Brand Value
3.2 Qualitative Approach
3.2.5 Data Analysis
As mentioned earlier in this chapter, to analyze interview data, thematic analysis was selected. Thematic analysis can be defined as “a method for identifying, analyzing and reporting patterns (themes) within the data” (Braun and Clarke, 2006, p. 79). To put it differently, it is helpful to arrange and characterize data with a high level of detail (ibid, 2006).
Thematic analysis has been used extensively in marketing and luxury research (E.g.
Granot et al., 2013; Hollebeek, 2011; Japutra et al., 2014; Kim et al., 2016; Miller, 2014). According to Granot et al (2013, p. 35), one of the main advantages that thematic analysis has over other qualitative data analysis is that it allows for a
“convenient means of finding meaningful themes in large amounts of text”. Braun and Clarke (2006) elaborate further on the advantages of thematic analysis,
highlighting its simplicity, flexibility, and the possibility to identify unexpected insights and pin-point similarities and differences in the data.
These advantages are highly relevant to this research. The combined transcripts from the interviews are dense as they equal almost 80,000 words. By selecting thematic analysis it is possible to find themes, in addition to CSR, surrounding brand value in luxury, to help gain a better understanding of these constructs. For this research, all themes, with the exception of CSR, emerged from the interviews. This approach follows Gladkikh et al (2013) regarding the use of both predetermined and emerging themes for thematic analysis. The reason why CSR was a predetermined theme is that CSR is a central topic for this thesis, and it is essential to understand its role within luxury and how it may contribute to brand value within the industry.
Data processing and analysis follows Braun and Clarke’s (2006) guidelines for thematic analysis. A summary of these guidelines, as followed in this project, is presented in Table 13.
Step Criteria
Data Familiarization Transcribe data, read and re-read it after transcription
Initial Coding Code interesting features of the data in a systematic fashion across all the data by linking each relevant data piece to a code
Searching for Themes
Convert codes into potential themes
Reviewing Themes Make sure that initial codes are relevant and that are relevant for all data. Generate a map of the analysis
Refining Themes Refine each theme and the overall story from the analysis
Report Findings Select compelling examples and relate back to literature and quantitative analysis
Table 13: Steps to Conduct Thematic Analyses Source: Braun and Clarke (2006)
The specific steps conducted to perform the thematic analysis are discussed below.
To complement this discussion, diagrams showing how the themes evolved are also presented.
Data Familiarization. As mentioned above, transcripts for each interview were prepared. After each interview, the recordings and the notes taken during the interview (as applicable) were transcribed into separate Microsoft word files. Then, all transcripts were read for accuracy and familiarization with what was discussed.
To facilitate processing, a project folder was created in NVivo.
According to Woods et al (2015), NVivo is one of the two most commonly used Qualitative Data Analysis Software (QDAS), and in fact it is the preferred choice among researchers to manage interview data. The main advantage of using QDAS, and in this case, NVivo, was to support coding, and to facilitate differentiation and retrieval of coded data (ibid, 2015). For instance, NVivo has been successfully used
to code interview information and identify themes in a recent study related to luxury (Carrigan et al., 2016). All transcripts were uploaded into NVivo as internal sources and then were linked to a node for each specific brand. With regard to transcript preparation, according to Braun and Clarke (2006), the time spent transcribing the interviews informs the initial part of the analysis, and allows a better understanding of the data.
Initial Coding. After setting-up the project folder in NVivo each interview
transcript was analyzed. Following Bryman and Bell (2011), coding was conducted while reading each data file. During this step, every relevant piece of text was linked to a node, depending on the content in question. The purpose of a node is that once a file has been coded it creates a reference to a specific topic which is then incorporated under a node (ibid, 2011). Nodes allow variables to be analyzed more effectively as it is possible to merge all data related to a given node making it possible to understand data better (ibid, 2011). For example, a portion of an
interview talking about marketing would be highlighted and linked to the marketing node; or a portion talking about the importance of COO would be linked to the COO node. All nodes, except for CSR were not pre-fixed. Nodes were added to the project folder as needed, in order to allow for maximum flexibility. This approach is consistent with Braun and Clarke (2006), who state that initial coding is based on data features relevant to the researcher. It is important to note that NVivo was used exclusively to store the interview transcripts and to categorize (code) the information by topic. As a result, by searching for a particular node, it would be possible to get all the text from all the transcripts that were related to that topic.
