Impact of value perceptions on luxury purchase intentions: a developed market comparison

Abstract

Consumers derive subjective worth of any product of service based on their value perceptions. This study measures the impact of value perceptions on luxury consumption purchase intentions focusing on two of the largest luxury markets holding significant referent influence on consumers worldwide - namely the UK and the USA. Cross-sectional, survey-based methodology and structural equation modelling was employed to collect and analyse the data. The findings suggest that while functional value perceptions drive luxury consumption purchase intentions across both nations, social value has a significant contribution only among US consumers and personal value perceptions only in the UK. The results provide managers opportunities for strategic differentiation and brand positioning of their luxury brand in a cross-national context. The findings demonstrate that while the USA and the UK remain fairly similar on most macro cultural traits, consumer value perceptions differ significantly. Hence, a cautionary approach is advised in making generalised assumptions using national-level cultural indicators at consumer-level decision making.