Conjoint analysis for luxury brand outlet malls in Korea with consideration of customer lifetime value

As Asian economies have grown rapidly, Asia has become a new leading market of the luxury goods industry. This paper used conjoint analysis (CA) for the optimal design of a luxury brand outlet mall to maximize the customer lifetime value (CLV). This approach complements a simple CA by considering CLV. The proposed approach is then applied to designing a suburban luxury brand outlet mall in Korea, a new concept to Korea. The results indicate that the optimal design for the outlet mall is the medieval European-style mall, with the linkage to Natural Tourism, which consists of the restaurants with delicious food and the stores with similar ratio between masstige and luxury brands.