StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

How has the internet and social media affected the development of luxury brands and how can you measure it's effectivity - Assignment Example

Comments (0) Cite this document
Summary
How has the Internet & social media affected the development of luxury brands and how can you measure its effectivity? Authors note: The author has knowledge about luxury…. Etc… Abstract Initially, the concept of luxury brands venturing in the online platform to conduct their transactions seemed as an impossible mission not only to managers but also to consumers who had the same view…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
How has the internet and social media affected the development of luxury brands and how can you measure its effectivity
Read TextPreview

Extract of sample "How has the internet and social media affected the development of luxury brands and how can you measure it's effectivity"

How has the Internet & social media affected the development of luxury brands and how can you measure its effectivity? The hasknowledge about luxury…. Etc… Abstract Initially, the concept of luxury brands venturing in the online platform to conduct their transactions seemed as an impossible mission not only to managers but also to consumers who had the same view. However, this has changed and now the online market is radically increasing with numerous people looking for the luxury feeling where they receive special treatment as well as a special feeling. Numerous brands have decided to use online communication with the intention of increasing their market share and dominance because it is the new way in reaching the global market. The aspect of E-commerce has managed to expand the luxury companies from what they were initially, before the introduction of social media. Luxury brands for many people are not just flashy items worn by those in high social classes but unique and also more common to those in lower social classes. Those items hold an identity that occurs as a culture or a philosophy. At the inception of E-Commerce in the late 90s, there were still mixed opinions regarding the luxury sector. Managers from luxury firms held the opinion that luxury would never sell online and consumers shared this same view (Geerts, 2013). The reasons are seemingly straightforward. First, use of the internet was still not yet that common and for that reason people were not willing to spend fortunes on the web. Furthermore, it is also hard to feel and more importantly to evaluate a luxury product while sitting in front of a monitor. Let’s begin by establishing a definition of luxury and the type of products defined as such... Fashion and accessories are the focus of this paper. Then, there are leather goods, wines, jewellery, watches, cosmetics, cars, types of air transport and also hospitality and concierge services. These are only a few examples of industries that produce luxury high end products or services. Luxury comes from the Latin word luxus, which stands for indulgence or glory (Maisonrouge, 2013). History would view these products as any that would be used to show respect to one’s god or used by a King to demonstrate power. It is something very unique that only a limited number of people are able to afford or possess. Lastly, and this applies particularly to the contemporary world, luxury can also be about appreciating time, about being alone or about having the opportunity to explore new things. For that reason, shopping online is very practical. It is fast, always accessible and open for business, permanently adds new items to stock and finally makes it much easier to manage time that remains for more important things than shopping (Maisonrouge, 2013). In today?s world, where everything is changing very quickly, there are numerous daily interactions with new people and I believe that the interest in buying luxury items as well as having a feeling of security wearing them is increasing drastically. The feeling of being a part of the trend and also the feeling of buying luxury online as well as offline, is contributing to luxury being more accessible to the public. Most luxury merchandise revenues globally have augmented from 173 billion € in 2010 to 212 billion € in 2012 (Altagamma, 2012). In this case, I would plan to investigate the manner in which websites or social media change both the buying power and people’s perception concerning luxury products. I would only achieve this on a profound point of view when I integrate statistics of how many consumers now purchase luxury items through social media or other internet platforms. In addition, I intend to look on what aspect of a luxury brands is lost when corporations decide to integrate social media (Seringhaus, 2005). This is by deeply looking on how many companies that deal with luxury items have embraced the internet as a major platform for selling most of their products. For instance, Seringhaus claims