¶ … price remains one of the most important factors that many consumers take into account in formulating their purchase decision, it is important for marketers to segment their target market accordingly. For luxury brands, this means that higher prices must be justified by the consumers' perception of higher quality or more nebulous factors such as brand association. The primary of the proposed study is to examine the influence that self-perception and self-image have on the consumer in their choice of luxury fashion brands. To achieve this research purpose, the study proposed herein will be guided by five main aims: (a) to test and examine the hypothesis stated above for its validity; (b) if the hypothesis holds true, to measure how strong of an influence self-perception and self-image have on the consumer in their choice of luxury fashion brands; (c) alternatively to show that the hypothesis is false; (d) to define self-perception and self-image; and (e) to evaluate the concept of a 'luxury' fashion brand. The proposed study will use a mixed methodology consisting of focus groups, face-to-face interview and a custom questionnaire based on the main themes that emerge. A summary of the research, salient findings and recommendations will be provided in the concluding chapter.
Table of Contents
Chapter 1: Introduction
Statement of the Problem
Purpose of Study
Importance of Study
Rationale of Study
Overview of Study
Chapter 2: Review of Related Literature
Chapter 3: Methodology
Description of the Study Approach
Data-gathering Method and Database of Study
Chapter 4: Data Analysis
Chapter 5: Summary, Conclusions and Recommendations
THE INFLUENCE OF SELF-PERCEPTION AND SELF-IMAGE ON CONSUMERS' CHOICE OF LUXURY FASHION BRANDS
Products can no longer be sold on product features and innovation; they must differentiate themselves by tapping into the emotional needs and benefits people are looking for. One research study by an advertising agency determined that consumers were more likely to find brand differences in categories that rely on emotional appeals rather than rational. -- Lynn R. Kahle and Larry Chiagouris, 1997, p. 237
Chapter 1: Introduction
Statement of the Problem
The epigraph above emphasizes that the need for fine-tuned, effective marketing strategies has never been greater, especially when it comes to knowing which customers prefer certain brands and why. For example, according to Michman, Mazze and Greco, "In today's competitive economic environment, knowing your customer has never been more important" (2003: 30). Some of the ways marketers to match brand with customer type is through positioning and pricing. As Michman and his associates put it, "Positioning strategy is linked to lifestyle market segmentation. Positioning is the process of distinguishing a company or product from competitors along such dimensions as product characteristics or values that are meaningful to consumers. For example, Dior is positioned as a French designer" (2003: 32). Likewise, Parsa and Naipaul report that, "Psychological pricing is the practice of structuring and presenting prices to appeal to consumers' emotions and to influence their decision-making processes" (2007: 7).
Not surprisingly, luxury brands in particular try to distinguish themselves from their lower-priced competitors by emphasizing those attributes of their product (or service) that may be most appealing to their targeted market -- including a higher price -- provided that there are a sufficient number of attributes to justify the price differential, a marketing technique that is hundreds of years old. For example, Twitchell reports that, "In the sixteenth century, for the first time objects could be produced in collectible quantities so that a new class of recently affluent men could collect, sequester, and then show them off" (1999: 183). The significance of these origins of luxury can even be seen today. In this regard, Twitchell adds that, "We still know the names of the luxury brands of the Renaissance -- Giotto, da Vinci, Botticelli, Michelangelo -- because they are still the premier luxury brands lusted after by the super rich. We call them by a special name -- art -- but they really are also the forerunners of display brands" (1999: 183).
Although a number of more modern luxury brands have emerged from these early forerunners, the fundamental human nature issues that are involved with the desire by certain people to own them have remained essentially the same. In this regard, Twitchell notes that, "We are little different from our early-modern ancestors. Clearly, this desire is not really connected to materialism, but to human yearning. The market for luxury goods, begun in sixteenth-century Italy, has encompassed the world" (1999: 183).
Based on research conducted by the McKinsey Corporation that studies luxury consumption, recent trends indicate that over the past two decades alone, the market for luxury goods has increased to an estimated $70 billion annually and the demand is now global in scope (Twitchell 1999). This growth is due in some part at least to how luxury brands position themselves in terms of the powerful meanings that are associated with them. According to this authority, "The dominant paradox for this explosion of luxury brands is not that human beings are crass, it is that they are idealistic. They don't want things, they want meaning. Luxury brands carry meaning very efficiently. That is part of why they cost more" (Twitchell 1999: 183). This observation indicates that a positioning strategy that targets more affluent consumers will not try to hide the higher prices of these goods, but will rather emphasize them. In this regard Michman et al. conclude that, "Positioning strategy aids customers in evaluating product attributes that are of significance or value to them. Mitsubishi, for example, has positioned its vehicles as more attractively styled than competing makes" (32). This means that, ceteris paribus, for some consumers, higher prices equate to higher quality and a superior value.
This all sounds well and good, of course, but formulating effective positioning strategies in a dynamic environment can be a challenging enterprise and this is certainly the case with many luxury brands that have to continually redefine themselves in terms of what they perceive their customers want. In this regard, Kahle and Chiagouris emphasize that, "Today's luxury market is in a situation of constant and at times radical change. The rapid and continuing evolution of consumer attitude and behavior patterns is paralleled by an ongoing restructuring and concentration among producers" (1997: 355). The dynamic condition of the luxury market makes formulating effective marketing regimens particularly challenging. For example, Kahle and Chiagouris add that, "In fact, if there is any common denominator in the luxury markets across countries, it is the growing internal diversity of consumer tastes and habits. This leads to market fragmentation, a loss of economies of scale, and a splintering of brand identity within any particular country" (1997: 355).
For multinational firms, this is an especially salient point because even though luxury brands may not be able to use a universal marketing message, they will still need to determine a sufficient amount of commonalities among consumers in different countries to position their products appropriately. As Kahle and Chiagouris stress, "Such market conditions make it imperative to identify transnational targets that share enough common traits to allow for a similar positioning in different countries" (1997: 355). Unfortunately, there remains a glaring lack of research concerning the influence of self-perception and self-image on consumers' choice of luxury fashion brands. In this regard, Kahle and Chiagouris emphasize that the "fashion and apparel [is] an image industry that does not rely on research. Research often means tracking what sells and what doesn't" (1997: 237). This pragmatic approach is clearly more straightforward than some other methods that are used by luxury brand marketers, but this has not daunted the search for even more fine-tuned information concerning this market (Kahle & Chiagouris 1997).
