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A. __________________________________________________________________________________________ The Taxonomy of Luxury –A.I Introduction: Luxury is Anything and Nothing Chapter B.I.3 outlines a definition of luxury products (section B.I.3.1), a categorization of luxury product industries (section B.I.3.2) and distinguishes between the major types of luxury products (section B.I.3.3). Chapter B.I.4 derives the definition of luxury brands from the definition of luxury products (section B.I.4.1) and differentiates between the major types of luxury brands (section B.I.4.3). Chapter B.I.4.4 distinguishes luxury products and brands from similar concepts including premium (section B.I.4.4.1), masstige (section B.I.4.4.2) and prestige products and brands (section B.I.4.4.3). Part B outlines a handbook for the creation of luxury products and brands: Chapter B.II explains the characteristics of luxury products in detail based on an empirical study and relevant literature. Chapter B.III gives an overview about luxury marketing-mix strategies that allow luxury brands to influence consumer perceptions about major luxury characteristics. __________________________________________________________________________________________ Heine – The Concept of Luxury Brands 14
A. The Taxonomy of Luxury – A.II Conceptual Foundations __________________________________________________________________________________________ A.II. Conceptual Foundations This part of the paper outlines the conceptual foundations, which includes specifying the relevant types of definition and theories of categorization (subsequent section) and on that basis explaining the five-step approach to conceptualization (section A.II.2, p. 24). You may like to skip this chapter if you are interested above all in the results: the taxonomy of luxury (see chapter B.I, p. 40). A.II.1. Types of Definitions and Theories of Categorization A.II.1.1. Benefits and Limitations of Definitions According to (Odgen & Richards 1923, p. 246), “the reply to the question what any word or symbol refers to consists in the substitution of a symbol or symbols which can be better understood. Such substitution is definition.” The objective of a definition is to specify the meaning and usage of a linguistic sign (a term). The process of definition includes combining a term with a phenomenon of reality (designatum) by specific semantic rules (Kromrey 2009, p. 143). A definition consists of two components: the definiens, the term to be defined and the definiendum, an expression that defines that term (Opp 2005, p. 105). The major benefit of definitions is that introducing terms allows assigning observations or objects (e.g. specific brands) to categories (=classes) of objects that are similar to each other (e.g. luxury brands). This process is also named categorization (=classification). For any new object, this makes it decidable if or to what degree it belongs to a category. If people perceived any object as unique and belonging to no category, they would be overwhelmed by the great diversity of objects around them and become incapable of acting. This means that the categorization of objects is used to reduce complexity (Eckes 1991, p. 4; Hoffmann 1986, p. 11). A clear definition of the object of investigation (luxury brands) is a prerequisite for the results (of luxury brand management research) to also be clear and intersubjectively comprehensible and replicable (Friedrichs 1973, p. 73). However, a definition does not link a term directly to a phenomenon of reality, but to a mental idea about a phenomenon of reality (Rosch & Mervis 1981, p. 90). This triad relationship between a term, mental idea and designata (symbol-referent-reference) is __________________________________________________________________________________________ Heine – The Concept of Luxury Brands 15
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