Examining the mediating role of consumer desire for luxury: Can perceived sustainability and natural rarity evoke willingness to pay more?

Abstract

The purpose of this study is to investigate how perceived sustainability and perceived natural rarity influence willingness to pay more for luxury. The mediating role of consumer desire for luxury was also examined. Results suggest that perceived natural rarity and perceived sustainability are positively related but distinct constructs. Perceived natural rarity was found to have a significant and positive influence on consumers’ willingness to pay more, mediated by their desire for luxury. Similarly, consumer desire for luxury was also found to be a significant mediator for the relationship between perceived sustainability and willingness to pay more among consumers. This is the first paper to empirically test the relationship between perceived natural rarity and perceived sustainability. The findings provide innovative insights into the use of sustainable yet luxurious raw materials in the luxury industry, which can have significant implications for evoking consumer desires and purchasing intentions.