Luxury Consumption Behavior Research Articles

The Moderation Role of Subjective Norm on Apple iPhone Purchase Intention: A Study on Generation Z Consumers in Indonesia

With the widespread adoption of digital technology and the emergence of various smartphone brands worldwide, this research explores how these brands should adapt to the current consumer demands, particularly in a developing country like Indonesia. Gen Z has played a significant role among other generations in the Indonesian smartphone market, particularly favoring luxury brands like the Apple iPhone. Given the limited existing research on luxury consumption behavior in this market, this study aims to investigate the factors influencing the purchase intentions of Indonesian Gen Z consumers towards Apple iPhones. The research will discuss the significance of attitude, subjective norms, and perceived behavioral control in shaping consumer purchase intentions. Eighty responses were gathered from Generation Z who knew about the Apple iPhone and live in Indonesia. The study will use PLS-SEM to prove the research hypotheses using a quantitative approach with a simple random sampling method. The findings of this study highlight the pivotal role of subjective norms as the primary determinant of purchase intentions for Apple iPhone products. Furthermore, the subjective norm moderates the relationship between attitude and perceived behavioral control on purchase intentions.

Mapping the Structure of Luxury Consumption Behavior: A Bibliometric Assessment

This study aims to identify current research trends and suggests potential areas for future investigation in the field of “luxury consumption behavior.” To achieve this, we gathered a comprehensive dataset spanning five decades, consisting of 1,289 articles from Scopus and Web of Science databases, which underwent rigorous bibliometric analyses. Our bibliometric analysis has unveiled crucial insights, including key performance indicators, emerging areas of study, significant keywords, and prevailing research themes within the luxury consumption domain. The findings emphasize the remarkable growth of luxury consumption as a research area, leading to the identification and examination of five distinct research clusters. Through this in-depth bibliometric analysis, our study enriches the existing body of knowledge on luxury consumption, offering a comprehensive overview of scholarly contributions in this field and paving the way for potential future research endeavors.

Relationship between Hair Designer's Propensity to Consume, Motivation for Purchasing Luxury Goods, and Luxury Purchase Attitude

The need for research on luxury consumption behavior is increasing as individual luxury consumption is expanding among various consumers as a symbolic factor representing their individuality and social status due to the economic development of society and the increase in personal income. Therefore, in this paper, propensity to consume, motivation for purchasing luxury goods, and luxury purchase attitude were investigated and analyzed to study the consumption behavior of the hair designer group. This study directly distributed 400 questionnaires to adults in their 20s and older in Seoul and Gyeonggi Province through a self-response survey, and collected 338 questionnaire analysis data, excluding 62 that were deemed insufficient to analyze. Through reliability analysis and factor analysis, the validity and reliability of hair designers' propensity to consume, motivation for purchasing luxury goods, and luxury purchase attitude were confirmed. In addition, through regression analysis, it was analyzed how propensity to consume, affects motivation for purchasing luxury goods and luxury purchase attitude, and how motivation for purchasing luxury goods affects luxury purchase attitude. As a result of the analysis, it was confirmed that consumers with high ostentatious and planned tendencies are more likely to have an incentive to motivation for purchasing luxury goods, and consumers with reasonable tendencies have a negative relationship with the motivation for purchasing luxury goods. It has also been confirmed that hair designers who want to purchase luxury goods for social or practical purposes have a more positive attitude toward luxury goods. This shows that there is a close relationship between motivation for purchasing luxury goods and purchase attitude, and suggests that consumers' purchase motivation should be considered through strategies that emphasize brand value.

Investigating Materialistic Behaviour Towards Luxury Fashion Consumption

This study explores the pathway that lead the materialist to buy foreign products online. The research identifies bandwagon luxury consumption behaviour and perceived brand globalness as consequence of materialism. It also identifies the moderating role of consumer innovativeness between bandwagon luxury consumption behaviour and intention to buy foreign luxury products online. An online cross-sectional survey was used to gather information from respondents of purchasers of foreign luxury products in Pakistan. Questionnaires were distributed to respondents online and a total of 210 completed questionnaires were used in the analysis. The results show that Bandwagon luxury consumption behavior and perceived brand globalness had a significant positive relationship with materialism and intention to buy foreign luxury products online and positively mediates the relation between materialism and intention to buy foreign luxury products online. The Consumer innovativeness acts as a significant moderator between Bandwagon luxury consumption behavior and intention to buy foreign luxury products online. This research results, are helpful for the foreign companies who want to target consumers of Pakistan and also online local websites selling foreign product.

Research on the Influence of ConsumerPsychological Motivation on Luxury Consumption Behavior

The rapid development of the world economy and the improvement of the income level of residents this has promoted the rapid increase in the luxury consumption market to a certain extent. This study aims to determine the influence of consumer psychological motivation on luxury consumption behavior. The population of this study was people coming from different classes. The data analysis techniques used were survey and literature research/analysis. This study showed that finance, culture, and social development significantly affect peoples purchasing psychology. In addition, the psychology of contrast, the psychology of seeking common ground, and the psychology of showing off produced by these objective factors promote the consumption of luxury goods. In the final analysis, luxury brands can promote their brands through social media, highlight brand logos and add new design elements to attract consumers and increase sales. This study can provide ideas for the luxury industry to solve the problem of maintaining a stable source of customers and even attract new consumer groups in the case of an economic downturn.

