“the art of creating emotions in a fast-moving & …“the art of creating emotions in a...

“ T H E A R T O F C R E A T I N G E M O T I O N S

I N A F A S T - M O V I N G & G L O B A L W O R L D ”

A C A D E M I C P R E S E N T A T I O N S

1 2 & 1 3 A p r i l 2 0 1 8 meridien beach plaza monaco

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Academ ic Sess ions N ° 1 ( t h u r s d a y , 1 0 : 0 0 - 1 1 : 3 0 )

t r a c k a – l u x u r y i n - s t o r e r e l a t i o n s h i p s c h a i r : a n g y g e e r t s

“WHEN LUXURY CONSIDERS SERVICE SPECIFICIT IES: UNPACKING EXPERTS’ AND ACADEMICS’ V IEWPOINTS ABOUT THE ROLE OF SALESPERSONS”

Jean-Louis Chandon, Mariem El Euch Maalej (both from INSEEC Business School) & Fanny Poujol (CEROS Paris-Nanterre University & INSEEC Business School)

[email protected]

“THE DANGERS OF STRONG SALESPERSON-BRAND RELATIONSHIPS IN THE LUXURY SECTOR”

Michaela Merk (SKEMA) & Géraldine Michel (IAE Paris, Sorbonne Business School) [email protected]

“ IDENTIFYING DIMENSIONS OF LUXURY SHOPPING EXPERIENCE (LSE) A SOCIO-SEMIOTICS APPROACH”

Angy Geerts (University of Mons) & Nathalie Veg-Sala (Paris-Nanterre University) [email protected]

The study of luxury salesperson-client interactions is the subject of recent research. Even though researchers and practitioners agree about the importance of salesperson role, many of them still question the nature and the effectiveness of these interactions. What attitude should luxury salespersons adopt? What competencies

should they master? Are these attitudes and competencies specific to the luxury sector? Should they display arrogance? Should “Devil sell Prada” to foster client desire or should they be friendly? Should they favour informative or emotional communication or both of them? To shed some light on these questions this study present the results of

an exploratory qualitative study contrasting European academic and professional experts’ viewpoints. The thematic analysis reveals five main themes and twenty sub themes. Each sub theme is illustrated by verbatim and frequency of appearance.

The purpose of this study is to complete existing knowledge about salesperson-brand relationships by identifying potential dangers associated with overly passionate salesperson behavior in relationship with the brands they advise and sell to customers.

We conduct our exploratory study in the luxury sector through interviews with sales managers, salespeople and the analysis of customer service platforms in the sector of luxury watches, fashion and cosmetics. This allowed us to identify the negative impact

of these overly strong salesperson-brand relationships on customer relationship quality, brand expression consistency and sales team management, resulting in negative customer experience.

Experience is at the heart of luxury and luxury shopping. As far as we know, no research has highlighted the dimensions of shopping experience in this specific sector. Previous research has identified dimensions of shopping experience regarding mass-market context but one can ask if these are still relevant in the luxury context. Thus, this research aims at identifying the specific dimensions of Luxury Shopping

Experience (LSE). In order to reach this purpose, a qualitative methodology has been set up. We have conducted 18 semi-directive interviews of luxury consumers and a thematic categorical analysis. This has led to the identification of 3 dimensions (Synesthesia, Epicurean and Social Exception) and 6 sub-dimensions (aesthetics and the dramatization; relation / emotion and temporality; welcome and enhancement).

Finally, a semiotic analysis based on the semiotic square (“luxury for oneself – luxury for others”) has allowed to highlight the dimensions and sub-dimensions that are dominant for each type of luxury consumers. The results of this research bring about a better understanding of the shopping experience in the luxury context with both theoretical and managerial contributions regarding luxury brands.

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t r a c k b – c o n s u m e r r a p p o r t t o l u x u r y : i n t e r c u l t u r a l c o m p a r i s o n s c h a i r : m o h a m m a d k e r m a n i

“CONSUMERS’ NEED FOR UNIQUENESS, ATTITUDE FUNCTIONS AND BEHAVIORAL INTENTIONS FOR LUXURY BRANDS”

Paurav Shukla (Essex Business School), Dina Khalifa & Tholas Peschken (Glasgow Caledonian University) [email protected]

Drawing upon attitude functions theory, this study empirically examines consumers’ need for uniqueness (CNFU) dimensions as antecedents and Word-of-Mouth recommendations and purchase intentions as consequences of attitude functions using the context of luxury brands. Comparing

responses from American, French and Chinese luxury consumers, results demonstrate differential impact of CNFU dimensions on attitude functions, which result in varying influences on behavioral intentions. By examining the full-spectrum of attitude functions, this study provides

important theoretical implications and offer much needed cross-national stability to the constructs of attitude functions and CNFU. The findings offer actionable insights for global marketing strategies of luxury brands.

“HOW SELF-SUCCESS DRIVES LUXURY DEMAND: AN INTEGRATED MODEL OF LUXURY GROWTH AND COUNTRY COMPARISONS”

Jean-Noël Kapferer (INSEEC Business School) & Pierre Valette-Florence (IAE Grenoble) [email protected]

It is a fact, if mature Western countries remain the main markets for luxury goods today, with the USA as the largest one, recent luxury market growth has mainly come from emerging economies, due to the growing number of self-made men and women who achieve high purchasing power and travel to the best cities in the world for purchasing luxuries. This research is corroborative,

integrative and exploratory: comparing the values, expectations and specific demands of luxury buyers from six countries, both mature and emerging, Asian and Western, it tests a global and integrative model of luxury demand. A causal analysis with a structural equation modeling approach confirms the dominance of self-achievement vs mere richness as determinant of luxury

demand growth: it induces more materialism, more luxury love, a preference for success-signaling luxury functions, thus a desire for expensive and well-known brands, whose marketing aims at creating feelings of exclusivity to counteract the effects of their increasing sales. Intercountry comparisons confirm that this process is most prominent in China and Japan.

