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

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.

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Correspondence to Jean-Noël Kapferer.

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2are HEC graduates and acted as research assistants on this project.

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Kapferer, JN., Klippert, C. & Leproux, L. Does luxury have a minimum price? An exploratory study into consumers’ psychology of luxury prices. J Revenue Pricing Manag 13, 2–11 (2014). https://doi.org/10.1057/rpm.2013.34

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Keywords

  • luxury
  • price
  • conspicuous
  • dilution
  • status
  • masstige