Advertising And Luxury Brands Consumption

Consistent and constant monitoring of luxury brand equity is a salient priority for marketers. Marketing Science Institute defines brand equity as "the set of associations and behaviors on the part of the brand's customers, channel members, and Parent Corporation that permits the brand to earn greater volume or more significant margins than it could without the brand name and that gives the brand a strong, sustainable, and differentiated advantage over competitors (Çerri, 2012). Positive consumer associations and behaviors toward a luxury brand can be achieved through the effective application of social media or/or advertising.

The outcome of the consumer response to a luxury brand depends on the brand knowledge a consumer possesses (Keller, 1993). Keller (1993) defines brand equity as "the deferential effect of brand knowledge on consumer response to the marketing of a brand." Brand knowledge is associated with a memory model that consists of two constructs: (1) brand awareness (which includes a brand recall and recognition performance by a consumer) and (2) brand image (which includes brand associations related to the brand that the consumer retail in memory) (Cerri, 2012). The lowest level of brand awareness is brand recognition, which reflects the consumer's familiarity with a brand name. The ultimate level of awareness is brand dominance when a consumer provides a specific brand name at a recall task (Aaker, 1991). Brand image is vital in creating meaning for a brand in consumers' minds (Keller, 1993). Berry (2000) describes a brand image as "the consumer's snapshot impression of the brand and its associations." Effective marketing strategies via advertising can potentially benefit a brand and create a positive brand image.

Aaker and Joachimsthaler (2000) discuss three potential benefits of consumer-based properties: functional, experiential, and self-expressive. Functional benefits relate to a product's performance. Experiential benefits relate to a consumer's emotional state during the purchase or use of the product. Self-expressive benefits represent a symbolic feature that reflects a consumer’s wishes regarding how they want to be seen while using a brand (Keller, 1993). A brand's self-expressive benefits are vital for developing long-term consumer relationships.

Formulating A Brand Message

A luxury brand presence on social media must be carefully formulated for a consistent brand message. Any intangible activities, such as advertising or social media presence, could strongly influence luxury brand awareness and consumer's ability to recognize and recall a brand (Berry, 2000). One of the techniques that is widely applied to advertise luxury goods is personification. Turner (1987) defines personification as a message characteristic - an option that can be added to a message. Personification is considered a powerful and persuasive tool in advertising because it taps into the human cognitive bias called anthropomorphism (Marjorie et al., 2011). Anthropomorphism is a tendency to attribute human qualities to things (Ricoeur, 1977). Research demonstrates that personification can encourage consumers to anthropomorphize and build strong emotional ties with a brand (Aaker, 1997). Brand liking can increase if a positive emotional response builds toward a brand.

With the variety of product categories on the market and consumer personalities, how can a luxury brand create an appropriate message that would appeal to a brand's designated market? For brands to create effective marketing strategies, developing a better understanding of the consumer goals must be satisfied, which is vital. The research in advertising presents implications for personality- or product-based functional matching effects (Alwitt, 1991). Two basic constructs describe the functional relationship between a consumer's personality (personality-based functional matching effect: self-monitoring) and product type (product-based functional matching effect: utilitarian, social identity).

Self-monitoring construct (personality-based functional matching effect) depends on consumers' personality and their level of self-monitoring in terms of sensitivity and responsiveness to social and situational cues (Snyder, 1987). Self-monitoring individuals are highly sensitive to societal feedback and aware of their behavior's social consequences (Snyder, 1987). High self-monitoring consumers strive to establish their public/social identity and purchase goods with attractive and popular packaging. They are drawn to socially-adjustive advertisements focusing on social images. Low self-monitoring individuals are less dependent on social situations. They tend to purchase goods that reflect and express their inner personality and are attracted to value-expressive and utilitarian advertisements focusing on product quality (DeBono & Packer, 1991).

The product-based functional matching effect is based on product differences and consumers' preferences. Products are designed to fulfill consumers' goals (Slama & Singley, 1996). For advertisements to be appealing and persuasive toward a designated market, marketers need to differentiate what product types and functions the market favors. There are two types of product functions: the social identity function products and utilitarian function products (Shavitt, 1990). Individuals will favor advertisements that favor a message that is appealing to them. When advertising social identity brands, the thoughts of image and brand meaning are critical to communicating the message. Meanwhile, for utilitarian function brands, the message focuses on product quality and performance (Nelson et al., 1997).

