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					The Concept of Luxury Brands
Presentation Vol. 2.0




by Klaus Heine, 28 December 2011

                        Department of Marketing, Steinplatz 2, 10623 Berlin, Germany, Tel: +49.(0)30.314-29.922,, Klaus.Heine@conceptofluxurybrands.com, www.marketing.tu-berlin.de
Klaus Heine, TU Berlin, Lehrstuhl Marketing, Steinplatz 2, 10623 Berlin, Germany, Tel: +49.(0)30.314-29.922,, Klaus.Heine@conceptofluxurybrands.com, www.marketing-trommsdorff.de



              Technische Universität Berlin
             Department of Marketing Professor Dr. V. Trommsdorff
Definition of Luxury Products and Brands

The Concept of Luxury Brands

Klaus Heine
Technische Universität Berlin
Chair of Marketing
Steinplatz 2
10623 Berlin, Room ST 1.05
Tel: +49.30.314-29.922
Fax: +49.30.314-22.664
Mobile: +49.176.294.230.62
www.marketing.tu-berlin.de
Klaus.Heine@conceptofluxurybrands.com




                      Please feel free to contact me for any feedback or questions you may have!


          Technische Universität Berlin
         Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                         2
Definition of Luxury Products and Brands

The Concept of Luxury Brands

                                                                What are luxury brands not?




                                                                 What are luxury brands?
          www.conceptofluxury.brands.com

          Technische Universität Berlin
         Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                    3
Definition of Luxury Products and Brands

Objective of this Presentation




                                     Definition of Luxury Products and Brands

                                             in order
               to differentiate between luxury and non-luxury products and brands

                                           and
    to distinguish luxury products and brands from similar concepts such as premium
                            and masstige products and brands




          Technische Universität Berlin
         Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                            4
Definition of Luxury Products and Brands

Intensional vs. Extensional Definition


► Intensional Definition                                                                                             Extensional Definition

by typical characteristics                                                                                                              by identifying
such as high price                                                                                                                  all luxury brands
and superior quality                                                                                                                     in a directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    5
Definition of Luxury Products and Brands

Overview about the Approach to Definition

                                                                           Identification of a basic definition of luxury
                                                Color TV                          Differentiation by type of relativity                                Clean air…
                          Step 1:
 Conceptual Framework




                                                        Luxuries                  Differentiation by area of research                         Luxury goods…
                        Semantic
                        Analysis                         Luxury services          Differentiation by market segment                   Luxury arts…


                                                                   Result: Broad definition of luxury products and brands

                                                                   Selection of types of dimensions / approach to definition
                          Step 2:
                        Dimensional                                                 Analysis of existing definitions
                        Analysis
                                                               Result: Set of requirements for luxury product characteristics
                          Step 3:
      Operationalisation                                   Identification of dimensions by literature analysis and empirical study
                          Step 4:
                                                                       Result: Definition of Luxury Products and Brands
                        Definition
                          Step 5:
                                                                                Constantly updating the categorization
                         Review
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


                          Technische Universität Berlin
                         Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                      6
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    7
Basic Definition of Luxury

What means Luxury? – Luxury is a relative Term that could refer to almost
Anything or Nothing depending on whom you ask.
                                                                             “The only luxury good I own is my car. It’s a Volkswagen Polo. This is also
  “Luxury means to me                                                       something not everyone can afford.” (Constantin)
  to have the freedom
  to set off against the
  mass – in every way –
  to maintain a lifestyle
  that fits me and that is
  not geared to the
  mainstream and to
  social norms. The real
  luxury for me is to
  have time and fun
  with my friends.”
  (Jasper)



                          “Luxury stands for exclusivity, excellent quality, rarity, differentiation. I am fascinated by
                          luxury watches, since they are a symbol for the love for the detail. Preferably I also would like
                          to say: "I don’t look for the time, I look for my watch." Typical for a woman, I have already
                          an eye on the shoes of Manolo Blahnik. There are women in New York who take the risk of a
                          surgery in order to fit into these shoes. I wouldn't go that far, because I already have perfect
                          feet.” (Chun-Lan)


                                                  Luxury Product Marketing Class, Winter Semester 2006/2007
Source: Statements of the participants of the seminar “Luxury Product Marketing” at the department of Marketing at TU Berlin, winter semester 2006/2007.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                 8
Basic Definition of Luxury

