As an important topic in the luxury industry, luxury service has been largely ignored by literature research, so it needs to be studied as an independent field now.
Services are becoming increasingly important in the world economy (Eberle, Sperandio Milan, et al., 2016), and even more so in the luxury sector.
Sales of personal goods, the heart of the luxury industry, have seen modest growth over the past few years.
Outdoor luxury experiences, which include hotels, cruises and fine dining, are growing even faster, at about 10% a year. As a result, luxury services are poised to rival, or even surpass, personal luxury in terms of importance (Bain 2016).
Behind the growing demand for luxury services is the pursuit of luxury lifestyles. As luxury consumption matures, consumers enter a post-materialist phase that emphasizes experiences over objects (Bendell and Kleanthous 2007).
This represents a fundamental shift in the market;
It is estimated that by 2022, two-thirds of the entire luxury industry will need to consider services (BCG 2016).
The trend is particularly pronounced among millennials. This reinforces the need for more specific research on luxury consumers. One consequence of this emphasis on experience is that luxury marketers need to better address the issue of co-creation, see Vargo and Lusch(2004).
Consumers and other stakeholders are active participants in the brand value creation process, especially luxury brands, whose value is largely constructed by the individual/society.
Marketing literature often mentions luxury services. However, few theoretical studies have independently positioned this field (Chang and Ko 2017). Relevant academic research has largely ignored the fundamental difference between luxury goods and services (Yang and Mattila 2017).
Luxury services are often conflated with luxury goods. The assumption is that goods and services constitute similar product types, but this is not the case.
Another phenomenon is that luxury services are seen as a more important accessory component of luxury, as evidenced by the frequent references in the relevant literature to the in-store purchasing experience.
But the luxury literature at best follows general service management principles (Gurzki and Woisetschlager 2017). For example, a variant of the SERVQUAL scale is used to assess the luxury retail environment.
The premise of using this scale is to assume that luxury goods and traditional services are similar.
But they're probably not similar.
Luxury brand management is unique in that it usually runs counter to traditional brand management theories.
In order to better understand luxury service, there are two main areas worth studying: luxury service level and luxury service perspective. Relevant research literature shows that service quality usually refers to the degree to which the service meets the needs of customers. Therefore, service quality is consumer-centered and subjective.
Some luxury research literature clearly states that the service level of luxury goods should be superior. But,
1) Superiority here What does that mean? 2) How do luxury services differ from traditional services in terms of expectations? 3) At what level of functionality does service provision become truly luxurious? 4) How narrow is the tolerance for luxury services? ... Many important service level questions remain to be answered.
In luxury services, the perspective needed to truly impress customers is only beginning to be explored. Chang and Ko (2017) mentioned four dimensions of luxury quality that constitute the perception of service users:
1) Functional: 2) Financial: price-related 3) Hedonic: hedonic: hedonic: hedonic: Social Image: social image
Although we need a more specific dimension to truly understand the uniqueness of luxury services. For example, the above functional dimensions can be broken down into more specific service aspects such as convenience, uniqueness, security, performance, personalization, responsiveness, and privacy. But the study is a very good start.
High service quality leads to customer satisfaction, repeat purchases and brand loyalty, and ultimately increased revenue and profitability. The luxury industry is becoming increasingly complex and competitive (Bain 2016). Therefore, understanding the levels and perspectives of luxury services becomes crucial. This will enable luxury manufacturers to better meet and ideally exceed customer expectations.
Understanding service quality is especially important for the luxury industry, which is a niche market made up of a small number of consumers who are very picky. In addition, considering the dependence of luxury goods on repeat customers and word of mouth, both of these are enhanced by good service. If properly designed and operated, service quality can become a source of competitive advantage and even a strategic posture (Eberle, Sperandio Milan et al., 2016).
