Why are we seduced by luxury brands?

Abstract

Why are we seduced by luxury brands? What functions do these brands fulfil? What added values do they convey? What brands deserve the appellation ‘luxury’ and which ones do not? Such were the questions posed by an empirical research study seeking to understand luxury from the consumers' standpoint. The results, summarised in the present article, show that there is no single and homogeneous vision of what a luxury brand is. There are four types of luxury brands, each one characterised by a different value or functions profile, and aiming at different consumer segments. Analysing the functions luxury brands fulfil provides new insights into the reasons why a brand is or is not attractive. Focusing on a young sample, this study also provides clues as to sustaining brand equity long term.