Following there is a list of nodes and sub nodes that were used, including a description of their meaning:
o Additional Characteristics. Node used to initially categorize comments related to general characteristics of the luxury industry. While relevant, these characteristics appeared to be lower in importance than other factors discussed by interviewees o Assets or Company Size. Subnode to categorize comments where a company
advantage or disadvantage was attributed to company size or asset volume
o Awareness. Subnode to categorize comments related to the importance of ensuring that consumers and the general public are aware of the existence of a brand
o Brand Personality. Subnode to categorize comments related to how companies perceive their brands to be (e.g. intrepid, agile, bohemian chic)
o Brand stature. Subnode to categorize comments on the level of exclusiveness a brand it perceived to have
o Brand strength. Subnode to categorize comments related to how important a brand is perceived to have
o Control. Subnode to categorize comments related activities pursued by a brand to ensure consistency with regard to what they offer, including how and where o Elasticity. Subnode related to comments on how a brand is able to expand its
offerings by expanding their brands into other categories
o Financial Situation. Subnode to categorize comments related to the economic standing of a brand
o Heritage. Subnode to categorize comments highlighting the long history of a brand o Leadership. Subnode to categorize comments related to brands considered leaders
in their field; and actions that allow brands to be perceived in that way o Perception. Subnode to categorize comments related to the importance of
conveying brand values to ensure that a brand is perceived in the want it wants
• Brand DNA. Node to categorize comments related to the importance of defining a brand and its values; and ensuring that brand considers them in everything they do
• Brand Value. Node to categorize any comments on how brands perceive or define brand value
• Consumer. Node to categorize comments highlighting the importance of consumers for brands
• Country of Origin. Node to categorize comments related to the advantages or
disadvantages of producing a product in a specific country (e.g. Switzerland, Italy, France)
• CSR. Node to categorize comments on environmental or social aspects
• Distribution. Node to categorize comments regarding strategies used by brands to distribute their products
• Economy. Node to categorize comments related to how economic conditions have impacted or can impact brands
• Interview Recap by Interviewee. Node to categorize closing comments made by interviewees to highlight anything relevant that was not discussed during the interview
o Less Important. Subnode to categorize the factors that in the view of interviewees were less important for brand value
o More Important. Subnode to categorize the factors that in the view of interviewees were more important for brand value
• Luxury Sectors. Node to categorize comments related to specific luxury sectors existing within luxury and their differences (e.g. accessories, jewelry, leather goods, etc.)
• Marketing. Node to categorize comments related to the importance of marketing within luxury and the strategies brands use to market luxury products and services
• Pillars. Node to categorize any comments related to brand esteem, energized differentiation, relevance or knowledge
• Pricing. Node to categorize comments related to pricing policies undertaken by luxury brands
• Quality. Node to categorize comments regarding the importance of pursuing quality within luxury
• R&D/Design. Node to categorize comments regarding the importance of R&D and design within luxury
• Supply Chain. Node to categorize comments regarding pursued by luxury brands within their supply chain
• Threats. Node to categorize comments related to the most significant present and future issues experienced/to be experienced by luxury brands today
• Types of Brands. Node to categorize comments regarding how luxury brands could be classified based on their level of exclusivity
o Luxury. Subnode to categorize comments regarding which attributes define true luxury companies
o Premium Brand. Subnode to categorize comments regarding which attributes define premium brands (exclusive brands that are not at the same level as luxury brands)
o Utilitarian Brand. Subnode to categorize comments regarding which attributes define utilitarian brands (brands producing reliable products with higher usage than intangible value)
Searching for Themes. To complement the previous step, each transcript was analyzed thoroughly in relation to the proposed nodes to identify initial key themes.
