International business strategic Assignment Example | Topics and Well Written Essays - 4000 words

International business strategic - Assignment Example One of the most important influences of globalization has been upon technological innovation and the necessity of collaborating resources to gain competitive advantages. The changes in the technological front have facilitated better utilization of resources and overcome the barriers associated with lack of resources. As a result many nations were successful in overcoming their economic weaknesses and produce in a more effective manner. Many consider globalization to be a phenomenon associated with growth and prosperity. Globalization also includes interaction of cultures, social values, political aspects and flow of ideas and information between different nations. The concept of globalization is a debatable aspect. It has impacted different nation in diverse ways. The free flow of capital and resources has facilitated bringing together the developed nations and has integrated them more strongly. Many developing nations displayed a steady rate of growth while many had lost their competitiveness and displayed lagging trends of economic prosperity. There exists a large degree of heterogeneity in the impacts of globalization across nations. In many nations it was observed that globalization led to increasing the gap existing between the rich and the poor nations. Similar factors have also impacted the manner in which multinational enterprises in developed and developing nations function and grow. Developed economy multinational enterprises (DMNEs) are seen to procure greater advantages and grow more rapidly than the emerging economy multinational enterprises (EMNEs). Multinational enterprises keep looking for innovative ways of doing business by procuring new ideas, suppliers, resources and customers. MNEs from developed nations are able to do achieve growth more easily due to their immense financial capabilities. On the other hand multinational organizations in the developing nation are required to struggle more to achieve growth and competitiveness. The current

Firewall Technology (Network Security) Research Paper

Firewall Technology (Network Security) - Research Paper Example Security requirements have substantially changed recently. Traditionally, securing a system was provided by preventing access (physical and ethically) to the secure system. However, with the introduction of computer technology, there was a need to develop automated security appliances for protecting the network and data of an organization. Due to vast rise in threats, vulnerabilities, hacking and cyber crimes, firewalls become mandatory as the first choice to implement for securing the network and data for every computer network. Firewalls Computer Security is the general term for a set of resources designed to help protect data and ruin the efforts of hackers. Moreover, it is a set of measures to protect data during transmission over a set of interconnected computer systems. Hence, security is a set measures for deterrence, prevention, detection and correction of security threats that can damage or divulge information either locally or when transmitted. Hence, certain security mecha nisms that are designed to detect, prevent and restore security after an attack. Consequently, many network appliances are invented to secure a network. The most popular network security appliance that is used in almost every small or corporate network to provide security is a firewall. Firewall is defined as â€Å"a combination of hardware, software, and procedures that controls access to an intranet. Firewalls help to control the information that passes between an intranet and the Internet. A firewall can be simple or complex, depending on how an organization decides to control its Internet traffic. It may, for example, be established to limit Internet access to e-mail only, so that no other types of information can pass between the intranet and the Internet† (Firewall.2007). Firewalls are network security devices that are categorized in hardware-based firewalls and software-based firewalls. The hardware-based firewalls are more secure, as they are not dependent on the oper ating system. On the other hand, software-based firewalls are dependent on the operating system that may demonstrate risks. The choice from these options depends on the cost as well. However, a full features firewall may protect the computer network from hackers or cyber criminals. It will detect, block and quarantine viruses and malicious codes that tries to enter in the network. Moreover, configuration on the local area network demonstrates a graphical user interface to ensure that each preventive measure is active and running (Agnitum outpost persona firewall pro 2.0.2004). Benefits Constant monitoring of security is achievable via a firewall implementation. As all modifications and logs are stored in a firewall, that are divergent of distribution on hosts on the network. Firewall also provides the protocol-filtering capability as it filters protocols and services associated with them in order to secure them from exploitation. Moreover, firewall hides inbound communication of the network from the outbound network that is also called a wide area network (ADVANTAGES OF FIREWALL). Furthermore, the use of computer networks and communication lines require protecting data during transmission. In addition, firewalls also provide centralized management for the network. This is an ultimate advantage for the network security staff within an organization as the management and

Documentary Movie Analysis-Who Killed Vincent Chin Essay

