Digital luxury: how avatar marketing drives consumer engagement for luxury brands

Purpose This research explores the effectiveness of luxury brand avatar marketing in virtual gaming environments, examining how social presence and avatar anthropomorphism influence consumer engagement. It investigates whether the symbolic appeal of luxury brands translates into virtual settings and enhances brand engagement under varying contextual conditions. Design/methodology/approach Three experimental studies were conducted using custom-designed video games to test the effects of luxury versus non-luxury avatar marketing. Study 1 examines the interaction between brand type and social presence in solo versus multiplayer gaming. Study 2 introduces avatar anthropomorphism as a moderator in low social presence settings. Study 3 replicates these findings with an alternative game design. Findings Luxury brand avatar marketing significantly enhances consumer engagement in high social presence environments (e.g. multiplayer games). In low social presence settings (e.g. solo games), luxury brands only outperform non-luxury brands when avatars are anthropomorphic, as human-like avatars simulate social interaction. Game immersion mediates this relationship, highlighting the importance of social dynamics and avatar design in virtual luxury branding. Originality/value This study advances signaling theory by demonstrating that luxury brand effectiveness in gaming environments depends on social presence and avatar anthropomorphism. It challenges assumptions that luxury branding seamlessly translates to digital spaces and contributes to brand gamification literature by emphasizing the role of virtual product design and multiplayer interaction. The findings provide actionable insights for luxury brands and game developers to strategically integrate avatar marketing and enhance brand engagement in virtual worlds.