The Effect of Conspicuous Consumption on Consumer Purchase Intention: The Mediating Role of Perceived Value

Abstract

Purpose - The rapid recent growth of China’s economy and the emergence of a global consumer culture have increased conspicuous consumption among Chinese consumers. This research investigates how conspicuous consumption influences Chinese consumers’ purchase intentions toward global brands as mediated by perceived brand value.
 Design/Methodology/Approach - Data were collected through the conduct of a survey among Chinese consumers. The PROCESS Macro model was used to test the mediating effects of perceived functional, social, and emotional value.
 Findings - The study found that Chinese consumers with conspicuous consumption tendencies possess positive purchase intentions toward global brands. Study 1 indicated that consumers’ perceived social and emotional value mediates the relationship between conspicuous consumption and purchase intention for hedonic products. For utilitarian products, Study 2 showed that the relationship is mediated by consumers’ perceived functional and emotional value. Perceived emotional value plays a critical role in the relationship between conspicuous consumption and purchase intention for both product types.
 Research Implications - This study contributes to the scarce literature about the positive relationship between conspicuous consumption and global brands in emerging markets. Marketing strategies in emerging markets should concentrate on status-related consumption and market segmentation. These findings are expected to contribute to international marketing and global brand management, providing valuable insights into the purchasing motives of consumers for global brands.