|dc.description.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