that the internet has diversified the sale of luxury products in recent times. He claims, a recent American study proves that internet has the most influence on luxury purchase desicion making over other media platforms (Seringhaus, 2005). Evidently, internet gives a good purchasing power to varied consumers of luxury products compared to other platforms. Brands especially those in fashion industry are trying majorly to keep the internet at arm‘s legnth. This is obvious by little enthusiasm relayed by some of european luxury brands dealing in fashion via internet platform though currently they have started tremendouslyincluding it (Kemp, 2009). On taking a closer look, I realised that social media is actually the buzzword for many luxury brands. In fact, luxury fashion brands have increasingly invested in social media over the past few decades. Mainly, this is because many people who tend to follow fashion trends for various reasons are majorly the young people up to 40 years old, who are the majority when it comes to using social media sites (Phan, 2011). To begin with, I would like to start with the following statement by Okonkwo. “Luxury is neither a product, an object, a service nor is it a concept or a lifestyle. It is an identity, a philosophy and a culture(Okonkwo, 2009).” In saying this, the word luxury takes on a very exclusive meaning. To return to the prior historical discussion, when a King in former times had something made for him it was something that was produced solely for him. It was a symbol of status and even respect. The king in former days or anyone else for that matter, was judged by the things he owned or by the comforts he had owning these items. In this way, luxury services or luxury items simply became things that are deemed very special and furthermore, rare. The latter is then something for which the demand is very high, but in fact, cannot be supplied to the masses because either the price is prohibitive or it cannot be readily supplied for reasons such as the time it takes to produce. In a nutshell, “the function is rooted in the social classes of the past civilisations and societies when royals, nobles and aristocrats used ostentatious consumption to stamp their superiority and maintain their distance from the lesser privileged” (Okonkwo, 2009). This said, still in today’s world, everyone wants to distinguish him or herself from others and in most cases it has to do with what someone owns. For obvious reasons, the easiest way to distinguish is shown by what one wears and it often also communicates a lot about how someone feels and the background of a person. (Okonkwo, 2009) Luxury then basically has the same position in today’s world as it used to have in earlier days. Importance of internet to business In connection with the discussion of the Internet, I would like to state that a lot of luxury brands haven’t incorporated the Internet as a form of communication yet or are just introducing it, while others are already more advanced. In most cases, one will find that services are the most likely luxuries sold on an online platform like travel destinations and hotels (Phan, 2011). As the Internet has developed enormously over the past years, it can only be stated that it is a major communication tool for many corporations. The best thing about it is, that everything done online can be measured besides it is very easy to measure it. And secondly, everything is just one click away and by saying that, I mean that everything is interlinked and everything can be accessed by anyone who has access to the Internet. For instance according to statistics, over 85% of the world population can access the internet and half of them purchase varied necessities via the internet. For instance, while a person is browsing through the internet, he or she can adequately visit any website dealing with certain products to view them. In order to purchase them a person needs only to click on the selected product to get all the necessary information about it and begin transaction processes. From the previous statement, it is evident that the number of those owning Internet, enabled gadgets like PC’s Ipad’s, Iphone’s and so on is rapidly increasing just like online shopping and purchasing. For example, as the Internet population continues to show a rapid growth, it in turn triggers the aggregate online purchasing power to increase (Seringhaus, 2005). Brands can use the Internet to get across all of their information. In order to do so, there are social media interfaces, brand websites, and then there are also online shops, where with simply one click you can fill your basket with beautiful handcrafted products. As already mentioned before, it is not normal for the luxury sector to have a website and in fact, Prada and Versace for example did not have a corporate website until about six to eight years ago (Okonkwo, 2009). The latter information makes one wonder why luxury brands selling is not