Luxury brands pursuing lifestyle positioning: effects on willingness to pay
- 174 Downloads
Under the lens of construal level theory (CLT), this paper offers a new perspective on lifestyle advertising practiced by luxury brands clarifying both its value and its limitations. We find that under conditions of high brand familiarity (BF) lifestyle advertising is inconsistent with high-level construals, diminishing consumers’ willingness to pay (WTP) for the advertised brand. Using a measure of language-induced abstractness, we show that lifestyle advertising is detrimental to WTP when consumers are familiar with the brand (condition involving saliency of low-level construals), but not when they are new to the brand (n = 180). In a follow-up study, we find support for a moderated mediation model in which abstractness mediates the effect of advertising type on WTP, whereas BF moderates the mediation, depressing abstractness when familiarity is high and enhancing it when low. In conclusion, our evidence suggests to managers in the luxury industry that low construal levels are key to using price as a tactical tool in positioning their brands. We conclude with a discussion of implications of these results for luxury brands research and management.
KeywordsLuxury brands Lifestyle advertising Product-centered advertising Abstractness Brand familiarity Willingness to pay
- Aaker, D.A., and E. Joachimsthaler. 2000. Brand leadership: The next level of the brand revolution. New York: Free Press.Google Scholar
- Hayes, A.F. 2013. Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York: Guilford Press.Google Scholar
- Kapferer, J.-N. 2012. The new strategic brand management: Advanced insights and strategic thinking. London: Kogan Page Publishers.Google Scholar
- O’Connor, C. 2013. Apple’s hire of Burberry’s Angela Ahrendts shows its future is in lifestyle, not tech. Forbes, October 15. http://www.forbes.com/sites/clareoconnor/2013/10/15/apples-hire-of-burberrys-angela-ahrendts-shows-its-future-is-in-lifestyle-not-tech/. Last access 21 June 2017.
- Spencer, S.J., M.P. Zanna, and G.T. Fong. 2005. Establishing a causal chain: Why experiments are often more effective than mediational analyses in examining psychological processes. Journal of Personality and Social Psychology 89(6): 845–851. https://doi.org/10.1037/0022-3518.104.22.1685.Google Scholar
- Vickrey, W. 1961. Counterspeculation, auctions, and competitive sealed tenders. The Journal of Finance 16(1): 8–37. https://doi.org/10.1111/j.1540-6261.1961.tb02789.x.Google Scholar
- Weil, J. 2015. Johnny Depp to front Dior scent. WWD, June 3. http://wwd.com/beauty-industry-news/fragrance/johnny-depp-dior-fragrance-10139875/. Last access 21 June 2017.