This fine-tuning is important because of the higher prices commanded by luxury brands that must be justifiable in some way when the consumer makes a purchase decision. The vagaries between luxury brands and less expensive but potentially equal quality brands is highlighted by the observation of Twitchell that, "Often this meaning seems hopelessly recondite to someone out of the culture. If you were a visitor from a distant galaxy could you ever distinguish between such parity products as dungarees from Guess, Gloria Vanderbilt, or Calvin Klein? How could you know that Cadillac, BMW, Lexus, and Jaguar have entirely different brand personalities?" (1999: 183). The "brand personalities" that are popularly associated with these and other luxury brands represent a nebulous but important so-called "dream factor" that makes their ownership important to some consumers. For instance, Kahle and Chiagrous note that, "The dream of owning a luxury brand item, whether it be a car, jewelry, fashion, perfume, or high-tech sound system, is at the core of consumer fantasies" (1999: 37). It is reasonable to suggest that the vast majority of Americans share certain "consumer fantasies" when it comes to various luxury brand purchases, but determining how these powerful forces actually play out in the marketplace remains unclear. This determination, though, represents an important issue for luxury brand marketers as well as their lower-priced competitors. In this regard, Kahle and Chiagrous ask, "Why is the dream so important to the luxury business? And where did it come from?," and by way of answer add that, "Traditionally, economists have stressed the role of income as a determinant of consumption behavior" (1999: 37). From this perspective, luxury brands may be desired be many consumers, but the more affluent are clearly more readily capable of such acquisitions, making them a natural target for luxury brands marketers.
Although there is a growing body of contemporary knowledge concerning the influence of self-perception and self-image on luxury brand purchases, the study of these issues is certainly not new. In fact, as early as 1899, Thorstein Veblen developed a theory according to which consumers use product prices as a means of ostentatiously displaying their wealth (Veblen 1899). Based on the inextricable relationship between the level of consumers' income and the type of goods and services they may desire, it would be reasonable to posit that highly affluent consumers would be a natural market for luxury brand marketers; however, the choice of luxury brands over other brands is a highly complex decision that take into account a wide range of personal and subjective factors that can compel consumers to select a luxury brand even if the price is more than they would like to pay (Kahle & Chiagouris 1999). While this much is known, there remains a paucity of timely and relevant studies concerning the influence, if it exists, of self-perception and self-image on consumers' choice of luxury fashion brands today. For instance, according to Fortunati, Katz and Riccini, "There is an intriguing unresolved question concerning the relationship between Luxury and Necessity. Are long-term users are of two types? The first type might be those who view it either as a necessity or as a luxury. The second type might be those who have a dual view, namely they embrace both qualities in their attitude -- seeing the technology as a 'luxurious necessity' (e.g., having a wristwatch but choosing a luxury brand)" (2003: 81). Knowing the difference between these motivational factors as they relate to the constructs of self-image and self-perception can therefore help marketers fine-tune their marketing messages.
Purpose of Study
The overarching purpose of this research is to examine the influence that self-perception and self-image have on the consumer in their choice of luxury fashion brands. It is the researcher's initial hypothesis that: self-perception and self-image have a very strong influence on consumers in their choice of luxury fashion brands. Therefore the aims of this research are:
1. To test and examine the hypothesis stated above for its validity.
2. If the hypothesis holds true, to measure how strong of an influence self-perception and self-image have on the consumer in their choice of luxury fashion brands.
3. Alternatively to show that the hypothesis is false.
4. To define self-perception and self-image.
5. To evaluate the concept of a 'luxury' fashion brand.
Importance of Study
This research will provide findings and conclusions that will benefit- and be of value to- the science of marketing, especially in the field of understanding consumers. Understanding the rationales and motives behind consumer buying preference, buying habits and purchase decision is of the utmost importance and significance to marketing. A deepened understanding of the influence of self-perception and self-image will help luxury fashion brands better identify their target market(s), understand their consumer's needs and wants
Rationale of Study
The literature regarding self-image and product-image congruity is stated in the work of Landon to have been "initiated by Levy (1959) and Gardner and Levy (1955)" (1974: 1) the first researcher to measure "the extent to which self-image is congruent with purchase" was Birdwell (1968) who concluded that "self-image was significantly more congruent with brand of car owned that with the seven other brands studied, using a semantic differential." (Landon 1974: 1) The work of Dolich (1969) is reported to have employed a semantic differential as well and found that there was a greater congruity between self-image and most preferred brand over all four product categories" and as well found that self-image was equally effective for most preferred brands of both social and private products." (Landon 1974: 1)
Overview of Study
This paper used a five-chapter format; chapter one introduced the topic under consideration, a statement of the problem, the purpose and importance of the study, as well as its scope and rationale. Chapter two provides a critical review of the relevant and peer-reviewed literature concerning luxury brands and consumer motivation, and chapter three presents the study's methodology, a description of the study approach, the data-gathering method and the database of study consulted. Chapter four is comprised of an analysis of the data developed during the research process and chapter five presents the study's conclusions, a summary of the research and salient recommendations.
Chapter Two: Review of the Literature
Chapter Introduction
This chapter provides a review of the relevant literature to develop the background and an overview of luxury brands and the markets in which they compete, an analysis of the influence of self-perception on consumers' choice of luxury fashion brands, followed by a similar analysis of other factors that have been shown to contribute to consumers' choice of luxury fashion brands. A summary of the research concludes this chapter.
