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The impact of brand penetration and awareness on luxury brand desirability : a cross country analysis of the relevance of the rarity principle

Author

Listed:
  • Jean-Noel Kapferer

    (INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics)

  • Pierre Valette-Florence

    (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], UGA IAE - Université Grenoble Alpes - Institut d'Administration des Entreprises - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

The global market for luxury brands has witnessed sustained growth in the last two decades, driven by purchases from emerging economies such as China and rising upper middle classes. Because luxury is associated with rarity and exclusivity, fears arise about whether continued growth might dilute the leading luxury brands' desirability. Prior studies offer conflicting results about the effect of greater market penetration on luxury brands' desirability; it appeared negative in the USA but not in Asia, today's highest growth luxury markets. The present research analyzes 3200 luxury consumers' perceptions of 60 major brands across six Eastern and Western countries, both emerging and mature. The overall effect of increased market penetration on luxury desirability remains negative, while the impact of awareness remains always positive. This confirmation of the rarity principle has notable implications for marketing luxury brands that seek to sustain their dream value.

Suggested Citation

  • Jean-Noel Kapferer & Pierre Valette-Florence, 2018. "The impact of brand penetration and awareness on luxury brand desirability : a cross country analysis of the relevance of the rarity principle," Post-Print hal-01998083, HAL.
    • Handle: RePEc:hal:journl:hal-01998083
    DOI: 10.1016/j.jbusres.2017.09.025
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    Citations

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    Cited by:

    1. Rosendo-Rios, Veronica & Shukla, Paurav, 2023. "The effects of masstige on loss of scarcity and behavioral intentions for traditional luxury consumers," Journal of Business Research, Elsevier, vol. 156(C).
    2. 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.
    3. Shukla, Paurav & Rosendo-Rios, Veronica, 2021. "Intra and inter-country comparative effects of symbolic motivations on luxury purchase intentions in emerging markets," International Business Review, Elsevier, vol. 30(1).
    4. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    5. Wang, Zi & Yuan, Ruizhi & Luo, Jun & Liu, Martin J., 2022. "Redefining “masstige” luxury consumption in the post-COVID era," Journal of Business Research, Elsevier, vol. 143(C), pages 239-254.
    6. Rizwan Raheem Ahmed & Erum Zahoor Zaidi & Syed Hasnain Alam & Dalia Streimikiene & Vishnu Parmar, 2023. "Effect of Social Media Marketing of Luxury Brands on Brand Equity, Customer Equity and Customer Purchase Intention," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 265-265, February.
    7. 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.
    8. Loureiro, Sandra Maria Correia & de Plaza, Maria Alejandra Pinero & Taghian, Mehdi, 2020. "The effect of benign and malicious envies on desire to buy luxury fashion items," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    9. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    10. Suzuki, Satoko & Kanno, Saori, 2022. "The role of brand coolness in the masstige co-branding of luxury and mass brands," Journal of Business Research, Elsevier, vol. 149(C), pages 240-249.
    11. Massoud Moslehpour & Ka Yin Chau & Alaleh Dadvari & Ben-Roy Do & Victoria Seitz, 2019. "What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    12. 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.
    13. Bazi, Saleh & Filieri, Raffaele & Gorton, Matthew, 2020. "Customers’ motivation to engage with luxury brands on social media," Journal of Business Research, Elsevier, vol. 112(C), pages 223-235.
    14. Rosendo-Rios, Veronica & Shukla, Paurav, 2023. "When luxury democratizes: Exploring the effects of luxury democratization, hedonic value and instrumental self-presentation on traditional luxury consumers’ behavioral intentions," Journal of Business Research, Elsevier, vol. 155(PB).
    15. Rémi Evrard & Laure Lavorata, 2018. "Digital et luxe : quels impacts sur l'expérience client et le capital-marque? Une revue de littérature," Post-Print hal-02737839, HAL.
    16. Wong, Amy, 2023. "How social capital builds online brand advocacy in luxury social media brand communities," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    17. Chandon, Jean-Louis & Laurent, Gilles & Lambert-Pandraud, Raphaëlle, 2022. "Battling for consumer memory: Assessing brand exclusiveness and brand dominance from citation-list," Journal of Business Research, Elsevier, vol. 145(C), pages 468-481.
    18. Karatzas, Stelios & Kapoulas, Alexandros & Priporas, Constantinos Vasilios, 2019. "Consumers' perceptions on complexity and prospects of ethical luxury: Qualitative insights from Taiwan," Australasian marketing journal, Elsevier, vol. 27(4), pages 224-232.
    19. Martina Morando & Silvia Platania, 2022. "Luxury Tourism Consumption in the Accommodation Sector: The Mediation Role of Destination Brand Love for Potential Tourists," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    20. Roggeveen, Anne L. & Grewal, Dhruv & Karsberg, John & Noble, Stephanie M. & Nordfält, Jens & Patrick, Vanessa M. & Schweiger, Elisa & Soysal, Gonca & Dillard, Annemarie & Cooper, Nora & Olson, Richard, 2021. "Forging meaningful consumer-brand relationships through creative merchandise offerings and innovative merchandising strategies," Journal of Retailing, Elsevier, vol. 97(1), pages 81-98.
    21. Leo Sleuwaegen & Peter M. Smith, 2022. "Who purchases cross-border? Individual and country level determinants of the decision to purchase cross-border in the European Single Market," Electronic Commerce Research, Springer, vol. 22(3), pages 749-785, September.
    22. Shukla, Paurav & Rosendo-Rios, Veronica & Khalifa, Dina, 2022. "Is luxury democratization impactful? Its moderating effect between value perceptions and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 139(C), pages 782-793.
    23. Li, Fajin & Cheng-Xi Aw, Eugene & Wei-Han Tan, Garry & Cham, Tat-Huei & Ooi, Keng-Boon, 2022. "The Eureka moment in understanding luxury brand purchases! A non-linear fsQCA-ANN approach," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    24. Anwar Sadat Shimul & Ian Phau & Michael Lwin, 2019. "Conceptualising luxury brand attachment: scale development and validation," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 675-690, November.
    25. Gornostaeva, Galina, 2023. "The development of digital commerce in the fashion industry: The typology of emerging designers in London," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).

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