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- 1. Term used for goods and services high inprestige and credibility (Baek, Kim &Yu, 2010) Association with exclusivity, status andquality Social Marker
2. A luxury item that extraordinary peoplewould consider ordinary is at the sametime an extraordinary item to ordinarypeople (Kapferer &Bastien, 2009, p.314). 3. Founded in 1854 by Louis Vuitton 4. Products: Luxury Trunks, leathergoods, shoes, watches, sunglasses, etc. Began by building trunks Collaborated with the Nazis to increasetheir wealth 1896: Patent on monogram The monogram created to prevent fakes 5. Products: Luxury Trunks, leathergoods, shoes, watches, sunglasses, etc. Began by building trunks Collaborated with the Nazis to increasetheir wealth 1896: Patent on monogram The monogram created to prevent fakes 6. No promotions or sample sales Value will stay high if there is no sales The bag represents the story Customization to their products Mon Monogram Bag should demonstrate that theconsumer is: Successful, fashionable and elegent 7. #1 brand preferred by the Chinese Social status is important to them Chinese manufacturers have created many products (fake) 8. 90% of Japanese own Louis Vuitton Louis Vuitton kept prices high duringrecession even though their stockdropped, in order to keep their status 9. Print ads and Billboards Use of celebrities and models Appear in music videos Kanye West, Juicy J, Wiz Khalifa, Britney Spears Britney Spears sued for due to fake Louis Vuitton monogram in music video LMVH devotes over 10% of annual sales tomarketing Positioned fashion & Lifestyle magazines 10. 3 major goals Associate brand to high quality andemotional values Gather testimonials Drive them to the site via organic search 11. Extrinsic and Intrinsic 12. Consumers with extrinsic aspirationsspend money on good that woulddisplay status and wealth in society(Yann, 2010). Conspicuous consumption 13. Consumers with intrinsic aspirationsspend money on goods solely for theirown pleasure and satisfaction, not forothers to view them as wealthy(Yann, 2010) Quality search Psychologically less impacted by theopinions of others 14. An advancement from the Middle Ages(Han, Nunes & Drze, 2010) Male attractiveness is increased bystatus manipulation but males aregenerally not influenced by statusmanipulation, therefore, a femalesattractiveness would not increase bysignaling status (Dunn & Searle, 2010) 15. Handbags are the engine that driveluxury brands today (Han etal., 2010, p.18). 16. Wealthy Wealthy Buy discreet branded Buy conspicuous brandedproducts (quiet)products (loud) Do not want to be Money does not stopassociated with the them from buying discreetmiddle classbranded products, buttheir desire for status Do not buy luxury goodsto show off status (intrinsic Buy luxury goods to showaspiration) off status (extrinsicaspiration) 17. Not wealthy enough to Not wealthy enough toafford authentic luxuryafford authentic luxurygoodsgoods Want to be associated No interest in beingwith parvenus since they associated with theappear to be wealthy due wealthyto the use of loudproducts Not interested in buying luxury goods Poseurs are more likely tobuy knockoff luxury goods 18. LVMH: World Wide leader of luxury goods Group Mission and values: Be creative and innovative Aim for product excellence Bolster the image of brands withdetermination Act as entrepreneurs Strive to be the best in all they do 19. 60 people work full time againstcounterfeiting Shut down internet sites, stores and plantsthat sell fake goods Works with the police in France Collaboration with external investigatorsand lawyers 20. Actions carried out inChina, Korea, Thailand and Italy Louis Vuitton Values: Respect thecompanys heritage (Brand Protection) 21. Louis Vuitton vs. Warner Bros TheHangover 2 Louis Vuitton vs. Britney Spears (Sony BMG& MTV) Louis Vuitton vs. Hyundai Louis Vuitton vs. Hairdresser in HongKong 22. Authentication tag Could be added to products already bought through a boutique or via mail Long code linking the bag to the website 23. Atwal, G., & Williams, A. (2009). Luxury brand marketing -- The experience is everything! Journal Of Brand Management, 16(5/6), 338-346. Baek, T., Kim, J., & Yu, J. (2010). The differential roles of brand credibility and brand prestige in consumer brand choice. Psychology & Marketing, 27(27), 662-678. Deuk-Kyu, B., & Wonsuk, C. (2009). Hyundai Genesis: Taking the Korean car to the next level. SERI Quarterly, 84-93 Dunn, M. J., & Searle, R. (2010). Effect of manipulated prestige-car ownership on both sex attractiveness ratings. British Journal Of Psychology, 101(1), 69-80. Fionda, A. M., & Moore, C. M. (2009). The anatomy of the luxury fashion brand. Journal Of Brand management, 16(5/6), 347-363. Han, Y., Nunes, J., & Drze, X. (2010) Signaling status with luxury goods: The role of brand prominence. Journal of Marketing, 74(4), 15-30. Kapferer, J., & Bastien, V. (2009). The specificity of luxury management: Turning marketing upside down. Journal Of Brand Management, 16(5/6), 311-322. Mercedes-Benz S-Class facts and figures. Retrieved May 30, 2012, from http://www.mercedesbenz.ca Monga, A., & John, D. (2010). What makes brands elastic? The influence of brand concept and styles of thinking on brand extension evaluation. Journal Of Marketing, 74(3), 80-92. Scemama, C. (2011, July 8). Le march du luxe en pleine bullition. Lexpress. Retrieved from http://lexpress.fr Vickers, J. S., & Renand, F. (2003). The marketing of luxury goods: An exploratory study--three conceptual dimensions. Marketing Review, 3(4), 459-478. Wang, H. (2008). Innovation in product architectureA study of the Chinese automobile industry. Asia Pacific Journal Of Management, 25(3), 509-535. Yann, T. (2010). Personal aspirations and the consumption of luxury goods. International Journal Of Market Research, 52(5), 653-671.