What Does Make the Diffusion of Luxury Brands Possible? Dynamic Model of Luxury Consumption

Abstract

Current academic research have mainly ignored the new consumption trend describing as “trading up” as most of the research on luxury consumption is more likely at the industry consulting level or for the interest of the general public. In this research, we proposed a dynamic model to explain the luxury fever as a societal phenomenon and to understand the motivation. This research contributes to the emerging literature on luxury consumption in that we applied the existing consumer theory to recent phenomenon and developed a dynamic model of luxury brands to explain the interaction between product and consumer, consumer and outside observers, outside observers and product.