IDEAS home Printed from https://ideas.repec.org/a/zag/market/v31y2019i2p153-170.html
   My bibliography  Save this article

Scarcity as a Desirable Attribute of Luxury Fashion Brands in Millennial Marketing

Author

Listed:
  • Javier F. de la Ballina

    (University of Oviedo)

  • Isabel de la Ballina

    (University of Navarra, ISEM Fashion Business School)

Abstract

Purpose – Marketing literature considers scarcity a mechanism that increases the desirability of the offer and an inherent attribute of luxury products. This market needs to capture the millennial segment. The objective of this paper is to develop a proper scarcity strategy to be used when connecting luxury brands to millennials. Design/methodology/approach – An empirical study based on an experimental design was carried out to test the effect of each of the strategies (second line, my luxury, or exclusive selection of cheaper products) on different dimensions of how millennials perceive luxury brands (refinement, elitism, and hedonism), looking for causality relationships. Findings – The hedonism factor, closely connected with purchase experience, seems to be the most valuable for millennials and best encouraged by the second line strategy. In this way, luxury brands draw millennials into their market in a natural way, through an accessible price. But the second line strategy could imply a process of brand devaluation for the traditional customer base. Limitations – The difference in the results obtained using the “current shopping intention” and “future shopping intention” variables deserves more attention. Different ways of measuring future shopping intention could be applied to test the effects on the results. Originality/value – A different methodology, that is, an experimental study is presented to compare marketing strategies in the luxury market. In this way, a better relationship between exclusivity and the needs of millennials can be established as regards their attraction to luxury brands.

Suggested Citation

  • Javier F. de la Ballina & Isabel de la Ballina, 2019. "Scarcity as a Desirable Attribute of Luxury Fashion Brands in Millennial Marketing," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 31(2), pages 153-170.
    • Handle: RePEc:zag:market:v:31:y:2019:i:2:p:153-170
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/231882
    Download Restriction: None
    ---><---

