Brand Luxury Index - Journal of Brand Management - 2004 - Vigneron Johnson - PDF
Brand Luxury Index - Journal of Brand Management - 2004 - Vigneron Johnson - PDF
Brand Luxury Index - Journal of Brand Management - 2004 - Vigneron Johnson - PDF
net/publication/31968013
CITATIONS READS
579 15,073
2 authors:
Some of the authors of this publication are also working on these related projects:
Massive online courses and the marketing of higher education View project
All content following this page was uploaded by Franck Vigneron on 24 November 2015.
Franck Vigneron
Lester W. Johnson
1
Franck Vigneron is assistant professor of marketing, Department of Marketing, College
2
ABSTRACT
What distinguishes among brands that are high versus low on luxury? We discuss a
theoretical framework of the brand luxury construct that leads to a specification of the
for the measurement of the dimensions of brand luxury. We conclude with theoretical
and practical implications regarding the symbolic use of luxury brands for public policy
3
INTRODUCTION
dimensions of various brands, and much of that has been on the symbolic use of brands
(e.g., Aaker 1991; Keller 1991; Aaker 1997). And yet the measurement of perceived
study is focused on understanding what is meant by a luxury brand and the development
Despite the importance of luxury brands in consumers’ lives and the fact that the
(McKinsey Corporation 1990, Silverstein and Fiske 2003), little is known about the
influence of luxury on the perception of brands once they enter the marketplace. As
emphasized by Dubois and Duquesne (1993a, p.115), “we believe that an analysis of the
measuring the perception of luxury in the form of a scale is of particular interest. This
scale could be used not only in the creation of a luxury brand but also in the continuous
consumer to express his or her own self, an ideal self, or specific dimensions of the self
through the use of a brand (Roux 1991; Lichtenstein, Ridgway and Netemeyer 1993).
4
(Allérès 1991; Kapferer 1997), as a central driver of consumer preference and usage
(Dubois and Duquesne 1993b), and as a common denominator that can be used to define
consumption across cultures (Bourdieu 1984; Dubois and Paternault 1997) or finally
luxury products offer a different brand category to measure the suitability of the Internet
to become a communication tool for luxury brand (Nyeck and Roux 1997).
We examine the concept of a luxury brand with the goals of designing a conceptual
present there is no scale measuring the perceived luxury of a brand, or even a clear
Kapferer (1998) and Dubois et al (2001) go part way in developing such a measurement
recognized that not all luxury brands are deemed equally luxurious. “Luxury is
supply and the recognition of value by others are key components. … So between
premium and luxury, in marketing terms, is a difference of degree" (Cornell 2002). For
instance, a Cadillac and a Rolls-Royce may be both perceived as luxury cars but one
compared with the other would be considered more luxurious. In this case, we could
assume the Rolls-Royce to be more luxurious than the Cadillac. Kemp (1998)
demonstrated that some goods such as water could be viewed by different observers as
either a luxury or as a necessity depending on who wants the good or why. Even more
surprising he showed that these goods could also be either a luxury or a necessity for the
same person in different situations. Consequently, the perception of what is and is not a
5
luxury brand as well as the amount of luxury contained in a brand may be context and
people dependent.
measured on a continuum within the luxury range and in agreement with previous
research (e.g., Allérès 1991; Roux 1991; Dubois and Duquesne 1993a). We agree with
authors such as Kapferer (1997) who argue that a luxury brand is a discontinuity vis a vis
other types of brands and make a further conceptual distinction between the different
degree of “luxury” between these brands. A scale to measure this degree of luxuriousness
(and the degree of each of the sub-dimensions of luxury that we discuss later) would
allow us to estimate the amount of perceived luxury of a luxury brand. Cadillac and
Lincoln may be perceived overall as having the same level of luxury, but the scale may
reveal that their overall brand luxury perceptions are combinations of different
Our main contribution is to develop an instrument for the researcher and marketer
of luxury products who might wish to measure the amount of luxury contained in a given
brand. The brand luxury scale treats luxury as a matter of degree, residing on a
Before presenting the detailed results of our study, we begin with a brief review of
the luxury construct and its potential relevance to issues pertaining to the analysis of
luxury-seeking consumer behavior. Next, we discuss the major steps in our scale
development including detailed tests of the reliability and validity of the scale. Finally,
6
DEFINING THE LUXURY CONSTRUCT
The luxury brand market has been growing steadily for the past twenty years, up to
25% in 1989 with a minimum of 10% per year although it grew more slowly during the
mid 1990s (Roux 2002). Many reasons have maintained this growth, from a growing
aspirational affluence (Prendergast and Wong 2003) and growing young upward mobile
In 1997 Kapferer presented the semiotics of the word luxury, its sociological
Thus, there is an agreement in the literature to define luxury goods as goods for
which the simple use or display of a particular branded product brings esteem on the
owner, apart from any functional utility. Hence, luxury products enable consumers to
satisfy psychological and functional purposes and it seems that these psychological
Nueno and Quelch (1998, p. 61) define luxury brands as: “… those whose ratio of
functionality to price is low while the ratio while the ratio of intangible and situational
economists or marketing consultants (e.g., McKinsey 1990) who define luxury brands as
7
those whose price and quality ratios are the highest of the market, that is, their price is
significantly greater than the price of products with similar tangible features.
