OBSERVATIONS: Understanding the World of International Luxury Brands: The 'Dream Formula'
Bernard Dubois and Claire Paternault
In spite of its spectacular growth over the last 20 years, the market for luxury goods, estimated at $60 billion by McKinsey Corp (1990), keeps its secrets. Although brand names and products are highly visible given their strong media coverage, the processes according to which consumers acquire and consume luxury items remain enigmatic. It seems particularly difficult to explain and predict the conditions under which 'dreams' of luxury emerge and how such dreams materialize into purchase acts. While for other high-involvement products, time-honored rational...