Luxury Services and the 7 Ps of Marketing

### Luxury Services

• Luxury services are intangible and their objectification is difficult.
• Luxury services are heterogeneous and their quality depends on the employees, customers, and other factors.
• Production and consumption of luxury services happen in real time.
• Luxury services are perishable and cannot be stored.
• The customer receives a personal experience with a luxury service and not ownership.
• The customer experiences luxury services within the firm's control.
• There is no counterfeiting for luxury services.

7 Ps of Luxury

• The 7 Ps of marketing are: Product, Price, Promotion, Place, People, Process, and Physical Evidence.
• Staff in direct contact with customers will contribute to the consumer experience and shape the customer journey.
• The customer journey from the first contact with the firm until after purchase is known as the process.
• The customer's perception of the offer’s legitimacy is influenced by physical evidence.

Birkin Bag's 7 Ps

• Hermès staff are expected to be knowledgeable, pleasant, and well-dressed.
• Hermès stores create an exclusive experience for customers by making bags available by order only.

Typology for Luxury Services

• Luxury services are categorized into everyday luxury, standard luxury, and elite luxury services.
• Prestige, monetary exclusivity, social exclusivity, hedonic exclusivity, and extraordinary experiences are used to classify luxury services.
• Elite luxury services are characterized by very high prestige, monetary exclusivity, social exclusivity, hedonic exclusivity, and extraordinary experiences.

Patricians, Parvenues, Poseurs, and Proletarians

• Patricians consume luxury services for their intrinsic quality and prefer discreet and tasteful consumption.
• Parvenues engage in conspicuous consumption of luxury services.
• Poseurs aspire to consume luxury services and may engage in occasional conspicuous consumption.
• Proletarians admire luxury services but may not be able to afford them.

Value Creation Process in Luxury Services

• Value creation involves the firm, customer and cocreation of value.
• Value learning is the process where a firm learns from customer interactions.
• Value facilitation helps the customer to understand and choose the right product.
• Value anticipation is how a customer perceives the value of a product before purchase.

Hedonic Escapism vs. Hedonic Adaptation

• Hedonic escapism is a temporary break from everyday routines through experiencing luxury.
• Hedonic adaptation is when the experience of luxury becomes ordinary due to frequent exposure.

Satisfaction and Insatisfaction

• Satisfaction is not the opposite of dissatisfaction.
• Both satisfaction and dissatisfaction factors can be functional, emotional, relational, and sensory.

Functional Aspects

• Functional aspects include mastery of professional movements, knowledge of professional tools, knowledge of products and competitors, managing third parties, and continuously adapting.

Emotional Aspects

• Emotional aspects can be experienced as superiority, servility, passivity, or guidance.
• Superiority is a dangerous approach and can damage the brand image.
• Servility is outdated and does not always resonate with customers.
• Passivity is an approach where the customer is only answered but not engaged with.
• Guidance is a more active approach where the customer's needs are taken into account in a respectful way and are met with empathy.

Turning Customer Interaction ON

•  "ON" interactions are customer-centric.
•  "ON" behaviors include: Dedication, customization, empathy, and politeness.
•  "ON" interactions make the customer feel heard, respected, and special.

Explore the unique characteristics of luxury services and the essential 7 Ps of marketing that shape customer experiences. Learn how these elements contribute to the perception and value of luxury offerings. This quiz delves into the challenges and nuances of managing luxury services.