The language of luxury: Veblen Effect in international brand communication

The concept of luxury has undergone a profound transformation in recent decades: while initially the term was a symbol of elite status that only a few could achieve, over the years it has increasingly taken on a fundamental role in society, becoming a true cultural phenomenon. This paper analyses the role of the Veblen effect, explained by American economist Thorstein Veblen, according to which an increase in price leads to a direct increase in demand. In other words, this effect studies the tendency of consumers to seek out goods whose high price increases their attractiveness and desirability. The following theory is examined in order to define the branding and communication strategies of contemporary luxury brands: the study aims to explore, through a quantitative and qualitative approach, two specific cases, namely the luxury brands Louis Vuitton and Rolex. The objective is to explore how pricing, scarcity, communication strategy and symbolic value create desire and social distinction. For this reason, thanks to specific pages, forums and reliable sources, an initial attempt was made to analyse how the price of two of the representative products of the brands in question has varied over the years, exponentially increasing their value in concrete terms. A qualitative analysis was then undertaken: using Sketch Engine, we were able to create two corpora, one for each brand, which included the main means of communication used by the brands in question and articles from relevant newspapers in order to consider not only the value, identity and reputation that the brands have attempted to build over the years, but also the importance and attention given to the two brands by external entities. This analysis reveals the communication strategies and symbols that embody the identity values of the two brands, providing a comprehensive explanation of how the Veblen effect attracts consumers. The results show how the Veblen effect, from an economic anomaly, has become a real strategic lever in luxury marketing that affects the list prices of products sold. Furthermore, it becomes a useful tool for creating a perception of exclusivity and perceived value of the brand by consumers. In conclusion, after mentioning the weaknesses of the paper, the thesis offers a critical reflection on the Veblen effect and the future of luxury communication: it highlights the growing social divide between those who can afford to buy and those who cannot, confirming the importance of integrating an ethical and increasingly sustainable dimension into high-end consumption models in order to respond to the challenges of an increasingly global and conscious market.