Exploring the Differences Among Luxury and Budget Brands in Terms of Emotional and Functional Values Applied to the Hospitality Sector

Abstract

The exploration of budget and luxury hospitality brands reveals contrasting views in consumer preferences and purchasing behaviour. While luxury brands promise emotional gratification through premium experiences, budget brands aim to fulfil practical needs with cost-effective solutions. This paper investigates the complexity of the relationship between emotional and functional values provided by these brand categories, aiming to clarify their implications for consumer behaviour. An exploratory qualitative content analysis was conducted on ten websites of budget and luxury hospitality brands to identify the ratio between the emotional and functional values they offer, revealing patterns in value provision by each brand category. The conducted analysis identified an inverse ratio of functional and emotional values in the analysed budget and luxury hospitality brands. Consequently, a theoretical 60:40 ratio between functional and emotional values is proposed for both brand categories, budget and luxury, taking into account the identified inverse ratio pattern. Further empirical research is suggested to validate these findings and expand the understanding of brand value in the hospitality industry and beyond.

Keywords: budget brands, luxury brands, hospitality industry, functional values, emotional values