Understanding Luxury Marketing - Scholarly Flashcards
(137 cards)
1
Q
What does Coco Chanel state about luxury?
A
Luxury is not the opposite of poverty but it is the opposite of vulgarity.
2
Q
What is necessary for something to be considered luxury?
A
Luxury has a very strong signal; without this it is no longer luxury simply snobbery.
3
Q
Define luxury.
A
Defining luxury is notoriously difficult part of the difficulty lies in its characteristics. Luxury is usually something apart lending prestige being desired and possessing superior quality.
4
Q
What does the course aim to describe?
A
The course aims to describe several facets of luxury and will cover different understandings of luxury.
5
Q
What is a key principle to succeed in luxury marketing?
A
We must first forget several key principles of marketing that make perfect sense in many other marketing contexts.
6
Q
What do Bastien and Kapferer (2009) define in relation to luxury marketing?
A
They define principles that set luxury marketing apart from other areas of marketing.
7
Q
What is the marketing mix in the luxury industry?
A
The marketing mix doesn’t work in the luxury industry; luxury brands do not acknowledge competition and thrive on their uniqueness.
8
Q
Why do many luxury brands limit their products?
A
Many luxury brands are proudly limited; for example a Bugatti is not ideal for most customers but remains a highly desired luxury car.
9
Q
How do luxury brands approach customization of their products?
A
Luxury cars and luxury yachts are highly customized as are bespoke suits and designer dresses but they do not change products to suit current trends.
10
Q
What does outstanding luxury ignore?
A
Outstanding luxury is timeless ignoring fluctuating trends.
11
Q
What happens when a luxury brand becomes widely sold?
A
If the brand becomes widely sold it can still be prestigious but is no longer pure luxury.
12
Q
What do true luxury brands understand about customer demand?
A
True luxury brands know that their clients are eager for the product and do not mind waiting for superior quality.
13
Q
What is the waiting time for some Patek Philippe watches?
A
The waiting time for some Patek Philippe watches can be up to a year and for repeat customers it could be up to 5 years.
14
Q
What strategy does Hermès use for their top-selling items?
A
Hermès uses a strategy where even their top-selling items are deliberately limited such as selling a certain number of pieces each day.
15
Q
What is the significance of exclusivity in luxury brands?
A
Luxury brands need to keep their air of exclusivity; easy availability dilutes the brand.
16
Q
What role does craftsmanship play in luxury pricing?
A
An average product does not become luxurious just by putting a high price on it; luxury comes from craftsmanship material precision quality and detail.
17
Q
How do luxury ads differ from ordinary ads?
A
Luxury ads do not focus on sales; they should be desired not pushy and often don’t display prices.
18
Q
What is the goal of luxury brand ads?
A
The goal is to tell a story and reinforce brand identity.
19
Q
What do luxury brands wait for in terms of customers?
A
Luxury brands wait for customers to seek them out rather than actively seeking customers to sell to.
20
Q
What can higher costs in luxury be offset by?
A
In luxury higher costs can be offset by a higher price while losing traditions and heritage is more detrimental.
21
Q
What aspect of luxury is essential according to Kapferer and Bastien (2009)?
A
Allowing consumers to feel special creates a sense of exclusivity combined with the prestige that luxury can bring.
22
Q
What historical example illustrates a change in social status related to plumbing?
A
In the late 1940s and early 1950s many Venetians moved to Mestre for the social status improvement of having modern plumbing.
23
Q
What happens when a former social signifier becomes common?
A
When an item that used to be a social signifier becomes common or undesired it loses its status as a social signifier.
24
Q
What are some customer motivations for luxury consumption?
A
- Some customers want conspicuousness. - Some want luxury for quality and design regardless of visibility. - Some desire discreet luxury. - Some enjoy luxury for fun.
25
What are the characteristics of the inner core of a successful luxury brand?
The inner core is unique to the brand connected to its origin carries the original meaning influences all the brand does and remains important along with craftsmanship.
26
What campaign did Dolce Gabbana run in 2020?
Dolce Gabbana ran several campaigns focusing on traditional Italian heritage featuring iconic Italian cities like Florence and Naples.
27
How did Hubert de Givenchy's early brand identity relate to Audrey Hepburn?
Audrey Hepburn became a personal friend of Hubert de Givenchy and was one of the first customers helping to establish the brand's identity.
28
What is the importance of brand codes?
