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Contents
A. The Taxonomy of Luxury .................................................................................................. 9
A.I. Introduction: Luxury is Anything and Nothing ................................................................ 9
A.II. Conceptual Foundations ................................................................................................ 15
A.II.1. Types of Definitions and Theories of Categorization .............................................. 15
A.II.1.1. Benefits and Limitations of Definitions .......................................................... 15
A.II.1.2. Types of Definitions ........................................................................................ 17
A.II.1.2.1. Intensional vs. Extensional Definitions ................................................. 17
A.II.1.2.2. Real vs. Nominal Definitions ................................................................. 18
A.II.1.2.3. Definition by Reduction Sentences ....................................................... 18
A.II.1.2.4. Operational Definitions ......................................................................... 19
A.II.1.2.5. Evaluation of Nominal Definitions ........................................................ 20
A.II.1.3. Theories of Categorization ............................................................................. 21
A.II.1.3.1. Classical Theory ..................................................................................... 21
A.II.1.3.2. Prototype Theory .................................................................................. 22
A.II.1.3.3. Exemplar Theory ................................................................................... 23
A.II.2. Approach to Conceptualization ............................................................................... 24
A.II.2.1. Semantic Analysis ........................................................................................... 24
A.II.2.2. Dimensional Analysis ...................................................................................... 26
A.II.2.2.1. Overview about the Procedure ............................................................. 26
A.II.2.2.2. Selecting an Adequate Approach to Definition .................................... 27
A.II.2.2.3. Requirements of Luxury Product Characteristics ................................. 30
A.II.2.3. Operationalization: Identification of Luxury Product Characteristics ............ 33
A.II.2.4. Overview about the Complex Definition of Luxury ........................................ 34
A.II.2.5. Constant Review and Evolution ..................................................................... 36
A.III. Luxonomy: The Definition and Categorization of Luxury ............................................. 40
A.III.1. The Basic Definition of Luxury ................................................................................ 41
A.III.1.1. The Necessity-Luxury Continuum .................................................................. 41
A.III.1.2. The Relativity of Luxury .................................................................................. 43
A.III.1.3. General Perspective for the Definition of Luxury .......................................... 45
A.III.2. The Major Understandings of Luxury by Area of Research ..................................... 48

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A.III.2.1. The Philosophical-sociological Understanding of Luxury: Luxuries ............... 48


A.III.2.2. The Micro-economic Understanding of Luxury: Luxury Goods ..................... 48
A.III.2.3. The Managerial Understanding of Luxury: Luxury Products .......................... 49
A.III.2.3.1. Areas of Research................................................................................. 49
A.III.2.3.2. Scope of Luxury .................................................................................... 51
A.III.2.3.3. Limiting the Scope of Luxury ................................................................ 52
A.III.3. Luxury Products ....................................................................................................... 55
A.III.3.1. The Definition of Luxury Products .................................................................. 55
A.III.3.2. Categorization of Luxury Product Industries .................................................. 57
A.III.3.3. Types of Luxury Products ............................................................................... 58
A.III.3.3.1. Personal vs. Impersonal Luxury Products ............................................ 58
A.III.3.3.2. Publicly vs. Privately Consumed Luxury Products ................................ 59
A.III.3.3.3. Accessible vs. Exceptional Luxury Products ......................................... 59
A.III.3.3.4. Unique Pieces, Limited Editions, Expanded-diffusion Products .......... 60
A.III.3.3.5. Conspicuous vs. Understated Luxury Products .................................... 60
A.III.4. Luxury Brands .......................................................................................................... 62
A.III.4.1. The Definition of Luxury Brands ..................................................................... 62
A.III.4.2. The Relationships between Luxury Products and Brands .............................. 63
A.III.4.3. Types of Luxury Brands .................................................................................. 64
A.III.4.3.1. Luxury Brands by Luxury Level ............................................................. 64
A.III.4.3.2. Luxury Brands by Awareness ............................................................... 65
A.III.4.3.3. Luxury Brands by Business Volume ...................................................... 67
A.III.4.4. Distinguishing Luxury Products and Brands from similar Concepts .............. 68
A.III.4.4.1. Premium Products and Brands ............................................................ 68
A.III.4.4.2. Masstige Products and Brands ............................................................. 69
A.III.4.4.3. Prestige Products and Brands .............................................................. 70
B. Handbook for the Creation of Luxury Products and Brands......................................... 38
B.I. Characteristics of Luxury Products: The Code of Luxury .............................................. 72
B.I.1. Price ......................................................................................................................... 73
B.I.2. Quality...................................................................................................................... 74
B.I.2.1. Manufacturing Characteristics ....................................................................... 74
B.I.2.2. Concrete Product Characteristics: Product Attributes ................................... 75

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B.I.2.3. Abstract Product Characteristics: Product Benefits ....................................... 76


B.I.3. Aesthetics................................................................................................................. 77
B.I.4. Rarity ........................................................................................................................ 78
B.I.4.1. Extraordinariness............................................................................................ 78
B.I.4.2. Symbolism ...................................................................................................... 79
B.II. The Luxury Marketing-Mix............................................................................................. 81
B.II.1. Product Policy .......................................................................................................... 81
B.II.2. Price Policy ............................................................................................................... 83
B.II.3. Distribution Policy .................................................................................................... 85
B.II.4. Communication Policy ............................................................................................. 86
C. References ...................................................................................................................... 89

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