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Gonzalez Jimenez, Paola (2025) Strategic Pricing in the Luxury Industry: A Study on the Impact of Status-Driven Willingness to Pay. Masters thesis, Dublin, National College of Ireland.
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Abstract
Purpose - This study aims to contribute to the developing of pricing strategies that enhance pricing power in the luxury industry by demonstrating the influence of perceived social status and the possible moderation role of conspicuous consumption on willingness to pay. Furthermore, insights might benefit luxury brands regarding segmentation and differentiation aspects.
Design/methodology/approach - Data collection was directed through an online anonymous questionnaire survey on Google Forms. The sample comprised 151 participants. The study implemented inferential statistics to determine the relationships among variables, and to test the four hypotheses previously established by correlation and regression analysis.
Findings – Perceived social status significantly influences willingness to pay. Moreover, middle income consumer showed a relevant activity for luxury goods. Findings presented that the higher the consumer’s status orientation, the higher its willingness to pay, which means lower price sensitivity. Additionally, the moderator role of conspicuous consumption was not significant, however, it showed a strong influence of willingness to pay as an independent variable.
Research limitations/implications - Although this study confirms perceived social status considerably influences willingness to pay, findings are limited by sample size and cultural generalisability. The moderating effect of conspicuous consumption was not relevant. Nonetheless, further research should test other behavioural variables to reinforce managerial implications for pricing power.
Originality/Value - This study contributes to the literature by connecting psychological behaviours, such as social status and conspicuous consumption with the development of pricing strategies. Moreover, the findings provide insight for luxury brands into applying segmentation by status orientation and strategic pricing in the pursuit of pricing power.
| Item Type: | Thesis (Masters) |
|---|---|
| Supervisors: | Name Email -, - UNSPECIFIED |
| Uncontrolled Keywords: | Strategic pricing; social status; conspicuous consumption; willingness to pay; luxury industry |
| Subjects: | H Social Sciences > Economics > Business H Social Sciences > HF Commerce > Marketing > Consumer Behaviour H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Retail Industry |
| Divisions: | School of Business (- 2025) > Master of Science in International Business |
| Depositing User: | Ciara O'Brien |
| Date Deposited: | 16 Dec 2025 15:19 |
| Last Modified: | 16 Dec 2025 15:19 |
| URI: | https://norma.ncirl.ie/id/eprint/9043 |
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