Luxury brand cultural symbolism: signaling effect on customer well-being

Abstract

ABSTRACT Although previous studies of consumer behavior have examined the relationships between consumption and well-being, little is known about the impact of luxury brands on consumer life satisfaction. This study uses signaling theory to develop a model examining the impact of cultural symbolism, as measured by brand authenticity, on customer well-being. Self-administered online survey data is collected in the United States due to the growth and size of the luxury industry in the United States. Partial least squares structural equation modeling using SmartPLS showed that cultural symbolism has a positive signaling impact on customers’ perceptions of the authenticity of a luxury brand, prompting both hedonic and eudaimonic senses of well-being. Multigroup analyses supported the impact of the types of perceived benefits (hedonic and utilitarian) on the relationship between luxury consumption and consumer well-being. The present study offers useful insights for luxury brand managers by highlighting the roles of brand culture creation and brand authenticity on life satisfaction.