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Identification and assessment of luxury brand segments in the emerging markets: Case of South Africa
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).ORCID iD: 0000-0001-9342-4977
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Africa has been identified as an upcoming market in which luxury brands should secure future growth opportunities. A review of related academic literature, however, reveals that limited research has been conducted which focuses specifically on the continent’s luxury consumers. This gap in the literature highlights the need to further the body of knowledge on luxury consumer behaviour in this context. However, as the continent comprises a vast number of countries with diverse consumer profiles, it was decided that this study would focus on the assessment of the behaviour of the members of luxury consumer segments in the South African market.

The specific areas that require research in order to establish an understanding of luxury consumer segments’ behaviour commenced from a review of different trends and developments in the South African market. The core trends, along with calls for further research on luxury brands in the international academic literature were combined to identify numerous avenues for further research. This eclectic approach aimed to not only contribute to an enhanced understanding of the behaviour of luxury consumer segments in the South African market, but to develop and extend the existing body of academic knowledge and literature on luxury brands.

Four research questions were developed from both the identified avenues from the review of the trends in the market, and the calls for further research in the academic literature. Each of these questions was then addressed by four individual papers.  This thesis makes a number of contributions to the related body of knowledge as it details the behaviour of different luxury brand consumer segments in the South African market, thereby serving as a step towards addressing the gap in the literature on luxury consumers on the African continent. 

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2017. , 141 p.
Series
TRITA-IEO, ISSN 1100-7982 ; TRITA-IEO-R 2017:06
Keyword [en]
Luxury brands, South Africa, Emerging markets, Consumer behaviour, luxury segments, brand co-creation, discourse analysis
National Category
Economics and Business
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-205217ISBN: 978-91-7729-362-0 (print)OAI: oai:DiVA.org:kth-205217DiVA: diva2:1087777
Public defence
2017-06-12, F3, KTH, Stockholm, 09:00 (English)
Opponent
Supervisors
Note

QC 20170411

Available from: 2017-04-11 Created: 2017-04-10 Last updated: 2017-04-11Bibliographically approved
List of papers
1. Opportunistic Luxury branding: Understanding perceptions of brand authenticity in an emerging market context: Understanding perceptions of brand authenticity in an emerging market context
Open this publication in new window or tab >>Opportunistic Luxury branding: Understanding perceptions of brand authenticity in an emerging market context: Understanding perceptions of brand authenticity in an emerging market context
2015 (English)In: The Journal of Global Business and Technology, ISSN 1553-5495, Vol. 11, no 1, 39-55 p.Article in journal (Refereed) Published
Abstract [en]

The purpose of this paper is to develop an understanding of luxury brand consumption in emerging markets and to explore a new notion associated with brand positioning termed ‘opportunistic luxury branding’. Using an extant segmentation approach of luxury brand consumers, we examine the behaviours and motivations associated with luxury brand consumption and the effect of authenticity in this context. Sixteen in-depth interviews were conducted with a diverse group of South African luxury brand consumers. The insights derived here suggest that luxury brands can be used as a social marker but also as a business investment, a self-gift and as an indicator of quality. Indexical cues and location of retail outlet are central to the authentication of luxury brands in emerging markets. Managerial implications are proposed with specific reference to luxury brand consumption with the longevity of opportunistic luxury brand positioning questioned.

National Category
Other Social Sciences not elsewhere specified Other Social Sciences not elsewhere specified
Research subject
Business Studies
Identifiers
urn:nbn:se:kth:diva-204916 (URN)
Note

QC 20170411

Available from: 2017-04-04 Created: 2017-04-04 Last updated: 2017-06-29Bibliographically approved
2. Co-creating luxury brands in an emerging market: Exploring consumer meaning making and value creation
Open this publication in new window or tab >>Co-creating luxury brands in an emerging market: Exploring consumer meaning making and value creation
2016 (English)In: Qualitative Market Research, ISSN 1352-2752, E-ISSN 1758-7646, Vol. 19, no 4, 395-415 p.Article in journal (Refereed) Published
Abstract [en]

