Effect of price display on brand luxury perceptions

Based on two experimental studies, this paper investigates the impact of price display in the luxury sector on perceived brand luxury and brand attitude. Using a sample of students, Study1 shows that price display is associated with higher perceived quality, uniqueness, and conspicuousness for a fictitious luxury brand presented in a store window. Using two real luxury brands and a larger sample of consumers, Study 2 confirms the positive effect of price display on the brand’s perceived conspicuousness, and shows that this transfers to brand attitude. This paper adds value to the existing literature in luxury marketing and provides insights for managers of luxury brands on the effects of price display.