Fashion & Textile Research Journal (한국의류산업학회지)

The Society of Fashion and Textile Industry (한국의류산업학회)
권호 표지
DOI QR코드

DOI QR Code

The Effects of Luxury Brand Marketing Mix on the Formation of Customer Equity - Focusing on Luxury Brand's Product Consumers in 20~40's -

럭셔리 브랜드 마케팅 믹스가 고객자산 형성에 미치는 영향 - 20~40대 럭셔리 브랜드 제품 소비자를 중심으로 -

  • 황유경 (연세대학교 의류환경학과)
  • Received : 2012.12.25
  • Accepted : 2013.02.15
  • Published : 2013.02.28
Download PDF
⟨ Previous Next ⟩

Abstract

This study identifies how the luxury brand marketing mix affects customer equity drivers and suggests intangible equity management strategies so that companies can make long-term profits through luxury brands based on empirical studies of Korean luxury consumers. The results of the study are as follows: First, this study classified the properties that use 8 key factors (product integrity, heritage, exclusivity, premium image, environment and consumption experience, premium price, luxury communication strategy, and brand signature). Second, it shows that product integrity and luxury communication strategy have a positive effect on all customer equity drivers, that brand signature has a positive effect on value equity and brand equity, and that premium price has a negative effect on relation equity. It is important to provide products and services equipped with high quality and luxurious designs based on excellent craftsmanship in order to establish brand equity and value equity. Brand identity needs to be maintained and unique brand signatures need to be developed based on the long history of luxury brands against a traditional backdrop. A diversified communication strategy improves brand recognition while playing a part in facilitating brand association and brand image. In order to improve relationship equity, actions such as a loyalty program to strengthen brand loyalty, need to be taken as well as measures to maintain and enhance customer trust through a reasonable price strategy.