According to Braun and Clarke (2006), searching for themes change the focus of the analysis from codes to themes, which are more specific. A theme encompasses all the relevant codes related to that particular topic. For this step, following Braun and Clarke (2006), a thematic map with five themes was prepared. These
categories (or bins) reflect the prevailing topics discussed in the interviews:
• CSR. How CSR is perceived within the luxury industry
• Luxury. What the characteristics of luxury are. Important elements within luxury are: History/heritage, high-quality, a price point, that it helps create a dream, scarcity perception, and superior craftsmanship
• Considerations. General particularities of the industry that need to be taken into account when studying it. Important considerations within luxury include differences by sector, category or company size, and threats such as counterfeiting
• Brand Value. What constitutes brand value and how relevant it is within luxury. There are various variables, in addition to CSR, that can affect brand value. The most important are the product design, having control of the distribution, COO, and the customer experience. CSR was discussed separately (see first category above)
• Marketing. Importance of marketing for brand value including marketing techniques undertaken by luxury companies. Luxury companies have a wide array of marketing techniques they use, including worth of mouth, their websites, social media, advertising, events, and educational activities
After this initial exercise, all nodes were allocated under each of the five themes.
As part of this step, nodes were renamed and/or merged together to improve fit.
Subthemes were also created in the case a theme did not fully explain a node.
Finally, all resulting nodes were placed in a map under a theme/subtheme. The purpose of the map was to better understand what the initial themes and
subthemes are and how they relate to each other. Figure 7 below presents the initial themes, subthemes and the different components for each of them that were identified.
Figure 7: Initial Themes Emerging from Initial Transcript Search
Reviewing Themes. Following Braun and Clarke (2006), candidate themes from the initial phase were reviewed to make sure that there was enough data to back them up; that they were coherent; or that they were able to be grouped together with
Luxury
other themes (as applicable). After further analysis, the initial themes were reduced to four: CSR, luxury, ‘brand value management’ and brand value. Under the CSR theme, three subthemes were added: ‘Insurance policy’, philanthropy and not driving revue yet.
The considerations theme that was present in the first diagram was found to be too broad. Therefore, it was renamed brand value management based on the fact that items such as company size or differences within luxury are important
considerations when it comes to how a company manages its brand value. Also, counterfeiting was moved to brand value management, as it was a factor that could directly affect brand value.
The marketing theme was deleted and instead it was added as a subtheme under brand value. The main reason behind this change is that marketing is not a
standalone component of the luxury industry, but it is part of the mix that creates brand value.
Another change was the one made to high-quality, which was moved from luxury into a new product characteristics subtheme under brand value. High-quality is normally found across luxury products and, therefore, it is a component of luxury.
However, in the end, luxury companies sell both a product/service and an
experience. High-quality is part of the product and as such is a contributor to brand value. Other elements such as price, history/heritage, and craftsmanship were discarded, as they are already part of either, the dream or the product
characteristics subthemes.
In sum, in the second diagram, the luxury theme encompasses the main
characteristics of the luxury industry. Brand value management considers that company size and luxury category play a key role in how brand value is managed at a luxury firm. Brand value includes the main variables that create brand value, exclusive to CSR. In terms of CSR, it is not considered to be driving company revenue yet, but it is perceived as an important factor within the industry in the
sense that it can constitute an ‘insurance policy’ in case something goes wrong at the brand level. The difference between ‘insurance policy’ and ‘not driving revenue yet’ is that ‘insurance policy’ refers to actions aimed at shielding a brand by avoiding potential costs related to a lack of CSR standards; while ‘not driving revenue yet’ refers to actions that are likely to increase revenue in the future by creating a competitive advantage or differentiation for luxury brands.
