Article ID: | iaor2014604 |
Volume: | 13 |
Issue: | 1 |
Start Page Number: | 2 |
End Page Number: | 11 |
Publication Date: | Feb 2014 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Kapferer Jean-Nol, Klippert Cindy, Leproux Lara |
Keywords: | marketing |
Consumer studies show that luxury evokes high prices. However, the remarkable growth of this sector is based on its extension to the middle class, with affordable prices. This is a paradox: luxury needs to be expensive, yet grew being accessible. Hence the question: If consumers want to access to luxury, below what price would they consider that it is no more luxury? Is there a minimum price? This research explores how consumers decode luxury prices, how are lower prices compatible with luxury. Strong brands have indeed a larger latitude for accessible pricing than new luxury brands.