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- Title
CASE STUDY OF GUCCI VS. GUESS -- THE FAILURE OF BRAND STRATEGIES THAT RELY ON VEBLEN'S CONSPICUOUS CONSUMPTION.
- Authors
MAJIC, OLIVERA JURKOVIC; MAJIC, HELENA
- Abstract
Brands belong to intangible corporate assets reflecting a special relationship between consumers and products, giving an immaterial added value to corporate image. Famous brands have become victims of unauthorized copying and now compete with the submarket of counterfeits. The most significant legal instruments of brand protection are trademark and industrial design. However, sometimes the producers of luxury brands do not take legal actions against the submarket, mostly inspired by the strategy of strengthening the present market position based on Veblen's theory of conspicuous consumption. They strengthen the market position with regard to the submarket by introducing higher prices and exclusiveness in distribution network in order to meet the expectations of status-oriented consumers. The purpose of this paper is to discuss the changes in behaviour of status-oriented consumers which have endangered the market position of luxury brands. The recent case of Gucci vs. Guess has shown that consumers do not conform completely with Veblen's theory of conspicous consumption. This happens when a significant market competitor copies trademark and industrial design as submarket does, but in respect of prices, marketing and distribution policy does not act as submarket does. Instead, such competitor offers quality counterfeits under slightly more affordable price than original producer misleading consumers to believe they are not buying on the submarket. The findings of this case study should readapt the theory of consumption based on psyhcological and social factors that compel consumers to confirm their social status.
- Subjects
PRODUCT management; BRAND name products; CONSUMER behavior; CONSUMPTION (Economics); GUCCI (Company); GUESS? Inc.; PRICING
- Publication
International Journal of Management Cases, 2011, Vol 13, Issue 4, p132
- ISSN
1741-6264
- Publication type
Article
- DOI
10.5848/apbj.2011.00120