Purpose: The purpose of this paper is to explore consumer meaning-making and brand co-creation and the role of brand value and the consumption context of luxury goods in the emerging South African market. Design/methodology/approach: An extant segmentation approach that classifies luxury brand consumers into four different segments was used to guide the identification of a total of 16 luxury consumers with whom in-depth interviews were conducted. Findings: The findings identify differences between four consumer segments’ levels of brand knowledge and indicate how these differing levels produce interesting meanings assigned to luxury brands which in turn co-create the brands. A framework is also proposed that maps each of the four luxury segments according to the value they derive from luxury brands and the context in which luxury consumption holds the most meaning for each segment. Practical implications: Managerial recommendations concerning the implications of consumers assigning meaning and value to luxury brands and recommendations pertaining to the managing and positioning of luxury brands to each of the four luxury segments in this market are proposed. Originality/value: The study provides interesting insights with regards to how consumers assign meaning and value to luxury brands in the emerging South African market. The proposed framework also uniquely demonstrates underlying behaviours within each of the four luxury segments and contributes to a better understanding of how and why these segments consume luxury brands.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2016
Keyword
Brand co-creation, Brand value, Consumer meaning-making, Emerging markets, Luxury brands
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-195550 (URN)10.1108/QMR-02-2016-0018 (DOI)000387554400002 ()2-s2.0-84991447194 (Scopus ID)
Note

QC 20161121

Available from: 2016-11-21 Created: 2016-11-03 Last updated: 2017-04-11Bibliographically approved
3. Gaining quantitative insights from qualitative data: Evidence from luxury brands in an emerging market
Open this publication in new window or tab >>Gaining quantitative insights from qualitative data: Evidence from luxury brands in an emerging market
(English)Manuscript (preprint) (Other academic)
National Category
Other Social Sciences not elsewhere specified
Identifiers
urn:nbn:se:kth:diva-205213 (URN)
Note

QC 20170411

Available from: 2017-04-10 Created: 2017-04-10 Last updated: 2017-04-19Bibliographically approved
4. Using an aesthetics and ontology framework to investigate consumers' attitudes toward luxury wine brands as a product category Evidence from two countries
Open this publication in new window or tab >>Using an aesthetics and ontology framework to investigate consumers' attitudes toward luxury wine brands as a product category Evidence from two countries
2016 (English)In: International Journal of Wine Business Research, ISSN 1751-1062, E-ISSN 1751-1070, Vol. 28, no 2, 154-169 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - This paper aims to classify and investigate customer attitudes toward luxury wine brands in the USA (a developed market) and South Africa (a developing market) by using an aesthetic and ontological framework. Design/methodology/approach - Using recognized scales, consumers' ontological and aesthetic orientation and attitudes toward luxury wine brands as part of a product category are measured. Data for the USA sample were collected using Amazon's Mechanical Turk platform, whereas the South African sample data were collected from a sample of Generation Y consumers. Using the two orientation scores, it was possible to create a 2 x 2 matrix with low and high scores for the two countries investigated. To determine the relationship between the resultant groups and attitude toward wine, ANOVA was performed. Differences among the groups were identified via a comparison of means. Findings - The results suggest that the use of aesthetics and ontological orientations enables the identification of different luxury wine consumer modes in the two countries studied. In addition, these demonstrate significantly different attitudes toward luxury wine brands as part of a product category. Research limitations/implications - The samples for both countries were collected using a non-probability sampling method, and any generalization to the greater populations must be undertaken with caution. Practical implications - The findings demonstrate a unique approach that provides an alternative form of segmentation for luxury wine brands. Recommendations to target the different identified modes and how these impact attitudes toward luxury wine brands as a product category in the two countries are made. Originality/value - The study contributes to the literature by providing a unique and alternative method of market segmentation and shows how this affect attitudes toward luxury wine brands as a product category.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2016
Keyword
Marketing, Wine, South Africa, USA, Wines, Developing countries, Market segmentation, Luxury, Aesthetics, Ontology, Attitude towards brands, Ephemerality
National Category
Economics and Business Other Agricultural Sciences
Identifiers
urn:nbn:se:kth:diva-190581 (URN)10.1108/IJWBR-10-2015-0047 (DOI)000379777700006 ()2-s2.0-84977521256 (Scopus ID)
Note

QC 20160817

Available from: 2016-08-17 Created: 2016-08-12 Last updated: 2017-04-11Bibliographically approved

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