The role of brand equity and face saving in Chinese luxury consumption

Abstract

PurposeThis paper aims to investigate the impact of brand equity on Chinese consumers’ affective attitudes toward luxury brands and their behavioral intentions by applying the cognitive-affective model. The interaction effect between face saving and consumer’s affective attitude on luxury consumption is also examined.Design/methodology/approachA field survey was conducted using a sample of 248 luxury consumers in three Chinese cities.FindingsBrand equity was found positively to predict Chinese consumers’ affective attitudes and their willingness to pay a premium price for a luxury brand. Moreover, consumers who highly value face saving were found to be more willing to pay a premium price, even though they hold a less positive attitude toward the brand.Research limitations/implicationsThe use of cross-sectional survey data with young Chinese consumers in first-tier cities may limit the generalizability of the findings as well as precluding the making of causal inferences.Practical implicationsGlobal luxury marketers who plan to enter the China market can utilize marketing strategies to create prestigious value and appeal to consumers who seek for social approval and status.Originality/valuePrevious published studies of brand equity and luxury consumption have primarily emphasized Western markets. These findings advance our understanding of luxury purchase intention among young Chinese consumers, for whom the need for social acceptance acts as a crucial motivator in luxury consumption. The results contribute to amplifying the brand equity concept by taking cultural context into consideration.