Researchers from Liverpool John Moores University, Oxford Brookes University, and Saitama University documented this with scenarios involving purchase of a second-hand Rolex watch. Some study participants were asked to imagine conducting the transaction at a prestigious department store specializing in authentic luxury watches and certified as an official Rolex reseller. For other study participants, the setting was instead described as a generic reseller of pre-owned timepieces, located within a jewelry and pawnbroker store. Compared to those in the first condition, those in the second condition subsequently reported more negative images of the Rolex brand and company.
Although this finding might be expected and so add little to our understanding of consumer psychology, the researchers’ companion study revealed an insightful explanation with action recommendations for either type of retailer: Shoppers buying at an official luxury retailer are thinking at a more abstract desirability-related hedonic level, while those buying at a generic retailer are thinking at a more concrete feasibility-related utilitarian level. Examples of items on a questionnaire used to assess abstract versus concrete included: “Acquiring a reliable timepiece” versus “Buying a watch from a store”; “Understanding the watch’s quality” versus “Reading the watch’s specifications & features”; and “Maximizing value for my money” versus “Discussing price with the seller.”
In addition to suggesting the retailer address these distinctions in the framing of the resale transaction, the researchers advise the prestigious certified luxury retailer to use abundant pleasurable adjectives (“This watch is beautiful on you”) and the generic retailer to emphasize practical customer actions (“This watch is ready to wear”).
For the luxury brand company, an implication is to protect brand image by establishing a process for certifying resellers and then encourage shoppers to purchase from a certified dealer. Certification standards could involve maintaining high-end selling spaces, protecting against carrying counterfeit items, offering brand-underwritten warranties, and providing abundant after-sales customer support.
An additional angle on the issue of reseller certification is suggested by a set of Yale University studies, which found that lower serial numbers in a limited-edition release of otherwise identical items hold greater value for purchasers. The explanation is that a lower number seems closer to the source. Similarly, the closer association of a certified versus generic reseller places the certified retailer closer to the brand source.
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Close the Sale Close to the Source
Image at top of post based on photo by Robby McCullough from Unsplash