completely utilizing the internet platform as expected. In the International Journal of Management and Marketing research, Geerts clearly explains, “there is a big difference between the luxury marketing features and the internet features itself. Luxury marketing involves Service, POS experience, consumption experience, individualised sales, only in prestigious venues and the price is rarely displayed. The internet, on the other hand stands for international accessibility, few or no contacts, limited service, limited buying experience”(Geerts, 2013). As for example, already more than 25 of the Colbert Committee Brands offer e-commerce, there is a big trend in an increase in the next years. While luxury brands are actively venturing into conducting their operations using online platform, their actions bear varied merits and demerits to the luxury business. For instance, use of social media to communicate to the broad mass by luxury brands is proving effective with a significant increase in sales (Google, 2007). For instance, Natalie invests in the online platform and social media to reach more women who are their target group in the population (Google, 2007). However, use of all this platforms gets rid of the luxury culture of the products. The products being open for people of all social status does not make them as luxurious as they were before. How can the luxury sector control the phenomena that its products remain extravagant, when connecting the exclusivity to the Internet? Conducting E-commerce requires a lot of care on the internet by the luxury companies. This is because Internet characteristics usually make it adapted to channel the both, distribution and communication to the mass audience. For instance, aspects of interactivity, intelligence, individualization, accessibility, absence of contact and loss of control, comprise vital issues that companies have to consider (Maisonrouge, 2013). Through the latter two characteristics and marketing strategies of luxury products, one realizes the two are not compatible. For this reason, some brands are still reluctant in using social media in selling their products. Since 1990s, managers of high profile luxury brands together with consumers held the same opinion luxury products could not sell online for various reasons. According to them, it was also hard to feel and more importantly evaluate a luxury product while sitting in front of a monitor. In addition, many thought luxury products must be expensive products rarely found and sold with special care. This explains the reluctant behaviour of some brands not getting their products online. Brands can use Internet to relay their information with the intention obtaining more clients. This is via social media interfaces, brand websites besides online shops, which only require click of a mouse for a person to fill basket with preferred and beautiful handcrafted products. Contrary to the past, numerous brands are currently getting their products online due to the large pool of clientele especially in social media where youth is the majority. However, this aspect is not that evident when it comes to luxury brands whereby some have already incorporated it and far advanced while others are still starting. References Altagamma, B. A. (2012). Personal luxury goods Revenue Worldwide 2009-2012. 2012 Luxury Worldwide Market Study . Geerts, A. (2013). Cluster Analysis of Luxury Brands on the Internet. International Journal of Management and Marketing Research, 6(2). 79-92. Google. (2007, May 29). Natalie Massenet at Zeitgeist Europe 2007. [Video file]. Retrieved from http://www.youtube.com/watch?v=s5w49gUWf58 Kemp, M. B. (2009). Luxury Brands must balande accessibility and exclusivity. New Media Age , 07. Maisonrouge, K. P.-S. (2013). The Luxury Alchemist. New York: Assouline. Okonkwo, U. (2009). Sustaining the luxury brand on the internet. Journal of Brand Management, 16 (5/6), 302-310. Phan, M. (2011). Do social Media enhance Consumer's Perception and purchase Intensions of luxury Fashion Brands . Vikalpa: The journal for Decision Makers , 36 (1), 81-84. Seringhaus, F. R. (2005). Selling Luxury Brands Online. Jounral of Internet Commerce, 4 (1), 1-25. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“How has the internet and social media affected the development of Assignment”, n.d.)
Retrieved from https://studentshare.org/e-commerce/1492892-how-has-the-internet-and-social-media-affected-the
(How Has the Internet and Social Media Affected the Development of Assignment)
https://studentshare.org/e-commerce/1492892-how-has-the-internet-and-social-media-affected-the.
“How Has the Internet and Social Media Affected the Development of Assignment”, n.d. https://studentshare.org/e-commerce/1492892-how-has-the-internet-and-social-media-affected-the.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF How has the internet and social media affected the development of luxury brands and how can you measure it's effectivity