However, this definition suggests that brands are of two kinds, either luxurious or
not luxurious. In effect, there are brands that may be a luxury brand in a certain product
category and not a luxury brand in another product category (Dubois and Laurent 1996).
Rolls-Royce is considered a luxury brand of car but not a luxury brand of plane engines.
In addition, there is a distinction between luxury brands associated with the upper-
range luxury and the lower-range luxury. A brand may be defined as a luxury brand but
all brands considered luxury may not be deemed equal, and one brand having a higher
perceived luxury in one product category may have a lower luxury perception in another
product category. Cartier for instance may have a greater luxury image in the jewelry
market than in the apparel or fragrance market. The luxury brand Armani may be be
placed in the upper-range of luxury brands (also named “griffe”, see Kapferer 1997 for a
discussion). Emporio Armani is the more popular Armani brand that was crafted to
satisfy the need of a larger luxury-target market. It may be ranked in a lower level of
Phau and Prendergast (2000) point out that while luxury is a subjective concept
“luxury brands compete on the ability to evoke exclusivity, a well-known brand identity,
[…] brand awareness and perceived quality”. This concept of exclusivity or rarity is well
documented in the literature on luxury (e.g., Pantzalis 1995). The contradiction that
luxury brands face when increasing exposure and sales while maintaining a fragile
perception of limited supply is putting a great deal of pressure on luxury brands (Roux
8
Over the past twenty years, brands that were once traditionally targeting the
wealthiest consumers have launched new product lines, new brands or product
extensions to market their products to middle class consumers. In fact some people have
called this trend the “democratization of luxury” (The Economist 1993; Gardyn 2002;
Lipovetsky and Roux 2003) and Rémaury (2002) examines the cultural differences that
shape this trend and he describes the impact of a greater democratic process influencing
In an earlier review article (Vigneron and Johnson 1999) the authors developed a
was originally inspired from the conceptual work of Mason (1992) who developed a
conceptual framework mostly focused on the interpersonal effects associated with this
behavior.
such as hedonist and perfectionist motives inspired from the work of Dubois and Laurent
(1994), as well as the more usual interpersonal effects (snob, conspicuousness and
bandwagon motives) inherited from Leibenstein (1950) and Mason (1992). In doing so,
motives for luxury consumption. This model is also consistent with previous research on
luxury that demonstrated that individuals' behavior varies across persons depending on
their susceptibility to interpersonal influence (e.g., Bourne 1957; Mason 1981; Bearden
9
Although Vigneron and Johnson (1999) use the terminology prestige-seeking
behavior, we prefer to use the term luxury instead of prestige. Therefore, in this paper,
discussing the brand category whereas we use “prestige” when relating to the extreme-
end of the luxury brand category. The term luxury in this context is more inclusive in the
sense that it includes both personal and interpersonal effects. While prestige or status
product that represent value to both the individual and vis à vis significant others.
As early as 1986 Andrus, Silver, and Johnson (1986, p.5) noted the need for
literature pertaining to the study of luxury brands: “status brand strategies are intuitively
literature on the topic reported”. A review of the literature since then suggests a growing
interest in the topic of luxury (e.g., Dubois and Paternault 1995, Kapferer 1997, 1998,
Nueno and Quelch 1998, Bernstein 1999, Nia and Zaichkowsky 2000) but there is still
little work on the evaluation of luxury brand (exceptions are Kapferer 1998, Eastman et
of multiple dimensionalities in defining the concept (Dubois and Laurent 1994; Kapferer
1998; Dubois, Laurent and Czellar 2001). Vigneron and Johnson (1999) proposed that
that form a semantic network. They reviewed the latent structure of, and the
interrelations among, the primary meanings of the prestige (luxury) concept that underlie
the decision-making process undertaken when assessing luxury brands. For a synopsis
purpose Table 1 presents a review of the factors and communalities between the
10
Vigneron and Johnson ‘s framework and the above mentioned studies from the literature
on luxury brand.
_____________________________
Insert Table 1 about here
_____________________________
The definition of what separates luxury brands and non-luxury brands has been
operationally defined in this study as the distinction between brands exhibiting five
derived from the literature the existence of three latent luxury dimensions reflecting non-
and (3) perceived quality; and two personal oriented perceptions (4) perceived extended-
self, and (5) perceived hedonism. Each one of these dimensions is strongly correlated but
Winklhoffer 2001).
_____________________________
Insert Figure 1 about here
_____________________________
These are the five key luxury dimensions that must be established or monitored for
creating a lasting luxury brand. It is expected that different sets of consumers would have
different perceptions of the level of luxury for the same brands, and that the overall
luxury level of a brand would integrate these perceptions from different perspectives.
Perceived Conspicuousness
11
The early work on conspicuous consumption (Veblen 1899; Bearden and Etzel
1982) suggested that a consumer considered reference group influences when publicly
individuals in search of social representation and position. This means that social status
consumers who perceive price as a proxy for quality often perceive high price as an
indicator of luxury (Lichtenstein, Ridgway, and Netemeyer 1993). Hence, our measure
tap into perceptions of price and social status associated with the brand. As pointed out
by Vigneron and Johnson (1999), “This argument is further supported by the marketing
status-conscious consumers (Berkowitz, Kerin, Hartley, and Rudelius 1992, 341; Groth
Perceived Uniqueness
preferences for a brand (Lynn 1991; Pantzalis 1995). Individuals express a “need for
uniqueness” (Snyder and Fromkin 1977) when they are searching for something that is
difficult to obtain, e.g., Louis Vuitton handbag. The consumer behavior literature
dimensions (see for review, Tian, Bearden, and Hunter 2001). Its purpose is to enhance
one’s self-image and social image by adhering to one’s personal taste, or breaking the
assumptions that perceptions of exclusivity and rarity enhance the desire for a brand, and
that this desirability is increased when the brand is also perceived as expensive (Groth
and McDaniel 1993; Verhallen and Robben 1994). A luxury brand that would be difficult
12
to find because of its uniqueness (e.g., limited edition) and which would be expensive
compared to normal standard (e.g., Jaguar car) would be even more valuable.
