Unplanned Purchases of Luxury Goods and Experiences

Abstract

Unplanned purchases, such as same-day bookings for hotel stays, are an emerging trend. However, few studies have examined unplanned purchases, particularly luxury hospitality and tourism purchases. This study compares consumers’ unplanned purchases of luxury goods and experiences. Four studies of luxury consumers in Hong Kong and the United States show that unplanned purchases of luxury experiences (vs. luxury goods) increase positive emotions and that the underlying mechanism is escapism. This study also shows that the price of luxury experiences enhances escapism whereas the price of luxury goods does not. This study contributes to the literature by challenging the universally negative view of unplanned luxury purchases. Luxury marketers should appeal to consumers’ sense of escapism to induce unplanned purchases of luxury experiences. Further, luxury marketers should maintain the monetary exclusivity of luxury experiences.