Codes are external symbols of a brand that should be unique recognized by customers and consistently applied across brand aspects.
29
What is a fundamental difference between luxury services and luxury products?
Luxury services can maintain exclusivity through means like private memberships which is not as feasible for luxury products.
30
What influences customer service experience in luxury brands?
The servicescape including boutique design music fragrance staff behavior product display and overall atmosphere influences the customer service experience.
31
Why is the design of the boutique important in luxury settings?
The design of the boutique plays an important role in how customers perceive the luxury brand.
32
What is the typical characteristic of low-cost stores compared to luxury boutiques?
Low-cost stores typically try to fill the boutique with as many products as possible while luxury boutiques cannot feel cluttered.
33
What does the Palessi experiment demonstrate about the servicescape?
The Palessi experiment shows that the servicescape has a powerful influence on our experience as influencers were fooled into thinking cheap shoes were expensive due to the luxurious presentation.
34
What is the misconception about 'Premium' and 'Luxury'?
Premium is sometimes mistaken for being a form of ultra-premium and luxury is sometimes mistaken to be a form of ultra-premium.
35
What are the eight key characteristics of luxury according to the traditional luxury view?
1. Luxury should convey pleasure aestheticism emotions. 2. Luxury should be of high quality made to last by expert craftsmanship. 3. The price of luxury is higher than just the functional price. 4. Connected to its origin creator place of origin traditions. 5. Top luxury brands should not delocalise or outsource production. 6. Available in only a few select places. 7. Accompanied by personalised service. 8. A social signifier.
36
What is the traditional view on luxury?
The traditional view on luxury defines luxury as scarce prestigious expensive and reserved for the elite.
37
What is the democratization of luxury?
The democratization of luxury refers to ways in which luxury is no longer reserved for the select few with many aspects of luxury now widely available.
38
What are the three main forms of democratized luxury as per Silverstein and Fiske?
1. Tree main - available to the mass a lot of people can afford it. 2. Masstige - combines attributes of prestige with affordability for most consumers. 3. Desire for prestige - normal products at the top end of their product category.
39
What implications has the democratization of luxury had for the luxury industry?
Reactions have been very different; some luxury brands continue producing exclusive luxury while others introduce new sub-brands that are upscale yet more accessible.
40
What is the challenge faced by Armani as a luxury brand?
Armani has faced problems establishing itself as an elite luxury brand often being used by both parvenus and poseurs leading to avoidance by more discerning consumers.
41
What is the purpose of the brand Armani Priv?
Armani Priv is intended to be the top brand of Armani aiming to be an absolute elite brand in the fashion world.
42
What happened to Armani's brand extensions in 2017?
In 2017 Giorgio Armani decided to cease two of his sub-brands - Armani Collezioni was merged with Giorgio Armani and Armani Jeans was merged into Emporio Armani.
43
What was the strategy of Yves Saint Laurent before retirement?
Yves Saint Laurent had a strategy of maintaining distinct sub-brands with heavy involvement in the luxury brand while overseeing the development of a more accessible brand.
44
What issue arose for the Yves Saint Laurent brand after the founder's retirement?
After his retirement the distinctions between the different brands blurred leading to a dilution of the brand image.
45
What happened to Dolce Gabbana's branding strategy in 2012?
DG clothing was discontinued in 2012 focusing only on the main luxury brand Dolce Gabbana.
46
What are the two types of collaborations mentioned in the text?
1. Design by the normal brand where the luxury brand adapts the design. 2. Design by the luxury brand for a normal brand.
47
What was significant about HM's collaboration with Karl Lagerfeld in 2004?
It was a highly publicized collaboration that resulted in enormous success for both HM and Karl Lagerfeld raising the profile of everyone involved.
48
What was Balmain's collaboration with HM known for?
Balmain's collaboration with HM included an entire collection designed by Balmain's creative director Olivier Rousteing along with a fashion show specifically for the collection.
49
How did Balenciaga approach their runway show during Paris Fashion Week 2021?
Balenciaga opted for a radically different approach during Paris Fashion Week utilizing a normal red carpet with VIP customers before their main runway presentation.
50
What significant collaboration made headlines in October 2021?
The collaboration between Balenciaga and The Simpsons.
51
How did Balenciaga perform in the fashion market after the collaboration with The Simpsons?
Balenciaga rushed to the top of the most searched for fashion brands in the world and remained on top in the ranking for a year.