“THE EFFECT OF CONSUMER KNOWLEDGE ON BANDWAGON” Mohammad Kermani (York University) & Leila Hamzaoui-Essoussi (University of Ottawa)

[email protected]

This research supports and extends the bandwagon luxury consumption model (i.e., conformist conspicuous consumption) developed by Kastanakis and Balabanis (2012), finding that consumer knowledge moderates the propensity to engage in this behavior. We test the model in a collectivistic context, Iran, with evidence suggesting that the relationship between consumer need

for uniqueness and status seeking with bandwagon consumption was negatively moderated by consumer knowledge. As consumer knowledge increases, the desire to conform to popular luxury consumption patterns decreases and status seeking needs are less likely to be satisfied through bandwagon consumption. The findings of this study contribute to the literature by

providing an explanation that supplements individual differences in self-concept and variation in this luxury consumption behaviour. Moreover, this study provides insight for the development of marketing strategies for luxury brands in emerging markets like Iran, an untapped luxury market.

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t r a c k c – s t r a t e g i c i s s u e s i n l u x u r y c h a i r : s i n d y l i u

“MANAGING THE STANDARDIZATION-LOCALIZATION DILEMMA OF LUXURY FASHION BRANDS – DEFINING A NEW LUXURY BRAND MANAGEMENT MODEL FOR CHINA”

Sindy Liu & Claudia Henninger (both from the University of Manchester) [email protected]

“LE LUXE EST MORT, V IVE LE LUXE ! NICHE LUXURY BRANDS IN THE ERA OF MASSTIGE »

Fabio Duma & Maya Gadgil (both from Zurich University of Applied Sciences) [email protected]

In the growing shadow of the luxury giants and apart from “mainstream” luxury there are smaller, lesser-known, independent niche luxury companies striving for excellence in their respective category and focusing on the needs of a discerning clientele of more advanced luxury customers. These luxury consumers may feel overwhelmed and

estranged by the omnipresence of luxury and the short-lived “must haves” of every season; alternatively, they may have moved on from purchasing the clearly visible status symbols of the newly rich and aspirational customers towards a more discreet form of luxury consumption. A form that for example values authenticity, true rarity, visible and “tangible”

craftsmanship, innovation, closeness and personal connection with the founder/owner, as well as highly personalized service. This type of customer tends to favor smaller, more intimate and personal luxury companies, brands not necessarily known to the larger public, but only to those who are ”in the know”, the true connoisseurs.

“CAPABILIT IES OF LUXURY STARTUPS” Elena Ehrensperger & Daria Erkhova (both from University of Bern

[email protected]

Although previous research on startup companies has been rather broad, luxury startups have not been, to the best of our knowledge, in focus of academic attention so far. With this study, we intend to close this research gap: relying on previous research on the resource-based view of the firm and literature on luxury management, we

empirically derive eight important capabilities that help luxury startups to cope with the initial lack of credibility and limited resources and achieve sustained competitive advantage. Our study advances the existing research on strategic entrepreneurship as we take a contingency perspective on capabilities of startups by exploring them in

the context of one specific industry, the luxury industry. In addition, the study advances academic insights in luxury management by showing that luxury startups may need different capabilities than luxury incumbents in order to survive and strive.

Luxury brands in China face the challenge of balancing the ‘global-local’ dilemma. Our study comprises 20 luxury fashion retailers operating in China, provides rich insights of the decision-making process for marketing strategies, distribution channel control, and brand management outlook. Findings indicate that foreign luxury retailers conduct de-centralized brand management strategies

in China, by allowing local teams to implement highly adaptive and enterprising marketing strategies. Foreign luxury retailers tighten up distribution channels such as buy-back wholesale and franchises, in particularly, e-commerce platforms, to increase their control on the overall brand image and products. Chinese luxury consumers are global elite, although the danger of over-

localization is still evident, the direction of a de-centralized luxury brand management emerges as an outlook. Our insights provide strategic directions for luxury retailers entering digital spaces and/or expand into China, and provide indications of future trends.

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t r a c k a – l u x u r y i n - s t o r e r e l a t i o n s h i p s c h a i r : h a n n e l e k a u p p i n e n - r a i s a n e n

“ INDULGE YOURSELF! THE EFFECT OF HEDONIC GOALS IN MULTI - AND SINGLE-BRAND LUXURY STORES”

Perrine Desmichel & Bruno Kocher (both from University of Lausanne) [email protected]

Marketing managers in the luxury sector strive to isolate their brands from competition. Despite their efforts, in many contexts, such as in luxury malls, in airports, in specialized and department stores, luxury brands compete directly against each other. The purpose of this research is to explore what differentiates single-brand from

multibrand settings and to build on this to reduce consumers’ comparative judgments in multibrand shopping contexts. We show that the hedonic potential of luxury brands is depleted in multibrand stores and can be restored by priming hedonic goals. We also demonstrate that hedonic goals trigger a more intuitive, rather than rational, thinking-

style, which, in turn, limits luxury brand comparisons during consumers’ purchase decisions. This insight has important implications for luxury marketing managers when designing strategies for multibrand environments, which represent almost half of luxury revenues.

“EXPLORING SHOPPING EXPERIENCES IN DIRECTLY OPERATED LUXURY BRAND STORES” Hannele Kauppinen-Raisanen (University of Vaasa) & Hans Mühlbacher (International University of Monaco)

[email protected]

Increasing online purchases of luxury products challenge the existence of a large number of stores directly operated by luxury firms. Luxury brand managers tend to defend the shops as the incarnation of the essence of the brand. The in-store shopping experience is an essential driver of brand success. Compared to a great number of empirical studies interested

in servicescapes, published research focusing on the drivers of luxury shopping experiences is scarce. This study contributes to filling the gap, through a qualitative inquiry into shoppers’ experiences in Monaco luxury brand stores. The findings reveal that the major determinants of shopping experience in luxury stores are service excellence, emotional stimulation, unique conforming

sensations, and the feeling of assurance. Whereas servicescape literature focuses on the physical environment and luxury shopping research has taken a relationship management perspective, this study demonstrates the importance of a holistic individual experience allowing shoppers to feel immersed in the brand universe with all senses.