Documentary Movie Analysis-Who Killed Vincent Chin - Essay Example Documentaries are more non-fictitious and real-life based, unlike commercial flicks; their purpose varying from showcasing reality to enlightening and educating the rural masses. Whatever be the case, documentaries are real life depictions on screen. Documentary films fall under varied genres, such as Authored Documentaries, Fly on the Wall, Docu-soaps, Docudramas, and the like. The first two are captures of real life instances, while the latter two are enactments of what has really transpired. Thus, documentaries stand for ‘Truth’. The documentary, ‘Who killed Vincent Chin’ was directed by Christine Choy and Renee Tajima. It is in the form of a docu-drama, exploring the real incident, by using characters to play the real-life ones. The cast includes Renee Tajima and Ron Ebens. The documentary explores the concept of racial discrimination in America, against an Asian-American immigrant, the flaws in the judicial system in America and above all, the sheer struggle that immigrants undergo in the process of assimilation and adaptation to the American culture and falling in line to conquer and realize their ‘American Dream’. This paper attempts to analyse the documentary, the various techniques used and how the documentary has been shot, to add value to the concept and the idea in particular. The story-line of the documentary reflects the real-life incident, wherein an Asian-American, Vincent Chin was murdered haplessly, by two Americans, Ron Ebens and his step-son, Michael Nitz. The murder happens after a scuffle between the two, at Fancy Pants, a Detroit topless bar. The murder takes place outside the bar, in a corner, with eye-witnesses watching the gruesome act, where Chin is shown beaten with baseball bats. While on the surface, the concept is that of a hapless murder occurring in the midst of

Earth Science Geology - Land Forms Essay Example | Topics and Well Written Essays - 500 words

Earth Science Geology - Land Forms - Essay Example These mountains compose the very complicated group of mountain ranges in US due to the wide scope they have reached in all directions (â€Å"Transverse Ranges,† 2012). The Transverse Ranges, as it is popularly known, captures Los Angeles until in San Diego and holds three major forests in California. Unlike other mountain ranges, it extends an east-west pattern, which was caused by tectonic movements of Pacific and North American plates million years ago (Roberts, n.d.). Roberts (n.d.) further indicated that as long as the San Andreas Fault finally aligns from its crooked trend, tectonic movements will be continuously felt in some areas of the mountain ranges and transformations in some areas will occur. With changes in sea levels, Transverse Ranges are expected to regain their original formation - being a set of mountains in one island. Another land formation in Southern California is Cowles Mountain locally known as â€Å"S† mountain, which rises 448 from the ground and is known as the highest peak in San Diego (McNair, 2012). Cowles Mountain was formed due to tectonic movements near San Diego which caused the convergence of two plates. It is mostly composed of granite and sedimentary cover. Its edges in the eastern part prove that they are â€Å"remnants of a wave-cut terrace† (â€Å"Cowles Mountain,† n.d.). Since it is visited by many hikers, some accessibility improvements can be expected. Nevertheless, its features will be practically preserved. This rock formation found in the west part of Point Loma Peninsula near San Diego is composed of sandstone and siltstone (Hall, 2007). Cutting across its vicinity is the Rose Canyon fault zone, which has not yet caused any movements (Moore, 1972 as cited in Girty, n.d.). Girty (n.d.) further proved that this ancient rock formation was formed from tectonic movements that occurred million years ago. Since the nearby fault remains to have no signs of tectonic movements, then Point Loma formation is expected to retain its

Why was India so important to Britain between c. 1858 and 1914 Essay

Why was India so important to Britain between c. 1858 and 1914 - Essay Example But in course of time the merchants became the master of the land2. Like Dutch, the Danish started a Danish East India Company in 1616 and established factories at Tranquebar in 1620 and Serampore in 1676. But they sold of their factories to the British in 1845 for Rs. 12, 50,000. The Ostend Company was similarly started by Flemish merchants in 1723. Its chief settlement in India was at Bankibazar, three miles north of Barrackpur. A Swedish East India Company was chartered in 1731. All these projects, after sometime, could not stand the test of time3. The victory of the English over the Spanish Armada and the report of the immense wealth of India spread by the English travellers like Ralph Fitch and Mildenball aroused in the minds of Englishmen a strong desire to trade with the East. With this end in a view body of English merchants applied to Queen Elizabeth for a charter granting them the right of trading in the East. In 1600, Queen Elizabeth granted them under the title, ‘The Governor And Company of Merchants of London trading into the East Indies’ - a monopoly of trade in the East for a term of 15 years. This company is generally known as East India Company. India was the bone of contention between England and France but as a result of three Carnatic Wars fought from 1746 to 1761, the East India Company had established her superiority in India. As a result of her success in the wars amongst European Powers in the 18th Century, England emerged as the mistress of the seas4. There is no doubt that the permanent settlement made the British government highly popular and gave stability to its administration. The causes those were responsible for the success of the English Company. Firstly it was a private enterprise. This created a spirit of self-reliance among the people. They knew that if they worked hard, they would be able to get profits and if they slacked, they were to be ruined. The result was English company

