Cultural influences on luxury perception: examining the relationship

Abstract

Global new trends have pushed luxury brand to follow the needs of the new establishing markets, taking the right strategic decisions in order to be able to catch the opportunities offered. To flourish, it's imperative to uphold the essence of the brand while accommodating the nuances of diverse markets. In marketing strategy, managers continually face the decision of whether to standardize or tailor the marketing mix (including place, product, price, and promotion) when venturing into international markets. Some companies opt for multinational marketing, where products are developed differently to cater to the preferences of each country or region, aiming to meet specific client demands, while keeping in mind the DNA of the brand. On the other hand, others adopt a global marketing approach, selling the same product uniformly across all markets, without considering the different needs of communication and adaptation to cultures. Hence, it's intriguing to explore the extent to which consumers from various regions perceive luxury differently. While some argue that globalization has homogenized consumer preferences worldwide, with luxury products being purchased uniformly across the globe, the underlying motivations for these purchases can significantly vary. My aim is to delve into the factors driving different perceptions held by customers in different countries of luxury brands. To gain a comprehensive understanding of the differences characterizing the different perceptions, I will examine a contextual framework, gathering data on how consumer attitude and associations differ between countries and culture.