Understanding the moderating effect of motivational values on young consumers' responses to luxury brands: A cross-cultural study of South Korea and the USA

Abstract

By applying motivational values of luxury consumption, this study examined the impact of cultural differences on young consumers' attitudes and purchase intentions toward luxury brands. With the use of survey data (N = 331 for South Koreans and N = 409 for Americans), the study provided support for the hypothesized moderating effect of three perceived values: conspicuous, social, and quality values. The perceived social value was found to influence attitude change favorably among young Korean consumers. The young American consumers tended to increase their attitudes and purchase intentions toward luxury brands if they perceived superior product quality. However, they were more likely to lower their purchase intention as they recognized conspicuous value of consuming luxury brands. On the other hand, the moderating effect of uniqueness and hedonic value was not found. Theoretical and managerial implications were discussed.