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
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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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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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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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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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