Basic Definition of Luxury


    „Bad“ (vs. “Good”)                                                    Desirable




                                Necessity                                                                        Luxury




            Necessity                                                    Ordinary                                                       Luxury


           Luxury is anything that is desirable and more than necessary and ordinary.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    9
Basic Definition of Luxury

From 1900 to Today to Future – How Definitions of Luxuries change

1900                            1910                           1920                1930                 1940                1950
• Model T cars                • Fur hats                      • Fur coats          • Baseball tickets   • Televisions       • Color televisions
• Pianos                      • Electric clocks               • Movie “talkies”    • Canned foods       • Air travel        • Credit cards
• Radios                      • Fountain pens                 • Gin                • Indoor plumbing    • College degrees   • Visits to
• Hand-cranked                • Cadillac's                    • Vacuum                                  • Refrigerators       Disneyland
  Victorians                  • Kodak cameras                   cleaners                                                    • Convertibles
                              • Transatlantic                 • Washing
                                travel                          machines




1960                            1970                           1980                1990                 2000                2050
• Stereo sound                 • Designer jeans               • Vacation homes     • Internet stocks    • Flat-screen       • Space tourism?
  systems                      • VCRs                         • BMWs               • Palm Pilots          monitors          • Transatlantic
• 35-millimeter                • Solar homes                  • Microwave          • Cell phones        • Maybach             travel?
  cameras                        exemplars                      ovens                                   • Yachts            • Eternal youth?
                                                                                   • SUVs
• Warhol                                                      • Junk-bond
  lithographs                                                   portfolios
                                                              • PC’s
                                                              • Champagne

Source: According to Sacharidou, The Evolution of Luxury Market, LVMH 2006, p.4.


             Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                        10
Basic Definition of Luxury

The Types of Relativity: The Relativity of Luxury splits into a Regional, Temporal,
Economic, Cultural and Situational Relativity.




                                                        Situational                       Regional
                                                         Relativity                       Relativity


                                                                        Hierarchic
                                                 Cultural               Relativity                Temporal
                                                Relativity                                        Relativity


                                                                        Economic
                                                                        Relativity


Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    11
Basic Definition of Luxury

These Types of Relativity can be used to determine a General Perspective from which
Luxury should be defined within the Field of Luxury Brand Management.



                           perspective:                                                                              perspective:
                    normal conditions                                                                                  global

                                                        Situational                       Regional
                                                         Relativity                       Relativity


                                                                        Hierarchic
                                                 Cultural               Relativity                Temporal
                         perspective:
                                                Relativity                                        Relativity                    perspective:
                       upper class                                                                                           present time

                                                                        Economic
                                                                        Relativity

                                                                           perspective:
                                        representative for the entire society in developed regions
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    12
Basic Definition of Luxury

Accordingly, the Basic Definition of Luxury may be complemented as follows:




            Luxury is anything that is desirable and which exceeds necessity and
      ordinariness. As a general rule, this is defined from a global perspective, for the
          present and for normal conditions. While the exclusivity of resources is
      evaluated by the entire society, the desirability of resources and the appearance
                        of luxury are determined by the upper class.




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    13
Basic Definition of Luxury

Based on the Extended Basic Definition, there are many Resources that can
be differentiated from Luxury:

     Example of Non-Luxury                                        Type of Relativity                                          Explanation
                                                                                                              A luxury in Jakarta, but not from the
                     Clean air                                       Regional relativity
                                                                                                              perspective of most people

                                                                                                              A luxury in the 1950’s, but not from
                     Color TV                                       Temporal relativity
                                                                                                              today’s perspective

                                                                                                              A luxury for a student, but not from
                     VW Polo                                        Economic relativity
                                                                                                              a gross-societal perspective

                                                                                                              A luxury in the hip-hop scene, but
                Gold teeth grill                                     Cultural relativity                      not from the perspective of the
                                                                                                              upper class

                                                                                                              Might be a luxury after a strict diet,
          McDonald’s Hamburger                                     Situational relativity
                                                                                                              but not under normal circumstances


        Accordingly, the extended basic definition limits the scope of luxury from almost anything to a more
        reasonable level and therefore already helps to dissolve a large part of the controversies about the
                                                 definition of luxury.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    14
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    15
Major Understandings of Luxury by Area of Research

“Luxuries” correspond to the Philosophical-Sociological Understanding and
the broadest Scope of Luxury.




