IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i1p341-348.html
   My bibliography  Save this article

How price display influences consumer luxury perceptions

Author

Listed:
  • Parguel, Béatrice
  • Delécolle, Thierry
  • Valette-Florence, Pierre

Abstract

This article investigates the impact of price display in the luxury sector, which has always been thought of as “bad practice” in luxury marketing but never explored empirically. Taking an experimental approach, the study shows that in the case of brands in the premium luxury segment, price display may have a positive influence on luxury perceptions, and more specifically on perceived brand uniqueness and conspicuousness, which in turn may transfer to brand attitude and desirability. As this runs counter to common wisdom, the findings of this study provide a number of noteworthy theoretical insights and interesting managerial implications.

Suggested Citation

  • Parguel, Béatrice & Delécolle, Thierry & Valette-Florence, Pierre, 2016. "How price display influences consumer luxury perceptions," Journal of Business Research, Elsevier, vol. 69(1), pages 341-348.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:1:p:341-348
    DOI: 10.1016/j.jbusres.2015.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315003434
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.08.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yajin Wang & Vladas Griskevicius, 2014. "Conspicuous Consumption, Relationships, and Rivals: Women's Luxury Products as Signals to Other Women," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(5), pages 834-854.
    2. Kapferer, Jean-Noël, 2012. "Abundant rarity: The key to luxury growth," Business Horizons, Elsevier, vol. 55(5), pages 453-462.
    3. Verhallen, Theo M. M. & Robben, Henry S. J., 1994. "Scarcity and preference: An experiment on unavailability and product evaluation," Journal of Economic Psychology, Elsevier, vol. 15(2), pages 315-331, June.
    4. Jean-Noël Kapferer, 2012. "Abundant rarity: The key to luxury growth," Post-Print hal-00731044, HAL.
    5. Jean-Noël Kapferer & Cindy Klippert & Lara Leproux, 2014. "Does luxury have a minimum price? An exploratory study into consumers' psychology of luxury prices," Post-Print hal-00977169, HAL.
    6. Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
    7. Gurumurthy Kalyanaram & Russell S. Winer, 1995. "Empirical Generalizations from Reference Price Research," Marketing Science, INFORMS, vol. 14(3_supplem), pages 161-169.
    8. Jean-Noël Kapferer & Vincent Bastien, 2009. "The specificity of luxury management: Turning marketing upside down," Post-Print hal-00493180, HAL.
    9. Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. "Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 185-193, September.
    10. Virginie de Barnier & Sandrine Falcy & Pierre Valette-Florence, 2012. "Do consumers perceive three levels of luxury? A comparison of accessible, intermediate and inaccessible luxury brands," Post-Print halshs-00786023, HAL.
    11. Erickson, Gary M & Johansson, Johny K & Chao, Paul, 1984. "Image Variables in Multi-Attribute Product Evaluations: Country-of-Origin Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(2), pages 694-699, September.
    12. Fleur Gastaldi, 2012. "Internet, Social Media and Luxury Strategy," Palgrave Macmillan Books, in: Jonas Hoffmann & Ivan Coste-Manière (ed.), Luxury Strategy in Action, chapter 6, pages 108-124, Palgrave Macmillan.
    13. Nueno, Jose Luis & Quelch, John A., 1998. "The mass marketing of luxury," Business Horizons, Elsevier, vol. 41(6), pages 61-68.
    14. Gilles Laurent & B. Dubois, 1994. "Attitudes Towards the Concept of Luxury: an exploratory analysis," Post-Print hal-00829066, HAL.
    15. Lynn, Michael, 1989. "Scarcity effects on desirability: Mediated by assumed expensiveness?," Journal of Economic Psychology, Elsevier, vol. 10(2), pages 257-274, June.
    16. Russell S. Winer, 1985. "Technical Note—A Price Vector Model of Demand for Consumer Durables: Preliminary Developments," Marketing Science, INFORMS, vol. 4(1), pages 74-90.
    17. DUBOIS, Bernard & LAURENT, Gilles & CZELLAR, Sandor, 2001. "Consumer rapport to luxury : Analyzing complex and ambivalent attitudes," HEC Research Papers Series 736, HEC Paris.
    18. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    19. Kastanakis, Minas N. & Balabanis, George, 2012. "Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior," Journal of Business Research, Elsevier, vol. 65(10), pages 1399-1407.
