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Luxury in the digital age: A multi-actor service encounter perspective

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  • Holmqvist, Jonas
  • Wirtz, Jochen
  • Fritze, Martin P.

Abstract

Luxury brands have been reluctant to adopt technology-enhanced multi-actor interactions at the customer interface. This article synthesizes research on luxury and multi-actor interactions in non-luxury contexts to explore how luxury brands can adopt digitally enabled multi-actor service encounters. The literature is further supplemented by interviews with managers in luxury firms. Our findings caution against simply adopting approaches from non-luxury contexts as they risk undermining the luxury service experience. Rather, we develop a set of propositions at the intersections of the physical, digital, and social realms on how luxury brands can adapt the use of digital multi-actor interactions to augment rather than imperil their brand image. Specifically, our propositions help luxury managers to enhance the customer experience through hedonic escapism, strengthen their brand communities, and use digitization to simultaneously provide conspicuous customers with greater visibility and discreet customers with social exclusivity.

Suggested Citation

  • Holmqvist, Jonas & Wirtz, Jochen & Fritze, Martin P., 2020. "Luxury in the digital age: A multi-actor service encounter perspective," Journal of Business Research, Elsevier, vol. 121(C), pages 747-756.
    • Handle: RePEc:eee:jbrese:v:121:y:2020:i:c:p:747-756
    DOI: 10.1016/j.jbusres.2020.05.038
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    2. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
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    5. Riedmeier, Julia & Kreuzer, Maria, 2022. "Me versus we: The role of luxury brand managers in times of co-creation," Journal of Business Research, Elsevier, vol. 145(C), pages 240-252.
    6. Pantano, Eleonora & Pedeliento, Giuseppe & Christodoulides, George, 2022. "A strategic framework for technological innovations in support of the customer experience: A focus on luxury retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    7. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    8. Holmqvist, Jonas & Visconti, Luca M. & Grönroos, Christian & Guais, Blandine & Kessous, Aurélie, 2020. "Understanding the value process: Value creation in a luxury service context," Journal of Business Research, Elsevier, vol. 120(C), pages 114-126.
    9. Javornik, Ana & Duffy, Katherine & Rokka, Joonas & Scholz, Joachim & Nobbs, Karinna & Motala, Anisa & Goldenberg, Adriana, 2021. "Strategic approaches to augmented reality deployment by luxury brands," Journal of Business Research, Elsevier, vol. 136(C), pages 284-292.
    10. Marlini Moodley & Dipolelo Fungile & Farai Nyika & Winiswa Mavutha, 2023. "Understanding Marketing Communications Strategies During and Post Covid 19: A South African Perspective," International Review of Management and Marketing, Econjournals, vol. 13(2), pages 36-46, March.
    11. Lama Halwani, 2021. "The Online Experience of Luxury Consumers: Insight into Motives and Reservations," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(11), pages 157-157, July.
    12. Taishoff, Marika & Mühlbacher, Hans & Kauppinen-Räisänen, Hannele, 2022. "Building and sustaining resilient luxury service ecosystems," Journal of Business Research, Elsevier, vol. 146(C), pages 201-215.
    13. Berta Marcos Ceron & Manuel Monge, 2023. "Consumer Sentiment and Luxury Behavior in the United States before and after COVID-19: Time Trends and Persistence Analysis," Mathematics, MDPI, vol. 11(16), pages 1-14, August.
    14. Pangarkar, Aniruddha & Patel, Jayesh & Kumar, Sampath K., 2023. "Drivers of eWOM engagement on social media for luxury consumers: Analysis, implications, and future research directions," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    15. Feng, Wenting & Yang, Morgan X. & Yu, Irina Y., 2023. "From devil to angel: How being envied for luxury brand social media word of mouth discourages counterfeit purchases," Journal of Business Research, Elsevier, vol. 165(C).
    16. Jeannot, Florence & Dampérat, Maud & Salvador, Marielle & El Euch Maalej, Mariem & Jongmans, Eline, 2022. "Toward a luxury restaurant renewal: Antecedents and consequences of digitalized gastronomy experiences," Journal of Business Research, Elsevier, vol. 146(C), pages 518-539.

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