                                                               Everything we can think
                                                              of – “Luxuries comprise all
                                                            resources which are desirable
                                                            and exceed what is necessary
                                                                     and ordinary.”




            Luxuries are not necessarily marketable, which means that we can’t necessarily buy/sell them.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    16
Major Understandings of Luxury by Area of Research

Microeconomic Understanding: In Microeconomics the Term “Luxury Goods”
is established and mainly refers to entire Product Categories.




Luxury goods are distinguished from necessary or ordinary goods by consequence-related measures; thus
the luxuriousness of any good is not determined by its characteristics, but by peoples’ reaction (changes in
demand) to exogenous stimuli:

  1               =          High price elasticity (> =1)
                             The demand of (dispensable) luxury goods
                             decreases relatively strongly when prices are rising.
                  =          High income elasticity (> 1)
  2
                             The demand of (dispensable) luxury goods (also superior goods)
                             increases relatively stronger than the income.

       Luxury goods correspond to the micro-economic understanding and the middle scope of
      luxury, comprising all goods which exceed what is necessary and ordinary, and are suitable
                                     for exchange on the market.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    17
Major Understandings of Luxury by Area of Research

The Managerial Understanding of Luxury usually refers only to the best
Products of a Category: “Luxury Products”.
     Luxury level




                                     Examples of Non-Luxury Products                        Criteria          No Luxury Products, but. . .
                                                                                   Philosophical-sociological
                                  Musical talent, time and true love                                          Luxury resources
                                                                                   understanding
                                                                                   Micro-economic
                                  Air conditioning and golf equipment                                                      Luxury goods
                                                                                   understanding

                            The broad definitions of luxury products and brands can be summarized as follows:
              Luxury products correspond to the managerial understanding and the smallest scope of
             luxury, comprising all products which exceed what is necessary and ordinary compared to
                                        the other products of their category.

              Luxury brands are associated with products which exceed what is necessary and ordinary
                                 compared to the other products of their category.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


                     Technische Universität Berlin
                    Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    18
Major Understandings of Luxury by Area of Research

Louis Vuitton, Rolls-Royce …Ariel Motor?! …Are Ariel Race Cars Luxury Products?
Ariel offers Functional Luxury :




  • The Ariel is a race
    car for the streets;
    the driving
    experience may be
    “utterly, utterly
    addictive“.
  • The Ariel Atom V8
    can cost £150,000.
    However, it’s not a
    (classical) luxury
    product – because
    it’s made for
    maximum
    functioning.
  • Same would be
    true for superior
    alpine climbing
    equipment.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    19
Major Understandings of Luxury by Area of Research

The Understanding of Luxury by Area of Research: Luxury products constitute a
Subset of Luxury Goods, which, in turn, form a Subset of Luxuries.

                                        Philosophic-sociological Understanding: Luxuries
                                Resources that are desirable and more than necessary and ordinary,
                                              e.g. musical talent, time, and true love
                                          Microeconomic Understanding: Luxury Goods
                              Goods (product categories) that are more than necessary and ordinary
                                          and suitable for the exchange on the market,
                                        e.g. air conditioning systems and golf equipment

                                            Managerial Understanding: Luxury Products
                                   Products that are more than necessary and ordinary compared
                                               to the other products of their category,
                                        e.g. Louis Vuitton bags and Rolls-Royce automobiles




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    20
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    21
Limiting the Scope of Luxury Products

Limiting the Scope of Luxury Products


   Despite its small scope in comparison to luxuries, the definition of luxury products still
   covers a wide variety of different products. Therefore, and according to the basic idea of
   definition by reduction sentences, the scope of luxury products is further limited by
   differentiating the major luxury market segments.


           Luxury Products                                         Luxury Services                                        Luxury Real Estate
                  Private Luxury Products                                                               Public Luxury Products
                 Branded Luxury Products                                                           Unbranded Luxury Products
                     B2C Luxury Products                                                                  B2B Luxury Products
   Founder-independent Luxury Products                                                     Founder-dependent Luxury Products
             Uni-regional Luxury Products                                                       Multi-regional Luxury Products
           Contemporary Luxury Products                                                                      Luxury Antiquities
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    22
Limiting the Scope of Luxury Products

Luxury Products, Services and Real Estate

           Luxury Products                                          Luxury Services                                       Luxury Real Estate



                                                                                    No…
     • The managerial luxury understanding
       usually refers to movable assets
       (products in the classical sense), as the
       luxury industry was and is characterized
       by craftsmanship and engineering (Belz
       1994, p. 648; Berthon et al. 2009, p. 50).