Background and Overview
The work of Weidman, Hennigs, and Siebels (2007) entitled: "Measuring Consumers' Luxury Value Perception: A Cross-Cultural Framework" states that in view of the dynamic growth in the luxury market and the availability of luxury goods to a wider range of consumers than ever before, the luxury market has transformed from its traditional conspicuous consumption model to a new experiential luxury sensibility marked by a change in the way consumers define luxury" (2007: 1). These authorities state as well that it is critical for luxury researchers and marketers in the global context to understand why consumers buy luxury, what they believe luxury is and how their perception of luxury value impacts their buying behavior." (Weidman, Hennigs, and Siebels 2007: 1) To illustrate the complexity of these perceptions, Weidman Hennigs, and Siebels state that "luxury' is a construct that is 'subjective and multidimensional' and that a definition of the concept of luxury should follow an integrative understanding" (2007: 1)
Luxury is defined in the work of Weidman, Hennigs, and Siebels as being "the highest level of prestigious brands encompassing several physical and psychological values" (2007: 1). In addition, Weidman, Hennigs, and Siebels (2007) state that luxury goods consumption involves ". . . purchasing a product that represents value to both the individual and their reference group. Referring to personal and interpersonal oriented perceptions of luxury, it is expected that different sets of consumers would have different perceptions of the luxury value for the same brands, and that the overall luxury value of a brand would integrate these perceptions from different perspectives" (2007: 1). Furthermore, if the luxury's overall level of value or brand is equally perceived across national borders then it is stated that a "differentiated measurements may reveal that the overall luxury value perception is a combination of different evaluations with regards to the subdimensions" (Weidman et al. 2007: 1). Not surprisingly, this differentiated perception of luxury value is stated to possibly rely on the cultural context and the people concerned" (Weidman et al. 2007: 1).
The work of Kapferer (1997) states that ". . . luxury is enlightening...Luxury items provide extra pleasure and flatter all senses at once . . .Luxury is the appendage of the ruling classes" (1997: 253). As to their utility, luxury goods are stated by Weidman et al. To "enable consumers to satisfy psychological and functional needs. Above all these benefits can be regarded as the main factor distinguishing luxury from non-luxury products or counterfeits" (2007: 1). By contrast, necessities are stated to be utilitarian objects that "relieve an unpleasant state of discomfort" while luxury items are "characterized as objects of desire that provide pleasure." (Weidman, Hennigs, and Siebels, 2007: 1)
The work of Nicole Stegemann entitled: "Unique Brand Extension Challenges for Luxury Brands" published in the Journal of Business & Economics Research states that many luxury brands "have a long history with their origin in France, and many luxury goods manufacturers such as Louis Vuitton, which celebrated its 150 anniversary in 2004 have been around for a long time" (2006: 1) According to Stegemann, consumers use luxury brands because of their desire to differentiate themselves by either: being part of this reference group or to separate themselves from other groups preferably to become part of a higher social class" (2006: 2). Stegemann additionally reports that there are three consumer segments as opposed to the original segments of the 'affluent' and the 'excluded' and that those three segments are:
1. The Elitists -- the traditional affluent segment;
2. The Excursionists -- representing the middle class that carefully and occasionally purchasing luxury goods; and,
3. The distance segment -- not interested in luxury at all. (Stegemann 2006: 2).
In addition, Stegemann relates that it was shown in the work of Dubois and Laurent (1994) and Dubois et al. (2001) that the attitudes of consumers toward the concept of luxury "differ considerably to those of non-luxury brands" and found that the attitudes of consumers toward the concept of luxury are ambivalent, as consumers hold strong positive and/or negative connotations towards luxury" (2006: 3).
The desire of consumers for luxury brands has been utilized in the marketing of luxury goods to promote other products through what is known as 'brand extension'. Roux and Boush (1996) are repotted by Stegemann to have "built upon the research by Roux (1995) and examined the effect of consumers' brand knowledge on both their evaluation of luxury brand extension and their inferences about their effect of the extension on the original brand" (2006:3). These researchers determined ". . . that brand knowledge positively effects quality perceptions of potential brand extensions. Consumers showed a favorable attitude towards luxury brand extensions, which were predominantly evaluated with respect to their conceptual fit with the parent brand" (Stegemann 2006: 3).
The work of Barnier and Rodina (2006) entitled: "Which Luxury Perceptions Affect Most Consumer Purchase Behavior? A Cross Cultural Exploratory Study in France, the United Kingdom and Russia" reports a study which analyzed the consumer perceptions of luxury in three countries and specifically those of France, Russia and the United Kingdom. Barnier and Rodina state that research results revealed "relevance of four luxury facets to all three cultures" as follows:
(1) Aesthetics;
(2) Premium Quality;
(3) Product Personal History; and (4) Expensiveness. (2006)
It is related as well that a new luxury dimension of self-pleasure is relevant for the three cultures and that this is linked to:
(1) Aspiration and Product Conspicuousness for the French;
(2) Functionality and Luxury Atmospherics for the British; and (3) Functionality for the Russians. (Barnier and Rodina 2006)
The work of O'Cass and Frost (2002) entitled: "Status Brands: Examining the Effects of Non-Product Related Brand Associations on Status and Conspicuous Consumption" published in the Journal of Product & Brand Management reports a study that sought to expand the understanding of brands and their impact on consumer behavior and to assess the relationship between brand associations which is stated to be a contributor to consumption behavior. Toward this end a self-administered questionnaire was developed and administered to a non-probabilistic convenience sample of 315 young consumers. Research findings are stated to indicate that "…the status-conscious market is more likely to be affected by the symbolic characteristics of a brand; feelings aroused by the brand; and by the degree of congruency between the brand-user's self-image and the brand's image itself. Results also indicate that the higher the symbolic characteristics, the stronger the positive feelings, and the greater the congruency between the consumer and brand image, the greater the likelihood of the brand being perceived as possessing high status elements. The suspicion that status-laden brands would be chosen for status consumption and conspicuous consumption was also confirmed. These findings broaden our understanding of status-conscious consumers and their behavior towards brands" (O'Cass and Frost 2002)
It was reported by Abrams Research in their 'Research Luxury Brands Survey & Report' of 2009 which was a survey of more than 100 leaders and experts in the luxury industry including "influential fashion editors, fashion designers, editors-in-chief, buyers, merchandisers, gallerists, business journalists, fashion bloggers, wine experts, industry analysts and shelter writers" (2009). Likewise, it is reported that the first luxury items to be cut from budgets will be that of fine art while high-end home furnishings will have the most 'staying power'. Abrams Research reports that emergence of a few themes including those as follows:
1. The importance of quality cannot be overstated as the sampling in the study felt that luxury was about quality beyond all else and that it was essential to luxury brand identity;
2. Quality essentials were aligned with hallmark brands such as Chanel, Vuitton, and Rolex and is reported to be of the nature that will remain high in importance to the high-end luxury consumer. (Abrams Research, 2009)
It is also reported that brand management begins with the conceptual view of brand identity which has been defined "as a world or a logo related to products that at the beginning has no sense and then, years after year, it acquires a meaning determined by the products and the communications of the past" [and] brand could be identified as "a system of attributes" (Saviolio, 2006).
