Co-creating value for luxury brands
The global market for luxury brands has witnessed dramatic growth over the last two decades but the current challenging economic environment contributes to the difficulty brand owners experience in ensuring that customers perceive sufficient value in their luxury brands to compensate for the high prices. According to recent service-oriented research, customers and suppliers co-create value as a result of a shift from a firm- and product-centric view of value creation to one that focuses on personalized brand experiences. In this paper, the authors develop a theoretical framework of types of value for luxury brands, and use case study research to identify processes of value creation in this particular setting. The findings highlight the variety of interactions taking place between luxury brand owners, their customers and members of their respective networks, which help to differentiate luxury brands and co-create a superior value proposition.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernard Dubois & Sandor Czellar & Gilles Laurent, 2005. "Consumer Segments Based on Attitudes Toward Luxury: Empirical Evidence from Twenty Countries," Marketing Letters, Springer, vol. 16(2), pages 115-128, April.
- Belk, Russell W, 1988. " Possessions and the Extended Self," Journal of Consumer Research, Oxford University Press, vol. 15(2), pages 139-168, September.
- Veloutsou, Cleopatra & Moutinho, Luiz, 2009. "Brand relationships through brand reputation and brand tribalism," Journal of Business Research, Elsevier, vol. 62(3), pages 314-322, March.
- Nueno, Jose Luis & Quelch, John A., 1998. "The mass marketing of luxury," Business Horizons, Elsevier, vol. 41(6), pages 61-68.
- Fournier, Susan, 1998. " Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, Oxford University Press, vol. 24(4), pages 343-373, March.
- Payne, Adrian & Storbacka, Kaj & Frow, Pennie & Knox, Simon, 2009. "Co-creating brands: Diagnosing and designing the relationship experience," Journal of Business Research, Elsevier, vol. 62(3), pages 379-389, March.
- Sandor Czellar & Gilles Laurent & Bernard Dubois, 2005. "Consumer Segments Based on Attitudes Toward Luxury: Empirical Evidence from Twenty Countries," Post-Print hal-00458399, HAL.
- Holbrook, Morris B & Hirschman, Elizabeth C, 1982. " The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun," Journal of Consumer Research, Oxford University Press, vol. 9(2), pages 132-140, September.
- Fuller, Johann & Jawecki, Gregor & Muhlbacher, Hans, 2007. "Innovation creation by online basketball communities," Journal of Business Research, Elsevier, vol. 60(1), pages 60-71, January.
- Mick, David Glen & DeMoss, Michelle, 1990. " Self-Gifts: Phenomenological Insights from Four Contexts," Journal of Consumer Research, Oxford University Press, vol. 17(3), pages 322-332, December.
- Bonnemaizon, Audrey & Cova, Bernard & Louyot, Marie-Claude, 2007. "Relationship Marketing in 2015:: A Delphi Approach," European Management Journal, Elsevier, vol. 25(1), pages 50-59, February.
- Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-373, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:63:y:2010:i:11:p:1156-1163. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If references are entirely missing, you can add them using this form.