52
What does fame represent for luxury brands according to the text?
Fame increases its prestige as a social signifier.
53
What happened to Balenciaga in late 2022?
Balenciaga crashed out of the top 10 in late 2022 after several scandals.
54
What common misunderstanding might a restaurant management have regarding customer expectations?
The restaurant believes that customers expect good food and only focuses on the quality of the food ignoring functional quality.
55
What do customers expect from their restaurant experience?
Customers expect a nice evening out and the entire experience matters including the food the atmosphere how they are treated etc.
56
What is a typical service design problem in restaurant settings related to bookings?
Problems with bookings include no proper system in place for bookings leading to customers arriving to find no table or having to wait.
57
What is one way restaurant management may try to save money that affects service quality?
By using ingredients that are no longer fresh.
58
What is a common gap in restaurant service?
The gap of service personnel not performing as well as they should.
59
List some possible problems due to the third gap in restaurant service.
1. A waiter not being polite enough to customers. 2. A waiter not able to answer questions about the menu or wine. 3. A chef sending out food that is not as good as it should be. 4. A chef forgetting to prepare a dish. 5. A waiter overcharging on the bill.
60
What does gap 4 describe in the context of restaurant service?
Gap 4 occurs when communication to customers does not match what is delivered.
61
How is gap 5 defined?
The difference between what the customer expects and what the customer gets which depends on the size of the four other gaps.
62
What are the five gaps described in the text?
1. Gap 1: Differences between what customers really expect and what management thinks that customers expect. 2. Gap 2: Differences between what management thinks customers expect and how management defines service quality to the employees. 3. Gap 3: Differences between how the company regulations state that the service should be provided and how the service actually is provided. 4. Gap 4: Differences between the service the company delivers and the service quality that the company communicates in advertising. 5. Gap 5: The difference between what the customer expects and what the customer gets.
63
In luxury psychology what concept is key to understanding customer value?
The concept of prestige.
64
What does prestige relate to in the context of luxury brands?
Prestige can refer to the brand itself and some luxury brands are famous and carry a higher status.
65
How do heritage and myths contribute to the prestige of luxury brands?
Heritage relates to the myths and traditions that often distinguish a luxury brand from other brands and these myths help form consumer perceptions of heritage.
66
What is an example of a brand myth associated with Ferrari?
The early victories of Ferrari cars in Formula One and Le Mans remain important to the brand myth.
67
What does the Cartier advertisement celebrate?
The heritage of Cartier celebrating the 165th anniversary of the company rather than any actual products.
68
What role does heritage play in luxury wines according to the text?
Heritage plays a significant role in maintaining the prestige of luxury wines as evidenced by the classification system that has remained stable since 1855.
69
What does Château d'Yquem represent in the context of luxury wines?
Château d'Yquem is one of the world's most prestigious wines recognized for its quality and heritage.
70
What does the concept of 'costly signaling' refer to in luxury consumption?
Costly signaling refers to expensive behavioral signals designed to convey information benefiting both signallers and recipients.
71
What is meant by conspicuous consumption in the context of luxury brands?
Conspicuous consumption involves using luxury brands to signal that the owner is prestigious apart from any functional utility.
72
What do research findings show about luxury customers' motivations?
1. Some want to be seen; 2. Some want quality and design without caring about being seen; 3. Some want to be discreet while still valuing quality and design.
73
How do status and social signifiers relate to luxury consumption?
People use luxury brands as social signifiers to convey higher status compared to others.
74
What is the dominant view on luxury according to the text?
The dominant view focuses on how luxury consumers consume and use luxury objects characterized by high quality and high price.
75
How are ads for luxury brands often criticized according to the text?
Luxury ads are criticized for being overly conservative especially regarding gender roles.
76
What is a notable characteristic of luxury artifacts as mentioned in the text?
Many luxury artifacts are enormously impractical but are still highly desired for their aesthetic value and the signals they send to others.
77
How does the concept of the peacock's tail relate to luxury consumption?
The peacock's tail serves as a sexual symbol to attract partners despite being impractical similar to how luxury items signal status.
78
What are some influences on how people react when meeting potential partners as described in the text?
People may be influenced by social signifiers including luxury products in attracting and retaining partners.
79
What are some motivations for men and women in the context of conspicuous consumption?
Men may engage in conspicuous consumption of luxury to attract a partner while women use luxury products to signal to other women that their partner is committed.
