Compromise pricing in luxury

Published on Sep 27, 2021in Journal of Product & Brand Management4.355
· DOI :10.1108/JPBM-10-2020-3157
Béatrice Parguel12
Estimated H-index: 12
,
Annalisa Fraccaro2
Estimated H-index: 2
,
Sandrine Macé1
Estimated H-index: 1
Source
Abstract
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References37
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In this article, we build on the existing literature on price endings in the fast-moving consumer goods and luxury pricing to highlight the potential paradox of adopting odd pricing (i.e. setting p...
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#1Francisco Conejo (University of Colorado Denver)H-Index: 6
#2Lawrence F. Cunningham (University of Colorado Denver)H-Index: 15
Last. Clifford E. Young (University of Colorado Denver)H-Index: 17
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Studies increasingly question the robustness of luxury marketing’s most prominent scale, Vigneron and Johnson’s (J Brand Manag 11(6):484–506, 2004) Brand Luxury Index (BLI). However, these studies’ isolated and occasionally obscure nature has kept this issue outside marketing’s mainstream. Given the contextual/methodological differences between these studies, calls to evaluate the BLI further, and the importance of ascertaining this instrument’s robustness, this research is the first to systemat...
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#1Gaetano Aiello (UniFI: University of Florence)H-Index: 12
#2Raffaele Donvito (UniFI: University of Florence)H-Index: 10
Last. Juliette Wilson (University of Strathclyde)H-Index: 11
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ABSTRACTPrice has always had a key role in the luxury fashion market, because high prices are linked to the uniqueness and the prestige of luxury products and brands. Because of this direct contribution of price to the luxury essence, scholars have partially neglected the possible existence of unintuitive and controversial pricing strategies followed by luxury firms. This article deals with this literature gap, particularly analyzing a specific pricing strategy that seems to be in contrast with ...
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#1Chungwha Ki (UT: University of Tennessee)H-Index: 5
#2Kang Bok Lee (UA: University of Alabama)H-Index: 9
Last. Youn-Kyung Kim (UT: University of Tennessee)H-Index: 34
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Purpose This paper aims to examine, building upon affect balance theory, whether the two modes of luxury consumption, conspicuous consumption (CC) and style consumption (SC), trigger consumers’ mixed emotions of pleasure and guilt and whether the mixed emotions interactively as well as independently influence consumer loyalty to repurchase luxury. Design/methodology/approach Using an online survey and seemingly unrelated regressions (SUR) analysis, the authors test the hypotheses and assess the ...
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#1Jean-Noël Kapferer (Inseec Business School)H-Index: 41
#2Gilles Laurent (Inseec Business School)H-Index: 83
Downward extensions fuel the continuous growth of the luxury sector and the introduction of product lines at accessible prices. Does this blur the traditional concept of luxury associated with expensiveness? Focusing on consumers' perception of the minimum price for a luxury product in 21 categories and seven countries (n=8376), an extreme dispersion across consumers occurs in terms of where luxury begins, with a large majority citing very low price frontiers. Also, each consumer provides consis...
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#1Béatrice Parguel (Paris Dauphine University)H-Index: 12
#2Thierry DelecolleH-Index: 4
Last. Pierre Valette-Florence (UGA: University of Grenoble)H-Index: 26
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This article investigates the impact of price display in the luxury sector, which has always been thought of as “bad practice” in luxury marketing but never explored empirically. Taking an experimental approach, the study shows that in the case of brands in the premium luxury segment, price display may have a positive influence on luxury perceptions, and more specifically on perceived brand uniqueness and conspicuousness, which in turn may transfer to brand attitude and desirability. As this run...
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#1Jungsil Choi (CSU: Cleveland State University)H-Index: 8
#2Yexin Jessica Li (KU: University of Kansas)H-Index: 14
Last. Surendra N. Singh (KU: University of Kansas)H-Index: 24
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This paper examines how odd-ending pricing influences consumption of hedonic and utilitarian products. Four studies test the hypothesis that the discount image associated with odd-ending prices reduces anticipated guilt and provides justification for hedonic consumption – an effect the authors label the odd-ending price justification effect (OPJE). Study 1 reveals people are more likely to choose hedonic over utilitarian products when they have odd-ending prices. Study 2 finds that the effect of...
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#1Catherine Janssen (UCL: Université catholique de Louvain)H-Index: 5
#2Joëlle Vanhamme (EDHEC Business School)H-Index: 26
Last. Cécile Lefebvre (Lille Catholic University)H-Index: 1
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The notion of “responsible luxury” may appear as a contradiction in terms. This article investigates the influence of two defining characteristics of luxury products—scarcity and ephemerality—on consumers’ perception of the fit between luxury and corporate social responsibility (CSR), as well as how this perceived fit affects consumers’ attitudes toward luxury products. A field experiment reveals that ephemerality moderates the positive impact of scarcity on consumers’ perception of fit between ...
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#1Devon DelVecchio (Miami University)H-Index: 14
#2Sanjay Puligadda (Miami University)H-Index: 4
Purpose – The purpose of this paper is to investigate whether the negative effect of lower prices on perceived brand quality that has been demonstrated in evaluation tasks arises in a brand choice context.Design/methodology/approach – The effects of lower prices on perceived quality are assessed via two laboratory experiments in which college students participated.Findings – A lower price is associated with lower perceived brand quality in Study 1's evaluation task environment. However, Study 2'...
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Research into nine-ending pricing indicates a clear effect on sales but strong variance, suggesting that their effects are context dependent. This research relates nine-ending effects to a broad set of determinants and investigates the influence of brand, category, store, and store area clientele characteristics. The numerous empirically supported hypotheses indicate that the framework built on level and image effects is well adapted for explaining the effectiveness of nine-endings. They validat...
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