Keywords

References

  1. Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a brand name. New York: Free Press.
  2. Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of Academy of Marketing Science, 16(1), 76-94.
  3. Bayon, T., Gustshe, J., & Bauer, H. (2002). Customer equity marketing: Touching the intangible. European Management Journal, 20(3), 213-222. https://doi.org/10.1016/S0263-2373(02)00037-3
  4. Berger, P. D., & Nadal, N. I. (1998). Customer lifetime value: marketing models and applications. Journal of Interactive Marketing, 12, 17-30. https://doi.org/10.1002/(SICI)1520-6653(199824)12:1<17::AID-DIR3>3.0.CO;2-K
  5. Berry, L. L. (1995). Relationship marketing of services; Growing interest, emerging perspectives. Journal of Academy of Marketing Science, 23, 236-245. https://doi.org/10.1177/009207039502300402
  6. Beverland, M. (2004). Uncovering "theories-in-use": building luxury wine brands. European Journal of Marketing, 38(3/4), 446-466. https://doi.org/10.1108/03090560410518648
  7. Blattberg, R. C., & Deighton, J. (1996). Manage marketing by the customer equity test. Harvard Business Review, 126-144.
  8. Bolton, R. N., Lemon, K. N., & Verhoef, P. C. (2004). The theoretical underpinnings of customer asset management: a framework and propositions for future research. Journal of the Academy of Marketing, 32(3), 271-292. https://doi.org/10.1177/0092070304263341
  9. Bruce, M., & Kratz, C. (2007). Competitive marketing strategies in luxury fashion companies. In T. Hines & M. Bruce (Eds.), Fashion Marketing: Contemporary Issues (pp.130-150), New York: Elsevier/Butterworth-Heinemann.
  10. Chadha R., & Husband, P. (2006). The cult of the luxury brand: Inside Asia's love affair with luxury. London: Nicholas Brealey International.
  11. Chevalier, M., & Mazzalovo, G. (2008). Luxury brand management: A world of privilege. Singapore: Wiley and Sons.
  12. Cho, E. A., & Kim, M. S. (2004). Adolescents attitude toward and purchasing behavior for the imported luxuries and the famous brand clothing as determined by conspicuous consumption. Journal of the Korean Society of Clothing and Textiles, 28(1), 76-87.
  13. Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37-52. https://doi.org/10.2307/1251915
  14. Deighton, J., Handerson, C. M., & Neslin, S. A. (1994). The effects of advertising on brand switching and repeat purchasing. Journal of Marketing Research, 31(1), 28-43. https://doi.org/10.2307/3151944
  15. Dubois, B., Laurent, G., & Czellar, S. (2001). Consumer repport to luxury: analyzing complex and ambivalent attitudes. Working paper 736, HEC School of Management, Jouy-en-Josas, France.
  16. Dubois, B., & Laurent, G. (1994). Attitudes towards the concept of luxury: An exploratory analysis. Asia Pacific Advances in Consumer Research, 1, 273-278.
  17. Dwyer, F. R. (1997). Customer lifetime valuation to support marketing decision making. Journal of Direct Marketing, 11(4), 6-13. https://doi.org/10.1002/(SICI)1522-7138(199723)11:4<6::AID-DIR3>3.0.CO;2-T
  18. Fionda, A. M., & Moore, C. M. (2009). The anatomy of the luxury fashion brand. Journal of Brand Management, 16(5), 347-363. https://doi.org/10.1057/bm.2008.45
  19. Fornell, C., & Lacker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39-50. https://doi.org/10.2307/3151312
  20. Gagliano, K. B., & Hathcote, J. (1994). Customer expectations and perception of service quality in retail apparel specialty stores. Journal of Service Marketing, 8(1), 60-69. https://doi.org/10.1108/08876049410053311
  21. Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186-192. https://doi.org/10.2307/3172650
  22. Hanna, J. (2004). Luxury isn't what it used to be. Harvard Business School Bulletin, 80(2). Retrieved June 13, 2012, from http:// hbswk.hbs.edu/item/4321.html
  23. Helson, K., & Schmittlein, D. C. (1993). Analyzing duration times in marketing. Journal of Direct Marketing, 11(4), 395-414.
  24. Hennig-Thurau, T., Gwinner, K. P., & Gremler, D. D. (2002). Understanding relationship marketing outcomes: an integration of relational benefits and relationship quality. Journal of Service Research, 4(3), 230-247. https://doi.org/10.1177/1094670502004003006
  25. Hu, L., & Bentler, P. M. (1999). Cutoff criteria of fit indexes in covariance structure analysis: conventional criteria versus new alternative. Structural Equation Modeling, 6(1), 1-55. https://doi.org/10.1080/10705519909540118
  26. Husic, M., & Cicic, M. (2009). Luxury consumption factors. Journal of Fashion Marketing and Management, 13(2), 231-245. https://doi.org/10.1108/13612020910957734
  27. Jackson, T. (2004). A contemporary analysis of global luxury brands. In M. Bruce (Ed.), International retail marketing (pp. 155-169). Oxford: Elsevier Butterworth Heinemann.
  28. Ju, S. R., & Chung, M. S. (2002). The effects of relational benefits between fashion retail stores and customers of relationship quality and customer satisfaction. Journal of Korean Society of Clothing and Textiles, 26(7), 1043-1055.
  29. Kapferer, J. N. (1997). Managing prestige brands. Journal of Brand Management, 4(4), 251-260. https://doi.org/10.1057/bm.1997.4
  30. Kapferer, J. N. (2008). The new strategic brand management: creating and sustaining brand equity long term, 4th edn. London: Kogan Page Limited.
  31. Kapferer, J. N., & Bastien, V. (2009). The specificity of luxury management: Turning marketing upside down. Journal of Brand Management, 16(5), 311-322. https://doi.org/10.1057/bm.2008.51
  32. Keller, K. L. (2009). Managing the growth tradeoff: Challenges and opportunities in luxury branding. Journal of Brand Management, 15(5-6), 290.
  33. Kim, A. J., & Ko, E. J. (2011). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1486.