80
How does the concept of prestige relate to conspicuous display in luxury?
Prestige can refer to any conspicuous display including luxury products that signals status and distinction.
81
What do social scientists suggest about luxury products?
Luxury products are a strong signal for men which women perceive and beauty is a strong signal for women which men perceive.
82
How do luxury brands typically portray men in their advertisements?
Men are often displayed in ads conveying prestige and determination usually dressed in a fine suit.
83
How do luxury brands typically portray women in their advertisements?
Women are often displayed in ads conveying seductive poses often dressed in revealing clothing.
84
What do men want to convey to attract a partner?
Men want to convey prestige determination and wealth to attract a partner.
85
What do women want to convey to attract a partner?
Women want to convey beauty youth and attractiveness to attract a partner.
86
According to studies in behavioral psychology how do men attract a partner?
Men attract a partner by conveying prestige often through the use of luxury as costly signals.
87
According to studies in behavioral psychology how do women attract a partner?
Women attract a partner by conveying attractiveness; luxury is not necessary for this.
88
What is a critical approach to using stereotypical gender roles in luxury advertising?
Using stereotypical gender roles in ads for no purpose is not a good luxury strategy and is likely to backfire.
89
What should a luxury ad aim to do?
A luxury ad should always make customers dream about the brand and want to share the brand experience.
90
What did Coco Chanel say about luxury?
Coco Chanel said 'Luxury is the opposite of vulgarity'.
91
Why is the concept of glamour important in luxury marketing?
Glamour represents the idealized image luxury brands want to convey without the same risk of generating controversy as overt sexuality.
92
What is the origin of the term 'glamour'?
Glamour originates from Scottish folk culture where mythical fairies could cast alluring charms to change appearances.
93
What characterizes the key to glamour?
The key to glamour is an illusion of seamless integration of effortless beauty and idealized detachment.
94
What is the relationship between body and dress in glamour?
In glamour body and dress complement each other.
95
What does luxury often use to attract potential partners?
Many luxury customers use luxury to attract potential partners with attraction and sensuality being important parts of the luxury image.
96
Why should luxury brands avoid being vulgar or sexist?
Luxury should never be vulgar and never be sexist or degrading as it undermines the brand's image.
97
What is the difference between luxury and glamour?
While connected to luxury glamour is not identical to luxury; instead glamour is the combination of person clothing and accessories that creates an allure.
98
What is the 'moments of luxury' approach?
The 'moments of luxury' approach focuses on extraordinary moments in consumers' lives where luxury should be enjoyable and not just about products or price.
99
What are some motivations for consumers seeking luxury experiences?
Motivations can include the desire for aesthetics exclusivity hedonic escapism and memorable moments.
100
What do luxury brands need to understand about their consumers?
Luxury brands need to understand that consumers can be driven by many different motivations including prestige quality experience and hedonism.
101
What psychological risks exist in the luxury industry?
Psychological risks can include emotional costs for employees pressure on designers and the impact of social signifiers.
102
How do social signifiers relate to conspicuous consumption?
Social signifiers are signals that people send out to show status through conspicuous consumption which can become competitive and destructive.
103
What are the three pillars of sustainability?
The three pillars of sustainability are social sustainability environmental sustainability and economic sustainability.
104
Why is the luxury industry often considered more sustainable than fast fashion?
Luxury is often more sustainable than fast fashion because it typically involves higher quality longer-lasting products and better working conditions whereas fast fashion often exploits low-cost labor and pollutes the environment.
105
What are some ethical issues associated with fast fashion?
Fast fashion involves ethical problems related to social sustainability such as minimal wages poor workplace safety and environmental sustainability including pollution and water shortages.
106
What criticism is often directed at fashion and sustainability regarding luxury brands?
Much criticism about fashion and sustainability focuses on luxury brands yet luxury is often the most sustainable form of fashion.
107
What sustainable materials do luxury brands typically use compared to fast fashion?
Luxury brands overwhelmingly use wool a sustainable material unlike fast fashion which uses polyester that contributes to pollution and global warming.
108
How does the craftsmanship of luxury items contribute to sustainability?
The craftsmanship of luxury means it lasts longer allowing consumers to wear luxury pieces for years instead of throwing them out after a few months.
109
What benefit do luxury fashion items offer in terms of the circular economy?
Luxury fashion items often last decades and can be sold as second-hand vintage goods rather than thrown away.
