Silent Luxury or Revenge Consumption? Reimagining the World of Luxury and Consumer Purchase Intentions Post-Covid 19

Abstract

COVID-19 not only sent a health shockwave to the world but also disrupted global economies. Major shifts in luxury consumer behavior emerged as a result of the pandemic. This study aims to empirically investigate luxury purchase patterns in a post-COVID-19 world for different cultural, ethnic, and gender segments. It employs a quantitative survey with a sample of 262 participants to examine whether consumers prefer revenge or silent luxury, in-store or online channels. Results exhibit that high power distance and more masculine consumers favor revenge luxury while low power distance and more feminine ones prefer silent luxury consumption. Females and non-binary genders also exhibit higher purchase intentions for silent, more sustainable luxury consumption than males. Collectivistic, African American consumers are more inclined towards in-store luxury channels than their Non-Hispanic White counterparts. The study findings have several pertinent corporate and managerial implications as the US$1.52 trillion world of luxury is reimagined post-COVID-19.