    20. Dall'Olmo Riley, Francesca & Pina, José M. & Bravo, Rafael, 2013. "Downscale extensions: Consumer evaluation and feedback effects," Journal of Business Research, Elsevier, vol. 66(2), pages 196-206.
    21. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    22. Anthony D. Miyazaki & Dhruv Grewal & Ronald C. Goodstein, 2005. "The Effect of Multiple Extrinsic Cues on Quality Perceptions: A Matter of Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(1), pages 146-153, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/14326 is not listed on IDEAS
    2. Béatrice Parguel & Thierry Delécolle & Pierre Valette-Florence, 2014. "Effect of price display on brand luxury perceptions," Post-Print hal-01644820, HAL.
    3. Béatrice Parguel & Thierry Delécolle & Pierre Valette-Florence, 2014. "The impact of price display on perceptions of luxury: a masstige perspective," Working Papers halshs-00948953, HAL.
    4. Gurzki, Hannes & Woisetschläger, David M., 2017. "Mapping the luxury research landscape: A bibliometric citation analysis," Journal of Business Research, Elsevier, vol. 77(C), pages 147-166.
    5. Chailan, Claude, 2018. "Art as a means to recreate luxury brands' rarity and value," Journal of Business Research, Elsevier, vol. 85(C), pages 414-423.
    6. Catherine Janssen & Joëlle Vanhamme & Adam Lindgreen & Cécile Lefebvre, 2014. "The Catch-22 of Responsible Luxury: Effects of Luxury Product Characteristics on Consumers’ Perception of Fit with Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 119(1), pages 45-57, January.
    7. Abhishek Pathak & Gemma Calvert & Carlos Velasco, 2017. "Evaluating the impact of early- and late-acquired phonemes on the luxury appeal of brand names," Journal of Brand Management, Palgrave Macmillan, vol. 24(6), pages 522-545, November.
    8. 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).
    9. Kapferer, Jean-Noël & Laurent, Gilles, 2016. "Where do consumers think luxury begins? A study of perceived minimum price for 21 luxury goods in 7 countries," Journal of Business Research, Elsevier, vol. 69(1), pages 332-340.
    10. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    11. Stępień Beata, 2018. "Snobbish Bandwagoners: Ambiguity of Luxury Goods’ Perception," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(1), pages 79-99, March.
    12. Kumar, Ajay & Paul, Justin, 2018. "Mass prestige value and competition between American versus Asian laptop brands in an emerging market—Theory and evidence," International Business Review, Elsevier, vol. 27(5), pages 969-981.
    13. Chandon, Jean-Louis & Laurent, Gilles & Valette-Florence, Pierre, 2016. "Pursuing the concept of luxury: Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”," Journal of Business Research, Elsevier, vol. 69(1), pages 299-303.
    14. Rosenbaum, Mark S. & Ramirez, Germán Contreras & Campbell, Jeffrey & Klaus, Philipp, 2021. "The product is me: Hyper-personalized consumer goods as unconventional luxury," Journal of Business Research, Elsevier, vol. 129(C), pages 446-454.
    15. Boisvert, Jean & Christodoulides, George & Sajid Khan, M., 2023. "Toward a better understanding of key determinants and consequences of masstige consumption," Journal of Business Research, Elsevier, vol. 161(C).
    16. Michel Gutsatz & Klaus Heine, 2018. "Is luxury expensive?," Journal of Brand Management, Palgrave Macmillan, vol. 25(5), pages 411-423, September.
    17. Kumar, Ajay & Paul, Justin & Unnithan, Anandakuttan B., 2020. "‘Masstige’ marketing: A review, synthesis and research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 384-398.
    18. Annalisa Fraccaro & Sandrine Macé & Béatrice Parguel, 2021. "The not-so-odd couple: Odd pricing in a luxury context," Post-Print halshs-03503449, HAL.
    19. Youngseon Kim & Nikki Wingate, 2017. "Narrow, powerful, and public: the influence of brand breadth in the luxury market," Journal of Brand Management, Palgrave Macmillan, vol. 24(5), pages 453-466, October.
    20. Shin, Hyunju & Eastman, Jacqueline K. & Mothersbaugh, David, 2017. "The effect of a limited-edition offer following brand dilution on consumer attitudes toward a luxury brand," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 59-70.
    21. Katharina Stolz, 2022. "Why Do(n’t) We Buy Second-Hand Luxury Products?," Sustainability, MDPI, vol. 14(14), pages 1-24, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:1:p:341-348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.