4.7 Article

Brand prominence and social status in luxury consumption: A comparison of emerging and mature markets

Journal

JOURNAL OF RETAILING AND CONSUMER SERVICES
Volume 46, Issue -, Pages 163-172

Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.jretconser.2017.11.006

Keywords

Brand prominence; Status consumption; Emerging market; Mature market; Luxury

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This research investigated how the use of a prominent versus subtle branding strategy and status consumption affect consumers' intention to buy luxury products across emerging and mature markets. To this end, an experimental study with consumers in India (emerging market) and the United States (mature market) was conducted. The results suggest that Indian (but not U.S.) consumers with a higher status consumption tendency are more willing to purchase prominently branded luxury products than subtly branded ones. On the other hand, U.S. (but not Indian) consumers with a lower status consumption tendency are more willing to purchase subtly branded luxury products than prominently branded ones. The paper discusses these findings, highlights their contribution to luxury research, and illustrates their practical value for luxury companies interested in targeting mature and emerging markets.

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