infonet-economy

Luxury products and brands are crafted for consumers. They are designed to be perfect, resemble an indulgence, and represent performance and status. This approach to a luxury offering delights customers and enables exceptional willingness to pay. But what implications does this luxury-driven hyperbolism have for applicants, employees and managers in the luxury domain? We follow this question by transferring what is known about consumer behavior and derive propositions for the impact of luxury brands on their employees. We find that organizations with prestigious images attract a workforce with psychological desires akin to luxury consumers. Furthermore, we argue that managers in leadership positions are not only exposed to a challenging environment for decision making but can also easily be influenced by the characteristics of luxury brands imprinting on their decision making behavior. The contribution highlights an often overlooked aspect of managing a luxury brand: the unintentional but unavoidable impact of luxury image on the brand's own employees.