     • Beyond that, especially luxury real estate
       forms a distinct luxury segment.                                                                                                    “World’s most
       Marketing knowledge about products                                                                                                    expensive
       covers a basis for other luxury segments,                                                                                           apartments at
       but still needs to be adapted to their                                                                                              One Hyde Park
       specific characteristics.                                                                                                           set to make £1
                                                                                                                                           billion profit.”
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    23
Limiting the Scope of Luxury Products

Private vs. Public Luxury Products

                  Private Luxury Products                                                               Public Luxury Products

                                                                                                          No…

     • Instead of public luxuries such as
       altar pieces or national monuments,
       the term luxury products usually
       refers to private luxury, which is
       owned by a person or a private
       organization (Sombart 1922, p. 86;
       see also McKinsey 1990, p. 13).




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    24
Limiting the Scope of Luxury Products

Branded vs. Unbranded Luxury Products

                 Branded Luxury Products                                                           Unbranded Luxury Products

                                                                                            No…

     • Unbranded luxury products are usually made
       on commission by craftsmen.

     • Because of the high relevance of brands in
       the luxury segment, only branded luxury
       products are considered (see Kisabaka 2001,
       p. 104; Vigneron and Johnson 2004, p. 486).




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    25
Limiting the Scope of Luxury Products

Private vs. Public Luxury Products

                     B2C Luxury Products                                                                  B2B Luxury Products

                                                                                            No…
                                                                                                                         “Peter Bock AG has been
     • B2C luxury products, also referred to as                                                                         crafting the finest pen nibs
       personal luxury products, are marketed                                                                                   since 1939.”
       to end consumers and can be used by a
       person to enhance his or her personal life
       (Sombart 1922, p. 86; Reith and Meyer
       2003, p. 10; Valtin 2004, p. 186).

     • In contrast to that, there is a distinct B2B
       luxury segment, which includes luxury-
       specialized suppliers to luxury brands.
       One such supplier is Peter Bock, a
       manufacturer of nibs for luxury fountain
       pens.

Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    26
Limiting the Scope of Luxury Products

Founder-independent vs. Founder-dependent Luxury Products

    Founder-independent Luxury Products                                                  Founder-dependent Luxury Products

                                                                                  No…                              Founder-dependent luxury
                                                                                                                     by Alexander Vethers



     • Only founder-independent luxury products are
       considered, which means that the existence of brands and
       the manufacturing of products should not depend on the
       life of their creators. The manufacturers of luxury
       products should possess a distinct brand personality and
       at least the capacity for infinite business operation.
     • Although an artist could become a brand, these
       requirements are not fulfilled as he or she may only create
       founder-dependent products. Compared to other
       products, the luxury art market follows very specific rules
       and therefore forms a distinct luxury segment.
     • The same is true for other industry segments such as
       (star) architect offices and the relatively complex and fast-
       changing market of (fashion) designer products.

Source: www.alexandervethers.com, http://www.margarethe-illustration.com, Heine, K., The Concept of Luxury Brands, TU Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                     27
Limiting the Scope of Luxury Products

Typical Founder-dependent Luxury: The vast Amount of Luxury Fashion
Designers, who set up their Business within the last Years.

                                                 Founder-dependent Luxury Products




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    28
Limiting the Scope of Luxury Products

Uni-regional vs. Multi-regional Luxury Products

           Multi-regional Luxury Products                                                         Uni-regional Luxury Products

                                                                                            No…
     • Uni-regional luxury products are only
       available in specic regions.

     • For instance, shopping in the KaDeWe is
       only possible in Berlin and spending the
       night in Le Meurice is only possible in
       Paris.

     • However, many uni-regional luxury
       brands have the potential to become
       global. For instance, the luxury group
       Hilton developed the New York-based
       Waldorf Astoria into a global luxury hotel
       chain.

Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    29
Limiting the Scope of Luxury Products

Contemporary Luxury Products vs. Luxury Antiquities

           Contemporary Luxury Products                                                                     Luxury Antiquities

                                                                                            No…


     • With reference to temporal relativity,
       only new products are considered.
     • Luxury antiquities (including antique
       cars) form a distinct luxury segment.