110
How do luxury brands contribute to social sustainability?
By not outsourcing luxury brands avoid the use of cheap labor ensuring that both workers' conditions and sustainable materials are well supervised.
111
Where is top luxury manufactured in terms of environmental supervision?
Top luxury is manufactured in countries with regular environmental supervision.
112
What is a significant communication issue that luxury brands face regarding sustainability?
Many luxury principles are compatible with sustainability but luxury brands have been terrible at communicating this.
113
What is an example of how Dior showcases its commitment to lower environmental impact?
Dior handbags produce far less CO2 than cheaper brands made in low-cost countries and Dior's leather comes from bio farms.
114
What emotional costs are associated with working in a luxury shop?
There is a competitive and intense work climate long working hours and a fear of losing perks.
115
What theory explains the tendency to compare ourselves to others in the age of social media?
Social comparison theory suggests we compare ourselves to those around us and this has become a growing problem due to social media.
116
Define digitalization and digital transformation in the context of luxury brands.
Digitalization is the conversion of physical data to digital whereas digital transformation refers to the creation of a business that embraces digital technologies.
117
What is the significance of the first luxury websites launched in the late 1990s?
The first luxury websites such as Sephora.com and E-luxury.com marked the beginning of online luxury retail.
118
What does IMC stand for in marketing?
IMC stands for Integrated Marketing Communication.
119
What does the POEM framework stand for in digital marketing?
POEM stands for Paid Owned and Earned Media.
120
By what percentage is online retail expected to comprise luxury sales by 2025 according to a McKinsey report?
Online retail is expected to make up 20% of all luxury sales by 2025.
121
How do younger consumers' purchasing behaviors differ from older generations?
Younger consumers are more likely to make luxury purchases online with 14% of young customers aged 18-24 already having made their first luxury purchase online.
122
What role is artificial intelligence playing in the luxury market?
Some premium brands are experimenting with artificial intelligence technologies to generate and manage large amounts of information about users and deliver timely and personalized recommendations.
123
What is the impact of art on consumer perceptions of luxury products?
When a product is combined with art it gains luxury qualities leading to more positive evaluations of the product.
124
What are the two main roles of art in luxury marketing?
Art can be used to enhance the aesthetic and emotional appeal of luxury products and to create exclusive brand experiences.
125
What does the concept of art infusion refer to in marketing?
Art infusion refers to the influence that the presence of art has on consumer perceptions and evaluations of products.
126
How did the perception of art change in the 19th century regarding its commercial goals?
In the 19th century there was a notion of 'Art for Art's Sake' which challenged classic forms of art and the idea of art being devoid of any commercial goal.
127
What is the significance of collaboration between luxury brands and pop artists?
Collaborations between luxury brands and pop artists blur the lines between elite art and popular culture making art more accessible while still maintaining exclusivity.
128
What does Holbrook's cultural hierarchy distinguish between?
Holbrook's cultural hierarchy distinguishes between elite culture and popular culture recognizing the difference in taste legitimized by upper classes or experts.
129
How does the definition of art rely on consumer perception?
The definition of art is shaped not only by the creator's intention but also by how consumers perceive and interpret the artwork.
130
What is the main focus of arts marketing?
Arts marketing focuses on creating communicating and delivering value related to artistic experiences and products to consumers.
131
What is a strategy that mainstream marketers can learn from artists?
Mainstream marketers can learn from the strategic application of marketing principles that artists use to promote and sell their work.
132
What does the term 'experiential product' refer to in the context of art and luxury?
Experiential products are those that provide excitement or hedonistic gratification emphasizing personal pleasure and individual social status.
133
What is the relationship between luxury products and consumer satisfaction?
Consumers of luxury products seek more than just consumption; individual pleasure and satisfaction are prime motivating factors.
134
How does the presence of art enhance the perceived value of luxury products?
The presence of art in marketing makes luxury products seem more desirable and luxurious regardless of the specific content of the art.
135
What is a practical example that illustrates the marketing through art?
An example is the Bilbao Museum which employs strong branding and various related services to attract tourists and generate extra income.
136
What does the term 'charismatic legitimacy' refer to in luxury branding?
Charismatic legitimacy is based on creating devotion to the exceptional character of a leader and dramatized in their persona.
137
What are the outcomes of using art in product marketing?
Using art in product marketing leads to higher perceived luxury and desirability of products regardless of whether the art is positive or negative in content.