In their book, Pleasure with Products: Beyond Usability, Green and Jordan ask, "What is luxury?," and suggest that although there is no universally accepted definition, a literal definition means "enjoyment of a rich, comfortable lifestyle and the indulgence of pleasure" (2001: 125). Because segmentation and target marketing to the very affluent has been well documented as a viable approach with certain products and services, it is not surprising that the successful enterprises that use this marketing technique have received a great deal of attention from business analysts in recent years (Iacobuccid 2001). In this regard, Green and Jordan add that, "As a business concept luxury has gathered a lot of attention in strategy and design. Recent mergers and acquisitions through companies such as LVMH, SMH, Gucci or Prada are testimony to the use of luxury as a strategic position. These companies have accumulated a set of different luxury brands in various product categories including apparel, watches, shoes and food" (2001: 125). The reasoning used in support of this marketing approach concerns the perceived superior quality of luxury goods by consumers compared to other brands. According to Green and Jordan, "Often the high margins are used to justify the acquisition of different luxury brands, or companies producing luxury products, despite the costs of sustaining different images and distribution channels. These developments, and the efforts to create new luxury experiences, show that luxury is becoming an important category in itself" (emphasis added) (2001: 125). Understanding this burgeoning market, then, represents a valuable enterprise for luxury brand marketers who seek to fine-tune their marketing mix. In this regard, Intagliata, Ulrich and Smallwood report that, "In marketing, developing product brand means that the product can be differentiated from other products of the same type. To improve product brand, researchers increase product efficacy while marketers work on advertising. When product efficacy and advertising are both successful, product brand is attained and the product typically achieves a price premium of about 30%" (2000: 12).
The Influence of Self-Perception on Consumers' Choice of Luxury Fashion Brands
People's sense of their selves has been shown time and again to have a direct bearing on the goods and services they seek out, and positive self-perceptions can be reasonable expected to have a corresponding impact on consumers' choice of luxury brands. For instance, according to Klein, "Positive self-perception, or high self-esteem, is a desired outcome of the developmental process. It has been linked to long-term mental health, and to emotional well-being" (1999: 579). In addition, research has shown that individuals' sense of self-perception is an indication of their level of cognitive development and sociality (Klein 1999). The growing body of research concerning the effects of self-perception on individual behavior indicates that people tend to evaluate themselves along a continuum of factors and the extent to which their self-perception matches the preponderance of what others think as well is the extent to which their self-perception is validated (Robak, Ward & Ostolaza, 2006).
The Influence of Self-Image on Consumers' Choice of Luxury Fashion Brands
There are some important gender-related differences involved in the analysis of what influence self-image has on consumers' choice of luxury fashion brands that should be noted. In this regard, Jones emphasizes that, "These days everyone's banging on about luxury as though it were some new form of Viagra, a consumer principle with the capacity to empower anyone who comes into contact with it. King Midas is born again and he has a flagship store on Bond Street" (2006: 9). As to the differences in self-image as it relates to luxury fashion brands, Jones suggests that women differ in fundamental ways that marketers should taken into account. For instance, Jones writes, "The thing is, we men need a little more convincing than women when it comes to shelling out on luxury goods. We need to be convinced that our consumer decisions are ones we won't regret, that won't come back to mock us" (2006: 9). Notwithstanding these gender-related differences, there are some commonalities involved as well. For example, according to Jones, strict marketing principles require that a luxury product for men or women has to demonstrate four distinct qualities in order to succeed, as follows:
1. The item in question must demonstrate superior quality. It must have true luxury brand values, and look and feel palpably superior to cheaper, less sophisticated products.
2. It must be truly unique and relatively difficult to acquire. Not only must it look completely different to its competitors, it must not be available everywhere. Consumers should either have to enter a luxury portal to get one, or go far and wide to acquire one.
3. It must enhance the status of consumers. "Apart from those instances when fashion designers produce ridiculously expensive clothes that are intended to look as if they were found in a gutter -- in fact, that's not quite so fanciful," Jones advises, "as they tend to do it all the time -- we like our luxury purchases to make us appear to be wealthier and cooler than we really are"; and,
4. The product must brighten and enhance the consumers' self-image: "Just owning it should make us feel special, magical and distinct from the crowd" (2006: 9).
It is also possible to develop a measure of emotional interaction with various luxury brands using emotional and rational attributes. In this regard, Kahle and Chiagouris suggest that, "We ask not only what you think of the brand but what you think the brand thinks of you. If a consumer, for example, rates a brand high on status and quality but believes that the brand does not find her worthy of that status, then she won't feel good about the brand and won't feel that she belongs" (1997: 234). As can be seen in Figure 1 below, certain brands appear to possess discrete qualities that can mirror an individual's image of themselves, making their selection all the more desirable.
Figure 1. Attitudes anchored to a specific category and brand
Source: Kahle & Chiagouris 1997: 235
The key concept involved in this analysis relates to the emotional interaction that takes place between the specific brand and the individual consumer. In this regard, Kahle and his associates emphasize that, "Consumers are not blank slates. Everything must relate back to the consumer's interpretation. For example, specific feelings might influence one's particular choice of lingerie to wear for a special occasion. The story doesn't end there, however. The lingerie, in turn, influences how one feels about oneself during the occasion and the wearing of the lingerie" (1999: 234). This concept is illustrated in Figure 2 below.