Luxury Brands In Social Media

Major leading fashion luxury brands have created social media platforms to enhance their brands’ image. Social media has become an "It" trend to expose to the potential consumer base. It is used as a communication tool to expand brand perception and consumers' purchase intention for fashion luxury goods (Phan, 2011). Some consider it a significant investment, and it consistently communicates a brand's image to social media users via Facebook, Twitter, chat forums, web blogs, YouTube, or smartphone applications. Some research demonstrates that the primary users of social media are young adults (under 40 years) who have been using the new communication technologies for all their life- span and are familiar with them (Phan, 2011).

As a relatively new phenomenon in business, social media has become widely accepted by fashion luxury brands. Some major fashion brands have delayed the launch of their social media channels, whether due to the fear of brand overexposure or having engagement issues with the social media applications between their 50+ demographic consumers and their response to using challenging social media tools (Phan, 2011). However, current research indicates that social media channels have increased usage by the 50+ demographic. Fashion luxury brands have become more aware of how to engage this age group, what communication strategy must be applied, and what advertising is appropriate.

Some of the most active fashion brands - Burberry, Dolce and Gabanna, and Gucci - are underperforming in terms of brand liking and purchase intentions. Although Burberry has an active social media presence with a mobile application that engages brand users via online questionnaires and live broadcasting of its fashion show on 3-D screens, the brand is still perceived as old-fashioned (Phan, 2011). Research findings show that purchase intention is directly correlated with brand liking, and building social media is significant only on a long-term condition with complete integration with a brand's overall business strategy.

Social media is essential in emerging markets to create a luxury brand experience and connect with consumers, especially fashion-conscious ones. After creating a distribution channel, brand experience becomes crucial for reaching out to a brand's target demographics, educating the customer by telling brand stories, and eventually building a long-term relationship with them. Advertisements render culturally charged hues of a designated market/demographics that need to be fully understood by advertisers to create powerful and meaningful advertising campaigns (Zarzosa & Luna-Nevarez, 2011).

Luxury Goods Demographics

The market for luxury goods has not been sufficiently researched in the consumer behavior literature, which makes it even more difficult for luxury brand marketers to find effective advertising applications to appeal to changing customer preferences and attitudes (Shrum, 2003). Advertisers of luxury goods need to search for alternative ways to appeal to new emerging demographics of the population, "Generation X" and "Generation Y," in addition to their traditional segment as baby Boomers (Shrum, 2003). "Generation X" and "Generation Y" is a rapidly growing segment that grew up in a media-saturated and brand-conscious world. This age group responds to the advertisements differently from their parents. However, it is still challenging for advertisers to understand how the new age group acquires and consumes luxury goods (Shrum, 2003).

Luxury brands put efforts into capturing the "Urban" market, a fast-growing market with a young population (under 40 years) (Shrum, 2003). The "Urban" market is a diverse population with different attitudes, motivations, and influences. To access this group, brands attempt to expand their position by introducing extensions to increase overall brand equity (Shrum, 2003). Some non-traditional marketing tools are being used to reach the young market, including product placements, music, videos, song lyrics, and celebrity usage (Shrum, 2003).

Perceptions. Customizations. Self-Expression.

Celebrity-endorsed products render celebrities' characteristics. Till (1992) proposed associative learning theory explaining the process of the influences of celebrity's unique attributes transferred to brands. Forming an associative link between a brand and a celebrity could benefit a brand image. For unfamiliar brands, a celebrity association can have positive effects. This association establishes a high perception for the brand, in case the celebrity's status is highly preferred in public. An adverse effect can be formed if a celebrity with a negative public image endorses a brand. Marketers must be careful about what celebrity they choose for a brand endorsement. Preconceived notions have been created in public toward a celebrity, and future misbehavior can damage the brand image.

Consumers seek to customize the products they purchase to express their identity. Product customization provides customers with options for self-expression. Mass customization created various innovative formats and social media applications for self-expression. Companies like Starbucks are leaders in mass customization, offering more than 50,000 possible combinations in beverage creation. By giving a consumer options, a brand attempts to engage the consumer and allow him/her to reflect an identity.

Social media is a direct avenue for expressing one's feelings and personal preferences in all aspects of life. By creating a Facebook or Twitter account, a person can form a fan group to express opinions widely and share common interests. Using these social media platforms can enrich a person's social identity. Mobile and Internet technologies expand the customization options available to consumers. Today, one can customize one's preferences when choosing a favorite radio station or music band to listen to.

Luxury brands serve as a means of self-expression. Research demonstrates several contexts for self-expression for brand consumption. Luxury brands have a symbolic meaning of status and achievement (Langer, 1997). By consuming luxury brands, a consumer demonstrates his/her wealth. Veblen (1899) defines this kind of consumption as conspicuous. Group affiliation is another means of self-expression. When choosing a brand, a consumer expresses his/her preferences and self-identity (Vigneron & Johnson, 2004).

