Brand Experience and its Implications on Brand Equity A Study of Luxury Brands

Abstract

Despite the widespread recession, the global luxury market has grown from 10-11% over last couple of years and the Asia Pacific Region itself has grown by 25%. In terms of performance by geographic region, Asia contributes to 29% of the total industry revenues, next only to Europe, which contributes to 33% of the luxury industry revenues (PWC, Market Vision Luxury Report, 2012). Consequently luxury brand marketing has generated significant interest in researchers and marketing practitioners in recent times. newline Although there is dynamic growth in the world wide luxury market, luxury researchers and practitioners need to understand the dimensions of a luxury brand from the perspective of consumers and the impact on the consumers buying behavior. Bain and Co. (2012) indicate how it is critical to focus on the experiential dimension in the luxury purchase and consumption context. newline Brand experience as a concept has evolved as an imperative field of study in the marketing discipline with a view that the consumer landscapes are changing across markets. Superior functional benefits, consistency and quality promises are not enough to woo the consumer any more. The unique and memorable experiences created by brands are becoming increasingly important. newlineThe challenge is to understand what these experiences translate into for the brands and gain specific understanding on their role in building equity in the minds of the consumers. Hence this research aims to understand the concept of brand experience and its implications on brand equity in the luxury brand context.