How has inflation adversely affected social security

The fund raising mechanism of Social Security makes it a ‘pay-as-you-go’ system and can be termed as advance-funded. In simple words, funds to this program are contributed by the people who are presently working and are utilized for the benefit of the retirees. Ohlemacher (2010) states that Social Security is funded by a 6.2 percent payroll tax, paid by workers as well as employers. The Social Security corpus is being constantly used and is being replenished at the same time. Since inception, the Social Security program has done exceedingly well and has helped the country tide over many difficult situations. Till date, it remains one of the most successful and most popular programs in the United States which has touched the lives...
6 Pages(1500 words)Term Paper

How Social Media Affects Politics

... How Social Media Affects Politics Social media ultimately is considered as one of the disruptive technologies. It alters the delivery of information, news coverage, online content and the manner in which people digest developments in the world of politics. As evidenced in the 2008 elections, social media can be utilized, as a way to mobilize voters and make an electoral impact. During this election period, they acted as the CNS of campaign organizations. The use of Twitter, Facebook, MySpace, and YouTube by various candidates raised money, built electoral coalitions, identified supporters, and as a result, the electorate was brought closer to the process. Despite its record of accomplishment in the generation of democratic engagement...
6 Pages(1500 words)Essay

How Students Use Social Media

... fundamentally the vision of global exposure is enhanced time and again. It is believed in this context that with the help of social media, users can exchange and share their views, thoughts, common interests like video, photography, political issues and favourite TV shows among others (Mayfield, 2012). Connectedness: A majority of the social media sites depend on its connectedness through which users can access different kinds of sites, resources and people which in turn develops the technological innovation as a vital source of information (Mayfield, 2012). Changes in the Past Five Year of How Students Receive Information and News In the current day context, social media has emerged as an inevitable source of information it can...
10 Pages(2500 words)Essay

How Social Media Exposing Us

... Module Creative Writing: How Social Media Exposing Us The Internet is a wonderful instrument for purposes of mass communication,but it comes with a number of disadvantages one being the lack of privacy. The Internet has transformed into a control grid in which privacy rights are no longer highly regarded. There are systems that virtually record or monitor everything that is done on the Internet. In the recent years, internet surveillance has grown to be a necessity for different reasons. When people freely post a lot of personal information about themselves on social media websites like Twitter and Facebook, they forget that this information cane be accessed by strangers. Reasons Why Nothing on the Internet Can be Considered as Being...
3 Pages(750 words)Essay

How the Internet Has Affected Communication Behavior

From the essay it is clear that prior to the Internet were video games, which over time became more and more sophisticated. The social impact of video games spawned a plethora of studies on human behavior and interaction, especially regarding young people and families. As the Internet began to take hold, people began to be able to communicate and play games over long distances, in real time. It was felt that this activity interrupted family and social life.
This study proposes to further examine how the internet is changing the way people communicate with each other on an everyday basis, both for better and for worse. Internet use decreases social interaction. According to a recent study by Stanford University, frequent Intern...
5 Pages(1250 words)Essay

How to Build Brands

...Marketing Paper Product branding is essential in business undertakings, constituting a critical aspect of marketing. Brand names and images that carry favorable pricing and high qualities are preferred by consumers. In marketing, consumers’ rationality cannot be ignored, since it influences buying behaviors of the consumers (Grant 128). Apple, Inc. for example is a business enterprise that accounts for consumer welfare while ensuring that the quality of its products remains highly competitive. This pursuit has enabled the company to charge high prices for its products, and still capture a significant market share locally and internationally. New product development under the brand name Apple, takes creativity, innovation and technology...
1 Pages(250 words)Essay

How Social Media and Internet Violates Privacy

The central arguments of the study were built on the realization that social media such as Tweeter does not have sufficient safeguards that could protect users against privacy issues. The study examined the incidences of privacy violations and the attendant issues that affect concerns and issues of privacy.
Some of the issues involved include relating to cases where confidential information leaked from Tweeter accounts that had been protected by the system safeguards. Further, the study trains sufficient focus on the challenges involved in prosecuting privacy violation cases. Some of the challenges related to the problematic issue of defining privacy and the establishment of thresholds necessary for determining privacy conce...
5 Pages(1250 words)Annotated Bibliography

