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Luxury brands pursuing lifestyle positioning: effects on willingness to pay

Author

Listed:
  • Francesco Massara

    (IULM University
    University of Toulouse)

  • Daniele Porcheddu

    (University of Sassari)

  • Robert D. Melara

    (City University of New York)

Abstract

Under the lens of construal level theory (CLT), this paper offers a new perspective on lifestyle advertising practiced by luxury brands clarifying both its value and its limitations. We find that under conditions of high brand familiarity (BF) lifestyle advertising is inconsistent with high-level construals, diminishing consumers’ willingness to pay (WTP) for the advertised brand. Using a measure of language-induced abstractness, we show that lifestyle advertising is detrimental to WTP when consumers are familiar with the brand (condition involving saliency of low-level construals), but not when they are new to the brand (n = 180). In a follow-up study, we find support for a moderated mediation model in which abstractness mediates the effect of advertising type on WTP, whereas BF moderates the mediation, depressing abstractness when familiarity is high and enhancing it when low. In conclusion, our evidence suggests to managers in the luxury industry that low construal levels are key to using price as a tactical tool in positioning their brands. We conclude with a discussion of implications of these results for luxury brands research and management.

Suggested Citation

  • Francesco Massara & Daniele Porcheddu & Robert D. Melara, 2019. "Luxury brands pursuing lifestyle positioning: effects on willingness to pay," Journal of Brand Management, Palgrave Macmillan, vol. 26(3), pages 291-303, May.
    • Handle: RePEc:pal:jobman:v:26:y:2019:i:3:d:10.1057_s41262-018-0130-4
    DOI: 10.1057/s41262-018-0130-4
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    References listed on IDEAS

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    Cited by:

    1. Shaun M. Powell, 2019. "Journal of Brand Management: year end review 2019," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 615-620, November.

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