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Does luxury have a minimum price? An exploratory study into consumers' psychology of luxury prices

Author

Listed:
  • Jean-Noël Kapferer

    (HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales)

  • Cindy Klippert

    (HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales)

  • Lara Leproux

    (HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales)

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:hal:journl:hal-00977169
    DOI: 10.1057/rpm.2013.34
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    Citations

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    Cited by:

    1. Wang, Wangshuai & Ma, Tianjiao & Li, Jie & Zhang, Mo, 2020. "The pauper wears prada? How debt stress promotes luxury consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    2. 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.
    3. Geerts, Angy & Masset, Julie, 2022. "Luxury tourism through private sales websites: Exploration of prestige-seeking consumers’ motivations and managers’ perceptions," Journal of Business Research, Elsevier, vol. 145(C), pages 377-386.
    4. Katyal, Kanupriya & Dawra, Jagrook & Soni, Nitin, 2022. "The posh, the paradoxical and the phony: Are there individual differences between consumers of luxury, masstige and counterfeit brands?," Journal of Business Research, Elsevier, vol. 152(C), pages 191-204.
    5. Shan, Juan & Lu, Hebo & Cui, Annie Peng, 2022. "1 + 1 > 2? Is co-branding an effective way to improve brand masstige?," Journal of Business Research, Elsevier, vol. 144(C), pages 556-571.
    6. Huang, Ava & Dawes, John & Lockshin, Larry & Greenacre, Luke, 2017. "Consumer response to price changes in higher-priced brands," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 1-10.
    7. Park, Jungkun & Back, Seung Yub & Kim, Dongyoup, 2022. "Masstige consumption values and its effect on consumer behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    8. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2023. "Masstige marketing: An empirical study of consumer perception and product attributes with moderating role of status, emotion, and pride," Journal of Business Research, Elsevier, vol. 155(PA).
    9. Marko Lah & Andrej Sušjan, 2024. "A Heterodox Approach to Masstige: Brand Fetishism, Corporate Pricing, and Rules of Consumer Choice," Review of Radical Political Economics, Union for Radical Political Economics, vol. 56(2), pages 214-232, June.
    10. Purohit, Sonal & Radia, Karan Nilesh, 2022. "Conceptualizing masstige buying behavior: A mixed-method approach," Journal of Business Research, Elsevier, vol. 142(C), pages 886-898.
    11. Gilal, Faheem Gul & Gilal, Naeem Gul & Shahid, Shadma & Gilal, Rukhsana Gul & Shah, Syed Mir Muhammad, 2022. "The role of product design in shaping masstige brand passion: A masstige theory perspective," Journal of Business Research, Elsevier, vol. 152(C), pages 487-504.
    12. Michel Gutsatz & Klaus Heine, 2018. "Is luxury expensive?," Journal of Brand Management, Palgrave Macmillan, vol. 25(5), pages 411-423, September.
    13. 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.
    14. Pillai, Kishore Gopalakrishna & Nair, Smitha R., 2021. "The effect of social comparison orientation on luxury purchase intentions," Journal of Business Research, Elsevier, vol. 134(C), pages 89-100.
    15. 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.

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