ABSTRACT
This chapter presents the current state of knowledge with regard to luxury branding and to identify gaps in this knowledge that pertain to (1) the conceptualization of luxury brands, (2) the understanding of how consumers relate to and process information about luxury brands, and (3) the identification of the benefits and risks inherent to managing the luxury brand concept. It distinguishes between the notions of new luxury and old luxury. The chapter presents a brief review of the state of the knowledge about the marketing of luxury products and brands. Notably, however, some recent research has provided insight into the motivations driving luxury brand choice. After reviewing the relevant literature, the chapter identifies some critical gaps, with a focus on the reconceptualization of luxury brands, the need for an increased understanding of consumer processing of the luxury brand concept, and benefits and risks inherent to managing the luxury brand concept.