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t r a c k b – r e l a t i o n s h i p t o l u x u r y c h a i r : m a r i j k e d e v e i r m a n

“BRAND EXPERIENCE & LUXURY BRANDS: EFFECTS ON PERCEPTION & PURCHASE INTENTION”

Mouna Bounaouas (University of Kairouan), Sarah Ben Bouyahia & Fawzi Dekhil (both from University of Tunis El Manar) [email protected]

Brand experience is widely explored in the marketing research. However, few studies have focused on the relationships between Brand experience and Luxury brands. This study explores relationships between Brand experience and the perception of Luxury brands trough Brand personality, Brand-user-imagery fit and Brand luxury. It fills the

lack of research combining Brand experience and Purchase intention. In an online survey, 128 respondents examine two luxury brands (Michael Kors and Dior). We use Smart PLS path modeling to test our hypotheses. Findings reveal a) Positive impact of Brand experience on Brand personality; Brand-user-imagery fit and Brand luxury; b) Positive

impact of Brand personality on Brand luxury and Purchase intention and confirm c) Positive impact of Brand-user-imagery fit and Brand luxury on Purchase intention. However, Brand experience does not affect Purchase intention for Luxury brands. Results are discussing through comparison of the two Brands.

“EXPOSURE TO LUXURY ON INSTAGRAM” Marijke De Veirman, Liselot Hudders & Veroline Cauberghe (all from Ghent University)

[email protected]

The findings of three experimental studies show that exposure to peers’ portrayals of luxury lifestyles on Instagram accounts can negatively affect state self-esteem through negative social comparison. Exposure to a peer’s portrayal of a luxury lifestyle on Instagram leads to the notion that the signaler is better off, decreasing state self-esteem. The negative effect on state self-esteem is stronger for highly materialistic

individuals. Additionally, a peer’s portrayal of a luxury lifestyle on Instagram can result in inferences that the signaler is a braggart. However, the results show that this perceived bragging leads to negative effects on state self-esteem only for highly materialistic individuals and not for less materialistic individuals. These results can explain why highly materialistic people experience higher self-esteem threat after exposure to

portrayals of luxury lifestyles on Instagram. Moreover, we demonstrate that exposure to a peer’s luxury lifestyle on Instagram may generate compensatory consumption behavior, expressed by positive effects on the purchase intention of the peer’s latest luxury purchase in particular. We discuss the implications of these findings.

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t r a c k c – l u x u r y a n d s u s t a i n a b i l i t y ( a ) c h a i r : p a u l i n e m u n t e n

“DOES POSIT IONING SUSTAIN LUXURY BRANDS PERCEIVED SUSTAINABILITY?” Thierry Delécolle (ISC Paris Business School) & Béatrice Parguel (CNRS, University Paris-Dauphine)

[email protected]

This research examines how product positioning in luxury (i.e. timeless vs. fashion) affects luxury brands corporate social responsibility (CSR) image. Two experiments allow identification of two different routes for persuasion. Using a fictitious brand, a

fashion positioning enhances the product perceived scarcity, which enhances the luxury brand CSR image. Using a real brand, namely Louis Vuitton, the status of the consumer (i.e. actual vs. non-consumer of the brand) moderates the relevance of the two

routes. Precisely, the scarcity route appears relevant for the non-consumer, while the ephemerality route appears to be relevant for the brand actual consumers. We derive theoretical contributions and managerial implications from these findings.

“ IMPACT OF REPARABILITY INFORMATION ON CONSUMERS’ ATTITUDES TOWARD LUXURY BRANDS”

Pauline Munten (Catholic University of Louvain) & Joëlle Vanhamme (EDHEC Business School) [email protected]

Obsolescence practices are central to policy debates related to sustainable development. In marketing, potential solutions to product obsolescence primarily refer to commoditized goods markets, with less investigation available in luxury markets. This work in progress relies on a between-subjects experimental design to determine whether consumers’ brand

attitudes depend on information about product reparability, the type of brand (luxury or not), and the brand concept (high or low innovativeness). The study shows that the effect of product reparability information on consumers’ attitudes toward luxury brands goes through two mediators, (1) the extent to which consumers perceive the luxury brand as socially responsible and (2) their

perceptions of product quality, and reveals that displays of reparability information might be a good strategy, especially for highly innovative luxury brands. This study provides valuable insights for policy makers who believe reparability information might be an effective solution against planned obsolescence practices.

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t r a c k a – i n t e r n e t f o r l u x u r y c h a i r : l é o t r e s p e u c h

“LUXURY SHOPPING IN THE CYBERSPACE: THE ROLE OF REGULATORY FOCUS, REGULATORY FIT AND SELF-CONSTRUAL IN THE ONLINE LUXURY GOODS PURCHASE INTENTIONS”

Zahra Fazeli (University of Brighton), Paurav Shukla (University of Essex) & Keith Perks (University of Brighton) [email protected]

With the rapid growth of luxury brands availability and sales in cyberspace, a lacuna exists in understanding how consumers engage in luxury goods shopping online. The present study contributes to this debate using the theoretical lens of regulatory focus, regulatory fit and self- construal through three studies. Study 1 tests the effect of chronic regulatory focus and shows

greater risk propensity among promotion-focused consumers in purchasing luxury goods online. Study 2 tests the effect of regulatory fit and contrary to prior research, promotes a non- compatibility hypothesis that demonstrate primacy of prevention-framed messages in influencing purchase intentions. Study 3 tests the moderating role of self-construal and unlike prior studies,

shows no significant interaction effect among consumers’ chronic self-construal, regulatory focus, and goal orientation. The study offers noteworthy boundary conditions in the influence of and interaction between regulatory focus, goal orientation and self-construal in the important context of online luxury purchase and provides important managerial implications.

“ INTERNET USER PARTICIPATION: BLESSING OR CURSE FOR LUXURY BRANDS” Léo Trespeuch (University of Québec at Trois-Rivières) & Elisabeth Robinot (University of Québec at Montréal)

[email protected]

One particular issue of substance, largely unexplored to date, relates to the evaluation of advertising content created and posted by Internet users. The authors therefore propose an analysis of the consequences of Internet user participation on viewers. To do

so, they conduct an evaluation of consumer generated advertising, carry out an affective evaluation of this type of communication, investigate the impact of communications of the like on brand relationships and examine viewer propensity to participate.