Additionally, from the different approaches to CSR, luxury companies appear to be focusing on its philanthropic aspects and not in the environmental or other social aspects of CSR. Figure 8 presents the reviewed themes.
Figure 8: Reviewed Themes
Refining Themes. Following Braun and Clarke (2006), the themes and subthemes from the previous step were revised and rearranged; ensuring that there was not
Dream
much overlap among the themes and that they reflect the data collected during the interviews. This step resulted in two final themes, in addition to CSR: Luxury and brand value. Once these final themes were obtained, they were described, so that it was clear what each theme was about. CSR, luxury and brand value form the basis of the qualitative analysis included in Chapter 4, where each theme is analyzed into detail.
Figure 9 shows the refined themes and subthemes resulting from this step.
Figure 9: Refined Themes
CSR is approached in two new subthemes, drivers and implementation, as the CSR subthemes from the Reviewed Themes (Figure 8) could be encompassed into these two categories. For example, philanthropy is a way to implement CSR; while
Brand Value
Company size
Control
Product and Customer Experience Marketing
Luxury
Differences within luxury Perception
CSR
CSR
Implementation
Drivers
constituting an ‘insurance policy’ or driving revenue are factors that can increase industry interest in CSR.
The luxury theme was re-arranged into two main components, what is perceived as luxury; and differences within luxury. With regard to luxury, the dream factor, which was present in Figure 8, was incorporated into perception, as projecting the dream of a brand to customers is just one of the perceptions that luxury brands can create. Luxury perception encompasses the main values for the industry to be considered luxury. Luxury is all about projecting a dream and, thus, there are factors that play a role in creating this perception. Similarly, with regard to
differences within luxury, the other subthemes, brand type and luxury sectors were encompassed into this theme, as the heterogeneous nature of luxury can span beyond these two factors. The main outcome from this theme is that luxury is not homogenous, and the values or attributes that for some companies are important, may not be necessarily relevant for consumers. It is important to point out that, at first glance, these themes could be seen as self-evident and one may even argue that they could have been derived from the literature. However, they do capture how companies perceive luxury, and how brand value is perceived within the industry, together with the determinants of brand value that matter the most to the industry. These two research angles are not addressed in the current literature.
The brand value theme is related to how the luxury industry perceives brand value, and the key factors that contribute to create it. This theme is made up of four subthemes: Company size, Control, Marketing, and Product and Customer experience:
Company Size. Important consideration in terms of how a company creates, increases, manages and leverages its brand value
Control. Includes everything a brand does to maintain consistency across the brand. A part of control is controlled distribution, but also control of the message conveyed by the brand. In other words, there is much more to control than controlling the distribution or the supply chain
Marketing. Includes all the actions a company takes to communicate about the brand and product attributes. It is important to note that marketing is not only conducted by brands but also by consumers or stakeholders via worth of mouth or social media. Thus, it is critical to convey the right marketing message in an effective way (Neudecker et al., 2015)
Product and Customer Experience. Luxury brands sell both a product and a customer experience, and these two elements are the most important for brand value. Product includes R&D/Design, and COO; while the customer experience includes what creates brand value in consumer’s minds. This is an important takeaway that was not evident during the literature review phase of this thesis
Report Findings. Following Braun and Clarke (2006), once the final themes have been produced, it is necessary to provide an account of data explanation for each theme. This account is supported with extracts and direct quotes from the
interviews, and constitutes the evidence of the conducted analysis. All these
elements are also discussed in relation to the literature, so that they help fulfill the research objectives of this research. Chapters 4 and 6 provide a full account of the findings from the qualitative phase of this research.
3.2.6 ‘Credibility Checks’
According to Karnieli-Miller (2009), after data collection, researchers can engage interviewees with the goal of enhancing the accuracy, and validity of the research.
This reengagement can be conducted through follow-up interviews by commenting on emerging insights identified by the researcher, or by verifying respondents’
intended meanings. For the sake of clarity, and following O’Neill et al (2013) and
intended meanings. For the sake of clarity, and following O’Neill et al (2013) and