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  The IUP Journal of   Brand Management :
The Price of Luxury
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This paper discusses the different reasons why customers are prepared to pay a higher price for luxury goods in general, and outlines ten specific pricing insights in particular. In addition, it articulates important themes for future research in the field of luxury brand management.

 
 
 

Price is an important issue in many fields. In marketing, price is often viewed upon as a core part of the marketing mix, stabilizing a brandís positioning, together with the other variables such as product, promotion and place. For example, BMW is positioned as the ultimate driving machine with a high price, with selective distribution in luxurious environments with subtle promotion and extremely high product quality (Kotler and Keller, 2014). In microeconomics, on the other hand, price is not a signal, but a function of marginal revenue reasoning. In that realm, only a monopolist can set the price according to his or her wish. In strategic brand management and in luxury brand management in particular, price is not just a core issue, but perhaps the most important variable (Kapferer, 2015 and Kapferer, 2012). This paper develops ideas around price management in luxury branding in relation to quality, personality and the brandís overall positioning.

 
 
 

Brand Management Journal,Price management, Luxury and Perceived Quality, Luxury and Demand Curve Pricing, Luxury Pricing and Brand Democracy