The four studies provide telling insights into the consequences of consumer generated advertising content in the luxury brand sector. Key results point to positive evaluation of consumer generated advertising content by viewers and enhanced brand relationships.

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t r a c k b – m i l l e n n i a l s a n d l u x u r y c h a i r : j e a n - n o ë l k a p f e r e r

“LUXURY BRAND EXPERIENCES AND RELATIONSHIP QUALITY FOR MILLENNIALS: THE ROLE OF SELF-EXPANSION”

Gwarlann de Kerviler (IESEG School of Management) & Carlos Rodriguez (Delaware State University) [email protected]

Luxury brands, with their capacity to provide novel emotional experiences, represent resources for enriching consumers’ sense of self, a process known as self-expansion, a strong motivational factor for developing a relationship. As such, luxury consumption offers more than conspicuous or hedonic dimensions, but can also contribute to an extended sense of self. Such benefit appears particularly attractive for millennials, young adults who are at a stage when they

explore and seek out experiences ensuring a sense of novelty combined with depth of perspective as well as doable challenges (Weinberger, Zavisca & Silva, 2017). This research applies a quantitative approach based on 252 millennials to demonstrate how meaningful experiences strengthen the relationship with luxury brands through self-expansion and highlights the moderating role of recency of the relationship, self-esteem and income. The findings contribute to past

research on young adults’ consumption, shedding a new light on their motivations behind luxury purchases. Beyond projecting a social image, luxury brands can serve to elevate one’s sense of self. Our findings that luxury brand help consumers develop new perspectives and enrich their self-concept can be particularly interesting to counter some critics of luxury consumption on moral grounds.

“ARE MILLENNIALS REALLY REDEFINING LUXURY?” Jean-Noël Kapferer (INSEEC Business School) & Anne Michaut-Denizeau (HEC Paris)

[email protected]

Luxury is a subjective notion. Millennials represent the future of the luxury market and already a fourth of the personal luxury sales. For brands, it is critical to determine how millennials across the world define luxury, if the perceptions of this generation differ from those of former generations, gen-X, baby-boomers, and seniors. If they differ, are those distinctions as prominent as the current

buzz around millennials pretend they are? Beyond perceptions, this study compares the motivations of luxury consumption as well as the purchasing attitudes, between generations. We recruited 3209 luxury buyers between the ages of 18 and 75 years across six countries (United States, China, Japan, Brazil, Germany, and France). The results show that the “kernel” traits that define luxury

are identical across generations, millennials sharing their elders’ central perception, even if differences do emerge in lesser-mentioned luxury characteristics. On the contrary, there are strong differences between generations concerning the functions or drivers of luxury consumption and the purchasing attitudes.

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t r a c k c – l u x u r y a n d s u s t a i n a b i l i t y ( b ) c h a i r : a l e s s a n d r o b r u n

“ARE MATERIALISTS GREEN? THE EFFECT OF MATERIALISM ON CONSUMERS’ PERCEIVED VALUE AND PURCHASE INTENTION OF SUSTAINABLE LUXURY PRODUCTS”

Nabanita Talukdar (Golden Gate University) & Shubin Yu (Peking University) [email protected]

This paper investigates the relationship between materialism and consumers’ purchase intention of sustainable luxury products. The first study reveals that people with higher materialism show higher

purchase intention of sustainable over generic luxury products due to a higher perceived functional value. In the second study, we activate participants’ materialistic beliefs and compare their purchase intention

of sustainable luxury products with the control group. The results support the findings of the first study. Ine can apply the findings of this paper to the communication of sustainable practices for luxury brands.

“SUSTAINABILITY IN THE LUXURY FASHION SUPPLY CHAIN: MILLENNIALS PERCEPTION” Alessandro Brun, Alessandra Zampieri & Hakan Karaosman (all from Politecnico di Milano)

[email protected]

The research aims at exploring Millennials’ opinions about sustainability in luxury fashion and its scope is threefold. First, it evaluates the perceived coherence between luxury fashion and sustainability at a conceptual level, assesses the centrality of sustainable principles, and clarifies the role of luxury fashion brands within the green trend. The second purpose adopts a higher level of detail, testing young adults’ awareness and perceived relevance of specific sustainability

elements within the luxury fashion industry. Eventually, the study explores the causes of the discrepancy between a pro-environmental attitude and actual sustainable purchasing in luxury fashion, as well as the post-purchase justifications for unsustainability. We explored the topics through focus group discussions involving the Millennials and results include a strong coherence between luxury fashion and sustainability, accompanied by consumers’

challenging expectations from companies. The predominance of social sustainability and the attention to basilar unsustainable practices emerge, together with the relevance of supply chain monitoring. The research also provides an overview of the causal relationships between the barriers that contribute to an attitude-behaviour gap, and an indication of the justifications that facilitates it.

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t r a c k a – l u x u r y c o u n t e r f e i t s c h a i r : j u l i a p u e s c h e l

t r a c k b – c e l e b r i t i e s f o r l u x u r y c h a i r : p a n t e a f o r o u d i

“TALKING ABOUT MY GENERATION: THE INFLUENCE OF AGE ON COUNTERFEIT LUXURY CONSUMPTION IN THE GCC COUNTRIES”

Julia Pueschel, Béatrice Parguel (both from CNRS, Paris-Dauphine University) & Cécile Chamaret (Ecole Polytechnique, CNRS, Université Paris-Saclay)

[email protected]

The consensus in research suggests a negative correlation between consumer age and counterfeit consumption, explained by younger consumers’ lower income and different values. This study explores this culture-based explanation further by considering the influence of age on counterfeit consumption in the GCC countries, controlling for differences in income. A pilot study reveals an unexpected positive correlation between age and counterfeit consumption. Drawing on the functional theories of attitudes (Katz,

1960), a qualitative study of 25 UAE (United Arab Emirates) female consumers examines the psychological functions served by UAE consumers’ attitudes toward genuine and counterfeit luxury goods. The findings show important generational differences in the psychological functions served by attitudes toward genuine and counterfeit luxury goods. A clear distinction emerges between attitudes of the pre-oil generation that serve more utilitarian and ego-defensive functions while the post-oil generation’s attitudes

serve more hedonic and social-adjustive functions. Results suggest that public policy makers, luxury brand managers fighting counterfeiting in the region should tailor their segmentation, communication and overall strategy according to the generation targeted. This study expands the research on counterfeit luxury goods. It contributes to a more detailed knowledge of the functional theories of attitudes, thus adding to prior research in international management and marketing.