Perceived Extended-Self
to relevant others but they may also try to integrate the symbolic meaning into one’s
identity (Holt 1995). Social referencing and the construction of one self appears to be
being under pressures and demands of one’s own membership group and attracted by the
seeking behavior (French and Raven 1959; Solomon 1983; Mick 1986; McCracken
1986). Belk’s (1988) concept of extended self suggests that we regard our possessions as
part of identity. Thus, “luxury imitators” may use the perceived extended-self dimension
transferred from luxury brands to enhance their self-concept and replicate stereotypes of
affluence by consuming similar luxury items (Douglas and Isherwood 1979; Hirschman
The possession of luxury brands may be more appreciated by consumers who are
Teel 1989; Richins 1994a). “Materialism is a value that represents the individual’s
perspective regarding the role possessions should play in his/her life” (Richins 1994b,
522). Materialistic consumers may regard luxury brands as a means to reach happiness
and may use these brands to evaluate personal or others’ success. People who are
concerned with social acceptance and conformity with affluent reference groups may
value possessions that are more socially visible and expensive. Belk (1995, 487) stated
13
“as an essential materialistic activity collecting is a lens viewing all luxury consumption
more clearly”, and further explained that a person’s collections may represent personal
Perceived Hedonism
Luxury-seekers are considered hedonic consumers when they are looking for
personal rewards and fulfillment acquired through the purchase and consumption of
products evaluated for their subjective emotional benefits and intrinsically pleasing
properties, rather than functional (Sheth, Newman, and Gross 1991; Westbrook and
sensory gratification (Rossiter and Percy 1997) and sensory pleasure (Hirschman and
Holbrook 1982) expected from the consumption. Therefore, people who rely on their
consumers, Kassarjian 1965) and who are not susceptible to interpersonal influence
Perceived Quality
It is expected that luxury brands offer superior product qualities and performance
compared with non-luxury brands. Perfectionist consumers may perceive more value
from a luxury brand because they may assume that it will have a greater brand quality
and reassurance (Aaker 1991). The literature on luxury consumption emphasizes the
Garfein 1989; Roux 1995). It seems rather difficult to develop a luxury brand image
by the quality dimension of luxury may perceive that luxury brands have superior
characteristics than non-luxury brands. These characteristics may include, but are not
14
restricted to, technology, engineering, design, sophistication, and craftsmanship. For
instance, speed and acceleration for a luxury car or precision for a luxury watch are
elements reflecting the perceptions of quality. In addition, "high prices may even make
certain products or services more desirable" (Groth and McDaniel 1993, 10) because
consumers perceive higher prices as indication of greater quality (Rao and Monroe
1989).
Although the five dimensions of luxury are likely correlated, they all contribute to
an index of luxury. The brand luxury index (BLI) is a multidimensional scale that
consumers may choose to maximize all five dimensions, in practice, consumers would
point semantic differential scale, the Brand Luxury Index (BLI), is developed following
SCALE DEVELOPMENT
Methodology
For the purpose of this research, a semantic differential scale was developed
(Osgood, Suci, and Tannenbaum 1957; Mindak 1961). The scale development process
15
(Table 2) employed in this study followed the paradigm and refinements suggested by
the American Psychology Association guidelines (Nunnally 1978; Gerbing and Anderson
1988; DeVellis 1991). Data for developing the scale were mostly collected by university
students have been used as subjects in several previous empirical studies of luxury, e.g.,
Kapferer 1998, Eastman 1999, Dubois et al 2001). Several pretests were carried out to
select a pool of brands that would be perceived as having subsequent degree of luxury
for our samples. For instance, Levi’s in Australia is perceived as an upscale brand of
jeans but it may not have been acceptable if this study was carried out in the USA for
instance.
_____________________________
Insert Table 2 about here
_____________________________
luxury. A review of the literature on luxury brands (i.e., academic and commercial such
total of 157 bipolar adjectives were generated. These items were then examined by a
brands within the past few months. The reviewers were asked to indicate their agreement
or disagreement as to whether they felt that the word pair could be used to evaluate the 16
luxury of a brand. This initial content analysis resulted in reducing our original 157 items
to 30 item adjectives.
