New Perspectives on the Interplay Between In-Store And Out-Of-Store Brand Factors across Multiple Retail Contexts: Consumer Response to Luxury Brand Experiences

Today’s consumers experience the brands within numerous in-store and out-of-store contexts, and tend to focus on their holistic experience with the brands across various retail scenarios. Companies, especially in the luxury industry where multiple retail settings contribute to the formation of the brand image, invest considerable funds to create entertaining, exciting, and emotionally engaging experiences. However, researchers have not yet examined how traditional luxury brand factors interplay with experiential factors across multiple retail settings of the brand. In marketing literature, researchers have devoted considerable attention to the effect of store environments on consumer behavior (e.g. Baker et al., 2002; Donovan & Rossitier, 1982; Kotler, 1973). At the same time, academic research has also been conscious of the central role of brand image in the consumer-buying process (e.g. Keller, 1993; Kwon & Lennon, 2009). More recently, these two streams are coming together. Practitioners and academics have argued that creating compelling shopping experiences across multiple environments, and along, and beyond, the entire path-to-purchase is a key challenge for maintaining a certain brand image (Interbrand, 2014; Verhoef et al., 2009). In a luxury brand context, whereas brand managers design most of the strategic implementations of the brand, retailers can increasingly craft value to the brand via the creation of multisensory retail experiences (Spence et al., 2014). Luxury brands, such as Chanel, are continuously growing their retail presence, and identifying ways to cultivate the tradition of the brand and create distinctive and unique brand experiences. However, the academic perspective of investigating luxury brand images in contemporary business contexts has been underdeveloped (Berthon et al., 2009; Miller & Mills, 2012). While this call for more comprehensive and holistic approaches to luxury brand experiences has been raised (Atwal & Williams, 2009), current research predominantly focuses on single aspects of the luxury brand experience, such as in-store multisensory factors (Möller & Herm, 2013), brand owner cues (Tynan et al., 2010), in-store environment cues (Baker et al., 2002), or luxury brand specific factors (Beverland, 2005). The evolving business world needs to implement more holistic and contemporary approaches. By employing the approach of three dimensions store atmospherics (Baker et al., 2002) to luxury brand experiences, this study investigates how consumers integrate 1 manuela.valta@deams.units.it 2015 Global Fashion Management Conference at Florence 114 traditional brand factors with new factors of consumption. The objective of this article is to understand how various retail settings affect emotional states, which, in turn, affect behavior toward luxury brands. This study addresses the relationship of luxury brand experiences in tight and less controlled retail scenarios, and the ways in which luxury experiences trigger effective successful brand experiences. Utilizing two qualitative studies, the authors consider the interaction between luxury brand experiences and store atmospherics. The paper concludes with relevant implications for academics and practitioners to enable new perspectives on luxury brand strategies, and consumer response to the luxury brand image in the challenging retail landscape.