How Will You Measure Your Life

... Book Review Introduction Book ‘How Will You Measure Your Life?’ Clayton M. Christensen, James Allworth and Karen Dillon. Date Published: May 15th, 2012 Publisher: Harper Business Number of Pages: 240 About the Authors Christensen is by experience a Professor of Business Administration at the Harvard Business School. Clayton is the author of other seven acclaimed books alongside ‘how will you measure your life. Clayton was named the most influential business thinker in the world in 2011. Karen Dillon, a co-author of the book is a former editor of the Harvard Business Review Magazine. She too has written several other books. Ashoka named Karen in 2011 as one of the world’s most inspiring and influential women. James Allworth is a Fellow...
11 Pages(2750 words)Book Report/Review

The Social and Cultural Contexts of Deviance

Generally, deviance is a behavior that is seen as harmful, disruptive, or criminal. However, it may come as the result of being statistically unique. This brings into question whether there can be positive deviance. For example, if a student got straight A+ grades, the Underachievers Club may view them like a deviant. As a group, they may place sanctions on them above and beyond what they would the average student. This illustrates the concept that deviance must be seen through the lens of the social or cultural context that it takes place in (Keel, 2008).
Social norms are the types of behavior that are established and maintained by society and are considered to be acceptable. Because deviance is the transgression of a norm a...
9 Pages(2250 words)Literature review

The Effect of Democracy on Chinese Development

Any country first needs to go through economic liberalization and political liberalization before finally settling into a stable democratic situation. Democracy should not at any one point be viewed as if it were socialism, but should be seen as a means of promoting economic development through accountability and protection of individual lawful rights and interests...accountability in the sense that the respective leaders are able to fight corruption, enhance social harmony, strengthen public trust and more importantly empower government institutions that are directly in touch with the people (Liu, 2008, p.1-2). Owing to the Chinese well informed and affluent society on top of having a very dynamic economy, the political change wh...
7 Pages(1750 words)Coursework

The Evolution of Public Media

To instigate one to a category can now just as easily break out into a full-on discussion that may exhaust time and brain cells and yet still remain undefined.
In so much so that censorship and other restrictions, imposed by governments, critiques, audiences and other artists may condone a certain message of restraint that could bring about a new sense or in some cases lack thereof of artistic freedom. It is no longer a matter of identifying the genre and then moving along with the idea. Today’s global world will continue to embark and expand to involve all who are part of this world to be within the grasp of criticism or acclaim.
This categorizing and boxing up is now becoming obsolete as more and more works show...
9 Pages(2250 words)Coursework

Decision Making in Health and Social Care

... of social welfare as shown by the triangle marked abc. Social welfare in health care is bound to increase as producers tend to produce more as a result of the subsidy while consumers tend to consume more because some of the benefits of the subsidy are passed on to consumers by producers (Hazlitt, 1988, p.198). Health outcomes associated with the above action of the government can be measured in conformity with a number of positive effects. For instance a series of positive outcomes including a healthier nation, greater productivity, longevity and a bigger Gross Domestic Product could add to incremental values by increasing the relative effectiveness of intervention by the government. If the free market forces of demand and supply...
8 Pages(2000 words)Case Study

Marks and Spencer Organizational Development Process

... production and marketing techniques the company is aiming to attain world class position in the retail market field. Along with offering of highest quality products, customer servicing is also ensured by them for attaining loyal customer base. “Our brand values – quality, value, service, innovation and trust – are more important than ever. Our commitment to these values sets us apart from our competitors, and enables us to offer our customers something truly special.” (About us, 2009). An overview of Organizational Development process: According to Richard Beckhard, Organizational Development is “An effort (1) planned (2) organization-wide (3) managed from the top to (4) increase organization effectiveness and health through (5) planned...
7 Pages(1750 words)Case Study

The Effects of Media to Its Audience

... according to the said model is passive and heterogenous (Mediaknowall Homepage; Perse 23). One of the examples that can be cited on the said model is the popular culture that commonly affects the population for example in fashion and music. The trends are being followed subconsciously in most cases. (1) (2) Source: Mediaknowall Homepage Figure 1. The Hypodermic Needle Model. Another model that targets to explain the effects of media to the audience is the “two-step flow.” The said model had been developed when the hypodermic model had been insufficient to explain the complicated manner of the media in affecting the audience. Based on the said model, upon empirical studies the direct effect of the forms of media had been reduced...
7 Pages(1750 words)Case Study

John Rawls vs Robert Nozick: Social Justice

It is logical to look at political philosophy within the framework of history and ethics emerging from it. As could be observed, the question of justice, and how we perceive its nature has remained the prime concern throughout history. This will include, among other things, the existence of specific obligations towards each other and towards the state, the existence of natural rights, claims of property/liberty and equality.