All the brands that were used in this study were selected in compliance with a
certain number of criteria. For instance, we tested and selected brands that had sufficient
brand awareness and a potential luxury image to the target respondents. The results from
the initial analysis (N = 418 business students) indicated that for each brand (i.e., Levi’s,
Ray Ban, Rolex, and Porsche) the Cronbach Alpha coefficients were greater than .86,
suggesting significant internal reliability for the scale. Cronbach Alpha was also
calculated for each one of the five dimensions. It ranged from .69 to .90 with the hedonic
dimension for the Levi’s sample being the lowest (Table 3).
each item within all samples, with significant values ranging from .30 to .80. We did not
drop any items based on this criterion, but we identified a set of offending variables,
_____________________________
Insert Table 3 about here
_____________________________
performed an exploratory factor analysis on the initial 30-item scale to check item
loadings and to allow the number of dimensions in our initial exploratory phase to be
driven by the data. Separate principle component analyses with varimax rotation were 17
used to evaluate and identify the component factors (Table 4). Varimax rotation was
preferred to Oblimin, even though factor correlation was anticipated. Oblimin rotation
was performed and resulted in a less satisfactory solution from the factor pattern
loadings and rational factor structure. These results were also confirmed across the study.
_____________________________
Insert Table 4 about here
_____________________________
In interpreting the factors, a decision was made (à priori) to discard the factor
loadings of less than .60. The average factor correlations between the subscales were
calculated and ranged from .91 to .96. The congruence correlation coefficients were
higher than .90 showing that the factor structure is invariant (Everett 1983).
For each of the four brands, the first factor accounted for most of the variation in
the data, explaining an average of 50% of the common variance. Two brands had a
number of items that did not load on any factors. Levi’s had 7 items that did not reach
the cut-off of .60, and Ray Ban had 3 items that also did not load on any factor. These
items were also registered as offending estimates, and were further examined in the next
analysis. Exploratory factor analysis is useful for data reduction purposes, but it does not
(Gerbing and Anderson 1988). In the present study, we used confirmatory factor analysis
The objective of the next step was to model the proposed structural solution and
measure its overall fit using confirmatory factor analysis (CFA) of the 30 items. The
proposed framework hypothesized, first, that the factors identified by the exploratory
latent variables would measure related, but distinguishable, constructs. The covariance
matrix for the 30 items was used, and parameter estimates were computed using the
maximum-likelihood method (Arbuckle 2003). The fit of the five-factor solution was
one-factor model, and five-factor model). Several alternative indices were used to assess
goodness-of-fit (Hair et al. 1995) such as the Chi-square statistic and the goodness-of-fit
index (GFI).
The five-factor model for every sample, with all 30 items each loading on its
appropriate construct, yielded significant chi-square statistics (Table 5). The other
indices for measuring the goodness-of-fit also indicated a moderate fit to the data, as
evidenced by the findings. For instance, relatively small GFI values, .70 (Levi’s jeans), .
75 (Ray Ban), .71 (Rolex), .73 (Porsche 911), and .78 (combined data). All of this
suggested only a moderately acceptable fit for the five-factor model (Hair et al. 1995).
_____________________________
Insert Table 5 about here
_____________________________
(Table 6). Items that did not contribute to the scale’s internal consistency were removed
(8 items out of 30). We computed a revised CFA model with the revised solution (i.e., 22
items) for each one of the brands and for a combined data set. The fit for the revised five-
factor model was significantly improved without the 8 offending items compared with
prior findings from the initial model (i.e., 30 items). However, this model still produced a
19
significant Chi-square demonstrating a moderate fit. The five-factor solution needed
_____________________________
Insert Table 6 about here
_____________________________
Test-Retest Reliability
occasions separated by two weeks using the same subject population (Bearden, Hardesty
and Rose 2001). A new set of respondents (N = 176 business students) initially rated
three new brands: a house in Double-Bay (an affluent area in Sydney Australia), a
analysis for each brand and another analysis for the combined set of data.
The average correlation between time one and time two on total scores was .84 (2
items were removed). Test-retest Pearson correlations for each brand were as follows:
house r = .83; Mercedes r = .86; and Ralph Lauren r = .82. These brands were also tested
for internal scale reliability over the two periods. The Cronbach alpha coefficient ranged
from .89 to .91, and the item-to-total correlations were from .35 to .65. Altogether, these
the reliability indices originally computed (i.e., with 30 and 22 item-scales). In addition,
we computed four measurement models, one for each brand (using the 20 items
remaining). The revised model sensibly improved the goodness-of-fit and substantially
Mercedes-Benz 600sel indicated a better fit, χ2 = 170.31, p<.274, compared with the
Analysis of the results indicates a satisfactory level of reliability over time for the
the study, were removed from the model. The next study assessed the validity of the
scale, using methods such as content validity, predictive validity, and discriminant and
convergent validity.
SCALE VALIDITY
This step was an attempt to substantiate and extend the findings of the initial
content validity. We used three new brands to test the revised 20-item scale: David Jones,
an upscale department store (N = 63), Hilton Hotels (N = 51), and Nike (N = 72). After
the questionnaire, we asked them to answer the following open-ended question: “Please,
we would be grateful if you could write in your own words and as simply as possible, the
reason why you rated this brand that way”. This method was similar to the procedure
outlined by Zaichkowsky (1985). Each subject was classified into three groups according
to their BLI mean score (high, medium and low). Then, three judges independently
assessed the open-ended responses, classifying respondents into groups with attitudes
describing a low, medium, or high level of perceived luxury toward the brand. Finally,
we correlated each subject BLI classification with their open-attitude rating to measure
an overall agreement between a subject’s rating using the scale and the open attitude
from the respondents and their scores, providing further evidence to support the validity
of the scale. This agreement was as follows: 78 percent agreement for the David Jones
department store, 83 percent agreement for the Hilton hotel, and 86 percent agreement
To test validity a single-item attitude scale (measuring only luxury) was used as a
criterion to obtain a score classified into two distinct categories (high and low luxury). A
new set of respondents (N = 132 students) classified 3 brands into these two categories.
