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The history facet of luxury brands: does it matter how the history of luxury brands are created?

Larsson, Linus
Master thesis
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URI
http://hdl.handle.net/11250/2452995
Date
2017
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  • Master Thesis [3258]
Abstract
The discourse about luxury brands is dominated by a few authors, such as Kapferer and

Bastien, who clearly state that if a luxury brand doesn’t have history, it has to invent one.

Further, Kapferer and Bastien presents two different approaches to building the history facet

of luxury brands. Although, no extensive research had yet been conducted in terms of how the

two different approaches are perceived by consumers. Therefore, the main purpose of this

thesis was to tap deeper into Kapferer and Bastien’s two presented approaches of creating the

history facet of luxury brands; the ‘European approach to luxury’ and the ‘American approach

to luxury’. This was done through answering the two research questions; RQ 1: ’How are

consumers’ perceiving the two different approaches of creating history for luxury brands?’,

and RQ 2: ‘How are the two different approaches of creating history for luxury brands

affecting consumers’ preference for conspicuous consumption and signalling?’.

In addition to secondary research, primary research was conducted in terms of a multiple

method design. Firstly, an exploratory study in the sense of a focus group served as a way of

gaining insights. Based on these insights, an explanatory study was adopted, as measured by

two surveys collected from totally 74 respondents.

The findings for the underlying thesis indicates that there cannot be luxury without roots.

Further, the ‘European approach to luxury’ is perceived as more authentic by consumers than

the ‘American approach to luxury’. Also, the two different approaches of building luxury

brands are affecting consumers’ preference for conspicuous consumption and signalling

differently. Managerially, there are some straightforward implications. The results of the

underlying thesis showed that, especially, authenticity is essential when creating the history

facet of a luxury brand. Further, some dimensions of authenticity are more important than

others, regarding their effect on consumers’ attitudes. Such as, (I) reinforcing and building on

long-hold traditions, and (II) that it is a brand with history. Consequently, managers of luxury

brands should focus on these aspects when creating the history facet. In addition, managers

should pay close attention when mixing fiction and reality, in order not to make the consumers

feeling duped.

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