In face of this, the Anglo-American political philosophy has seen famous philosophers like John Rowels, Robert Nozick and recently Amritya Sen to focus on issues and arguments concerning the above...(political Philosophy, 2005 pp1)

As political philosophy is about politics mainly, it s...

6 Pages(1500 words)Coursework

The Law and the Media

New and complex issues have arisen which demanded fresh understanding and handling of cases involved them. This has resulted in the enhanced development of specialized laws e.g. cyber laws and interpretation of those laws. The same is true with Media Laws. Media has developed much in the last half-century. As it evolved as a profession and more people started to join it, there arose the levels of money involved in it. With this grew the contractual obligations on the parts of parties and concerned laws e.g. patent laws, privacy laws, and copyrights laws, etc. also started to play their parts. With these issues, the role of law in the media industry also reached a new height.
Mathew Fisher, the appellant, joined a band with Mr...
6 Pages(1500 words)Assignment

Cognitive Development in Childhood

The significance of cognitive development among children lies in the fact that the children learn, acquire and develop cognitive and social skills along with other interpersonal skills that help them grow as competent individuals.

This paper addresses the key issues of the development of cognition in children between three to five years. In this context, various theories of cognitive development are discussed briefly along with special reference to the cognitive theory of Piaget. The paper also looks carefully into the relevance of cognitive development during this age upon the development of other areas and skills of the child.

When it comes to the cognitive development of children, the name of Piaget is und...
7 Pages(1750 words)Assignment

Contrast of Two Explanations of Social Disorder in Contemporary UK Society

As the process of urbanization takes off and more people start residing in major cities, the fissures start to appear within the apparent harmonious co-existence. There are several reasons why disorderly conduct on part of individuals and groups takes place. Sociologists have proposed numerous theories explaining this phenomenon.

Erving Goffman was an astute observer of society, who immersed himself in the social environment which he was studying. He carefully observed and recorded the ways in which people’s behavior and interpersonal interactions are carried out in everyday life. He notes that “people perform their social roles and, as they do so, they produce social order through their actions and the regu...
6 Pages(1500 words)Article

How Has Social Media Affected Political Campaigns

...How has Social Media Changed the Strategies within Political Campaigns to Improve Voter Turnout? Introduction There is no denying the fact that social media tends to be an integral aspect of the varied facets of the contemporary societies around the world. Social networking websites like Twitter, Facebook and YouTube have accumulated much popularity, mass following and a marked ubiquity over the years. A considerable chunk of the online communities in the developed democracies does subscribe to social media and this is fact that simply cannot be ignored by the political parties and public opinion makers (Leuschner, 2012). Social media has facilitated the masses and the political campaigners with a ready platform where they can readily...
8 Pages(2000 words)Research Paper

How Will You Measure Your Life

... “How Will You Measure Your Life?” Clay Christensen, the author of ‘How Will You Measure Your Life’ is a professor at Harvard Business School. Christener, James Allworth, and Karen Dillon; the co-authors of the book, try to associate the family with career life as the major theme of their work. Approximately 200 pages of the text focus on ‘Finding happiness.’ However, the last section focuses on a different theme, which Christener calls “Staying out of Jail.” Although the author presents that work in self-help slang, he avoids the illusionary and maudlin console that he expresses in the “you can do it too” writing genre. He does not focus primarily on exceptionalism or explanations; he anchors the book on the contrary premise that no one...
6 Pages(1500 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic How has the internet and social media affected the development of luxury brands and how can you measure it's effectivity for FREE!

Contact Us