ABSTRACT
This chapter demonstrates how three analytical tools can provide the information and direction to optimize the marketing effort. First, the Dream Equation shows the variance in dream attributed to awareness and purchase. It was discovered that while building awareness enhances the dream capital of a brand, too wide diffusion can kill the dream and therefore weaken the long-term potential of a luxury brand. Furthermore, the Dream Equation offers a framework for assessing a possible 'dream premium' or 'dream deficit'. Second, the Brand Power Matrix provides a further refinement to the analysis of the interaction between dream and purchase at the individual level, for a given level of awareness. Finally, the Euroscan sheds light on the socio cultural determinants of purchase and consumption behavior of luxury brands. It has been illustrated over and over again that the dream factor is a key to both understanding and acting in the European luxury market.