    References listed on IDEAS

    as
    1. Grossman, Herschel I. & Mendoza, Juan, 2003. "Scarcity and appropriative competition," European Journal of Political Economy, Elsevier, vol. 19(4), pages 747-758, November.
    2. Tian, Kelly Tepper & Bearden, William O & Hunter, Gary L, 2001. "Consumer's Need for Uniqueness: Scale Development and Validation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 50-66, June.
    3. Kapferer, Jean-Noël, 2012. "Abundant rarity: The key to luxury growth," Business Horizons, Elsevier, vol. 55(5), pages 453-462.
    4. Uche Okonkwo, 2007. "Luxury Fashion Branding," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59088-5, December.
    5. Axel Stock & Subramanian Balachander, 2005. "The Making of a "Hot Product": A Signaling Explanation of Marketers' Scarcity Strategy," Management Science, INFORMS, vol. 51(8), pages 1181-1192, August.
    6. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    7. Chun-Hung Chiu & Zhanwen Peng, 2018. "The optimal pricing, quantity decision, number of product of online designer with scarcity effect and product variety benefit," International Journal of Inventory Research, Inderscience Enterprises Ltd, vol. 5(2), pages 153-168.
    8. Jean-Noël Kapferer, 2012. "Abundant rarity: The key to luxury growth," Post-Print hal-00731044, HAL.
    9. Wu, Laurie & Lee, Christopher, 2016. "Limited Edition for Me and Best Seller for You: The Impact of Scarcity versus Popularity Cues on Self versus Other-Purchase Behavior," Journal of Retailing, Elsevier, vol. 92(4), pages 486-499.
    10. DUBOIS, Bernard & LAURENT, Gilles & CZELLAR, Sandor, 2001. "Consumer rapport to luxury : Analyzing complex and ambivalent attitudes," HEC Research Papers Series 736, HEC Paris.
    11. Flor Madrigal Moreno & Jaime Gil Lafuente & Fernando Avila Carreon & Salvador Madrigal Moreno, 2017. "The Characterization of the Millennials and Their Buying Behavior," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 9(5), pages 135-144, October.
    12. Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
    13. Ko, Eunju & Phau, Ian & Aiello, Gaetano, 2016. "Luxury brand strategies and customer experiences: Contributions to theory and practice," Journal of Business Research, Elsevier, vol. 69(12), pages 5749-5752.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shin, Hyunju & Eastman, Jacqueline K. & Mothersbaugh, David, 2017. "The effect of a limited-edition offer following brand dilution on consumer attitudes toward a luxury brand," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 59-70.
    2. Stępień Beata, 2018. "Snobbish Bandwagoners: Ambiguity of Luxury Goods’ Perception," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(1), pages 79-99, March.
    3. Béatrice Parguel & Thierry Delécolle & Pierre Valette-Florence, 2014. "The impact of price display on perceptions of luxury: a masstige perspective," Working Papers halshs-00948953, HAL.
    4. Parguel, Béatrice & Delécolle, Thierry & Valette-Florence, Pierre, 2016. "How price display influences consumer luxury perceptions," Journal of Business Research, Elsevier, vol. 69(1), pages 341-348.
    5. Park, Judy, 2014. "What women want: Creation of a luxury brand," Business Horizons, Elsevier, vol. 57(2), pages 247-257.
    6. Gian Luca Gregori & Silvia Cardinali & Meri Travaglini, 2013. "Imprese calzaturiere e competitivit? nel mercato mondiale: il caso di una media luxury brand company," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(3), pages 151-168.
    7. Cristini, Hélène & Kauppinen-Räisänen, Hannele & Barthod-Prothade, Mireille & Woodside, Arch, 2017. "Toward a general theory of luxury: Advancing from workbench definitions and theoretical transformations," Journal of Business Research, Elsevier, vol. 70(C), pages 101-107.
    8. Dörnyei, Krisztina Rita & Lunardo, Renaud, 2021. "When limited edition packages backfire: The role of emotional value, typicality and need for uniqueness," Journal of Business Research, Elsevier, vol. 137(C), pages 233-243.
    9. 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.
    10. Kauppinen-Räisänen, Hannele & Björk, Peter & Lönnström, Alexandra & Jauffret, Marie-Nathalie, 2018. "How consumers' need for uniqueness, self-monitoring, and social identity affect their choices when luxury brands visually shout versus whisper," Journal of Business Research, Elsevier, vol. 84(C), pages 72-81.
    11. Koivisto, Elina & Mattila, Pekka, 2020. "Extending the luxury experience to social media – User-Generated Content co-creation in a branded event," Journal of Business Research, Elsevier, vol. 117(C), pages 570-578.
    12. 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.
    13. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    14. repec:dau:papers:123456789/14326 is not listed on IDEAS
    15. K.MercyMakhitha, 2021. "Black consumers perceptions towards luxury brands in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 28-37, June.
    16. Michel Gutsatz & Klaus Heine, 2018. "Is luxury expensive?," Journal of Brand Management, Palgrave Macmillan, vol. 25(5), pages 411-423, September.
    17. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    18. 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.
    19. Kowalczyk, Liliana & Breugelmans, Els & Campo, Katia, 2021. "It's not there, I love it! How relevance to objective needs of an unavailable item impacts emotions, store image, and behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    20. Hwang, Yookyung & Ko, Eunju & Megehee, Carol M., 2014. "When higher prices increase sales: How chronic and manipulated desires for conspicuousness and rarity moderate price's impact on choice of luxury brands," Journal of Business Research, Elsevier, vol. 67(9), pages 1912-1920.
    21. Abhishek Pathak & Gemma Calvert & Carlos Velasco, 2017. "Evaluating the impact of early- and late-acquired phonemes on the luxury appeal of brand names," Journal of Brand Management, Palgrave Macmillan, vol. 24(6), pages 522-545, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zag:market:v:31:y:2019:i:2:p:153-170. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tanja Komarac (email available below). General contact details of provider: https://edirc.repec.org/data/fefzghr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.