Veblen goods?

This article from the WSJ reports on the effects of recent price increases in high-end luxury goods. It says that sales of such goods have risen and reports that one analyst says that "companies are selling few units." It mentions that firms use pricing as a way to segment sub-markets. The footnote mentions that an earlier version confused Giffen goods with Veblen goods.

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SUMMARY: The luxury-goods business has been relying on sharp price increases to drive sales. But there are signs that even the very rich are nearing their limits.

CLASSROOM APPLICATION: Students can investigate possible reasons for luxury good price increases. First, "An economic theory holds that for certain goods, higher prices increase desirability and drive sales, rather than suppress demand as they would for ordinary products. Economists refer to such luxury products as Giffen goods, named for Scottish economist Robert Giffen, who described the phenomenon." Second, "One reason ultraluxury brands are raising prices is to distinguish their products from entry-level luxury goods that are fast picking up market share." Third, "High-end brands said the price increases are necessary to maintain quality and offset the rising costs of production." Fourth, "In Europe and the U.S., brands have pushed prices higher in part to capture more money from Chinese tourists who buy luxury goods abroad to avoid tariffs that can add 40% to prices at home."

QUESTIONS: 
1. (Advanced) Define "Giffen good." Include income and substitution effects in the definition. Do economists refer to luxury goods in which "higher prices increase desirability and drive sales" as Giffen goods? What is the "Veblen effect"? Do high-end luxury goods experience a Veblen effect?

2. (Introductory) Were the luxury-good price increases a result of the increased demand for luxury goods, in part driven by the greater Chinese demand for luxury goods?

3. (Advanced) Consider the statement, "One reason ultraluxury brands are raising prices is to distinguish their products from entry-level luxury goods that are fast picking up market share." Why would producers of high-end luxury goods raise prices in response to greater competition from low-end luxury goods? What factors distinguish high-end luxury good shoppers who consider entry-level luxury goods from those who do not?

4. (Introductory) What factors have driven the price increases of high-end luxury goods?