Then, 331 students rated the BLI scale with the three following brands; David Jones
department stores, Hilton hotels, and Nike Air shoes, respectively. Based on Nunnally
classifications (i.e., the higher the correlation between the high or low luxury scores
obtained with the BLI scale and the criterion, the greater the validity of the BLI scale as
The predictive validity study suggested that the brand luxury index scale was
sensitive in measuring luxury, and provided further evidence for accuracy. The scores
predicted with the criterion-related scale were correlated (i.e., correlations ranging from .
32 to .42) to a satisfactory degree with the BLI overall luxury scores (Table 7).
_____________________________
Insert Table 7 about here
_____________________________
Nomological Validity
This step consisted of examining the nomological validity between five luxury-
related scales and the BLI scale using 331 respondents (business students) and 3 brands
(David Jones department stores, Hilton Hotels, and Nike Air shoes). We hypothesized
that a materialistic person (we used a measure of materialistic attitudes from Moschis
and Churchill 1978) would be involved with fashion brands (we used a fashion 22
involvement factor from Tigert, Ring, and King 1976) and brands that contribute to
personal image and pleasure (we used an enduring involvement scale from Higie and
Feick 1989). Such a person would have a positive attitude towards money (we used a
money-prestige scale from Yamauchi and Templer 1982), would assign luxury to high
prices (we used a price-based prestige sensitivity scale from Lichtenstein, Ridgway and
Netemeyer 1993), and would be classified among the higher raters of the BLI scale
(Table 8).
_____________________________
Insert Table 8 about here
_____________________________
The correlations among the luxury-related scales were strong, providing evidence
of related construct measurement among the five scales. The BLI scores were positively
related to the five criteria associated with the luxury-related scales (Table 9). For
example, 79% of the higher BLI raters were materialistic respondents, and 76% of the
lower BLI raters assumed that high prices were negatively related to the luxury level of
brands. In addition, we correlated the results from the BLI scale and the revised social
desirability scale from Strahan and Gerbasi (1972) to examine potential external bias.
The correlations were either low or nonsignificant, which suggested that the BLI scales
_____________________________
Insert Table 9 about here
_____________________________
23
Additional analyses of the construct interrelationships were required to further
substantiate evidence of the scale validity. The next step was to assess the construct
validity of the scale using classical statistical methods such as Campbell and Fiske’s
convergent validity (agreement among scores obtained from one procedure with scores
from another procedure) and discriminant validity (no correlation with other unintended
measures). We used the Likert and Staple scale as they were recommended in previous
research (Menezes and Elbert 1979) for our two other measurement procedures (N = 342
students). The adjectives from the BLI scale indicating a greater level of luxury became
The average reliability coefficient (Cronbach alpha) was .82, with values ranging
from .71 to .90, suggesting values ranging from respectable to very good (DeVellis
1991). Based on the recommendation from Marsh and Hocevar (1983), we compared the
evidence of halo effects. This review did not show any indication between both values,
and Fiske’s requirements, we can identify that (1) between the three methods the
validation is excellent, (2) all the validity diagonals exceed the heterotrait values of both
the monomethod and heteromethod, and (3) finally, the pattern of correlation among the
trait is relatively illustrated in every heterotrait triangle. Note that the actual validity
coefficients of these five traits ranged from .48 to .81 with a degree of validity significant
at .01 level. The Campbell-Fiske criteria performed well in the present study (Matrix 1).
24
_____________________________
Insert Matrix 1 about here
_____________________________
discriminant validity were met. This method initiated a substantial assessment regarding
the construct validity as well as the method/halo bias. Research has encouraged the use
data.
The present study yielded encouraging evidence concerning the construct validity
of the brand luxury inventory scale and its multi-dimensionality (i.e., conspicuousness,
DISCUSSION
Implications
This research offers several potential contributions from previous works, but
particularly, extends the studies carried out by Kapferer (1998), Vigneron and Johnson
(1999) and Dubois, Laurent and Czellar (2001) on the attitudes towards the concept of
luxury and brand luxury. We used Vigneron and Johnson’s luxury-seeking consumer
behavior framework to derive the five dimensions of the scale. Dubois and Laurent’s
researchers may use the BLI scale to measure consumers‘ perceptions of the luxury of
specific brands or products. The present research revealed that the concept of luxury is
validity.
The implications of this research are of significance for marketers and scholars in
the field of luxury brands. It establishes a structural analysis of brand luxury and
noted, the result of this research could serve various purposes, but perhaps be
specifically applied to create and build brand luxury, or address issues such as how to
maintain brand luxury once it is established. The value of the BLI scale is to measure the
amount of luxury contained in a luxury brand (i.e., from its high to its low range). One of
the applications could be to use the scale to help an “upper-range established” brand
luxury brand beyond that explained in the economics/analytical literature. Our findings
support the existence of latent luxury constructs influenced by personal and interpersonal
perceptions toward the brands. These findings help explain the key luxury dimensions
that managers must establish or monitor for creating a lasting luxury brand. In addition,
the BLI scale is particularly useful for comparing several luxury brands and thus for
in the target market along either each of the 20 items comprising the scale or each of the
received the lowest luxury score amongst the brands used to develop the scale. Rolex
ranked first followed by Mercedes-Benz and Porsche which indicated that the scale was
not measuring the expected monetary value but rather brand luxury. In addition to
indicate if a brand is luxurious or not the scale allows the marketer to rank the brands
and also help to discover the factors which support or decrease the luxury dimension.