“THE EFFECTS OF CELEBRITY CREDIBIL ITY, CELEBRITY FAMILIARITY, LUXURY BRAND VALUE, AND BRAND AWARENESS ON ATTITUDE

TOWARDS CELEBRITY, BRAND, AND PURCHASE INTENTION” Pantea Foroudi, Shahzeb Hussain (both from Middlesex University),

Maria Teresa Cuomo (University of Salerno) & T.C. Melewar (Middlesex University) [email protected]

This study aims to fill gaps in the celebrity endorsement context, by examining the effects of celebrity credibility, celebrity familiarity, luxury brands value, and brand awareness on attitude towards celebrity, brand, and purchase intentions. We have taken a quantitative approach, collecting

data from consumers located in London, United Kingdom. Data is analysed by using structural equation modelling. Results confirm most of the hypotheses; however, we do not confirm the effects of attitude towards celebrity on brand awareness, brand awareness on brand attitude, and

brand awareness on purchase intention. We highlight key implications for managers and practitioners at the end of the study.

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t r a c k c – m a r k e t - d r i v i n g v s . m a r k e t - d r i v e n s t r a t e g i e s c h a i r : a s h l e e h u m p h r e y s

“RED WHITE & CRU: MARKET DRIVING STRATEGIES, STATUS GAMES, AND COMPETIT IVE ADVANTAGE ON THE U.S . WINE INDUSTRY”

Ashlee Humphreys & Gregory Carpenter (both from Northwestern University) [email protected]

Firms embrace market orientation by choosing a market-driven or market-driving approach, yet research has largely focused on the market-driven approach, which leaves important questions unresolved. Why do firms choose one approach over the other? How do firms strategically shape the behavior of actors within a market? How do the rewards associated with the market-driving approach compare with those achieved through a market-driven approach? Adopting

a market systems perspective, we conduct an ethnographic analysis of consumers, producers, critics, distributors, and retailers in the U. S. wine market. Our analysis reveals that firms pursuing a market-driven approach view the behavior of customers, retailers, and critics in fundamentally different ways than do market-driving firms. With such different perspectives, market-driven and market-driving firms seek success along fundamentally different

paths. While market-driven firms respond to consumers, market-driving firms seek to shape the social consensus among those with influence, such as critics and winemakers, shaping consumer tastes and engineering brand status. Our analysis offers new insights about how the market-driving approach produces competitive advantage. We explore the implications our findings for understanding market orientation.

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t r a c k s a , b , a n d c – e d i t i n g a c a d e m i c j o u r n a l s c h a i r : g i l l e s l a u r e n t

“LESSONS FROM JBR EDITORSHIP” Naveen Donthu (Georgia State University), Editor-in-Chief, Journal of Business Research

[email protected]

Journal of Business Research will publish a special issue based on the best papers from this symposium. In this presentation, Naveen Donthu, the Editor-in-Chief of the Journal of Business Research will:

1. PRESENT AN OVERVIEW OF THE JOURNAL OF BUSINESS RESEARCH

2. MAKE PERSONAL OBSERVATIONS ON WRITING AND PUBLISHING ACADEMIC ARTICLES

3. PRESENT DETAILS OF THE SPECIAL ISSUE

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Academ ic Sess ions N ° 6 ( f r i d a y , 1 1 : 0 0 - 1 2 : 0 0 )

t r a c k a – s e c o n d - h a n d l u x u r y ( a ) c h a i r : a u r é l i e k e s s o u s

“HOW DOES SHARING VS. POSSESSION QUESTION IDENTITY : A STUDY ON LUXURY CLOTHING AND ACCESSORIES AMONG FRENCH WOMEN”

Leila Loussaief & Coralie Damay (ISC Paris) [email protected]

“ ‘FROM PRADA TO NADA’ CONSPICUOUS LUXURY CONSUMPTION AND BRAND ATTACHMENT: A CONTRAST OF GENUINE LUXURY BRANDS AND SECOND-HAND LUXURY BRANDS”

Aurélie Kessous (Aix-Marseille University) & Pierre Valette-Florence (IAE Grenoble) [email protected]

This paper examines how sharing influences women’s identity and their extended self in the world of luxury clothing and accessories. Based on a broad definition of sharing that contrasts possession of new products and all other configurations (acquiring second-hand products, purchasing with shared ownership,

borrowing, renting, swapping), it questions the central role of possession and explores identity formation and transformation in the context of sharing. The in-depth interviews conducted with 17 French women aged from 16 to 55 reveal discrepancies between sharing and possession of new products

according to the different forms of sharing and according to whether or not the woman owns the product. Consistency between the woman’s identity and the object appears to be central, while sharing allows transformations of identity and the image projected.

The aim of this research is to investigate the impact of conspicuous luxury consumption on brand attachment, considering two fields of application: second-hand luxury brands vs genuine luxury brands. It examines how motivations to consume, consumption behaviors and consumer-brand relationships change when one contrasts pre-owned luxury brands and genuine luxury brands. This research extends Kastanakis and Balabanis’ conspicuous consumption model (2014). Three levels are proposed: (1) personally

and socially oriented traits (Consumer Need For Uniqueness and Consumer Susceptibility to Normative Influence) as antecedents of conspicuous consumption and status seeking, (2) conspicuous consumption (bandwagon consumption and snob consumption) and status seeking as mediators; attitude toward counterfeiting as independent driver (3) brand attachment as a dependent variable. In general, results show that in both cases, snob consumption and bandwagon consumption induce

brand attachment. In details, we observe several differences between consumers of second-hand luxury brands and those of genuine luxury brands. In addition, the paper highlights three moderating effects: (1) interdependent-self between status seeking and CSNI, (2) brand familiarity between CSNI and bandwagon consumption, (3) nostalgic connections between status seeking and brand attachment.