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    30
Limiting the Scope of Luxury Products

Complementing the Broad Definition of Luxury Products

       Based on these limitations, the broad definition of luxury products can be complemented as follows:


                       Luxury products correspond to the managerial understanding and the
                         smallest scope of luxury not comprising services or real estate, but
                      products which exceed what is necessary and ordinary compared to the
                           other products of their category. These products are branded,
                       founder-independent, multi-regional, contemporary and possessed or
                                used by a person to enhance his or her personal life.




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    31
Limiting the Scope of Luxury Products

Examples of Non-Luxury Products

    Examples of Non-Luxury Products                                                 Criteria                               No Luxury Products, but. . .

Penthouse at the “One Hyde Park” in
                                                           Movable assets                                                Luxury real estate
London

Luxurious built-in cupboards made by                                                                                     Unbranded luxury products /
                                     Branded products
a carpenter for his client                                                                                               commission work

Cologne Cathedral                                          Private luxury products                                       Public luxury products

Peter Bock quills for luxury fountain
                                                           B2C luxury products                                           B2B luxury products
pens

“Garçon a la pipe” by Pablo Picasso                        Founder-independent products                                  Luxury art

Badminton Cabinet from 1732 and
                                                           Contemporary products                                         Luxury antiquities
Bugatti Royale Type 41 from 1931

Staying at Le Meurice in Paris                             Multi-regional luxury products                                Uni-regional luxury products
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    32
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    33
Operationalization of Luxury Products

The Analysis of 31 in-depth Interviews led to a Consumer-oriented
Definition of Luxury Products


                                                                   Symbolism
                                                                    Symbolism as
                                                                    major benefit

         Extraordinariness                                                                                             Price
             ESP instead of USP                                                                                Price as a benefit


                                                              Characteristics of
                                                              Luxury Products

                       Rarity
                 Limitation and
                                                                                                                  Quality
                                                                                                                 Quality as
                Individualization
                                                                                                                 perception
                                                                 Aesthetics
                                                                Stimulation as a
                                                                  main benefit
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    34
Operationalization of Luxury Products

Eccentric Selling Proposition (ESP): Case Study Silk Production




• “Earlier the main exports of silk cloth, at first restricted to the nobility, had been from Bologna, Lucca and other Italian towns.
  They had developed the mechanical reeling of silk using water power, apparently developing a Chinese model, while the
  French industry at Lyon operated at a less sophisticated level.
• But the French court started to invite silk manufacturers from Lyon every six months to discuss future designs. By the time
  that their patterns had been produced and the Italian manufacturers had set up their looms to copy them, the French court
  was about to place its next order for a new pattern. So the Italian manufacturers were never able to catch up, leading to the
  collapse of the weaving industry, and eventually of the production of yarn, in Bologna and elsewhere.
• It was not the appearance of change, of new fashion, that was remarkable but the way that change was regularly established
  and the effects this had on industrialized production which were remarkable. It rivalled, and set the pattern for, today’s
  annual fashion shows in Paris, Milan, New York, London and other capitals, shows that are marketplaces for the costumes of
  the rich but which also set the terms for production for the masses, who with socio-economic developments have now been
  drawn in to the frequent dictates of fashion” …. “After that time, fashion and ‘taste’ took over the role of distinguishing the
  elite, with the whole process becoming more complex when this occurred.”

Source: Goody, J. (2006) From Misery to Luxury. In: Social Science Information, Vol. 45, Issue 3, p. 344 et seq.; Heine, K., The Concept of Luxury Brands., TU Berlin, www.conceptofluxurybrands.com.


