale: Capturing the scope of mass-consumed luxury brand relationships," Journal of Business Research, Elsevier, vol. 102(C), pages 328-338.
    4. Songyee Hur & Sejin Ha, 2023. "Would luxury brands benefit from empowering consumers in product decision-making?," Journal of Brand Management, Palgrave Macmillan, vol. 30(6), pages 516-534, November.
    5. Kauppinen-Räisänen, Hannele & Mühlbacher, Hans & Taishoff, Marika, 2020. "Exploring consumers’ subjective shopping experiences in directly operated luxury brand stores," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    6. Chailan, Claude, 2018. "Art as a means to recreate luxury brands' rarity and value," Journal of Business Research, Elsevier, vol. 85(C), pages 414-423.
    7. Farhad Aliyev & Taylan Urkmez & Ralf Wagner, 2019. "A comprehensive look at luxury brand marketing research from 2000 to 2016: a bibliometric study and content analysis," Management Review Quarterly, Springer, vol. 69(3), pages 233-264, September.
    8. Francisco J. Conejo & Lawrence F. Cunningham & Clifford E. Young, 2020. "Revisiting the Brand Luxury Index: new empirical evidence and future directions," Journal of Brand Management, Palgrave Macmillan, vol. 27(1), pages 108-122, January.
    9. Ken Kumagai & Shin’ya Nagasawa, 2020. "Launch of Sustainable Plastic Apparel: Effects of Brand Luxury and Experience on Consumer Behaviour," Sustainability, MDPI, vol. 12(18), pages 1-15, September.
    10. Vilches-Montero, Sonia & Nik Hashim, Nik Mohd Hazrul & Pandit, Ameet & Bravo-Olavarria, Renzo, 2018. "Using the senses to evaluate aesthetic products at the point of sale: The moderating role of consumers’ goals," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 82-90.
    11. Inwon Kang & Ilhwan Ma, 2020. "A Study on Bandwagon Consumption Behavior Based on Fear of Missing Out and Product Characteristics," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    12. Paul, Justin, 2019. "Masstige model and measure for brand management," European Management Journal, Elsevier, vol. 37(3), pages 299-312.
    13. Giuseppe Colella & Cesare Amatulli & Maria Pilar Martinez-Ruiz, 2020. "Social Media Marketing and Luxury Consumption: A Literature Review," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(4), pages 1-30, March.
    14. Zahra MajlesiRad & Abdol Hamid Haji pour Shoushtari, 2020. "Analysis of the impact of social network sites and eWOM marketing, considering the reinforcing dimensions of the concept of luxury, on tendency toward luxury brand," Future Business Journal, Springer, vol. 6(1), pages 1-19, December.
    15. Estelle Dinh & Hans Mühlbacher & Mariaterasa Torchia, 2024. "Necessary perceptions of family values and luxury characteristics for brand luxuriousness: evidence from luxury watch brands," Journal of Brand Management, Palgrave Macmillan, vol. 31(1), pages 58-78, January.

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