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t r a c k b – d i s p l a y i n g l u x u r y c h a i r : d a f n a g o o r

“WHEN SPEAKING LESS SAYS MORE: WHEN AND HOW CONSUMERS “OWN” LUXURY SIGNALS IN CONVERSATION”

Goedele Krekels, Sandor Czellar (University of Lausanne), David Dubois (INSEAD), Gilles Laurent (INSEEC Business School) & Bruno Kocher (University of Lausanne)

[email protected]

“THE IMPOSTOR SYNDROME FROM LUXURY CONSUMPTION” Dafna Goor (Harvard Business School), Nailya Ordabayeva (Boston College),

Anat Keinan & Sandrine Crener (both from Harvard Business School) [email protected]

Status perceptions often emerge out of interactions between a signal sender (e.g., an individual wearing a luxury watch) and a signal receiver (e.g., the individual talking to the signal sender). This research investigates how a key socio-psychological consumer characteristic – socio-economic status (SES) – influences how individuals talk about and perceive justifications of luxury purchases.

Specifically, we examine (1) when and why do senders verbally justify their luxury signal by offering explanation regarding its acquisition, and (2) how such justification (or lack thereof) influences the receiver’s perceptions about the signal sender. The findings reveal that high SES consumers tend to justify their luxury consumption less than low SES consumers do, and that

one indeed perceives lack of justification as a signal of being of higher SES. However, in contrast to past work highlighting the positive consequences of perceived high status, we show that a lack of justification lead signal receivers to hold more negative product and agreeableness perceptions of signal senders having a positive (but not negative) self-image.

The present research proposes that luxury consumption can be a double-edged sword: while luxury consumption yields status benefits, it can also make consumers feel inauthentic, producing the paradox of luxury

consumption. Feelings of inauthenticity from luxury consumption emerge due to the perceived dominance of extrinsic motivation over intrinsic motivation for consuming luxury. This phenomenon is

stronger among consumers with low levels of psychological entitlement. Moderation occurs by conspicuousness of the product and consumption, and by the perceived malleability of cultural capital.

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t r a c k c – s c a l e s t o m e a s u r e l u x u r y c h a i r : f r a n c i s c o c o n e j o

“CAPTURING THE SCOPE OF MASS-CONSUMED LUXURY BRAND RELATIONSHIPS: THE NEWLUX REALITY”

Helena Nobre (University of Aveiro) & Cláudia Simões (University of Minho) [email protected]

“REVISIT ING THE BRAND LUXURY INDEX NEW EMPIRICAL EVIDENCE AND FUTURE DIRECTIONS”

Francisco Conejo, Lawrence Cunningham & Clifford Young (all from University of Colorado - Denver) [email protected]

This paper sheds light into the understanding of the ‘luxury’ construct in the context of mass-consumed luxury brands. The study applies the domain of the brand relationship to the new luxury context. Relevant constructs are selected and applied to the specific context of mass-consumed luxury brands. The research adjusts and empirically tests

existing scales that are grouped in a new measure – The NewLux Brand Relationship – that explains the relationship consumers establish with mass-consumed luxury brands. A questionnaire was developed and tested to collect self-reported consumers’ perceptions about their relationship with a NewLux brand. Findings revealed that the

NewLux Brand Relationship can be captured by four dimensions: commitment, self-connection, intimacy-loyalty, and passion. The study offers a useful framework that may be used by managers to address mass-consumed consumer-brand relationships.

Vigneron and Johnson’s (2004) Brand Luxury Index (BLI) is by far luxury marketing’s most prominent scale. However, several recent studies indicate concern about its psychometric robustness. In this study, we conduct three replications to systematically evaluate the scale and identify potential instablility sources. Empirical results with

US students, Chinese students, and US consumers indicate consistently poor BLI performance. The instrument’s factorial structure is unstable. On average only 30% of items load properly. Present results are consistent with several other BLI replication failures. We conclude that the issue of luxury brand dimensions remains unresolved.

Marketing still requires valid, reliable and generalizable luxury brand measures. We examine alternative ways in which future luxury brand scales might be developed. We need a new generation of improved instruments for luxury marketing to further advance.

18 .


t r a c k a – s e c o n d - h a n d l u x u r y ( b ) c h a i r : m a r i e - c é c i l e c e r v e l l o n

“EXPLORING THE SHOPPING STYLES OF LUXURY SECOND-HAND HANDBAGS” Linda Turunen (University of Helsinki) & Pirjo Laaksonen (University of Vaasa)

[email protected]

“NARRATIVE AND EMOTIONAL ACCOUNTS OF SECOND-HAND LUXURY PURCHASES ALONG THE CUSTOMER JOURNEY”

Marie-Cécile Cervellon, Edwige Vigreux (both from Edhec Business School) & Lindsey Carey (Glasgow Caledonian University)

[email protected]

Prior discussions of luxury consumption and marketing have mainly focused on brand-new luxury goods, largely neglecting the emergence of markets for used luxury products. To complement the empirical understanding of luxury second-hand context, we explore in more depth the shopping and

purchasing behavior of previously used luxury handbags. We analyze empirical interview data from 20 consumers by the means of shopping style dimensions suggested by Sproles & Kendall (1986). Preliminary findings justify that the shopping style dimensions are relevant in this specific context, and gain

context-dependent content. Furthermore, we suggest one additional emerging dimension, “Resale value consciousness.” This explorative study of luxury second-hand shopping styles calls for future research.