Figure 2. The relationship between status and quality
Source: Kahle & Chiagouris 1997: 235
Individual perceptions of brand images are therefore an important aspect in formulating a purchase decision for a luxury brand. As shown in Table 1 below, the results of a study by Bozell highlight how consumers who do not use a particular product regard themselves to be much brighter, fun-loving, and energetic than their counterparts who do use these brands. In this regard, Kahle and Chiagrouris emphasize that, "These data dramatically illustrate nonusers' brand image of that product and its users (Kahle & Chiagouris, 1997: 235).
Table 1
Perception gaps
Nonusers' Perception of Self
Self %
Users %
Difference %
Fun-loving
67
25
-42
Caring
78
56
-22
Bright
51
22
-29
Independent
61
28
-33
Feel good about myself
60
35
-25
Active, Energetic
51
20
-31
Source: Bozell Advertising study reported in Kahle & Chiagouris 1997: 235
Another important element in the analysis of self-image and its effect on luxury brand purchase decisions relates to the need to identify specific aspects of the brand that are the most important. For example, pictures of different fashions and styles could be reviewed by a focus group or panel of consumers to identify specific features that are most admired and those that are not. These are important considerations for marketers who rely primarily on demographics as the main determinant of targeting; however, demographics do not provide the robust picture that is required to identify niche markets for luxury brands. In this regard, Kahle and Chiagouris report that, "Demographics -- or the more current concept of life stages-are important. Teens, for example, differ from adults in life situation and needs" (1997: 236). Clearly, the emotional needs of teens differ from adults; within each age group, though, there are certainly attitudinal differences that are major determinants of category and brand use (Kahle & Chiagouris 1997).
Table 2
Emotional needs of teens
Emotional Needs
Percentage Differences
Teen -- Adults
Get noticed
+29
Look good in front of friends
+26
Feel I belong
+19
Feel I have good taste
+26
Source: Kahle & Chiagouris 1997: 236
Applying the foregoing concepts to segmenting the luxury brand fashion industry can provide some interesting insights concerning the influence of self-perception and self-image on purchase decisions. For this purpose, Kahle and Chiagouris provide a useful framework in which to view the female fashion industry in these terms as shown in Figure 3 below.
Figure 3. The attitude segments
Source: Kahle & Chiagouris 1997: 239
The segmentation of the fashion market using the above categorization results in six discrete segments; of these six, the first three seek emotional fulfillment in the clothes they choose to buy and wear as described further in Table 3 below.
Table 3
The segments of the fashion market that relate to self-image
Segment
Description
The Status Seeker
This woman buys well-known brands, most of which she has bought before. She buys good quality clothing that is classic, plain, and simple in its style. She wants something pretty. Buying brand names is not only a way for her to reward herself, but it also gives her confidence in her choices. She chooses brands and clothing that help her feel special and that she belongs. As such, she is into designer and other recognizable logos.
Demographically, she is in her mid to late 30s and 40s. She is married and is more likely than other groups to be a homemaker. Her household income is about $50,000. Her activities include: housework/yard work, gourmet cooking, entertaining guests, and playing tennis. Her fabric preferences are soft, natural/synthetic blends. She prefers conservative colors. She shops in department stores and designer outlet stores.
The Cosmopolitan Fashion Seeker
The Cosmopolitan Fashion seeker is more striking in her appearance. She wears expensive clothes which are both stylish and elegant and enhance her attractive figure. She is proud of her body and wants to show it off in her clothes. She buys what looks good and doesn't need the reassurance of a brand name. She gets noticed for her style. The Cosmopolitan Fashion woman wants clothes that help her feel elegant and sophisticated, as well as feminine. She loves to get dressed up for special occasions, being outgoing and self-expressive. She uses clothes to her advantage. She is in her mid 30s; she is a married, college graduate with a white collar job and a household income of $60,000. She is very social: She attends cultural events, goes to formal dinner parties, travels, and exercises for her health. Looks are more important than fabrics, brand, cost, being machine washable, or any other practical reason. She shops in women's specialty and department stores.
The Trendy Buyer
The last group seeking emotional fulfillment and gratification from clothes is the Trendy Buyer. This woman is very self-involved and seems to be constantly aware of how she feels and looks. She puts a lot of time and effort into shopping and choosing clothes. The Trendy Buyer wears apparel that is stylish and cutting edge -- showing off her body and clothes and getting noticed. She wants her clothes to fit closely and hug her body. She buys by brand and wants something her man would like. The Trendy woman wants clothes that help her feel sexy, outgoing, active, and help her express herself and feel good about herself. Clothes are an important part of her self-image. She wants stylish colors as well as young, bright, vibrant colors. The Trendy woman is young, in her late 20s and early 30s, and single. She is employed with a household income of at least $30,000. Activities focus on appearance, either working to enhance it (exercising for physical fitness, dieting, sunbathing, shopping), or for socializing (dancing, parties, vacations). She shops in department stores.
The next three groups seek less emotional fulfillment through their clothes because they are unconcerned and not too interested in clothes and/or they are not as involved with looks and feelings and how clothes can influence how one feels.
The Uninvolved
The Uninvolved also purchases quality clothing as does the Status Seeker, but she is looking for a good value -- not because she can't afford what she wants, but because she wants to get the most for her money. She buys relatively plain casual clothing that fits well, and is easy to care for. She is very practical in her choice of clothes and doesn't understand why others feel that clothes are so important. She says proudly that her esteem comes from within and from relationships with her family. She feels that clothes should not influence how others react to her, and she is very casual in her attitude toward clothes.
She is a well-educated, busy woman who is confident in her life choices. Demographically, she is in her late 30s, well-educated, and married with kids. She works part-time and has a household income of $50,000+. Her activities tend to focus around her family and community: PTA, school meetings, volunteer work, BBQ's, and informal parties. Athletics are important to her. For hobbies she reads, gardens, and plays a musical instrument. She shops in J.C.-Penney and Sears. Brand and fashion are relatively not important to her.