Business decision making Assignment Example | Topics and Well Written Essays - 2000 words

Business decision making - Assignment Example Decision making process is a very significant function to any company that must attain success in the market. It stipulates the areas that the company can easily penetrate in the market without enormous incurrence on costs and any impending risks. Data collection is the approach that wills open doors for such a company to make an adequate decision from the analysis they arrive at as per the data segments (Carroll, 2008). In this paper is stipulated that data analysis is a significant faction which every company ought to adopt. The report revolves around a fashion industry selling fashion clothes, shoes, jeans and other related fashion components whose main target is the youth generation. It possesses a challenge since the youths are dynamics in their desires, this call for constant review of its products to meet the demand of its market segment. A group comprising of 20 youths is sampled from Coventry region who are interviewed on a major market trends about fashion and their take on how fashion impacts the development of new products in the market. Their involvement in the changes is the key factor that is considered (Bazerman& Moore, 2013). Decisions amount to the most significant components to business in the market regardless of its current position. For a business to start it must involve decision making processes and growing business must always apply different decisions for its growth purposes, otherwise growth and start-up will never be met. An agglomeration of factors must be taken into consideration on the particular field of the company. A company ought to ask such questions like what is my market size. What is the market trend? Who are my consumers? What is the market perception? Among other critical questions which will drive the company to undertake proper steps. Quality, quantity, location, size and other structural characteristics are influenced by the decisions made by management in a company (Teale,

Critical analysis of affected of economic crisis on the luxury brand market Essay Example for Free

Critical analysis of affected of economic crisis on the luxury brand market Essay I- Introduction Luxury Market has been important parts of the global retail market as well an important part of the global economy. Bain Company (2011) estimate the value of traditional luxury market including fashion, jewellery and Dinnerware line represents approximately â‚ ¬ 150 billion to â‚ ¬ 200 billion in 2010 which is an dramatic increase from estimate that the global luxury market was worth about $ 86 billion in 1990 (McKinsey Co, 1990). Since the 1980s, the luxury market has been growing at ten per cent per year. The growth rate of luxury is much higher than the growth rate of the global economy, which makes the luxury industry, relevant and important economic factor in the economy McKinsey (2011). Larousse (2005 p. 762) states: â€Å"Sophistication, which makes the splendour and comfort in the ways to live† The consummation of luxury by customers is due to the motivation to buy specific brands with quality products. The use of its products and consumer motivation are the result of consumption (Ahuvia Wong, 1998). See more: how to write a good critical analysis essay Uncertainties are present in the current economic climate but Bain Company (2011) estimates that the luxury market is going to grow in the coming years at about five to six per cent per year around the world and in Asia with more than a ten percent growth rate. As mass market manufacturing increases, companies want to increase the quality of their luxury products in order to retain their customers (Heine, 2011). A better understanding of the effect of the economic crisis on the luxury fashion brands will be identified and understood for the purposes of understanding the effect of the economic crisis on the luxury product industry. Kapferer, (2009) argues that without clear-cut specification of luxury it is impossible to distinguish the luxury consumer or luxury brand, from others who are not. In this thesis the author will start by explaining the aims and how the author intends to achieve his aims. Then a literature review will be undertaken to try and determine and define what luxury is and define various factors, which make a product luxury. The author will also try and generate a better understanding of why are luxury products important and the different target markets who they is important for. The author will discuss the methods used to complete the study. The Author will then present various factors, which affect the Luxury fashion brands in the economic downturn. Finally the author will provide his findings and conclude discussing the effects of the economic downturn on the luxury fashion market 1. 1 Rational The author has chosen to approach and better understand the world of luxury because of a personal interest at an academic level. In addition, the author being a student of luxury for more than 5 years want to deeper understand how big luxury brand adapted to the economic crisis. 1. 2 Aims Objectives The objective of this thesis is to study and analyse the luxury market and the threats that surround it. The aim of this study is to examine to what extent the economic crisis affects the luxury market. The objective is to understand the concepts implemented by the luxury market during this period of financial crisis. This thesis will be useful for understanding and analysing the luxury market and understand the various tools marketing used. 1. 