A key asset in luxury. What matters for brand value creation?

Academic Paper from the year 2021 in the subject Business economics - Supply, Production, Logistics, University of Glasgow, language: English, abstract: This paper seeks to contribute to the existing literature on brand value by identifying the factors that create and preserve brand value in luxury, from both, a consumer and company perspective. It seeks to advance luxury research by identifying the determinants of BV that are overemphasized and overlooked. Brand value (BV) is a key asset in luxury. Given the current pressures facing the industry, it is essential to know which consumer- and company-based factors create and preserve BV in luxury. This paper seeks to answer two research questions: 1. What are the most important determinants of BV from the luxury industry’s perspective?2. What are the most important company- and consumer-based BV determinants within luxury?To conduct the analysis, the author adapts Keller and Lehmann’s Value Chain into a luxury context and then analyzes it statistically using linear modelling (lm). For the statistical analysis, the author builds a dataset using consumer data provided by BAV consulting and complement it with secondary sources including Bloomberg, CSRHub, Dow Jones Sustainability Index (DJSI), Interbrand and company reports. The results are then subject to expert validation with senior executives and stakeholders from the luxury industry (‘credibility checks’).