The Rejector
The Rejector is more than disinterested: She almost rejects style, only looking for loose-fitting clothing that she doesn't have to tuck in to hide her figure flaws and to feel comfortable. She buys clothes that are machine washable. The Rejector tends to be a little older, late 30s and married. She is high school educated and has a household income of under $40,000. She does housework, runs errands, visits family and friends, watches TV at home, and participates in community groups such as church. She shops in factory outlets, K Mart, and Walmart.
The Cost Prudent
Value to the Cost Prudent is determined solely by cost. Unlike the Uninvolved, she does not have a great deal of discretionary income and does not want to spend her money on clothes. She'll buy on sale but not especially to get good value but to buy something inexpensive. She also looks for items that are machine washable and won't shrink. Demographically, she is in her late 20s/early 30s and married. She has a high school education and a household income of under $35,000. Her activities are casual: entertaining family and friends, renting videos, going to the beach, playing the lottery. She loves to travel. She also shops in K. Mart and Walmart and looks for bargains in women's specialty shops
Source: Kahle & Chiagrouris 1997: 241-242
Taken together, it is clear that the constructs of self-image and self-perception have an enormous impact on luxury brand purchase decisions as they relate to various segments of the market, but other factors (some of which involve self-image and self-perception to some extent or in a tangential way) also play an important role and these issues are discussed further below.
Other Factors that Contribute to Consumers' Choice of Luxury Fashion Brands
As noted above and throughout the literature, the purchase decision for luxury brands is a highly complex affair that is not easily reducible to a neat set of figures or a pat answer for all consumers. Nevertheless, Groskop (2006) reports that the effects of popular television series such as "Sex in the City" are highly significant and fashions shown on these shows can have an immediate effect on the market. Likewise, Groskop notes that the popularity of fashion models and fashion designers represent another important force in the manner in which many consumers view luxury brands. According to this fashion authority, "The British stylist Katie Grand has overseen the make-over of several luxury fashion brands. Names such as Arianne Phillips (Madonna's one-time stylist for big events; I guess that Shavawn just does the out-and-about stuff) and Anna Bingemann (associated with Nicole Kidman and Naomi Watts) can make or break a designer's career (2006: 30). Indeed, in some cases, luxury brands go to extreme lengths to ensure that they are perceived as being exclusive in order to make their brand more attractive. For instance, a recent article by Craven ("Exclusive tag is more important than cutting prices") notes that, "When a fashion boss threatens to make a bonfire out of [pounds sterling]1 million worth of his sweaters, you might think he is admitting that they are not any good. In fact, Derrick Campbell insists that it's quite the opposite. Such is his passion for the venerable golfing brand Lyle & Scott that last week he told a stunned audience at an industry conference in London that he would torch about 20,000 sweaters -- some sell for [pounds sterling]145 -- rather than allow the label to be sullied in discount stores or street markets" (2009: 49).
Chapter Summary
This chapter reviewed the literature to provide the background and overview of luxury brands and the markets in which they compete, as well as an analysis of the influence of self-perception on consumers' choice of luxury fashion brands. A comparable analysis of other factors that have been shown to contribute to consumers' choice of luxury fashion brands was also provided. The study's methodology is more fully described in Chapter 3 below.
Chapter 3: Methodology
Description of the Study Approach
The methodology employed in this study is qualitative in nature but a quantitative element will be added to help the overall research value and depth. This quantitative element will be of significance, especially when testing, evaluating and measuring the hypothesis. This research requires both secondary research and primary, exploratory research. According to Dennis and Harris (2002), "Secondary data are information that has been collected earlier for a different purpose, but which may still be useful to the research project under consideration. Census data are a good example of secondary data, and of course the Internet can be searched by key words entered in search engines to obtain secondary data on a huge range of subjects. Finding the information needed to answer a particular research question from secondary data avoids the need to spend time and money on primary research, but the likelihood of an ideal match is remote" (p. 39). By contrast, primary data are "information that is being collected for the first time in order to address a specific research problem. This means that it is likely to be directly relevant to the research, unlike secondary data, which may be out of date or collected for a totally different purpose" (p. 39). The use of both secondary and primary data is highly congruent with these social researchers' guidance that, "Ideally, an effective research project should incorporate both primary and secondary data" (Dennis & Harris 2003, p. 39). The secondary and primary research to be used in the proposed study are described further below.
Secondary Research
A literature review of already available materials on the subject and previously conducted studies/research in similar subjects is very important and helpful. This is especially true when defining self-perception and self-image and evaluating the concept of a 'luxury' fashion brand. In this regard, Fraenkel and Wallen report that, "Researchers usually dig into the literature to find out what has already been written about the topic they are interested in investigating. Both the opinions of experts in the field and other research studies are of interest. Such reading is referred to as a review of the literature" (p. 48). The use of a literature review component is also highly congruent with numerous social researchers who emphasize the need to review what is known about a given topic in the peer-reviewed and scholarly literature to develop informed views and identify gaps in the body of knowledge (Neuman 2003). Should the hypothesis be supported by the literature review, this would strengthen this research's argument greatly or alternatively help show that the hypothesis is not accurate.
Primary Research
It is a primary research aim to interview (an) industry expert(s) on his/her view(s) on the declared hypothesis and on the other research objectives stated. It is important for this research to take into account what professionals have to say about the subject, not only academics. This expert insight added would benefit the quality and depth of any reached conclusion.
Focus Groups
Focus groups and a questionnaire were used to inquire actual luxury fashion brand consumers on the subject in general and more specifically on the research hypothesis. According to Neuman (2003), "Focus groups are a type of group interview in which an interviewer asks questions to the group, and answers are given in an open discussion among the group members" (p. 535). The focus groups in the proposed study will be conducted in a manner that allows for unstructured and extemporaneous discussion concerning the subject of self-perception and self-image and their influence on consumer choice of luxury fashion brands. It will be great significance when evaluating the hypothesis and to truly understand the role of self-perception and self-image in this subject, to hear what actual consumers have to say about it and how self-perception and self-image influences, if at all, their choice of luxury fashion brands.