3 Research question -Understand the luxury market and its operation. -Understanding the economic crisis on the financial market of luxury and magnitude. -Assess the extent to which marketing tools are used during the economic crisis. -Include the importance of consumer and luxury image in marketing. -Evaluate the various threats of the luxury market. 1. 4 Theoretical framework II- Methodology The methodology chapter will allow the researcher to understand and describe the different methods that can be used to successfully complete the objectives of this research project and move towards the aim of the research. Gillham (2000) explained that some methods are more appropriate depending on the subject and objectives. It is necessary to adapt the methodology on the project. Gillham (2000) also argues that research is about creating new knowledge, in a multitude of disciplines such as medicine, history or social works, by using evidence in the form of quantitative and qualitative data. The definition of methodology, according to Hart (2007, p. 28) is: â€Å"A system of methods and rules to facilitate the collection and analysis of data. It provides the starting point of choosing an approach made up of theories, ideas, concepts and definitions of the topic; therefore the basics of a critical activity consisting of making choices about the nature and characters of the social world (assumptions). This should not be confused with techniques of research, the application of methodology. † In this section the researcher highlights, discusses and assesses the methods used for the collection and evaluation of data. The researcher will focus on secondary research for the purpose of this research; the methodology will include the reasoning and justification for the choice of research design, construction method and also the sample of literature to be used to demonstrate a thorough understanding of the aims and objectives of the research. 2. 1 Choice of the research design Research is defined by Saunders et al. (2003, p. 488) as the systematic collection and interpretation of information with a clear purpose. The goal is to collect and analyse information to get a clear and established goal. The most appropriate method for this study is secondary research. It was selected by the author with the aim of examining the luxury market and the various threats that surround it as the crisis. The goal is to achieve a critical analysis of the current market situation for luxury brands. In addition Cottrell (2005) argues that many reliable sources are now available online. Secondary research via the Internet can provide data of better quality than the result of primary research. In performing secondary research, the author has made a very wide collection of information from the literature. Reading books, newspapers and articles online, acquired a clear and comprehensive knowledge of the subject. Considered safe by Saunders et al. (2003, p. 52) and it is recommended that. They are evaluated by peers before publication to assess their quality and convenience. To ensure that the collection of information, theory and models necessary and relevant; the author also conducted secondary research in the sources of the luxury market. The press releases and video from website such as Vogue, Fashion TV, Word of Fashion has allowed to deepen the knowledge. Stewart and Kami (1993) explain that the use of secondary data sources is an advantage. In addition, the authors point out that it allows the researcher to make a comparative analysis between the new collected data and previous data. 2. 2 Construction of design You need to maintain a critical perspective, the evaluation of the study on its own merits and in comparison with other studies on the same or similar problem. According to Saunders and al. (2003 p. 483) Saunders et al. (2003 p. 488) explains also the research: The systematic collection and interpretation of information with a clear purpose The objective of the systematic collection and interpretation of information is to analyse and criticize the effects of economic crisis on the market of luxury brands. The research plan established for this research project is the collection of qualitative information in a secondary search. During the construction and implementation of secondary research, it did not just say to read the previous literature, as explained Rudestam and Newtown (2001, p. 60) Critical evaluation is an integral party of process research and allows the completion of the secondary research. According to Cottrell (2005) Critical thinking is a complex function of deliberation that provides the skills and attitudes. Human nature is not the same for everyone. Some people are suspicious and the other is in trust. But in critical thinking that is different. This is not a character trait but a system of methodology used to analyse. According to Stewart (1993) and Saunders (2003) that secondary research is better suited for this research. In this thesis, the researcher collected data only secondary, secondary research allows access to reliable information and theories that are related to branding. Stewart and Karmins (1993, p. 3) argues that secondary research differs from primary research so that secondary research is based on reliable as primary research based on the analysis of the author information. The data required for completion of the aim and objectives is readily available from various secondary research resources. Primary research could have helped to provide the researcher with a first hand insight into the industry but the lack of accessibility to the key stakeholders and also time constraints to the research made primary research not feasible. 2. 