Chanel, Prada, Louis Vuitton, Gucci, Christian Dior.
When we hear these store names, we instantly think of luxury. These stores are designed by famous designers and are indulgent and extravagant spaces. Historically, luxury started in France in “grand magasins.” The “grand magasins” were prestigious and offered high standards of customer service. Jackson describes luxury fashion brand is “characterized by exclusivity, premium prices, image and status, which combine to make them desirable for reasons other than function.”
Six elements of luxury have been identified by Dubois et al. (2001) as follows:
1 Excellent quality
2 High price
3 Scarcity and uniqueness
4 Aesthetics and poly-sensuality
5 Ancestral heritage and personal history
6 Superfluousness.
What greater function does a $3,500 chanel purse have over a $35 Aldo purse? All purses have same functions, do they not? From a consumer perspective, Gutsatz (1996) suggests that “Luxury includes two levels of representation. The first is material, it includes/understands the product and the brand (its history, identity, unique know how, the talent). The second level is psychological, and covers representations, which are influenced by our social environment and the brand values.” When we hear Chanel, we understand its high-quality, but we do not spend $3,500 for its quality only; we spend such money because of its representation. The luxury and social status associated with the $3,500 purse is what cause us desire.
Chanel no. 5 perfume is well-known for its marketing campaigns with famous celebrities, such as Nicole Kidman, Keira Knightley, and Audrey Tautou. Chanel is using the celebrity’s luxurious image to market its product. Chanel no.5 is aiming for customers who desire those celebrities’s image and status.