For fashion luxury consumers, a brand is associated with human characteristics. Keller (2009) describes five brand personality dimensions: sincerity (for example, down-to-earth, honest, wholesome, and cheerful), excitement (for example, daring, spirited, imaginative, and up-to-date), competence (for example, reliable, intelligent, and successful), sophistication (for example upper class and charming) and ruggedness (for example outdoorsy and rugged).

Anthropomorphizing a brand is another term that describes feelings in consumers’ minds toward a brand regarding human characteristics. Biel (1992) points out that attaching distinctive personal qualities to a brand affects consumers’ perceived credibility toward a brand. The research shows that products presented as human are evaluated much higher than those lacking human characteristics (Aggarwal, 2004). The introduction of social media has allowed consumers to use it as an alternative way to express themselves. Social media is a relatively new phenomenon that needs to be further explored by luxury brands and strategically integrated with brands' overall business strategy.

References:

Chernev, A., Hamilton, R., & Gal, D. (2011). Competing for consumer identity: Limits to self-expression and the perils of lifestyle branding. Journal of Marketing, 75(3), 66–82. doi: 10.1509/jmkg.75.3.66

Delbaere, M., McQuarrie, E. F., & Phillips, B. J. (2011). Personification in advertising. Journal of Advertising, 40(1), 121–130.

Erdogan, B. Z., & Drollinger, T. (2008). Death and disgrace insurance for celebrity endorsers: A luxury or necessity? Journal of Current Issues & Research in Advertising (CTC Press), 30(1), 71-77.

Grohmann, B. (2009). Gender dimensions of brand personality. Journal of Marketing Research (JMR), 46(1), 105–119. doi: 10.1509/jmkr.46.1.105

Hye-Jin Paek, Choi, H., & Nelson, M. R. (2010). Product, personality, or prose?Testing functional matching effects in advertising persuasion. Journal of Current Issues & Research in Advertising (CTC Press), 32(2), 11–26.

Lens, I., Pandelaere, M., & Warlop, L. (2010). Effects of advertising exposure on materialism and self-esteem: Advertised luxuries as a feel-good strategy? Advances in Consumer Research, 37, 850-852.

Nicolao, L., Irwin, J. R., & Goodman, J. K. (2009). Happiness for sale: Do experiential purchases make consumers happier than material purchases? Journal of Consumer Research, 36(2), 188–198.

Phan, M. (2011). Does social media enhance consumers' perceptions and intentions to purchase luxury fashion brands? Vikalpa: The Journal for Decision Makers, 36(1), 81–84.

Shrum, L. J. (2003). Where art and commerce collide: A funnel approach to embedding messages in non-traditional media. Advances in Consumer Research, 30(1), 170–173.

Som, A., & Sinha, P. (2011). Concluding remarks. Vikalpa: The Journal for Decision Makers, 36(1), 87-87.

Zarzosa, J., & Luna-Nevarez, C. (2011). Artistic stylistic properties of fashion luxury advertisements Association for Consumer Research.

Vigneron, F., Johnson, L.W. (2004). Measuring perceptions of brand luxury. Journal of Brand Management 11. 6: 484-506.

Ricoeur, P. (1977). The Rule of Metaphor: multi-disciplinary studies of the creation of meaning in language, Robert Czerny with Kathleen McLaughlin and John Costello, trans. Toronto: University of Toronto Press.

Aaker, J.L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34 (8), 347–356.

Turner, M. (1987). Death is the mother of beauty: mind, metaphor, criticism—Chicago: University of Chicago Press.

Berry, L.L. (2000). Cultivating service brand equity. Journal of the Academy of Marketing Science, 28 (1), 128-37

Çerri, S. (2012). Measuring consumer-based brand equity - evidence from the Albanian banking sector. Journal of Management and Marketing, volume X, issue 1

Keller, K.L. (1993). Conceptualizing, measuring, and managing consumer-based brand equity. Journal of Marketing, 57 (1), 1–22.

Veblen, T. (1899). The preconceptions of Economic Science. Quarterly Journal of Economics, 13 (4), 396–426.

Keller, K. (2009). Managing the growth tradeoff: Challenges and opportunities in luxury branding. Journal of Brand Management, suppl. Special Issue: Luxury Brands 16. 5–6: 290–301.

Biel, A. L. (1992). How Brand Image Drives Brand Equity. Journal of Advertising Research, 32 (6). 6–12.

Aggarwal, P. (2004). The Effects of Brand Relationship Norms on Consumer Attitudes and Behavior. Journal of Consumer Research, 31, 87–101.

Aaker, D.A. (1991). Managing brand equity. The Free Press.

Aaker, J. & Joachimsthaler, E. (2000). Brand Leadership. The Free Press.