Structure of the Focus Groups Sessions
There were four focus groups conducted in total; two of these focus groups consisted of ten young males and females (aged 20-39 years) and two focus groups consisted of eight male and female individuals aged 40-65 years, for a total of between 36 focus group participants.
The focus group sessions were all directed by at least one moderator who ensured that the conversations stayed relevant to the research and intervened to guide the discussion by asking specific questions that aim to fuel the discussion when necessary. Notes were taken, and tape recordings of the participants' responses were made which were transcribed and summarized to identify common themes. Although the use of focus groups is a popular approach for social researchers, it is more time consuming and expensive than the use of a single data collection method but it does provide useful empirical findings (Neuman, 2003) that can provide the basis for an informed custom questionnaire design. This need is clear given the dearth of relevant studies using focus groups with regards to the fashion industry. For instance, the use of focus groups, Kahle and Chiagouris point out, " . . . borders on revolutionary in apparel where fashion prima donnas traditionally make million dollar decisions on divine guidance, ego and instinct" (2003: 238). While it may be true that "divine guidance, ego and instinct" are also how some consumers go about making their purchase decision when it comes to luxury goods, the focus groups described above should help illuminate how these processes involve the concepts of self-image and self-perception in ways that can help marketers better understand what motivates some consumers to select luxury brands over lower-priced but equal (in terms of quality) brands.
Questionnaire
The questionnaire was based on the responses and data collected and recorded during the focus group sessions and asks respondents a series of in-depth Likert-Scaled questions. The questionnaire asks respondents, for example, to rate the level of influence self-perception and self-image have on them, compared to other factors of influence for example. As can be seen, using not only focus groups but also a quantitative element will strengthen the research and overall quality of the study.
To help ensure that the integrity of the questionnaire data, the instrument will be designed using the step recommended by Grinnel and Unrau (2005: 273) described in Table 4 below.
Table 4
Initial Steps and Factors to be Considered in Questionnaire Design
Steps in Survey Research
Major Tasks/Factors to be Considered
Planning
1. Definition of the research problem area;
2. Definition of research questions and/or hypotheses;
3. Operational definition of variables;
4. Development of the survey design.
Development and Application of Sampling Plan
1. Definition of the population;
2. Identification of subpopulations;
3. Detailed sampling procedures;
4. Selection of the sample.
Construction of Interview Schedule or Questionnaire
1. Development of questions or selection of measuring instrument;
2. Development of anticipated analysis procedures;
3. Pretest of instrument;
4. Revision of questions (as often and to the extent necessary).
Data Collection
1. Implementation of interviews, questionnaires, inventories, tests, or observations schedules;
2. Follow-ups;
3. Initial tabulation and coding.
Translation of Data
1. Construction of category systems as necessary;
2. Technical preparation of data for analysis.
Analysis
1. Separate analyses of questions, individually or in groups;
2. Synthesis, interpretation of results.
Conclusions, Reporting, Etc.
Following the completion of the initial design steps for the questionnaire instrument itself, it is important to formulate questions that will collect the type of data intended to the maximum extent possible. To this end, Proctor and Vu (2005) provide the following guidance described in Table 5 below concerning issues that should be taken into account in creating questions for survey instruments.
Table 5
Survey Question Design Principles
Design Principle
Description
Is the language simple?
Write the questions so they will be easily understood by the target users. For example, "use" instead of "utilize." This is the case for both language and sentence structure.
Is the question clear?
Avoid using words that are ambiguous. Also, it is important to ask only one question at a time. If the item contains "and" or "or," there is a good chance that the researcher has inadvertently asked more than one question.
Is it short?
Long sentences are more likely to contain complex phrases and sentence structure. Furthermore, long questions are sometimes difficult to follow and increase the workload on the respondent.
Is there any bias present in the question or the response choices?
Do not bias the users' potential response by using leading language in the question. Do not introduce the user to new facts, avoid mentioning one side of a semantic differential scale, and lead users through your choice of response categories.
Does the question have the right level of specificity?
Response choices should not be so general that the user cannot possibly determine the answer; however, they should be specific enough to be useful for the study.
Is the question objectionable?
Each item should be reviewed for the possibility of either inappropriate tone or content. This is of particular concern when a survey is cross-cultural where the questions, sentence structure, and language may be perfectly acceptable in one culture but offensive in others.
Source: Proctor & Vu 2005: 311
Finally, a face-to-face interview was conducted with an industry expert in the Swiss fashion retail market. The results of the interview are presented in summary fashion with verbatim excerpts where appropriate.
Limitations
The main limitation in the research approach concerned obtaining genuine and honest responses in the surveys and focus groups. The reason for this is that the subject investigates very personal aspects of the consumer, involving a lot of emotions. In some cases, participants were reluctant to give honest accounts and insight into the influence self-perception and self-image has on their choice of luxury fashion brands.
Another limitation was time. The research was required to be conducted, evaluated and presented in a relatively short time period. It goes without saying, that given more time the research would be able to paint an even clearer picture with more depth and understanding.
Along the lines of the previous limitation, another one is location. The research will not have the opportunity to see whether there are discrepancies and differences in the data collected and thus, the conclusion this report reached based on geographic location or if consumers of different geographic areas are very similar in this respect, no matter where they are from.
Chapter 4: Data Analysis
Section One: Summary of Focus Groups Results
Table 6
Summary of Four Focus Group Responses
Focus Group
Representative Comments
Common Themes
Focus Groups A: Ten Male and Female Participants Aged 20-39 Years
1. I try to keep an eye on what my friends are wearing (female).
2. Yes, I read fashion magazines all the time but I don't always seek these brands out specially (female).
3. I don't want to look like a fashion model necessarily, but I do want to look nice and luxury brands help me do that (female).
4. I really do believe that 'clothes make the man' (male).
5. All of the guys in my office wear pretty much the same brands all of the time, and I'd feel uncomfortable by showing up in something else (male).
