Beyond function: brand value as a determinant of list and premium prices for luxury watches

Abstract This study defines brand value as ‘value beyond function’, and focuses on the halo effect generated by alternative characteristics of brand value factors: ‘rarity image’ and ‘proportion of high-end models’. It elucidates an integrated pricing mechanism in which this effect determines both list and secondary market prices of basic models. Using 64 basic-model watches from brands in Switzerland, Germany, and Japan, qualitative comparative analysis was performed on secondary market prices,