26
Mercedes-Benz and Porsche had very similar score for Quality and Uniqueness but
Conspicuousness was much higher for MB which contributed to make MB brand luxury
Hence, the BLI scale is helpful to understand how consumers view luxury brands.
From a market segmentation point of view, clustering groups according to their different
useful in advertising for instance. From a market positioning point of view, if a luxury
brand manager witnessed a declining brand luxury, the specific weakening dimension
could be identified. Thus, taking the exact remedial actions such as changing the
advertising message, stressing the luxury attributes, emphasizing benefits of the brand
over competing brands could be undertaken. For example, if the luxury image of a car
maker was slowly decreasing due to an increasing number of dealers (i.e., weakening
uniqueness), then appeals which would emphasize the limited number of cars available
or give the consumer information about the precious components used in making the car,
Future Research
Further replication and extension would be required before the findings could be
considered definitive. Hence, one suggestion for further research would be to empirically
compare the BLI scale with Kapferer (1998) and Dubois et al. (2001) ‘s scales. Potential
significantly between the 3 luxury brand categories (prestige brand, premium brand and
upmarket brand). Also, the replicability of these findings should be tested with additional
27
samples (in particular, with actual consumers of luxury products). The BLI scale could
items to a more parsimonious version. Studies using the BLI in other countries may
provide further evidence of nomological validity where samples could be matched across
Limitations
A major critique is that there may be “a demand effect” from “leading” terms such
motivation is not always obvious and conscious. Indeed, abstract constructs are more
difficult to measure, and people may try to give biased answers when dealing with luxury
brands.
The MTMM matrix approach used two other types of self-report questionnaire
measures, different only in the scale type. It would be an improvement to apply other
addition to self-report. Further, more research to determine norms for different brands
replication using different data sources other than students and managers from Australia
In conclusion, the final 20-item scale (Table 10) is sensitive to the luxury image
over different socially desirable brands, demonstrating reliable measures, and valid
results compared to what was anticipated. This scale has potential value for researchers
strategies. This is particularly effective when comparing the luxury image between
_____________________________
Insert Table 10 about here
_____________________________
29
REFERENCES
Aaker, David (1991), Managing Brand Equity: Capitalizing on the Value of a Brand
Andrus, David M., Edward Silver and Dallas E. Johnson (1986), "Status Brand
(September), 183-194.
15 (March), 473-481.
30
Bearden, William, David M. Hardesty, and Randall L. Rose (2001), “Consumer Self-
Belk, Russell W. (1988), "Possessions and the Extended Self," Journal of Consumer
Berkowitz, Eric N., Roger A. Kerin, Steven W. Hartley and William Rudelius (1992),
Bernstein, Laurence (1999), “Luxury and the Hotel Brand,” Cornell Hotel and
Bourdieu, Pierre (1984), Distinction: A Social Judgment of Taste, (trans.) Richard Nice,
Some Applications of Behavioral Research, (eds.) Rensis Likert and Samuel P. Hayes,
Paris: Unesco.
Consciousness on the Relation between Brand Label and Brand Preference,” Journal
Cornell, Andrew (2002), “Cult of Luxury: The New Opiate of The Masses”, Australian
DeVellis, Robert F. (1991), Scale Development: Theory and Applications, Newbury Park,
(December), 561-585.
Douglas, Mary and Baron Isherwood (1979), The World of Goods, New York: Basic.
Dubois, Bernard and Patrick Duquesne (1993a), “Polarization Maps: A New Approach to
Dubois, Bernard and Patrick Duquesne (1993b), "The Market for Luxury Goods: Income
Dubois, Bernard and Gilles Laurent (1996), "Le Luxe par-delà les Frontières: Une Etude
35-43.
Dubois, Bernard, Gilles Laurent and Sandor Czellar (2001), “Consumer Rapport to
Dubois, Bernard and Claire Paternault (1995), “Understanding the World of International
August), 69-76.
Dubois, Bernard and Claire Paternault (1997), "Does Luxury have a Home Country? An
(May), 79-85.
Eastman, Jacqueline K., Ronald E. Goldsmith and Leisa Reinecke Flynn (1999), “Status
33
Economist (The), anonymous (1993), “The Luxury Goods Trade: Upmarket Philosophy,”
40-42.
French, John R., Jr. and Bertram H. Raven (1959), "The Bases of Social Power", in
Studies in Social Power, (ed.) Dorwin Cartwright, Ann Arbor, MI.: Institute for Social
Research, 150-167.
(November), 30-36.
Gerbing, David W. and James C. Anderson (1988), “An Updated Paradigm for Scale
Groth, John C. and Stephen W. McDaniel (1993), " The Exclusive Value Principle: The
34
Hair, Joseph F. Jr., Rolph E. Anderson, Ronald L. Tatham, and William C. Black (1995),
Multivariate Data Analysis (4th ed.), Englewood Cliffs, NJ.: Prentice-Hall, Inc.
Higie, Robin A. and Lawrence F. Feick (1988), “Enduring Involvement: Conceptual and
(December), 344-359.
92-101.