1. Self-perception and brand choice are related.
2. Younger consumers appear to be more interested in selecting luxury brands to communicate an image to others.
3. Younger consumers are particularly concerned about what others, especially their friends, think about them.
4. Luxury brands are closely connected with individual perceptions of self-esteem.
Focus Groups B: Ten Male and Female Participants Aged 20-39 Years
1. People don't respect you if you are dressed shabbily (male).
2. I don't want to dress like everyone else because I have my own tastes, but I like some luxury brands because of their quality (female).
3. I can't fit in at work unless I'm wearing top fashion clothes. I've seen people get promoted ahead of me and I think it was due in some part to their choice of clothes (male).
4. My friends and I go shopping together and we tend to agree on what looks good, and what looks good are usually luxury brands (female).
5. I like some luxury brands and try to buy them when I can afford them because they make me feel like I am putting my best foot forward (female).
Focus Group D: Eight Male and Female Participants Aged 40-65 years
1. If I like the way a luxury brand looks I might buy it but I don't always chose a luxury brand just because it's a luxury brand (female).
2. I'm at a point in my life where I feel like I can buy whatever brand of clothes I want no matter, but I usually just buy what I like (male).
3. I just buy what's on sale (male).
4. I like nice things and luxury brands seem to last longer (female).
5. My husband and I both look for value in what we buy and sometimes luxury brands are the best buy (female).
1. Although self-perception and self-esteem appear to play a role in the purchase decision, older consumers appear to be less concerned about what others, including their friends, think about what they wear and their choice of brands.
2. Luxury brands are perceived to have superior quality.
3. Price is more important to older consumers than their younger counterparts.
Focus Group D: Eight Male and Female Participants Aged 40-65 years
1. You get what you pay for (male).
2. I subscribe to two or three fashion magazines and try to keep track of what's new, but this doesn't mean I always rush out and buy these things, but sometimes I do (female).
3. I like watching fashion shows on TV and sometimes I think, 'That would look good on me too' (female).
Section Two: Summary of Face-to-Face Interview with Industry Expert
Question No. 1. What do you consider to be the main factors influencing consumers' choice of luxury brands?
Answer: The main factors are (not in order of significance) are: Sex, age, disposable income, fashion media, celebrities, availability of the brand(s) (meaning channels of distribution) and the way the consumer sees him-/herself.
Question No. 2. How, if at all, do self-image and self-perception influence consumers' choice of luxury fashion brands?
Answer: These two factors strongly influence consumers. Often consumers will have a certain look or image in mind that they wish to portray or, likewise, want to belong to a specific group of people who dress in a certain way. Furthermore, people see themselves in a certain way and often buy their clothes according to this self-image and self-perception.
Question No. 3. Do celebrities influence our choice of luxury fashion brands? If so, how? A.
Yes, celebrity endorsements are very helpful in building a brand's identity, defining the market segment it wants to compete in and who its target market is in the eyes of the consumer. Additionally, celebrities are often role models, idols or an aspiration for people and thus, people are influenced by what celebrities advertise. Generally speaking lower to middle income individuals are more influenced by celebrities.
Question No. 4. Does a consumer's environment, meaning family and friends for example, influence a consumers' choice of luxury brands?
A.
It can be a strong influence if the relationship between the consumer and his/her environment is particularly strong. That is to say: If the consumer has respect and appreciates either his/her family and/or friends and feels they represent an aspirational group then he/she will be deeply influenced. However, let's not forget that often the opposite is true, especially for the relationship between a person and his/her family. Some people rebel their environment and want to stand as apart as possible to them. Nonetheless, it still holds true that one's family influences choice of brands, in this case choosing an opposite brand. Friends can also be a strong influence if the person in question feels his/her friends are similar to the way he/she sees him-/herself.
Question No. 5. Does what fashion magazines and fashion media define as being 'in' and 'out' influence consumers' shopping for clothes? If so, how strong is this influence?
A.
That depends on the consumer's mindset. If they have a strong want to be perceived as being fashionable and trendy by other people, then yes absolutely: Fashion magazines and media are a very strong influencer. Hence, the massive efforts many luxury fashion brands conduct to be featured (with a positive connotation) in fashion magazines and media.
Question No. 6. Do people buy certain brands to project a certain image?
A.
Yes of course. If you want to look sexy, you dress in sexy clothes. If you want to look wealthy you dress in expensive clothes. At the end of the day, the brands you choose for a reason and part of this reason is to portray an image.
Question No. 7. Could you name some luxury fashion brands which you consider to enjoy a very strong consumer loyalty?
A.
Ralph Lauren, Prada, Dolce & Gabbana, Gucci,
Question No. 8. For every, or at least the majority of, luxury fashion brands there is a stereotype user/consumer or specific 'class'/'personality' of consumer that is associated with that brand. Would you agree with this statement? Can you think of any examples?
A.
Yes.
Question No. 9. Referring to the previous question, do you think that these stereotypes can influence consumers' choice of brands (positively or negatively)?
A.
Absolutely, often consumers will or will not buy certain brands because of these stereotypes that they associate with the brand. If this stereotype represents an aspirational group for the consumer then he/she will go for that brand. Likewise, if this stereotype represents something the consumer absolutely does not want to associate with they will not buy that brand.
Question No. 10. People see themselves in a certain way or want to be seen in a certain way and will choose the fashion brands that fit/suit their self-image and/or self-perception the best. Would you agree with this statement?
A.
Yes.
Section Three: Summary of Questionnaire Administration
Part One: Demographic Information
Key:
1
Male
2
Female
Table 7
Summary of Responses to the Question, "What is your sex?"
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
1.00
61
40.7
40.7
40.7
2.00
89
59.3
59.3
Total
Key:
1
20-39
2
40-65
Table 8
Summary of Responses to the Question, "How old are you?"
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
1.00
74
49.3
49.3
49.3
2.00
76
50.7
50.7
Total
Key:
1
Masters/MBA degree
2
Bachelors degree
3
High school
4
Other degree
5
Table 9
Responses to Question, "What is your education level?"
Frequency
Percent
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