THE INFLUENCE OF MATERIALISM VALUES TOWARDS YOUNG CONSUMERS’ LUXURY FASHION PURCHASE INTENTION IN INDONESIA

Abstract

Indonesia became one country of luxury fashion global expansion to developing markets. Indonesia has a large number of high-net-worth individuals that continue rising steadily, boosting sales of luxury fashion products. The luxury fashion industry in Indonesia is forecasted to expand by 7.98% annually. Indonesia's young consumers have shown their potential to be attracted by luxury fashion companies. Aligned with greater income and higher exposure of luxury fashion obtained by young consumers in Indonesia, it is predicted to be aligned with the increase of materialism values. Materialism values have proven to positively influence luxury brand consumption in several countries and are composed of social recognition, appealing appearance, financial success, defining success, acquiring centrality, and pursuit of happiness. Yet, it is unclear whether materialism values are also influential towards young luxury fashion consumers' in Indonesia. This research has the purpose to identify the variables of materialism values that positively influence purchase intention and give recommendations that can be implemented by luxury fashion companies to generate stronger marketing strategies. The quantitative method using an online questionnaire is used with the judgemental sampling technique. The data gathered from 317 respondents is tested using PLS-SEM. The research findings show the influential variables of materialism that positively influence brand engagement in self-concept as the mediating variable and have a positive indirect effect towards purchase intention from the strongest to weakest effects respectively are acquisition centrality, appealing appearance, the pursuit of happiness, and social recognition. The recommendation that can be implemented by luxury fashion companies is designing the advertisements and campaigns that are able to bring out the luxury consumers’ feelings regarding these influential materialism values variables.