Second-hand luxury is a growing business around the world. According to research by the consultancy firm Bain & Co in 2014, second-hand luxury goods represent 10% of the global personal luxury goods market with sales worth $16bn. However, one estimates that the potential is 30 times bigger, with an estimation of sales worth $500bn thanks to the skyrocketing development of second-hand online businesses. In the US, the transactions of brands such as Prada would be higher (in #SKU) on second-hand online channels than through traditional online channels (Exane-Paribas research,

2015). Despite such a worldwide business development, academic research studying second-hand luxury is scarce. Research has focused so far on profiling consumers (Cervellon, Carey and Harms, 2012) and understanding the meaning they attach to pre-loved fashion purchases (Turunen and Leipämaa-Leskinen, 2015; Sarial-Abi et al., 2016). Yet, the experience of a pre-owned luxury purchase along the customer journey has raised limited attention so far. This research follows ten French women who purchase second-hand luxury fashion items in both second-hand luxury boutiques

and online stores. It explores the different phases of the customer journey, before the purchase when searching the item, during purchase choice and after the purchase. We complement the in-depth interviews of consumers are complemented by a text analysis of customer reviews regarding their purchase on second-hand fashion online sites. The paper provides managerial implications to second-hand retailers (particularly the growing business of online second-hand platforms) in order to provide a better customer experience.

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t r a c k b – a t t i t u d e s t o w a r d s f o r e i g n l u x u r y c h a i r : b o r i s b a r t i k o w s k i

“LUXURY DURING EMBARGO. THE INFLUENCE OF ECONOMIC ANIMOSITY, COSMOPOLITANISM AND PATRIOTISM ON WILLINGNESS TO BUY FOREIGN PRODUCTS”

Giada Mainolfi (University of International Studies of Rome) [email protected]

“ ‘LUXURY MADE- IN-CHINA’ AND CONSUMER CULTURE POSIT IONING OF PREMIUM CARS” Boris Bartikowski (KEDGE Business School), Fernando Fastoso (University of York)

& Heribert Gierl (University of Augsburg) [email protected]

The present study investigates the impact of economic animosity on attitudes toward luxury foreign products through the degree of consumer cosmopolitanism and patriotism. We tested the analytical framework

through an empirical survey conducted on a sample of Russian consumers. One may assume that situational economic animosity toward UE can awaken patriotic feelings and impact on cosmopolitan tendencies on

the part of Russian citizens. Results show that consumer cosmopolitanism mediates the effect of economic animosity on both products beliefs and intentions to buy foreign products.

This research shows that effects of Alden, Steenkamp, and Batra’s (1999) consumer-culture positioning approaches (i.e., global, local, or foreign consumer-culture positioning) on consumer attitudes are contingent on the image of foreign brands’ country-of-origin and the signaling value of a Made-In-China label. In the context of luxury

cars in China, we find that both the positive-image-transfer hypothesis and the similarity-attraction hypothesis in relation to consumer culture positioning approaches only hold when advertising does not signal Made-In-China. Moreover, Made-In-China acts as a primary cue that overrides both the effect of consumer culture positioning approach

on consumer attitudes and the effect of the foreign brand’s country-of-origin image. This research contributes to qualifying country of brand-origin effects and consumer-culture positioning approaches in relation to global luxury brands manufactured in newly industrialized economies.

20 .


t r a c k c – d e s i g n s t r a t e g i e s f o r l u x u r y c h a i r : d a v i d d u b o i s

“HOW DO GENDER NORMS INFLUENCE THE MAKING OF STATUS PRODUCTS: THE CASE OF HIGH-END WOMEN’S FOOTWEAR”

Clément Bellet, David Dubois, Frédéric Godart & Shilaan Alzahawi (all from INSEAD) [email protected]

“MANAGING THE FLAME OF DESIRE HOW LUXURY BRANDS CAN RETAIN BRAND DESIRABILITY DESPITE SUCCESSFUL BRAND EXTENSIONS”

Vanessa Patrick (University of Houston) & Sonja Prokopec (Essec Business School) [email protected]

This paper investigates how gender norms stemming from designers’ cultural environment affect the prevalence of high heels in luxury shoe brands’ product assortments. Exploiting a unique global dataset of 14,000 models of shoes from 180 high-end brands over 5 years, we propose that designer gender norms lead to an imbalance in the assortment of shoes produced – towards flat shoes for female designers

but high heels for male designers –and that such effects stem from designers’ cultural environment. Indeed, we find that female (vs. male) designers produce 10% more flat shoes and 10% less high heels, controlling for brand characteristics and time trends. Gender does not affect mid-heel shoes. One can explain this effect by the internalization of gender norms over time and across countries. First, the effect only emerges among female

designers born after the Sexual Revolution (DeLamater, 1981). Second, the more gender egalitarian a female (but not male) designer’s country of origin, the lower the share of high heels. Lastly, the effect mostly derives by a reduction in red high heels, suggesting that the gender difference in the making of high heels stems from the status-motive function of such shoes.

This research investigates two conditions - desire specificity and prior ownership - under which a luxury brand can maintain its desirability despite the success of entry-level brand extensions. Desire satiation occurs when consumers’ desire for the luxury brand experience is fully satisfied. We demonstrate

that a successful entry-level brand extension can satiate brand desire. We identify two conditions, desire specificity (the fixation of consumers’ desire onto specific product/s in the brand portfolio) and prior ownership, that diminish the desire satiation effect (studies 1-3). We show that this effect only

occurs when the basis for the purchase is affect-based as opposed to when functional considerations are of greater concern (study 4). We discuss the implications of this research for retail strategy and brand management and directions for future research.

