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THE MARKET FOR LUXURY GOODS: INCOME VERSUS CULTURE

Against this background, considering the limited empirical attention within the marketing-related literature regarding the measurement of the perceived luxury value of a product or a brand, the first step is to develop a scale that measures the sub-dimensions of luxury value perception. Even if the overall luxury value level of a certain product or brand may be perceived equally across national borders, a differentiated measurement may reveal that the overall luxury value perception is a combination of different evaluations with regard to the sub- dimensions. This differentiated perception of luxury value may be dependent on the cultural context and the. | Luxury Goods Market The Market for Luxury Goods Income versus Culture Bernard Dubois GrouPe HEC Jouy-en-Josas France and Patrick Duquesne RISC Nyon Switzerland Segmentation has always been considered as one of the most important but challenging issues in marketing. From a marketing research point of view segmentation is essential because it has a direct impact on the way in which a market is understood and even defined from a managerial standpoint market segmentation is strategic because the selection of the appropriate target markets is paramount to developing successful marketing programmes. It is thus not surprising to observe the dominant role of segmentation in both the consumer behaviour and marketing literature for a review see Windfl and more recently Dickson and Ginter 2 . Market segmentation is challenging however because the choice of appropriate segmentation bases is far from obvious. Traditionally marketing managers have preferred to use demographic descriptors which are easier to define and measure. Even now in many markets income will not be abandoned unless strong reasons exist for doing so. On the other hand the last two or three decades have witnessed an increasing use of psychosocial criteria such as social class lifestyle or culture. The question of the superiority of one criterion over another has already generated a voluminous literature in marketing research. After thoroughly reviewing the social class versus income issue Schaninger 3 concluded that for certain products e.g. food coffee social class was clearly superior to income while the reverse was true for others e.g. appliances soft drinks . Rich and Jain 4 and more recently O Brien and Ford 5 have established that given certain conditions lifestyle is more appropriate than social class. Kahle 6 has demonstrated that geography performs better than regional culture for a variety of products but Novak and MacEvoy 7 have recently shown that certain lifestyles systems are better than others.