Unravelling conspicuous consumption amongst foreign tourists: a study on esteem-based luxury yachting in Fiji

Abstract

ABSTRACT This study evaluates the influence of individualistic and interpersonal behaviours on luxury yacht patronage and willingness to pay a premium (WTPP) among foreign tourists in Fiji. It examined the extent of conspicuous consumption behaviours related to luxury yachting and described the impacts of representative measures of luxury yacht patronage utilizing a theoretical model framework. This research introduces a novel framework emphasizing the symbolic relevance of luxury yachting, using ‘ownership-defined achievement’ as a tool for assessing yachting as a measure of success. Two additional variables, ‘involvement’ and ‘knowledge,’ deepen the understanding of customer's WTPP. Empirical data, sourced from 212 luxury yacht tourists across Fiji, was gathered through the location-intercept technique. Utilizing Structural Equation Modelling, it found the snob, hedonic, and bandwagon effects to be major determinants of luxury yachting patronage. Interestingly, prior luxury yachting knowledge significantly influenced tourists’ WTPP, but luxury yachting involvement had a negligible effect. Bandwagon effect, WTPP, and luxury yachting knowledge represented complete mediating role of yachting involvement. However, luxury yachting knowledge did not mediate the relationship between yachting involvement and WTPP due to its minimal impact on WTPP. These findings hold valuable insights for academicians and practitioners in yacht industry, potentially informing luxury yacht marketing strategies.