HEC Paris2014-08-11 8:16 PM

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.

Author
J.-N. KAPFERER, C. KLIPPERT, L. LEPROUX

Departments
Marketing

Journal Information
Journal of Revenue & Pricing Management February 2014, vol. 13, n°1, pp.2-11

Full Article
http://www.researchgate.net/publication/263327510_Does_luxury_have_a_minimum_price_An_exploratory_study_into_consumers_psychology_of_luxury_prices

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ABOUT THE AUTHOR

HEC Paris

Founded in 1881 by the Paris Chamber of Commerce and Industry, HEC Paris specializes in education and research in management sciences. As a leading academic institution in Europe and worldwide, HEC Paris offers a complete and unique range of education programs for students and leaders.

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