Seeing Fashion Product through Rose Glasses: Why Customers are Willing to Pay a Premium for Luxury Products

Abstract

Increased economy in Indonesia recently encouraged increased lifestyle in the society. Increased lifestyle is characterized by the request from the government on luxurious goods. Prada is one of the luxurious produts in fashion industry. It symbolizes luxury (expensive), fashion class differences, and primary status on word fashin. Prada is a world famous fashion mode brand, which produces a collection of branded clothing, shoes, handbags and accessories. The whole Prada Brand can be described only prayer said, Its successful reflect the whole concept Brand Perfect hearts elegance. The research sample for this research is 51 respondents in Surabaya and it is using SPSS 22.0 to analyze the multiple regression. The questionnaires were distributed from August 2016 until December 2016. The results showed significant relationship between consumer preference towards the brand value, product innovation to the luxury brand and the latest luxury brand value and brand of the willingness to pay a premium.