3 Scope of research The luxury market is a vast market. It includes many products such as clothing, jewellery and cars; And also many services such as travel and hotels. As the luxury market is the researcher will focus on a particular sector of the luxury product industry for the purposes of a targeted and viable research. This will help the researcher to look at factors affecting the specific area of luxury in detail. As BainCo (2010) suggest Fashion is now the luxury sector expanding. The current craze for the fashion industry propels the luxury clothing first. The researcher is studying the field of luxury clothing. For the purposes of this research brands such as Louis Vuitton, Hermes, Dior and Chanel will be quoted at example to understand the current luxury market status. III- Literature Review A review of the literature is very important for any research and is an essential part of it (Webster and Watson, 2002). With the support of a literature review, the knowledge that is already prevalent on the topic in question may be determined (Hart, 1999). An incomplete comprehension the current literature might lead to misunderstandings on the subject. Hart (1999) defines a literature review that the widespread use of literature to support an approach to a topic the establishment of a methodology which can be used and the importance of new functionality that could potentially be supported by further research. It is also said to quality means the width and the appropriate depth, rigor and consistency, clarity and conciseness, analysis and efficient synthesis (Hart, 1999, p. 1). Webster and Watson (2002) define an effective review of the literature to be based on in-depth knowledge, and give us an understanding of where more research is needed. Cottrell (2005, p. 127) explains that when looking for evidence to support an argument that has been spoken on the subject in the literature should be considered, where relevant information can be found and understanding of the leading authorities on the subject. From the definitions, it is clear that it can be derived from a review of the literature effective (Levy and Ellis, 2006) 3. 1 What is luxury? 3. 1. 1 Definition Luxury brands looking to be desired and known by all, but consumed only by the happy few to keep their prestige explains Kapeferer (2002) This summarizes the overall strategy of luxury brands, however, some inconsistencies persist in the clear explanation of the definition of luxury. Gutzats (1996) expresses luxury with exhaustive definition Luxury two levels of representation. The first level is important. It includes product and brand (its history, its unique expertise and talent) second level is psychological, it is performance that our social environment and our brands influence us. Luxury is a product with multiple objective characteristics that make it unique and rare, but also subjective characteristics with experience because of the importance that has consumers during the purchase process. The rarity factor of a product is essential to the concept of luxury. Explained by Dubois (2001), the prestige of a luxury brand can lose value if too many people own it. The distribution of a luxury product is very important; it must be selective to maintain the scarcity of the product. However, according to Kapferer (2002), the luxury market is in perpetual change. Several factors explain why the brand luxuries change their relationship with the principle of scarcity and become more accessible to a wider audience. Diversification of luxury brands with the creation of range of accessories and cosmetic product for the consumer access to the general public. Partnerships with general public brands, the Masstige contraction of Mass and prestige, or prestige for the masses. Is concept allows enlargement of the luxury market. (Kapferer, 2009) 3. 1. 2 Relativity The vision of what is necessary and desirable is relative. It depends on the perspective and perception of the consumer. Depending on the consumer perception of luxury is not universal. Buttner and al (2006) argues that relativity of luxury is divided into several categories. The economic relativity, cultural, regional, temporal and situational. 1. 3. 1. 2. 1 Economic relativity Kisabaka (2001) suggests economic relativity is expressed by the difference in perception of luxury depending on the economic situation of the consumer. For example, a pair of jeans ? 70 will be considered by a category of consumer as usual while for another it could be a luxury item. From a perspective of another consumer group a pair of jeans worth ? 2000 might not be considered a luxury product. The perception of price and its relativity to luxury can be argued to be relative to the consumer. 2. 3. 1. 2. 2 Cultural relativity Kemp (1998) suggests cultural relativity can be expressed as a function of the consumer culture. Whatever the consumer culture, luxury is a product, which is not trivial and necessary in everyday life. Kemp (1998) But cultural relativity has no reference to the availability of the product but the product vision based on the culture. A product can be considered luxury or not, based on the culture. Kisabaka, (2001) argues in some cultures a product can be ordinary and undesirable while for another it will be indispensable to belong to the culture of his country. For example, alcohol can be seen as a luxury product in European countries, while in Islamic countries there will be a product that very few people consume. (Berthon and al. , 2009) However, Mortelmans (2005, p. 497) argues: Every social group can be said to have its own luxury Reith Meyer (2003) suggests every culture has its symbols and social distinctions. The consumer of the same culture can be part of different socio-professional category. For example, the hip-hop culture embraces gold teeth and considers it a luxury while it might not be desirable for a different cultural group. Kemp (1998) also argues cultural values express different preferences of luxury; they differ depending on age, sex, and education. It is important to differentiate the perception of luxury based on knowledge of the symbols of luxury. But also different perceptions in different cultural groups. 