Investigation of Luxurious product development strategy in relation to consumer buying behaviour: A case study of Marks and Spencer

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CHAPTER 2: LITERATURE REVIEW1

2.1 Introduction1

2.2 The Concept of Luxury products1

2.3 Why Luxury Goods?2

2.4 Categorization of Luxury Products2

2.4.1 Prestige Products2

2.4.2 Premium Products3

2.4.3 Fashion Brands3

2.5 Marketing Luxury Products4

2.6 The 8 pillars of luxury brand marketing5

2.6.1 Performance5

2.6.2 Paucity6

2.6.3 Pedigree7

2.6.4 Persona7

2.6.5 Public Representatives7

2.6.6 Placement8

2.6.7 Public relations9

2.6.8 Pricing9

2.7 Management theories10

2.7.1 Social Comparison Theory10

2.7.1 Symbolic Interactionism Theory10

2.7.2 Terror management theory11

2.8 Consumer Behaviour11

2.9 Factors that influence Consumer Behaviour12

2.9.1 Culture12

2.9.2 Social Class13

2.9.3 Lifestyle14

2.10 Consumer Behaviour and Luxury Goods14

2.11 Theories of Consumer Behaviour17

2.11.1 Social Cognitive Theory17

2.11.2 Theory of Consumerism17

2.11.3 Cognitive Consistency Theory18

2.11.4 Role Theory18

2.11.5 Theory of Reasoned Action18

2.11.6 Utility Theory19

2.11.7 Indifference Preference Theory19

2.12 Development of Strategy20

2.13 Strategy of Marks & Spencer during the Past20

2.14 The “IT Strategy” of Marks & Spencer21

2.15 Strategy of Luxury Product development that is currently being used22

2.16 Brand22

2.17 Clothing23

2.18 Home24

2.19 Food24

2.19.1 Example of M&S25

2.19.2 Examples of Various markets25

REFERENCES26

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

In this chapter the reader will be introduced to key literature which will help in understanding the concept of luxury products, developmental strategies in regards to the customers buying behaviour.

2.2 The Concept of Luxury products

According to a definition provided by Heine (2012, p.24) the concept of luxury goods can be understood as those products that possess more than required. Some of the major characteristics of luxury products are that they have a relatively higher price against products of the same category. These products are also unique, rare, and extraordinary. One of the most common belief regarding luxury products is the fact that they are acquired mostly for their symbolic meaning. Shukla (2010, p.1) expresses regarding luxury products that they are by no means necessary and the sole reason of possessing these products is based on social affluence. During the early times luxury products were considered a privilege to have. Keane & Mcmillan, (2004) have provided evidence that claims that within the UK middle class luxury good purchasers have escalated by 50%. Fiske and Silverstein (2001) the increase in demand and supply of luxury goods is due to social influences. Considering the changing trends in the luxury market, the meaning of luxury products has also been redefined. In this regard Twitchell (2003, p.43) states that the term luxury can be simply stated as products which a person has, which they should not have.

In regards to Marks and Spencer (called M&S henceforth) being a major top quality retailer in UK, M&S has always paid great heed over the quality of their products. Since the year 1936 when the world was going through an economic recession M&S continued to sell products once regarded as luxuries but changing market trends have led to an increase in their sales due to the comfort and ease of these products rendering them as bare necessities.

2.3 Why Luxury Goods?

Many studies have targeted at understanding the major reasons why people opt for luxury goods while there is a cheaper alternative available. Firstly luxury goods are only targeted to those consumers who have ...