Applying consumer culture theory (CCT) and the luxury value perception (LVP) model, this study explores the impact of technology on luxury brands, focusing on consumer perceptions of craftsmanship in the creation of luxury products and services.
A total of 24 interviews were conducted with ultra-high-net-worth consumers (UHNWCs) based in two cities, Singapore and Shanghai.
Our findings reveal the importance of craftsmanship in luxury consumption. In addition, they underscore the significance of human inputs and the relevance of technology in various domains of CCT, including consumer identity projects, marketplace cultures, socio-historical patterning of consumption, and mass-mediated marketplace ideologies. While technology is readily accepted in peripheral offerings, the necessity of preserving the value of craftsmanship in core luxury products and services prevails.
Existing literature on the implementation of technology in luxury brands offers polarized views. This study is a pioneering work that provides insights into an integrative framework, highlighting areas where technology enhances experience and where it should be avoided. This unique approach has important managerial implications and theoretical contributions to both CCT and LVP. In addition, the use of interviews with UHNWCs is also a comparatively novel methodology in luxury brand research.
