Understanding Luxury Disposition

Abstract

This article aims to provide a conceptual foundation for luxury disposition behavior in relation to luxury customer value and switching costs. The results of a study involving 398 luxury consumers in South Korea demonstrate the distinct typologies of luxury customer values and switching costs in cognitive (financial) and emotional (relational) dimensions as well as luxury disposition behavior as four different types. In addition, the conceptual framework on luxury disposition behavior reveals how luxury customers recognize customer value of luxury goods in perceiving switching costs upon disposition, which leads to different choices in disposition behavior. Theoretical and managerial implications are discussed for marketers or retailers in luxury fashion industry.