              Technische Universität Berlin
             Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                                                   35
Operationalization of Luxury Products

The Analysis of 31 in-depth Interviews led to a Consumer-oriented
Definition of Luxury Products


                                                                   Symbolism
                                                                    Symbolism as
                                                                    major benefit

         Extraordinariness                                                                                             Price
             ESP instead of USP                                                                                Price as a benefit


                                                              Characteristics of
                                                              Luxury Products

                       Rarity
                 Limitation and
                                                                                                                  Quality
                                                                                                                 Quality as
                Individualization
                                                                                                                 perception
                                                                 Aesthetics
                                                                Stimulation as a
                                                                  main benefit
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    36
Operationalization of Luxury Products

Symbolic Meaning of Luxury Products & Emotional Branding:
Product Recommendations without Products




Source: Spiegel Neon/Modeheft (2009), April, p. 22.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                         37
Operationalization of Luxury Products

Symbolic Meaning of Luxury Products & Emotional Branding:
Product Recommendations without Products




Source: Spiegel Neon/Modeheft (2009), April, p. 16 & 18.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                         38
Operationalization of Luxury Products

The Most Important Ingredients of a Luxury Brand: Emotions & Image




                                                                                             Margin




                                                                                     Communication,
                                                                                       Know-how,
                                                                                         Image


                                                                                          Production
                                                                                             costs                                                       Dior
Source: Lebas/Israel-Russo/De Gouyon (1990) Stratégies de luxe. Jouy-en-Josas: Groupe HEC, p. 48; Heine, K., The Concept of Luxury Brands., TU Berlin, www.conceptofluxurybrands.com.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                                              39
Operationalization of Luxury Products

Symbolic Meaning of Luxury Products & Emotional Branding:
Aldi vs. Monoprix

                                     Aldi                                                                          Monoprix




       If products at Aldi say anything at all, they may say “I’m cheap and cheerful” or the butter
       may say “I’m a butter” and the cookies may say “We are cookies” – while luxury products
                                      seem to be real chatterboxes.
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    40
Operationalization of Luxury Products

A typical Exemplar of a Luxury Product:
The “Kiss Kiss Or & Diamants“ by Guerlain



                                                                                                                         Symbolism
                                                                                                                          Design and
                                                                                          Extra-                         brand image
                                                                                                                                                             Price
                                                                                       ordinariness                                                         45,000€
                                                                               Reminds on 3 dices                   Constitutive
                                                                                                                  Characteristics of
                                                                                                                  Luxury Products
                                                                                          Rarity
                                                                                                                                                           Quality
                                                                        Only 100 pieces;
                                                                                                                            Made of diamantes
                                                                        personal lip stick color
                                                                        and gravure                    Aesthetics                and precious
                                                                                                 Classic, time-less design;       metals by a
                                                                                             helps to conceal signs of aging,          French
                                                                                                  to be free of duties and
                                                                                                                                    goldsmith
                                                                                             limitations of space and time;
                                                                                               its design helps to forget its
                                                                                                          purpose
Source: Trommsdorff/Heine (2008) Das Marketing von Luxusprodukten. In: WISU, Issue12., pp. 1669-1674; Heine, K., The Concept of Luxury Brands., TU Berlin, www.conceptofluxurybrands.com.


              Technische Universität Berlin
             Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                                           41
Operationalization of Luxury Products

What do we have to do with that Chair to create a Luxury Product?




Heine, K., Phan, M., Trading-Up Mass-Market Goods to Luxury Products. Australasian Marketing Journal, Vol. 19, 2/2011, pp. 108-114.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                            42
Operationalization of Luxury Products

The Constitutive Characteristics of Luxury Products

  Major                                    Manufacturing                             Concrete                                 Abstract
  Characteristics                          Characteristics                           Product Characteristics                  Product Characteristics
  Price                                                                              Price
                                           Expertise of
  Quality                                                                            Material & Components                    Durability & Value
                                           manufacturer
                                           Manufacturing                             Construction &
                                                                                                                              Comfortability & Usability
                                           complexity                                Function principle
                                                                                                                              Functionality &
                                                                                     Workmanship
                                                                                                                              Performance
                                                                                     Features                                 Safety

                                                                                     Product size

                                                                                     Service

  Aesthetics                                                                                                                  Aesthetics

  Rarity                                                                             Rarity

  Extraordinariness                                                                                                           Extraordinariness

  Symbolism                                                                                                                   Symbolism
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    43
Operationalization of Luxury Products

The Variety of possible Results




Heine, K., Phan, M., Trading-Up Mass-Market Goods to Luxury Products. Australasian Marketing Journal, Vol. 19, 2/2011, pp. 108-114.