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t r a c k a – r e n t i n g l u x u r y c h a i r : b r u n o k o c h e r

“THE ROLE OF CONSUMER ON-LINE DISCOURSE IN DE-LEGIT IMIZING ACCESS-BASED CONSUMPTION FOR LUXURY HANDBAGS”

Alexandra Campbell (York University) & Guergana Guintcheva (EDHEC Business School) [email protected]

“ I DON’T OWN IT BUT ITS MINE: THE IMPACT OF MATERIALISM ON NEW MODES OF LUXURY CONSUMPTION”

Goedele Krekels, Bruno Kocher, Sandor Czellar (all from University of Lausanne) & Brigitte Muller (University of Toulon)[email protected]

The purpose of this research is to understand how the socially constructed meaning of consumption modes evolves, as well as the effect over time of attitudes about one mode of consumption (ownership) on the legitimacy of another emerging mode (rentals). Our longitudinal analysis uses on-line consumer discourse and press coverage in France about luxury handbag rentals over an eight-year period (2007-2014). We supplement the analysis by eleven personal interviews conducted in 2015. Our

results suggest that luxury handbags are an extremely intimate possession for French women that are a strong expression of their social and personal self-identity. The negative framing by the public of renting rather than owning such an intimate product changed the meaning of this consumption mode for women interested in renting. Over time, the initially positive associations they had about renting luxury handbags as a way to express different self-identities became negative associations about the type of

personal self-identity they were expressing through rentals. Although not visible to others, renters began to view renting as an expression of a personal self-identity that was “inauthentic” that demonstrated they were cheaters. The societally constructed meaning about renting luxury handbags and the resultant negative framing of this practice de-legitimized renting as an acceptable alternative to ownership, and ultimately contributed to the failure of the rental market for luxury handbags in France.

Literature predicts that materialistic individuals dislike renting luxury due to their need for possessions and control over products. In four studies we show that a priori, high (low) materialists prefer (are indifferent between) renting over buying. However, after the acquisition phase, for

high (low) materialists renting luxury leads to a similar (lower) sense of ownership as (than) does buying. However, renting non-luxury as well as self-affirmation reduces this positive effect of renting for high materialists, due to the lack of motivated reasoning in these contexts. Furthermore, renting luxury leads

to equally positive (more negative) product perceptions. Given the recent rise in luxury rentals, our research is a first inquiry on the impact of personality on acquisition modes within a luxury context.

22 .


t r a c k b – r a r i t y a n d v a l u e c h a i r : a n a s t a s i a s t a t h o p o u l o u

“STUDY ON LUXURY BRAND AUTHENTICITY ’S INFLUENCE ON BRAND RARITY” Jiang Zhiqing & Nagasawa Shin’Ya (both from Waseda University)

[email protected]

“VALUE ORIENTATIONS’ EFFECT ON THE VALUE CONSUMERS ASCRIBE TO LUXURIES AND CONSUMER PROCLIVITY TO LUXURY CONSUMPTION”

Anastasia Stathopoulou (International University of Monaco), George Balabanis (Cass Business School), Stravroula Spyropoulou & Constantine Katsikeas (both from Leeds University)ver)

[email protected]

The luxury goods market has been expanding on a worldwide scale since the early 1990s. As the development of civilization and technology, especially these days, the phenomenon of democratization occurs in luxury consumption. Neither discovering scarce resource nor purchasing a refined item is as difficult as that half century ago. The dilution of rarity and authenticity is serious problem faced by luxury marketers. The purpose of this paper is to propose a

conceptual framework on luxury brand authenticity attributes’ influence on brand rarity. It discusses the concept of brand authenticity and its attributes, and reviews the theories about authenticity, rarity and perceived valueIt offers a framework on the nexus between luxury brand authenticity and rarity. We present results of quantitative research and data mining, and discuss findings and future direction. This research comprises qualitative research (literature

review) and quantitative research (general linear model (GLM) approach). The result shows that individuality, consistency and continuity of luxury brand authenticity have positive and strong relationship with luxury brand rarity, which contributes to luxury brand image; whilst individuality is less important for a brand to be perceived as luxury.

This paper investigates the effect of Schwartz’s (1992) four value orientations on the values consumers attach to luxury products. In response to well-documented recent criticism of assessing culture values as aggregates measured at a nation level and the adverse effects on the validity of resulting theories, this study examines the effects of value orientations measured at an individual level as recommended by Schwartz (2014).

Using data from a survey of US consumers the study shows that value orientations influence the usability, uniqueness, quality and social value consumers ascribe to luxuries. Conducting a post hoc analysis four configurations of luxury values were found to characterized consumers into ‘unconcerned’, ‘functionalists’, ‘moderately eager’ and ‘luxury enthusiasts’. Individuals high in self-enhancement value orientation

were found to be more likely to be ‘luxury enthusiasts’ or ‘moderates’, whereas openness to change value orientations separate ‘luxury enthusiasts’ from all other types of consumers. ‘Luxury enthusiasts’ had the highest proclivity to luxury consumption followed by moderates and functionalists. These findings have marketing implications in the context of segmenting better the luxury customers in a cross-cultural setting.

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t r a c k c – a r t a n d l u x u r y c h a i r : c h r i s t e l d e l a s s u s

“ART-BASED SECONDARY ASSOCIATIONS FOR LUXURY BRANDS” Stefania Masé (University of Pau), Elena Cedrola, Cristina Davino

(both from University of Macerata), Geneviève Cohen-Cheminet (Paris Sorbonne University) [email protected]

“HOW DO MILLENNIALS RESPOND TO ART IN LUXURY STORES?” Christel de Lassus (Université Paris-Est)

[email protected]

This paper considers the visual arts as an external source for luxury brands to draw positive associations and strengthen brand value from a consumer-based perspective. The artification process that stems from luxury and art collaboration is analysed at brand level. The way the visual arts impact luxury brand value is analysed via the Customer-Based Brand Equity model tested on the basis of the art-based strategy implemented by Louis Vuitton, the world’s first luxury brand.

Louis Vuitton’s most iconic bags stimulate consumers’ perceptions differently, depending on whether consumers observe a standard LV design or the design an artist collaborated on. At brand level, the visual arts positively affect brand loyalty and brand associations by eschewing loss in perceived quality and brand awareness. The results offer interesting guidelines to companies conducting art-based strategies recently named artification.

The article goes beyond the art-infusion effect hypothesis. The experiment considers the visual arts as an external source of value for brands.

Luxury brands have often appealed to artists and been inspired by them as a source of creativity. However, we are currently witnessing a new phenomenon in which Luxury Houses are investing in art on a massive scale. To understand the impact of

art exhibitions on customers’ perceptions, we opted for a qualitative method and applied it to new luxury customers. Focusing on “millennials”, our research provides insight into the effects of art exhibitions on customers’ perceptions. This study

mobilizes new segmentation criteria for this generational cohort, and provides a clearer understanding of these young customers, who are so important for the luxury sector.

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