An Empirical Exploration of Consumer Buying Behaviour in the Age of Luxury Branding – with Special Reference to the Chennai Retail Market

Abstract

Luxury branding seems to be the emerging trendsetter in the Indian Retail sector. With the growth in India’s consumer market primarily driven by a favorable population composition and rising disposable incomes, luxury brands have started getting a foothold in the Indian market. Luxury brand owners see growth opportunities in cities like Bangaluru, Hyderabad, Kolkata and Chennai after serving the most important luxury markets of Delhi and Mumbai. This study focuses on the entry of luxury brands in the Chennai retail space and the strategies that luxury brands are employing to target customers who want to purchase luxury brands because of their brand image, exclusivity and excellent quality. The paper discusses how luxury brands with high quality, uniqueness and social value will appeal to people of different age groups, occupations, income groups and gender. Structural Equation Modelling has been employed to help marketers to understand how consumers perceive luxury brands and what features are considered most important by them. The study also provides insights for further research in the field of consumer behaviour and luxury branding