              Technische Universität Berlin
            Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                            44
Operationalization of Luxury Products

Influencing the Associations about the Luxury Brand Characteristics by
Segment-specific Marketing-Mix Strategies

                                                                                         Extra-                                               Symbolism
         Price                     Quality                     Rarity                                              Aesthetics
                                                                                      ordinariness                                          (brand personality)




            Product                                     Price                               Distribution                          Communication
             policy                                     policy                                 policy                                policy
                                                                                                                               Communication of the luxury
        Quality leadership                  Superlative pricing strategy                  Selective distribution
                                                                                                                                   brand personality


      Iconic products                       Regular price increases                        Flagship stores                           Catwalk shows


     Memberships in                             Super-superlative
                                                                                             Waiting lists                      Celebrity endorsement
  recognized associations                        priced products
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    45
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    46
Definition of Luxury Products and Brands

The Definition of Luxury Products

• The operationalization relies on a literature analysis and an empirical study (as outlined in the paper). The
  results suggest that consumers perceive that luxury products have six major characteristics including price,
  quality, aesthetics, rarity, extraordinariness and symbolism (as explained above). In that way, the
  operationalization helps to decide for most products if they are part of what is meant by the term "luxury
  product" (see also Kromrey 2009, p. 110).
• The definition of luxury products can be summarized as follows:




         Luxury products have more than necessary and ordinary characteristics
      compared to other products of their category, which include their relatively high
         level of price, quality, aesthetics, rarity, extraordinariness, and symbolic
                                           meaning.




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    47
Definition of Luxury Products and Brands

The Definition of Luxury Brands

• Luxury brands are highly associated with their core products.
• This is reflected by the existing definitions of luxury brands, which define luxury brands by specific
  associations about product characteristics (e.g. Meffert and Lasslop 2003, p. 6; Büttner et al. 2006, p. 12;
  Valtin 2004, p. 30).
• The essential characteristics of luxury products therefore correspond largely with those of luxury brands
  and lead to the following definition:




       Luxury brands are regarded as images in the minds of consumers that comprise
        associations about a high level of price, quality, aesthetics, rarity and specialty.




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    48
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    49
Major Types of Luxury Products and Brands

The Relationships between Luxury Products and Brands

                                                                                            Luxury Brands


    Luxury-branded
       Products                                                                                                                 Non-Luxury
                                                                 Luxury Products
                                                                                                                                 Products




                                                   Luxury Products                                       Non-Luxury Products
     Non-Luxury-
  branded Products

                                                  Non-Luxury Brands, but (at least) Luxury Product Brands
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    50
Major Types of Luxury Products and Brands

The Relationships between Luxury Products and Brands

                                                             Luxury Product Brands




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    51
Major Types of Luxury Products and Brands

Types of Luxury Brands by Level of Luxury, Business Volume and
Awareness

         By Level of Luxury                                          By Awareness                                      By Business Volume
  +                                                     -                                                                                                     -

                                                                             Con-
                        Elite-                                              noisseur                                               Micro
                        level                                               brands

                   Top-level                                                                                                   Small-scale
                 Luxury brand                                                                                                    brands

                                                                         Star brands
                Medium-level                                                                                          Medium-scale brands
                                                        +
                Luxury brand

                                                                                                                        Large-scale brands
                   Entry-level
                                                                                                                               BIG player
                  luxury brand
 -                                                                                                                           GIANT player                     +
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    52
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    53
Distinguishing Luxury Brands from similar Concepts

Categories of Luxury Brands

  Price Setting                                                                                                                             Luxury
  Inter- and
  Intra-categorical                                                                                                                      Manufacturer‘s
                                                                                                                                             Brand

                                                                                                          Premium
                                                                                                        Manufacturer‘s
                                                                                                            Brand

                                                                         Generic
                                                                       Manufacturer‘s
                                                                          Brand

                                           Premium
                                         Trade Brand


        Trade Brand


  Risk reduction and
  information efficiency
                                                              Dominating Brand Benefit                                                       Ideational Benefit


Source: According to Meffert/Backhaus/Becker (2003) Luxusmarkenstrategie, p. 6; Heine, K., The Concept of Luxury Brands., TU Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff                                                                                         54
Klaus Heine – The Concept of Luxury Brands                                                                                                                        54
Distinguishing Luxury Brands from similar Concepts

Differentiation to Masstige („New Luxury“)

                                                Price setting                                                                              Examples
                                                Inter- and
                              Inaccessible



                                                Intra-categorial
                                                                                                             Luxury
                                                                                                          Manufactur-
                                                                                                           er‘s Brand
                              Intermediary




                                                                                         Masstige
For the broader population:




                                                    Premium
                              Accessible




                                                  Manufacturer‘s
                                                     Brand

                                              Risk reduction and
                                              information efficiency       Dominating Brand Benefit        Ideational Benefit




Source: According to Meffert/Backhaus/Becker (2003) Luxusmarkenstrategie, p. 6; Heine, K., The Concept of Luxury Brands., TU Berlin, www.conceptofluxurybrands.com.


