Psychological Luxury Marketing

By Kartik Gupta
Luxury Branding
Properties of Veblen (Luxury) Brands

-Price and Consumer Demand Directly Correlate

-Always Have a Cheaper Alternative
-Exclusivity: Destruction Margin and Brand Recognition
Brand Narratives
Example 1- Goods

$45.00

$2,200.00
Example 2- Services

Boutique
Hotel

Holiday Inn
Mr. Jon Godman
Data Collection
Thesis: A marketing technique for an everyday good or service, incorporating the
base principles of focusing on brand narratives and reciprocity or the consumer’s
sense of belonging paired with reciprocity of the consumer’s loyalty mimicking those
of veblen brands, will yield significant sales and increase a consumer base in most
cases.

Luxury Brand Pitches Generic Brand Pitches

Scenario 1- Handbags
Please select which of the following brands you will most likely spend an allotted
$1,000.00 on, according to the marketing pitch:

Option 1: You know the bag. The chocolate-brown leather canvas emblazoned with
quatrefoils and the LV monogram is immediately recognizable as the international
symbol of globetrotting luxury.

Option 2: Shop for Handbags in Bags & Accessories. Buy products such as Sammy
Skylar Tote, Relic Piper Tote, Sammy Elizabeth Clutch, Relic Evie Crossbody and
save.
Results of Scenario 1
Scenario 2- Perfume
Please select which of the following brands you will most likely spend an allotted
$100.00 on, according to the marketing pitch:

Option 1: Shop for women's perfume you will love at great low prices. Free shipping
on orders $35+ or free same-day pick-up in store. Fresh & clean: Think fresh-cut
grass or a crisp glass of lemon water.

Option 2: My Burberry Blush steps back into a London garden as it awakens in the
first light of day. Capturing the senses, blossoming flowers open with a burst of
energy, while dapples of glowing light weave, twist, and turn through the flora.
Results of Scenario 2
Scenario 3- Shoes
Please select which of the following brands you will most likely spend an allotted
$500.00 on, according to the marketing pitch:

Option 1: The pump is a true style icon. Never out of vogue with a pointed toe and
slim heel, our women's pumps are elegant and classic all at once. Our collection of
heel heights in leather, glitter, lace and suede will fit seamlessly into your wardrobe.

Option 2: Shop a great selection of Women's Heels & Pumps. Find designer
Women's Heels & Pumps up to 70% off and get free shipping on orders over $100.
Results of Scenario 3
Scenario 4- Jewelry
Please select which of the following brands you will most likely spend an allotted $650.00 on,
according to the marketing pitch:

Option 1:Recognizing the power of education not just to transform, We have partnered with
Save the Children. We help fund the non-profit's activities with proceeds from the Save the
Children jewelry collection such as the Save the Children 1-band sterling silver ring with black
ceramic.

Option 2: Adding a little sparkle or a personal touch to your ensemble is as simple as wearing a
piece of jewelry that makes a statement or has sentimental value. Whether you're looking for
jewelry to add to your personal accessory collection or have someone special in mind, there are
a few things to consider when making a jewelry purchase.
Results of Scenario 4
Scenario 5- Watches
Please select which of the following brands you will most likely spend an allotted
$1000.00 on, according to the marketing pitch:

Option 1: Octo’s design celebrates the Italian genius, combining its trademark - the
octagonal shape, inspired by the Roman Maxentius Basilica, built in 310 AD.

Option 2: Mixing function with style, fashion watches use various materials and
colors to create timepieces that you can easily coordinate with different outfits. Opt
for an innovative dial shape or a vibrant color for an accessory that can make you
stand out from the crowd.
Results of Scenario 5
Kahoot.it
Works Cited
Bertoni, Stephen. Forbes Under 30 Summit: Neil Blumenthal. 5.
Burgelman, Robert, and Debra Schifrin. LVMH in 2011: Sustaining Leadership in the Global Luxury Goods Industry.
2011, https://www.gsb.stanford.edu/faculty-research/ case-studies/lvmh-2011-sustaining-leadership-global-luxury-
goods-industry.
“Bvlgari.” Save the Children, http://www.savethechildren.org/site/c.8rKLIXMGIpI
4E/b.8275777/k.CE0E/Bulgari.htm#celebrity.
Carlozo, Lou. “Moscot and Warby Parker: How Two Small Eyewear Companies Saw Their Way to Success.” Reuters, 11
Jan. 2013.
Clay, Rebecca A. Advertising as Science. American Psychological Association, Oct. 2002, p. 38,
http://www.apa.org/monitor/oct02/advertising.aspx.
Felix, Salmon. “It’s Expensive, so It Must Be Good.” The Economist, 2 Sept. 2009,
https://www.economist.com/blogs/freeexchange/2009/09/its_expensive_so_it_must_be_go.
Fraser, Scott C., and Jonathan L. Freedman. “Compliance without Pressure: The Foot-in-the-Door Technique.” Stanford
University, vol. 4, no. 2, 1966.
Gloor, Lukas. “Splitting II: Feeling Good about Doing Good.” Raising for Effective Giving, Oct. 2014,
https://reg-charity.org/splitting-ii-feeling-good-about-donating/.
Honigman, Brian. How Sephora Integrates Retail & Online Marketing.
https://etailwest.wbresearch.com/how-sephora-integrates-retail--online-marketing.
Works Cited Cont.
Hyder, Shama. “Luxury Brands: 4 Secrets To Marketing In The Digital Age.” Forbes, Mar. 2017,
https://www.forbes.com/sites/shamahyder/2017/03/13/ luxury-brands-4-secrets-to-marketing-in-the-digital-age/
2/#34b6472d5fe3
.
Kunz, Phillip, and Michael Woolcott. Season’s Greetings: From My Status to Yours. Sept. 1976,
https://doi.org/10.1016/0049-089X(76)90003-X.
Parvatlyar, Atul, and Jagdish N. Sheth. Relationship Marketing in Consumer Markets: Antecedents and Consequences.
Journal, Emory University, 1 Sept. 1995, http://journals.sagepub.com/doi/abs/10.1177/009207039502300405.
Pini, Fabrizo Maria. A Narrative Approach to Luxury Brands. Palgrave Macmillan, Cham,
https://doi.org/10.1007/978-3-319-41727-1_5.
Rind, Bruce, et al. Sweetening the Till: The Use of Candy to Increase Restaurant Tipping. Cornell University, 2002,
http://scholarship.sha.cornell.edu/articles/130/.
Secher, Peter Zink, and Ian Horley. The M&A Formula: Proven Tactics and Tools to Accelerate Your Business Growth.
Wiley.
Smith, Molly. “Costco’s Private-Label Booze Helps Warm Spirits During Dry Spell.” Bloomberg L.P., Mar. 2017,
https://www.bloomberg.com/news/articles/2017-03-16
/costco-s-private-label-booze-helps-warm-spirits-during-dry-spell.
Walden, Celia. “Bernard Arnault: ‘I Don’t like Women Who Try to Dress Too Young.’” The Telegraph, 26 July 2015,
http://www.telegraph.com.uk/lifestyle/11756408/Bernard- Arnault-I-dont-like-women-who-try-to-dress-too-
young.html.
Evaluation Form
https://goo.gl/forms/l7KKv3bTEtARVgT83