The first notion is that of perceived excellent quality. The mental association between luxury and quality is so strong that for some respondents, the two words are almost synonymous. For mass-market items, consumers have many opportunities to judge product or service quality, primarily through multiple purchase and personal consumption experiences. But how can they assess the quality of a luxury good or service that they buy and consume very infrequently, sometimes only once in their lifetime(Dubois, Laurent and Czellar 2001). However Louis vuitton and Gucci both companies comes under luxury industry and these both companies are high rated companies in the market for the luxurious brands.
Because of the Fuggers' and Medici's wealth and power in society they easily influenced politics, especially ecclesiastical governance by usury and sale of indulgences. In the early sixteenth century the Fugger family of Augsburg, was the wealthiest and most influential financial organization in Europe. They started making money by importing raw cotton from Mediterranean ports. The Fugger family then moved into more lucrative trades such as silk and herbs, controlling most of Europe's pepper market. "The Fuggers virtual monopoly on all gold, silver, and copper mining in central Europe endowed its leaders with great political influence" (Encarta Encyclopedia).
Brand equity is crucial as it implies that the brand itself is an important (financial) asset and can be calculated in financial terms (Barwise, 1993). This is particularly important in the luxury sector as from a behavioural viewpoint, brand equity can differentiate a company or product from other competitors, adding to their competitive advantages based on non-profit competition (Aaker, 2004). The model created by Aaker (1992) states that there are four categories of brand equity; Loyalty, Awareness, Perceived Quality and Associations. Luxury branding relies on a high level of perceived quality, loyalty and associations, although potentially less so for awareness, as it is thought that consumers choose luxury brands based on their exclusivity and as such the more the awareness that surrounds the brand, there is potential for it to become less valuable (Phau and Prendergast,
Traditionally luxury goods are described as goods, which bring prestige apart from any functional utility (Grossman & Shapiro, 1988). Individuals that have a higher obtainable income or greater accumulated wealth than the average often buy Products that is more pleasant and more costly for the consumer. Luxury is about desirability, product excellence, exemplary service and mostly a brand promise. (luxury goods.BusinessDictionary.com). Social media and Engagement of customers is getting increasingly more attention in theory and by managers of luxury brands and luxury brands as well (Donaldson, 2011) (Phan, 2011).
Now people have higher disposable income and they want to buy luxury brands to satisfy their personal needs and aspirations. Hence luxury can be associated more with emotional and experiential value (Kapferer&Bastien, 2008; Aaker, 2009; Yeoman &McMahon-Beattie, 2010; Siri Merethe Knag, 2012; Heine, 2012; Brun&Castelli, 2013; Hannah Koller, 2014; Bhanot et al., 2014, 2015; Sunghyup
Art was a focal point of society, and a very powerful tool that powerful people used to gain an advantage. Discarding the effects it had on society for a moment, it was the key feature of the Renaissance. In earlier times, art had less status. However, mirroring the economic development of the time, art became the thing to spend money on, for various reasons. Money lay at the centre of art, and that is why patronage is so important.
Challenge statement: “Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth.
The wealthy class had so much money that the style toga they wore was from the best material and richly embroidered. Since politicians were wealthy they would run for office so they would whiten the toga with chalk in order to stand out. This is why some are known as candidates or ‘the white ones’. As middle class, “anyone who did not want to be seen as a slave or a workman in Rome had to be seen in a toga” (Roman Dress). The middle class had more money so they were able to buy nice togas and tunics that promoted them as middle class citizens.