Consumer self-reported and testosterone responses to advertising of luxury goods in social context

Rumen Pozharliev,Ruud Van Den Bos,Willem Verbeke,Matteo De Angelis,Paolo Peverini

doi:10.1007/s43039-021-00023-y

Abstract

Despite the growing demand for luxury goods, there is limited understanding about how consumers respond to luxury-goods advertising and how viewing advertising in different social contexts affects these responses. This study investigates the link between luxury goods advertising and expected utility from a biological perspective by looking at males’ hormonal responses to advertising of luxury versus non-luxury branded goods. Using traditional and consumer neuroscience methods, we collected salivary testosterone data pre- and post-ad viewing. Self-reported scores on social and quality value of the brands were compared to salivary testosterone levels from participants placed in different social conditions (Alone versus Together with another person). The results show that higher post-viewing testosterone levels were associated with higher scores on quality, but not on social value and only for branded goods viewed in the Together condition, compared to the Alone condition. These results suggest that changes in testosterone levels reflect a rewarding experience or activate social competitiveness when male consumers appraise the quality but not the social value of the advertised luxury goods and that social context modulates this effect.

Highlights

The global demand for luxury goods including cars, jets, drinks and fashion has been constantly increasing for decades, resulting in an industry worth $285 billion in 2020 (Jones, 2020)
Building on prior literature that stressed out the importance of studying consumer responses to advertising in social contexts which resemble the contextual environment in which real-life advertising is typically experienced (Pozharliev et al, 2017; Puntoni & Tavassoli, 2007), we address this gap by exploring whether and how the presence of another person in the environment in which a consumer is exposed to an advertisement affects consumer responses to luxury-goods advertising
Our results show higher post-viewing testosterone levels were associated with higher scores on quality value, but not on social value

Summary

Introduction

The global demand for luxury goods including cars, jets, drinks and fashion has been constantly increasing for decades, resulting in an industry worth $285 billion in 2020 (Jones, 2020). One important factor that prior studies on luxury goods communication seem to have overlooked is the context in which consumers are exposed to luxury goods communication and how it can affect consumers’ perceptions of advertised goods. Building on prior literature that stressed out the importance of studying consumer responses to advertising in social contexts which resemble the contextual environment in which real-life advertising is typically experienced (Pozharliev et al, 2017; Puntoni & Tavassoli, 2007), we address this gap by exploring whether and how the presence of another person in the environment in which a consumer is exposed to an advertisement affects consumer responses to luxury-goods advertising. Social context) affect consumer responses to advertising of luxury goods is of critical importance for companies and brands that are looking to thoroughly assess the impact of their marketing communication. Previous research suggests that consumer attend differently to marketing related information when viewed alone than in the co-presence of others (Pozharliev et al, 2015)

Methods

Results

Conclusion