3. 3. 1. 2. 3 Regional relativity Reith Meyer (2003) express regional relativity in terms of availability of the product. A product mass distribution in a country will not have the luxury status. However, a product, which is rare in a country, takes of value because of its rarity and exclusive distribution. For example, a sunny day at the beach can be considered as a luxury for the countries of Europe. But in the Caribbean this represents the daily weather. 4. 3. 1. 2. 4 The Temporal relativity. Matsuyama (2002) defines temporal relativity by changes in perceptions of luxury over the years. The reasons for these changes in perceptions are societal trends and the development of technology. (Schiereck Koenigs, 2006) Technological advances for consumer products can change their perspective of luxury For example, Reith Meyer (2003) the television was created in the 1930s when it was considered a luxury, since the progression of technology televisions are present widely in his homes which has led to a change in the perception of luxury. This product has become common in homes is no longer a luxury product. However Koschel (2005) argues that the process can be expressed in the opposite direction. Natural resources such as clean air, water became scarce in some countries. Kapferer (2008) suggests temporal relativity is a specific factor of luxury because it is not stable and steady and could change readily. (Jackel Kochhan, 2000) Luxury is not universal and adapts as a function of some factor. It is important for companies to understand these factors and adapt ait’s marketing to influence different groups to sell its products. 3. 2 Luxury customer Gilles Lipovetsky (2009), philosopher suggests: Do not have faith in a future that is mechanically better and fairer, there are still people in the hope of a better life, the feast of the senses, the beauty to expect that we leave the monotony of everyday life. Luxury is no longer the accursed share, but dreams, excellence and superlative, this human need. It can be inferred from the above statement that luxury for a consumer is an achievement of itself. A luxury consumer wants to show his wealth and property, luxury goods are a reflection of the wealth. The motivation of pleasure today became the first luxury purchase motivation to its traditional buyers. (Gilles Lipovetsky, 2009) According to Okonkwo (2007) a purchaser of luxury products cannot be considered as a mere client of luxury, but as an individual part of a network of the brand. It is by sharing with him the ritual and the traditions of the bard, which they have purchased, by teaching the consumer these details about the brand itself the sense of community and attachment towards a brand is built. It can be inferred that unlike mass-market brands, the luxury brand should tell a story and to give the customer want to be a part. Gilles Lipovetsky (2009) explains luxury Consumption Consuming is both a product, a legend / myth, tradition, knowledge and ritual use. 3. 2. 1 Customer behaviour Kapferer (2004) suggests that there are several categorize consumers of luxury brands into different groups. Lombard (1989) argues that customers can be differentiated on the basis of their purchasing power. A customer with the financial resources has the capacity to buy products from all the different categories of luxury products (see section 3. 4. 3). These elite customers not only form the key user base of the product but also are a great advertisement for the luxury status of the product. Customers of the elite are the generators of the turnover of luxury brands. They are loyal and hold the financial resources to consume luxury goods when it desires. This type of customer only buys clothes from luxury brands. Occasional customers have the financial resources necessary to consume luxury products but are not addicted. They consume luxury when the mood or the occasion arises. They are not faithful because they can change the luxury brand in the trend. (Bainco, 2008) The low-income customers who consume when their financial situation allows them. This type of customer consumes the occasional high-priced products for exceptional period (Christmas, birthday). However this type of client is the target of entry-level luxury products. Low-income customers consume perfumes and cosmetics in large quantities. This allows them to detain a part of the brand without spending an extravagant amount. According to Berry (1994), three levels of luxury can be presented: the unattainable luxury reserved for extremely rich people, luxury means restricted to middle class high and affordable luxury reserved for the middle class. Each level corresponds to a totally different type of marketing because the target is not the same, the brand must adapt depending on the area they choose. Consumer’s behaviour while buying luxury products can be affected by three different effects. (Leibenstein, 1950) 5. 3. 2. 1. 1 The Veblen Effect One can distinguish consumption to be under the Veblen effect, conspicuous consumption. Leibenstein, (1950) suggests the consumer buys the luxury product due to its high price. The work of Bourne (1957) explains the influence of peer groups on consumers in their purchases of luxury goods. Vigneron and Johnson (1999) also argue that a positive relationship is observed between conspicuous consumption and peer groups. In addition, Bearden and Etzel (1982) also explain that to buy the product in public is a sign of Veblen because the customer wants to be seen buying a valuable product. The consumer wants to show their wealth, status and power (Veblen, 1899). The price of the products is considered important in the minds of consumers, it represents the quality. (Vigneron and Johnson, 1999) Erickson and Johansson (1995) conducted a study showing that the price can judge the quality of a luxury item. It is also agued the customer who consumes with effect Veblen is attentive to the quality of the product. 