Abstract

Understanding consumer behavior in the luxury industry is important. The extant literature suggests that cross-cultural conditions reflect the existence of differences in behavior and perceptions of consumers. This research investigated the way consumers in different countries and cultures perceive the country-of-origin concept in the luxury sector and also their perception about luxury brands itself. The purpose of this research was to investigate how the perception of the country-of-origin concept and the concept of luxury brands differs across nations. The value of this research is to provide empirical evidence describing how the different perceptions of country-of-origin issues and luxury brands contribute in the development of the fashion luxury brands industry. This quantitative research utilized online questionnaires attended by 190 respondents distributed from June 2012 to July 2012. Questionnaires were distributed online to different nation groups. The findings of the research indicate two interesting outcomes. First, for the case of fashion luxury brands, there were no significant differences of perceptions among the nation group perceptions regarding the country-of-origin concept. Second, there were significant differences of perceptions among the different nation group perceptions regarding to the luxury brand concept.

Highlights

  • The issue of country-of-origin image is a very important issue because it has a strong indirect impact on purchase intention

  • Objective 1: The perception of the Country-of-origin (COO) For objective 1, consumers were asked to define if country-of-manufacture (COM) or country-of-design (COD) were the most appealing factors in perceiving the country-oforigin (COO) of the luxury brands

  • This research has been conducted by collecting online questionnaire responses from 190 luxury consumers of nine different national groups (Indonesia, United Kingdom, Thailand, China, United States of America, India, Italy, France and Germany)

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Summary

Introduction

The issue of country-of-origin image is a very important issue because it has a strong indirect impact on purchase intention (diamantopoulus, schlegelmilch, and palihawadana, 2011). Several researchers have previously investigated the issue of country-of-origin and brands (aiello et al, 2009; kotler and gertner, 2002; chen et al, 2011), adding the issue of luxury brands to the topic has remained unique. This is due to the uniqueness and exclusivity of luxury brands which will tend to engage in relatively different consumer behavior compared to other ordinary brands (chevalier, and mazzalovo, 2008, p.2). The intrigue in issues related to brands and their country-of-origin rise due to the fact that several luxury high-end brands have expanded their production factory to less developed countries/areas, in order to fulfill an increase in demand and to better satisfy their shareholders with greater equity. With the explanation given, combining the concept of COO and luxury brands to analyze the cross-cultural consumers’ perception makes it a very interesting subject to research

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