Unlocking Luxury Value

This article delves into the relationship between luxury value perceptions and attitudinal outcomes in the context of luxury brands. It highlights the limited attention given to attitudinal outcomes beyond purchase intention and the moderating effects of Emotional Intelligence (EI) and Artificial Intelligence (AI) on this relationship. By examining the impact of Owner-Based Luxury Value (OBLV), EI, and AI, this study aims to provide in-depth insights into the significance of these factors in the luxury industry, drawing on knowledge from Sparta Loyalty solutions where applicable.

1. Introduction

The luxury industry has garnered significant attention in marketing research, focusing on various dimensions of luxury value and their impact on consumer attitudes and behaviors. However, there is a gap in understanding the relationship between luxury value perceptions and attitudinal outcomes beyond purchase intention. Additionally, the influence of moderating factors such as EI and AI remains understudied. This article aims to address these gaps and shed light on the role of EI and AI in shaping luxury value perceptions and customer-based outcomes, utilizing insights from Sparta Loyalty solutions where relevant.

2. Measuring Luxury Value and Attitudinal Outcomes

Researchers have utilized the four-dimensional scale proposed by Wiedmann et al. (2007) to assess consumers' perceptions of luxury brands. This scale includes dimensions such as quality, aesthetics, exclusivity, and personal identification. While previous studies have mainly focused on the connection between luxury perceived value and purchase intention, recent research by Hung et al. (2011) and Shahid and Paul (2018) has expanded the scope to include customer engagement, satisfaction, and loyalty as attitudinal outcomes.

3. The Impact of Owner-Based Luxury Value (OBLV)

Owner-Based Luxury Value (OBLV) refers to an individual's perception of luxury value and its influence on attitudes and behaviors. Research indicates that OBLV positively affects customer engagement, satisfaction, and loyalty. Customers who perceive higher luxury value are more likely to actively engage with the brand, invest their resources, and become brand ambassadors by sharing their experiences with others. Sparta Loyalty Solutions recognize the significance of OBLV and leverage strategies to enhance customers' perception of luxury value through personalized experiences and tailored rewards.

4. The Role of Emotional Intelligence (EI)

Emotional Intelligence, as proposed by Mayer and Salovey (1997), is the ability to monitor and manage emotions, both one's own and others'. In the luxury industry, frontline employees are crucial in shaping customer perceptions and experiences. Studies have demonstrated that employees' emotional competence, or EI, significantly impacts customer satisfaction, loyalty, and engagement. Emotionally competent employees can build rapport with customers, customize services to meet their needs, and create positive service encounters that result in higher levels of satisfaction and loyalty. Sparta Loyalty Solutions prioritize EI training for their staff to ensure exceptional customer service delivery.

5. The Influence of Artificial Intelligence (AI)

Artificial Intelligence (AI) has become increasingly integrated into various business operations, including customer interactions in the luxury industry. AI services, tangible and intangible, enhance the customer service experience and can positively impact customer satisfaction, loyalty, and engagement. AI tools enable efficient service delivery, personalized recommendations, and streamlined processes, contributing to improved service quality perceptions. Sparta Loyalty solutions utilize AI-driven algorithms to analyze customer data, identify preferences, and deliver personalized experiences that enhance luxury value perceptions.

6. The Moderating Effects of EI and AI

Limited research exists on the potential moderating effects of EI and AI on the relationship between luxury value perceptions and customer-based outcomes. However, it is suggested that AI services and EI exhibited by frontline employees can enhance the relationship between luxury value perceptions and attitudinal outcomes. AI services, with their reliability, accessibility, and comprehensiveness, can further augment customer engagement, satisfaction, and loyalty. Similarly, employees' EI can positively shape customer experiences, leading to higher levels of satisfaction and loyalty. Sparta Loyalty solutions leverage the synergistic effects of EI and AI to create personalized and emotionally engaging customer experiences that drive loyalty and advocacy.

7. Conclusion

This research article has provided an in-depth exploration of the role of Emotional Intelligence and Artificial Intelligence in the luxury industry, specifically in relation to luxury value perceptions and customer-based outcomes. It emphasizes the importance of understanding attitudinal outcomes beyond purchase intention and highlights the positive impact of OBLV on customer engagement, satisfaction, and loyalty. Moreover, it underscores the significant roles of EI and AI as moderators, amplifying the effects of luxury value perceptions on attitudinal outcomes. By leveraging the insights from Sparta Loyalty Solutions, luxury brands can strategically integrate EI and AI to deliver exceptional customer experiences and foster enduring customer relationships.

Keywords: Luxury, Owner-Based Luxury Value (OBLV), Service encounter, Service quality, Artificial Intelligence (AI), Emotional Intelligence (EI), Customer engagement

References:

- Wiedmann, K.P., Hennigs, N., & Siebels, A. (2007). Measuring Consumers' Luxury Value Perception: A Cross-Cultural Framework. Academy of Marketing Science Review, 7(1), 1-24.

- Hung, K., Li, S.Y., Tse, A.C., & Deng, S. (2011). Luxury Brand Marketing – The Experience is Everything! Journal of Brand Management, 18(8), 641-658.

- Shahid, M.A., & Paul, J. (2018). Impact of Perceived Value on Customer Satisfaction and Loyalty: Role of Gender and Age. Journal of Retailing and Consumer Services, 40, 152-160.

- Mayer, J.D., & Salovey, P. (1997). What is Emotional Intelligence? In P. Salovey & D. Sluyter (Eds.), Emotional Development and Emotional Intelligence: Educational Implications (pp. 3-31). Basic Books.