6. 3. 2. 1. 2 The effect of Snob According to Leibenstein (1950), the effect of snob is a complex concept. A consumer with the snob effect takes into account the emotional and personal desires which Influences the behaviour of others is also a factor that pushes the purchase of products of luxury brands. For example, the launch of a new product, create exclusivity, snob effect causes the immediate purchase. Few clients have this product at the launch, the customer will feel different and above other consumer, it is preferred. A luxury item in limited sale has a great value while a readily available product will be less demand and will not have a high value; unusual item brings respect and prestige. (Solomon, 1994) However, after some time, the general public and the mass consumers consume the product, the snob consumers reject the product. The unique product, popular and expensive does not stay long. Demand is growing rapidly and the product loses value. (Verhallen and Robben, 1994) 7. 3. 2. 1. 3 The Bandwagon Effect Bandwagon effect is a different concept of the two previous. In this effect, the product is consumed by the mass market, its demand in the market is important. Consumers are buying this type of product in order to have a luxury product and belong to a group. The luxury product is the similarity between the members of the group. (Leibenstein, 1950) For example, a consumer group buying the same mass-produced luxury feel they belong to the same social class. The product is generally in the current trend and at affordable price. Berry (1994) argues Bandwagon consumers buy the product to look like other consumer and access a different social class a different group. 3. 2. 2 Price McKinsey (1990) suggests that the price is the first characteristic, withheld to qualify luxury goods. It is evaluated as the criterion most objectives and most quantifiable to measure the quality of luxury. . Dubois and Duquesne (1993) also suggest that luxury product must be at a high price to be credible; it is an essential criterion for the qualification of the same as a luxury. Kapferer (2001) argues although the price is a very important criterion for the luxury product it is not the whole product. It can be found on the market for very expensive products that are not necessarily luxury items due to lack of quality and luxury marketing. The brand positioning reflects its class. In addition, Kapferer and Bastien (2009) also argue that the consumer looking for a luxury product is ready to pay the price but he also wants. Indeed, the consumer wants to own an expensive product because it provides the purchaser with recognition, which is valuable. The researched can infer that price is price is an important guideline of a luxury product. In addition, Danielle ALLERES (1997) states: The fair price for a luxury product based on a perfect correlation between the level in the world of luxury, rarity and its brand reputation. According to Julian Levy and Jacques Lendrevie (2009) a policy of skimming or price skimming is a pricing policy, which consists of a high price (often partially disconnected from the cost) that customers can choose, the price can directly target customers. It also maintains the image of luxury brand and reputation. (Julian Levy and Jacques Lendrevie, 2009) also argue that luxury product cannot be sold at a discount price. It may lose its value and caused the damage to the brand. 3. 2. 3 Exclusivity Kisabaka (2001) suggests scarcity of a product is also an important part of making it luxury. A luxury consumer wants exclusivity and differentiation. For example, a customer who purchases a product from a luxury brand would expect it to be exclusive and would not like it for it to be a mass-market product. (Catry, 2003) also points out luxury brand must ensure the rarity of its products by limiting the production and individualization of products. 3. 4 Luxury brand A brand can be expressed as the identity of the company and the consumers it targets. The brand must represent a clear image in the minds of target consumers. (Esch, 2011) The luxury brand is associated with its flagship products and basic products on the basis of which consumers assimilate the product image. (Kapferer, 2008) For example, the little black jacket from Chanel is the flagship product for years and is constantly equated with the image of Chanel. (http://thelittleblackjacket. chanel. com) Meffert and Lasslop (2003) suggest that different definitions of luxury represent the association of product characteristics and brand. A luxury brand is associated with an image that is ubiquitous in the consumers mind, which is itself associated with a luxury product: high price, perfect quality esthetical, the scarcity of the product and the product exceptional characters. 3. 4. 