                                             Technische Universität Berlin
                                        Department of Marketing Professor Dr. V. Trommsdorff                                                            55
Klaus Heine – The Concept of Luxury Brands                                                                                                                        55
Distinguishing Luxury Brands from similar Concepts

Luxury Brands vs. Masstige Brands vs. Premium Brands


                                    Product / Brand Characteristics                                                                          Prestige
                     top
Luxury
brands




Masstige
brands


Premium
brands
Medium-
level
brands

                     low                                                                                                                        Prada

                   Price           Quality           Rarity         Extra-    Aesthetics                     Symbolism
                                                                 ordinariness
Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    56
Distinguishing Luxury Brands from similar Concepts

Luxury vs. Premium Products and Brands – Mercedes vs. Lexus


          There is also an essential difference between these types of brands: while premium
       brands focus especially on functional characteristics, luxury brands put much more effort
          into creating symbolic meaning. For instance, Lexus entered the US market with the
      objective of growing by taking customers away from Mercedes, which was identified as its
        major competitor. Therefore, they took the Mercedes E Class as the model to overtake
        and developed a car with a similar design and even superior technical features that was
           only sold for about half of the price. Lexus generated high growth rates in the U.S.
        However, they still focused very much on functionality and even emphasized their car`s
      value-for-money, and also had no vision or story to tell – which clearly positions Lexus as a
                         non-luxury brand (Kapferer and Bastien 2009b, p. 316).




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    57
Agenda

 • Basic Definition of Luxury
 • Major Understandings of Luxury by Area of Research & Broad Definition
   of Luxury Products
 • Limiting the Scope of Luxury Products
 • Operationalization of Luxury Products
 • Definition of Luxury Products and Brands
 • Major Types of Luxury Products and Brands
 • Distinguishing Luxury Products and Brands from similar Concepts
 • World Luxury Brand Directory




Heine, K., The Concept of Luxury Brands. In: Luxury Brand Management, No. 1, ISSN: 2193-1208, Technische Universität Berlin, www.conceptofluxurybrands.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                                    58
The World Luxury Brand Directory

Intensional vs. Extensional Definition


Intensional Definition                                                                                         ► Extensional Definition

by typical characteristics                                                                                                                  by identifying
such as high price                                                                                                                      all luxury brands
and superior quality                                                                                                                         in a directory




Heine, K. (2011) The World Luxury Brand Directory, ISSN: 2193-5440, Technische Universität Berlin, www.worldluxurybranddirectory.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                                               59
The World Luxury Brand Directory

Directory of Luxury Brands: www.WorldLuxuryBrandDirectory.com




      The collection of luxury brands in a directory helps testing and enhancing the definitions of
                                      luxury products and brands.
Heine, K. (2011) The World Luxury Brand Directory, ISSN: 2193-5440, Technische Universität Berlin, www.worldluxurybranddirectory.com.


            Technische Universität Berlin
           Department of Marketing Professor Dr. V. Trommsdorff

Klaus Heine – The Concept of Luxury Brands                                                                                              60
                                               Thank you! Questions?
                                              Klaus.Heine@conceptofluxurybrands.com




                        Department of Marketing, Steinplatz 2, 10623 Berlin, Germany, Tel: +49.(0)30.314-29.922,, Klaus.Heine@conceptofluxurybrands.com, www.marketing.tu-berlin.de
Klaus Heine, TU Berlin, Lehrstuhl Marketing, Steinplatz 2, 10623 Berlin, Germany, Tel: +49.(0)30.314-29.922,, Klaus.Heine@conceptofluxurybrands.com, www.marketing-trommsdorff.de



              Technische Universität Berlin
             Department of Marketing Professor Dr. V. Trommsdorff

				
DOCUMENT INFO
Description: This presentation corresponds to the paper about the definition and categorization of luxury products and brands,