By Jean-Noël Kapferer
Kapferer on luxurious addresses the number one problem of all significant luxurious manufacturers today:
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Each bankruptcy addresses a selected factor in relation to the luxurious progress problem similar to maintaining the 'luxury dream', adapting the net to luxurious calls for, re-widening the space with top class brands' festival, dealing with the call for of the chinese language consumers, the significance of non-delocalization, emerging sustainable caliber and experiential criteria, constructing actual luxurious providers and handling luxurious manufacturers inside of teams with no diluting their fairness and more.
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Extra info for Kapferer on Luxury: How Luxury Brands Can Grow Yet Remain Rare
Figure 2-2. The official Febreze website refutes the Internet rumor. 30 Defending the Brand • Financial Earnings The rise of do-it-yourself investing has created great interest in stocks among a broader range of people, including investors with less experience and higher expectations for returns. Such investors often go online for news, advice, and tips. Unfortunately, in the digital world there is no easy way to distinguish someone with real knowledge from an imposter spreading rumors to manipulate stock prices for a short-term profit.
To estimate how many customers the software maker might lose because of this rumor, the company applied this step-by-step calculation and assumptions: Step 1 2 3 Assumption Number of negative posts identified: 20 Average number of customers who read each post: 10,000 Total potential customers exposed to post ( ס1) ( ן2) ס200,000 42 Defending the Brand • Step 4 5 6 7 Assumption Percent of buyers influenced by posts: 1% Total number of customers lost ( ס3) ( ן4) ס2,000 Average lifetime value of a customer: $800 Total cost ( ס5) ( ן6) ס$1,600,000 Had the software company been actively monitoring online commentary, the results may have been much different.
Even in cases where a stock’s price recovers, such incidents can cast doubt and shake investor confidence. Another doctored press release posted online announced far lower than expected earnings for E*TRADE. The release appeared realistic enough that many investors thought it was real. ‘‘It is not on the radar screen until you get hit right between the eyes,’’ said Henry Carter, vice president of compliance for E*TRADE Group. ‘‘I don’t think people fully appreciate the power of the Internet. ’’3 Companies that are diligent in tracking rumors can manage this risk and protect their reputation by responding when necessary.
Kapferer on Luxury: How Luxury Brands Can Grow Yet Remain Rare by Jean-Noël Kapferer