35
Kapferer, Jean-Noël (1998), “Why are we Seduced by Luxury Brands?,” Journal of
54-56.
Leibenstein, Harvey (1950), "Bandwagon, Snob, and Veblen Effects in the Theory of
Lichtenstein, Donald R., Nancy M. Ridgway, and Richard G. Netemeyer (1993), “Price
Lipovetsky, Gilles and Elyette Roux (2003), Le luxe éternel: De l'âge du sacré au temps
36
Marsh, Herbert W. and Dennis Hocevar (1983), “Confirmatory Factor Analysis of
231-248.
Mason, Roger S. (1981), Conspicuous Consumption, New York: St. Martin's Press.
Mason, Roger S. (1992), Modelling the Demand for Status Goods, Working Paper,
McKinsey Corporation (1990), The Luxury Industry: An Asset for France, Paris:
McKinsey.
Menezes, Dennis and Norbert F. Elbert (1979), “Alternative Semantic Scaling Formats
(February), 80-87.
Mick, David G. (1986), "Consumer Research and Semiotics: Exploring the Morphology
(September), 196-213.
37
Moschis, George P. and Gilbert A. Churchill, Jr. (1978), “Consumer Socialization: A
599-609.
Nia, Arghavan and Judith Lynne Zaichkowsky (2000), “Do Counterfeits Devalue the
485-497.
Nueno, Jose Luis and John A. Quelch (1998), “The Mass Marketing of Luxury,”
Nunnally, Jum C. (1978), Psychometric Theory (2nd ed.), New York: McGraw-Hill.
Nyeck, Simon and Elyette Roux (1997), “"WWW as a Communication Tool for Luxury
Research Seminar in Marketing, 3-6 June, La Londe les Maures, pp. 296-316.
Osgood, Charles E., George J. Suci, and Percy H. Tannenbaum (1957), The Measurement
Phau, Ian and Gerard Prendergast (2000), “Consuming Luxury Brands: The Relevance of
38
Prendergast, Gerard and Claire Wong (2003), “Parental Influence on the Purchase of
Quelch, John A. (1987), "Marketing the Premium Product," Business Horizons, 30 (3),
38-45.
Rao, Akshay R. and Kent B. Monroe (1989), "The Effect of Price, Brand Name, and
Richins, Marsha L. (1994a), "Valuing Things: The Public and Private Meanings of
Rossiter, John R. and Larry Percy (1997), Advertising Communications and Promotion
39
Roux, Elyette (1995), Consumer Evaluation of Luxury Brand Extensions, EMAC
Roux, Elyette (2002), “Le Luxe: Au-delà des Chiffres, Quelles Logiques d’Analyse?,”
Roux, Elyette and Jean Marie Floch (1996), “Gérer L’Ingérable: la Contradiction Interne
Sheth, Jagdish N., Bruce I. Newman, and Barbara L. Gross (1991), "Why We Buy What
159-170.
Silverstein, Michael J. and Neil Fiske (2003), “Luxury for the Masses,” Harvard
Strahan, Robert and Kathleen Carrese Gerbasi (1972), “Short, Homogeneous Versions of
(1), 191-193.
40
Tian, Kelly Tepper, William O. Bearden, and Gary L. Hunter (2001), “Consumers’ Need
28 (June), 50-66.
Tigert, Douglas J., Lawrence R. Ring, and Charles W. King (1976), “Fashion
Consumer Research, Vol.3, Beverly B. Anderson (ed.), Provo, UT.: The Association
Veblen, Thorstein B. (1899), The Theory of the Leisure Class, Boston: Houghton Mifflin.
Review, http://www.amsreview.org/amsrev/theory/vigneron01-99.html.
41
Zaichkowsky, Judith L. (1985), “Measuring the Involvement Construct,” Journal of
42
TABLE 1: REVIEW OF FACTORS DESCRIBING LUXURY BRANDS ACROSS THREE
STUDIES
43
______________________________________________________________________________________________________
FIGURE 1
______________________________________________________________________________________________________
Conspicuousness
Non-Personal Uniqueness
Perceptions
LUXURY Quality
Hedonic
Personal
Perceptions
Extended-Self
______________________________________________________________________________________________________
44
______________________________________________________________________________________________________
TABLE 2
Brands used to David Jones, Hilton, Levi’s; Mercedes-Benz; Nike Air shoes; Porsche 911 turbo;
Develop the Scale Ralph Lauren shirt; Ray Ban; Rolex; house in Sydney.
Brands used to Bally leather shoes; BMW 750i; Hugo Boss; Grace Brothers; Cartier; Chanel
Test the Scale No5; Christian Dior; Ferrari F355; Gucci sunglasses; Guerlain; Yves-Saint-
Laurent shirt; Hermés; Hilton; David Jones; Moët & Chandon; Nike Air; Bang
& Olufsen; Revlon; Sony; Louis Vuitton.