  34. Kim, H. S., Moon, H. G., Choo, H, J., & Yoon, N. H. (2011). The effect of fashion consumption values on the intention to maintain brand relationships - Differences among segmented markets based on purchasing patterns. Journal of the Korean Society of Clothing and Textiles, 35(4), 408-420. https://doi.org/10.5850/JKSCT.2011.35.4.408
  35. Kim, S. S. (2005). The study about masstiege high-end products (Part I) -Focusing on values-. Journal of the Korean Society of Clothing and Textiles, 29(1), 1381-1388.
  36. Ko, E. J., & Lee, H. J. (2009). A study on relationship between customer equity and customer satisfaction of sports fashion brands. Journal of the Korean Society of Clothing and Textiles, 33(5), 782-793. https://doi.org/10.5850/JKSCT.2009.33.5.782
  37. Ko, E. J., & Oh, S. M. (2009). A study on customer equity of luxury brands. Journal of the Korean Society of Clothing and Textiles, 33(7), 1025-1037. https://doi.org/10.5850/JKSCT.2009.33.7.1025
  38. Ko, E. J., Kim, K. H., & Zhang, H. (2008). A cross cultural study of antecedents of purchase intention for sports shoes in Korea and China. Journal of Global Academy of Marketing Science, 18(10), 157-177. https://doi.org/10.1080/12297119.2008.9707281
  39. Krishnan, H. S., & Chakravarti, D. (1993). Varieties of brand memory induced by advertising: determinant, measures, and relationships. In Aaker, D. A, & Biel, A. L. (Eds.), Brand Equity & Advertising: Advertising' Role in Building Strong Brands (pp. 213-234). NJ: Erlbaum.
  40. Lee, G. N., & Shin, S. Y. (2012). Purchase behaviors on imported fashion luxury brand's bag according to the types of consumption values of female consumers in 20's and 30's. Journal of the Korean Society for Clothing Industry, 14(4), 554-566. https://doi.org/10.5805/KSCI.2012.14.4.554
  41. Lee, S. H., & Shin, C, Y. (2002). An exploratory study on fashion counterfeits purchasing among female college students - materialism and shopping value-. Journal of the Korean Society of Clothing and Textiles, 26(22), 1537-1546.
  42. Lemon, K. N., Rust, R. T., & Zeithaml, V. A. (2001). What drives customer equity. Marketing Management, 10(1), 20-25.
  43. 'Major distributors sales trend'. (n. d.). e-National Indicators. Retrieved April 7, 2012, from http://index.go.kr/egams/index.jsp
  44. Mason, R. (1984). Conspicuous consumption: a literature review. European Journal of Marketing, 18(3), 26.39. https://doi.org/10.1108/EUM0000000004779
  45. McCarthy, E. J. (1999). Basic marketing: a managerial approach. (13th ed.). Homewood. IL: Irwin.
  46. Moore, C. M., & Birtwistle, G. (2004). The burberry business model: creating an international luxury fashion brand. International Journal of Retail & Distribution Management, 32(8), 412-422. https://doi.org/10.1108/09590550410546232
  47. Nueno, J. L., & Quelch, J. A. (1998). The mass marketing of luxury. Business Horizons, 41(6), 61-69.
  48. Okonkwo, U. (2007). Luxury fashion branding. Hampshire: Palgrave Macmillan.
  49. Olson, J. C., & Mitchell, A. A. (1981). Are product attribute beliefs the only mediator of advertising effects on brand attitude?. Journal of Marketing Research, 18(3), 318-332. https://doi.org/10.2307/3150973
  50. Park, H. S. (2007). The effect of materialism and conspicuous consumption on purchase of fashion luxury goods and counterfeits. Korean Journal of Human Ecology, 16(1), 103-110. https://doi.org/10.5934/KJHE.2007.16.1.103
  51. Phau, I., & Prendergast, G. (2000). Consuming prestige brands: The relevance of the "rarity principle." Journal of Brand Management, 8(2), 122-138. https://doi.org/10.1057/palgrave.bm.2540013
  52. Rust, R. T., Zeithaml, V. A., & Lemon, K. N. (2000). Driving customer equity. New York: Free Press.
  53. Rust, R.T., Lemon, K. N., & Zeithaml, V. A. (2004). Return on marketing: using customer equity to focus marketing strategy. Journal of Marketing, 68, 109-127. https://doi.org/10.1509/jmkg.68.1.109.24030
  54. Simon, C., & Sullivan, M. W. (1993). The measurement and determinants of brand equity: a financial approach. Marketing Science, 2, 28-52.
  55. Srivastava, R. K., & Shocker, A. D. (1991). Brand equity: a perspective on its meaning and measurement. Marketing Science Institute Working Paper Series, October, 91-124.
  56. Vogel, V., Evanschitzky, H., & Ramaseshan, B. (2008). Customer equity drivers and future sales. Journal of Marketing, 72(6), 98-108.
  57. Wiedman K. P., Henning, N., & Siebels, A. (2009). Value-based segmentation of luxury consumption behavior. Psychology and Marketing, 26(7), 625-651. https://doi.org/10.1002/mar.20292
  58. 'WSJ, Korea luxury marker rapidly emerges as mecca'. (2010, July 20). Maeil Business Newspaper. Retrieved April 7, 2012, from http://www.mk.co.kr
  59. Yun, S. Y., & Ko, E. J. (2006). A study on measuring and defining dimensions of fashion product customer equity. Journal of the Korean Society of Clothing and Textiles, 30(1), 139-1399.
  60. Yun, S. Y. (2006). A Study on measuring and defining customer equity of fashion brand. Unpublished master's thesis, Yonsei University, Seoul.
  61. Zeithaml, A. V. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of Marketing, 52(July), 4-6. https://doi.org/10.2307/1251682

Cited by

  1. Perception of Korean Consumers on Fashion Brand Authenticity and Impact of Authenticity Determinants vol.40, pp.5, 2016, https://doi.org/10.5850/JKSCT.2016.40.5.815
  2. The Effect of Luxury Fashion Brand Customer Equity Drivers on Customer Loyalty - Differences among Segmented Markets based on Purchasing Patterns - vol.15, pp.2, 2013, https://doi.org/10.5805/SFTI.2013.15.2.219
  3. The Effects of Luxury Brand Marketing Activities on the Formation of Customer-Based Brand Equity vol.37, pp.7, 2013, https://doi.org/10.5850/JKSCT.2013.37.7.935