1 Relationship Product/Brand A luxury brand must not only offer luxury products but also offer ranges of products more accessible products to maintain the brand status. The goal would be to reach a wider target customer. (Kapferer and Bastien, 2009) For example, luxury brands such as Chanel and Dior, offer ranges available such as key rings or jewellery phone products. This allows consumers to enter and feel to be a part of brand, with an affordable price. In addition, brands offer masstiges products; this concept is the combination of a luxury brand with a current and accessible brand to the public. For example, H M has many partnerships with luxury brands and top designer. (Kapferer, 2008) Collections are distributed in H M stores at affordable prices to the general public. This marketing tactic provides high visibility for luxury brands to the mass market. In contrast, non-luxury brands try to portray themselves to be offering a range of products, which include a touch of luxury for another customer segment. For example, as Lufthansa airlines offer flights with luxury service at an additional cost such as offering extra-large seats, bigger entertainment systems and meals cooked to order. This demonstrates the relationship between a product and brand is important. It can also be inferred that a luxury brands have to offer luxury products to maintain its brand image. Furthermore the quality and status of a product will only remain one that of a luxurious item if the brand is rated as a luxury brand. 3. 4. 2 Type of luxury brand Luxury brands can be categorised using various different factors, which affect a brand. 8. 3. 4. 2. 1 Luxury brand level Esteve and Hieu-Dess (2005) argues level of brand can be differentiated on the basis of the levels of luxuries performed. It is therefore important to distinguish luxury brands based on a category. The entry-level: products of entry-level correspond to the product seen above in relation brand / product. Its products are part of the range luxury brand but with affordable prices. In its entry-level, there are the masstiges and the products of luxury brands at affordable prices. Example: Hugo Boss Fragrance Luxury product middle level: These products are part of the luxury range, but they are not maximum level. Its products are accessible while maintaining their entities luxury. Example: Marc Jacobs, Moschino. Luxury goods of high level: These products represented luxury in pure state. These ranges of products are of high quality and high price. Example: Hermes Produces luxury level of the elite: This product is the top of the ladder. This segment is the most luxury products. Its quality and marketing must be irreproachable, they represent the brand. To reference the type of product is Chanel, Dior. According to the relativity of luxury explained above, the established classification can be modified over time. A brand can go from middle level to level for elite customer. It may be noted its changes based on trends, seasons and different cultures. (Phan and al. ,2011) Conversely, certain brand may lose their luxury positioning if it does not fit depending on relativity. For example, Christian Lacroix, who lost his rank High Fashion due to improper adaptation of its marketing and its collections. (Bainco, 2009) 9. 3. 4. 2. 2 Luxury brand awareness The leading products and notorieties are very important in the management of the brand and in its differentiation. A luxury brand should differentiate itself from others with its marketing strategy and advertising. The knowledgeable consumer expects certain notoriety, it must be found in the marketing strategy. The luxury brand needs to focus its marketing and marketing in a niche. If a brand decides to sell luggage, clothing, jewellery and does not fit its marketing it will no longer be identified as specialize and thus not as a luxury brand. (Meffert and Lasslop 2003) Awareness of the brand in the minds of the public is essential. The flagship products create the brand awareness; even if its products are for purchase only certain category of customer it represents the brand. Previously the author explained the importance of quality and marketing for the range of customer connoisseur but this process is also important for the client who never will buy the product. Its customers will be interested in the brand and will position as a luxury brand (Kapferer, 2009) The primary objective of the luxury brand is to become known around the world to demonstrate its performance and quality. (Phan and al, 2011) In addition, for a customer of the elite luxury product group buys a flagship product is a sign of wealth, it is important that the product meets this demand (Kapferer Bastien, 2009). 3. 4. 3 Marketing technique If the marketing of mass consumption appeared after World War II during the post-war boom, the first luxury marketing techniques already existed in the seventeenth century. Berry (1994) The companies in the luxury sector can manage the time by recalling the history of their homes through codes. For example, Chanel, two legendary fragrance: N  ° 5 first perfume by Gabrielle Chanel launched in 1921 and still one of the best global industry sales is the lucky number of Coco, and No. 19 is reference to the date of birth of the Creator August 19, 1883, this history is an important part of the marketing strategy of the companies these days as they entice buyers by presenting a history and tradition of the product. Each of the luxury goods is modernized, redesigned while respecting the history of the house, called in luxury marketing an incremental leap technique. (Kapferer 2009) Thus, the customer discovers and buys without hesitation a new version of a mythical product that meets the codes of the house, allowing sales to continue to grow. The success of these products is only possible through the transfer of know-how of artisans and small hands working in the workshops. Embroiderers, milliners, dressmakers, all these businesses demonstrate a thorough knowledge and quality that are transmitted in time while upgrading. This concept allows the luxury home to restart their old products maintaining the brand image. A new advertising campaign is designed and the product is restarted. During a period of crisis, this concept is used by numerous brands. (Meffert Lasslop 2003) Luxury brands must carefully control its distribution channels. (Esch 2011) the industry knows how to stage each of its products in places specific distribution channels for each target group. Thus, it is imposs.