Insights for luxury retailers to reach customers globally

Abstract

Purpose

The purpose of this study is to investigate whether customer intention to purchase luxury products from the online stores of fashion luxury retailers varies depending on their degree of corporate image and showrooming strategy, when the retailers do not have a wider store network in the region where customers live.

Design/methodology/approach

Two scenario-based, between-subject experimental studies were conducted to test the hypotheses.

Findings

Findings showed that both building corporate image and showrooms are effective in enhancing customer intention to purchase from online stores, without widely increasing the number of stores; however, building corporate image is more useful to high corporate-image retailers and showrooms are more appealing to low corporate-image retailers.

Practical implications

The findings are useful to fashion luxury retailers, particularly those based in Western countries who seek to target customers in other regions, particularly those in developing countries.

Originality/value

This study contributes to the literature on online fashion luxury consumption and multichannel retailing.

Citation

Jebarajakirthy, C., Yadav, R. and Shankar, A. (2020), "Insights for luxury retailers to reach customers globally", Marketing Intelligence & Planning, Vol. 38 No. 7, pp. 797-811. https://doi.org/10.1108/MIP-10-2019-0493