The impact of culture on millennials' attitudes towards luxury brands: evidence from Tokyo and Shanghai

Abstract

PurposeBased on the theory of social identity mechanism, this study aimed to investigate the associations with millennial consumers' need for uniqueness (NFU), susceptibility to peer influence (SPI) and attitudes towards luxury brands (ALB) under the cross-cultural context. The mediating effect of fashion innovativeness (FI) and the moderating effect of culture were examined.Design/methodology/approachThe data for this study were collected through a survey from 217 millennials in Shanghai and 268 millennials in Tokyo. Moderation analysis and mediation analysis using Hayes PROCESS macro were applied to test proposed hypotheses.FindingsResults show that NFU and SPI have a significantly positive effect on millennials' ALB, and fashion innovativeness plays a mediating role in this process. Furthermore, the positive impact of NFU on millennials' ALB for relatively individualistic cities (Shanghai) is stronger than for relatively collectivist cities (Tokyo). The positive impact of susceptibility to informative influence (SII) on millennials' ALB for Tokyo is stronger than for Shanghai.Practical implicationsThe research results suggest how different cultures can support marketers in effectively carrying out their business strategy.Originality/valueUnder the cross-cultural background, the social identity mechanism behind the attitudes of millennials towards luxury brands has been widely recognised. However, little is known about how culture could moderate the social identity mechanism behind millennials' ALB. By analysing these mechanisms, this study compares the cultures of Shanghai and Tokyo and expands the previous research achievements.