45
TABLE 3
_____________________________________________________________________________________
_____________________________________________________________________________________
Scale Alpha
_____________________________________________________________________________________
_____________________________________________________________________________________
46
TABLE 4
_____________________________________________________________________________________
_____________________________________________________________________________________
FACTORS Factor Factor Factor Factor Factor
One Two Three Four Five
EIGENVALUE 12.84 2.37 2.13 2.01 1.50
% OF COMMON 42.8% 7.9% 7.1% 6.7% 5.%
VARIANCE
ITEMS
1. Classic .05 .15 .12 (.67) .19
2. Concern .23 (.61) .15 .12 .02
3.Conspicuous .29 .20 (.72) .21 .21
4.Crafted .20 .17 .21 (.74) .11
5. Distinctive .67 .11 .06 .22 .05
6. Elitist .24 .18 (.74) .17 .21
7. Emotional .18 (.81) .18 .13 .27
8. Exceptional (.75) .21 .22 .16 .10
9. Exclusive (.77) .26 .25 .15 .12
10. Expensive .24 .28 (.76) .13 .17
11. Exquisite .12 .17 .24 .12 (.67)
12. Fascinating .30 .25 .23 .13 (.72)
13. Glamorous .13 .20 .06 .09 (.82)
14. Impressive .19 (.73) .11 .14 .16
15. Leading .14 (.77) .15 .19 .10
16. Luxurious (.77) .21 .24 .14 .19
17. Powerful .22 (.74) .17 .16 .22
18. Precious (.77) .18 .17 .17 .16
19. Quality .23 .15 .16 (.78) .14
20. Rare (.76) .22 .19 .19 .18
21. Rewarding .16 (.82) .17 .13 .23
22. Sophisticated .18 .19 .16 (.74) .18
23. Status .21 .18 (.76) .21 .08
24. Stunning .28 .26 .18 .19 (.74)
25. Stylish .17 .08 .08 (.70) -.004
26. Successful .20 (.76) .08 .19 .12
27. Superior .16 .19 .16 (.72) -.01
28. Symbolic .05 .02 (.75) .10 .01
29. Unique (.79) .22 .18 .14 .20
30. Wealthy .23 .20 (.74) .18 .23
Note: 47
(italics) Significant factor loadings (> .60).
_____________________________________________________________________________________
TABLE 5
_____________________________________________________________________________________
_____________________________________________________________________________________
Conspicuous & Distinctive * & Classic * & Novel Leading & Emotional * &
Inconspicuous Neutral Crafted & Mass Influential Unemotional
Elitist & Popular Exceptional * & Produced Powerful & Exquisite & Tasteful
Expensive & Normal Higher Quality & Powerless Fascinating * &
Inexpensive Exclusive & Lower Quality Rewarding & Indifferent
For Wealthy & For Unexclusive Luxurious & Unrewarding Glamorous &
Well off Precious & Not Upmarket Successful & Attractive
Imposing * & Precious Sophisticated & Average Stunning &
Unimposing Rare & Not Unadorned Memorable
Impressive * & Rare Stylish * &
Unimpressive Unique & Standard
High Status Common Superior
Symbol * &
Medium Status
Symbol
High Standing * &
Medium Standing
N.B.. * show items that were deleted along with the study
_____________________________________________________________________________________
48
TABLE 6
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
N.B. This table shows the CFA results from the combined brands (i.e., Levi’s, Ray Ban,
Rolex, and Porsche)
49
TABLE 7
_____________________________________________________________________________________
_____________________________________________________________________________________
50
TABLE 8
_____________________________________________________________________________________
_____________________________________________________________________________________
51
TABLE 9
PERCENTAGE OF RESPONDENTS
SORTED AMONG EACH SCALE CATEGORIES
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
\Respondents (1) (2) (1) (2) (1) (2) (1) (2) (1) (2)
(a) High BPI Raters 79% 21% 76% 24% 82% 18% 77% 23% 72% 28%
(b) Low BPI Raters 28% 72% 34% 66% 12% 88% 24% 76% 24% 76%
_____________________________________________________________________________________
Notes: High BPI score: Respondents with BPI score above the overall mean score.
Low BPI score: Respondents with BPI score below the overall mean score.
(1) Respondents positively related to the rated concept.
(2) Respondents negatively related to the rated concept.
(a) Cases with mean scores higher than the overall mean BPI score.
(b) Cases with mean scores lower than the overall mean BPI score.
52
______________________________________________________________________________________________________
MATRIX 1
_____________________________________________________________________________________
_____________________________________________________________________________________
53
TABLE 10
20 ITEMS IN THE BLI SCALE
_____________________________________________________________________________________
_____________________________________________________________________________________
Non-personal Oriented Perceptions
________________________________________
CONSPICUOUSNESS Conspicuous____:____:____:____:____:____:____Noticeable
Popular____:____:____:____:____:____:____Elitist*
Affordable____:____:____:____:____:____:____Extremely Expensive*
For Wealthy____:____:____:____:____:____:____For Well Off
QUALITY Crafted____:____:____:____:____:____:____Manufactured
Upmarket____:____:____:____:____:____:____Luxurious *
Best Quality____:____:____:____:____:____:____Good Quality
Sophisticated____:____:____:____:____:____:____Original
Superior____:____:____:____:____:____:____Better
Personal Oriented Perceptions
________________________________________
HEDONISM Exquisite____:____:____:____:____:____:____Tasteful
Attractive____:____:____:____:____:____:____Glamorous*
Stunning____:____:____:____:____:____:____Memorable
EXTENDED-SELF Leading____:____:____:____:____:____:____Influential
Very Powerful____:____:____:____:____:____:____Fairly Powerful
Rewarding____:____:____:____:____:____:____Pleasing
Successful____:____:____:____:____:____:____Well Regarded
Note: (*) Indicates item is reverse scored.
_____________________________________________________________________________________
54