Examining Value Creation and Loyalty in Luxury Brands from a Customer´s Perspective: The Influence of Exclusivity and Experience

Consumer loyalty in the luxury market of today is not simply about having the best product and the best quality, it is an experience that the brands deliver, through exclusivity and meaningful engagement. Consumers now demand rarity, emotional connection and immersive experiences that go far beyond ownership, all of which helps define their perception of a brand’s value. However, the interplay of these factors and their influence on brand loyalty is still underexplored. Thus, this dissertation intends to explore the relationship between exclusivity and experiences and their roles in perceived value and long-term loyalty. Using a qualitative approach, 13 in-depth interviews were conducted with mid-tier and upper mid-tier luxury consumers to understand their motivations and purchasing behaviors. Findings show that exclusivity enhances perceived value, mostly because it fosters a feeling of rarity, distinction, and personal identity. However, the influence of exclusivity on loyalty diverge between the consumers. Some consumers remain loyal precisely because of exclusivity, while others prioritize other factors such as quality, authenticity and emotional connections. Luxury experiences play a critical role too, with consumers prioritizing personalized service, emotional engagement and sensory appeal as factors that influence their perceive value and consequently their loyalty to the brand. While mid-tier consumers value emotional and relational aspects, upper mid-tier consumers focus more on status, craftsmanship, and heritage. From an academic perspective, this study contributes to the literature by providing an integrative perspective that addresses the influence of exclusivity, experiences and perceptions of value on loyalty, while underscoring the importance of more profound qualitative exploration in luxury brand management. For managers at luxury brands, the study emphasizes the need for a balance between exclusivity and accessibility, creating remarkable brand experiences and maintaining exceptional product quality, in order to create stronger ties with consumers and develop long-term loyalty.