Investigating Materialistic Behaviour Towards Luxury Fashion Consumption

This study investigates the path that leads materialists to purchase foreign products online. The study finds materialism's effects as bandwagon luxury consumption behaviour and perceived brand globalness. It also shows how consumer innovation affects consumer behaviour between bandwagon luxury consumption and inclination to purchase foreign luxury goods online. An online cross-sectional survey was utilized to collect data from 210 respondents who bought luxury goods from abroad in Pakistan. The findings demonstrate that Bandwagon luxury consumption patterns and brand-perceived globalness have a significant positive relationship with materialism and intention to purchase foreign luxury goods online and that Bandwagon luxury consumption patterns positively mediate this relationship. Consumer innovation significantly moderates the relationship between bandwagon luxury consumption and the propensity to purchase foreign luxury goods online. This study will be beneficial for foreign brand marketers interested in targeting Pakistani consumers through various channels and identifying bandwagon behaviour among Pakistanis

The role of perceived value in shaping luxury service customers’ self-brand connection

Building on the literature on luxury consumption behavior, this study investigates customers’ perceived values on their patronage behavior toward luxury service brands. Partial least squares-structural equation modeling is used to test the research model with a sample of 177 American luxury hotel customers. The findings suggest that functional, individual, and social values from experiences influence customers’ perceived connection with a luxury service brand. The bond between customers and brands affects customers’ patronage behavior. Moreover, the role of the self-brand connection on the relationship between the perceived value and behavioral intention indicates that the impact of functional, individual, and social values on patronage behavior, and the self-brand connection is different depending on the perceived congruity with the luxury hotel brand. However, the affluent customers’ perception of financial value does not enhance the self-brand connection. The results suggest that it would be more effective for luxury hotel service providers to build strong and meaningful ties with customers. This study identifies the role of the self-brand connection in the relationships between multidimensional perceived value (i.e. financial, functional, individual, social) and loyal behavior in the luxury service context.

Factors influencing online luxury purchase intentions: the moderating role of bandwagon luxury consumption behavior

PurposeDespite the fact that online is predicted to become the major channel for luxury purchases by 2025, there is scant literature related to online luxury buying behavior, mainly in the context of Generation Y (Gen Y) consumers in emerging societies like India. Therefore, the primary objective of this study is to empirically test the theoretical framework developed to assess the factors influencing luxury consumers' online shopping behavior based on the stimulus-organism-response model and technology acceptance model (TAM).Design/methodology/approachData were collected from 233 Gen Y luxury consumers in India via purposive sampling method. The study used AMOS and PROCESS SPSS Macro to establish the overall fit of the measurement model and examine the hypotheses.FindingsThe findings revealed that perceived usefulness of buying online, perceived ease of buying online, economic benefit and webstore quality have significant impact on online luxury purchase intention. The perceived experiential values and perceived functional values mediate the influence of antecedent variables on online luxury purchase intention. Bandwagon luxury consumption behavior (BLCB) moderates the relationship between perceived functional values and online purchase intention.Originality/valueThis is one of the pioneer studies conducted to understand the influence of BLCB on value–intention relationship in online space among Gen Y luxury consumers. This study will help luxury retailers to create targeted strategies for this segment.

Luxury symbolism, self-congruity, self-affirmation and luxury consumption behavior: a comparison study of China and the US

PurposeDespite the growing research into luxury symbolism and its influence on consumer behavior, few studies have investigated the underlying psychological processes that occur in different cultural contexts. This study investigates the relationships among luxury symbolism, psychological underpinnings of self-congruity, self-affirmation and customer loyalty, especially regarding how these relationships differ between consumers in China and those in the US.Design/methodology/approachSample data were collected through surveys administered to 653 participants (327 in China and 326 in the US). A multi-group structural equation model was adopted to examine the conceptual model and proposed hypotheses.FindingsThe results show that luxury symbolism positively influences self-consistency, social consistency, social approval and self-esteem, and subsequently impacts self-affirmation and customer loyalty. However, for US consumers, self-esteem and social approval have significantly negative impacts on self-affirmation, while for Chinese consumers, social approval has no significant impact on self-affirmation. The authors also find that interdependent self-construal positively moderates the relationship between luxury symbolism, and social approval and social consistency. Independent self-construal positively moderates the relationship between luxury symbolism and self-consistency, and negatively influences the relationship between luxury symbolism and self-esteem.Originality/valueBased on the theory of self-congruity and self-affirmation, this study fills a literature gap by revealing the psychological underpinnings regarding luxury symbolism and customer loyalty. It extends extant studies in luxury consumption by introducing self-construal (independent self vs interdependent self) as an important cultural moderator in luxury symbolism. This paper provides insights for luxury practitioners to create efficient marketing strategies by satisfying consumers' psychological needs in different cultures.

How isolation leads to purchasing luxury brands: the moderating effects of COVID-19 anxiety and social capital

PurposeThe purpose of this paper is to investigate how consumers’ luxury purchase behavior has been affected by COVID-19. A theoretical framework is proposed to determine how isolation leads to intention to purchase luxury brands through bandwagon luxury consumption behavior. Additionally, the moderating effects of COVID-19 anxiety and social capital on the relationship between bandwagon luxury consumption behavior and subjective well-being and intention to purchase luxury brands are tested.Design/methodology/approachSurvey responses from a national sample of 261 luxury consumers in the USA were collected. The data were analyzed using a covariance-based structural equation modeling technique.FindingsThe results confirm that the feeling of isolation leads to a higher intention to purchase luxury brands. Both COVID-19 anxiety and social capital moderate the relationship between bandwagon luxury consumption behavior and intention to purchase luxury brands/subjective well-being related to the luxury brand purchase.Research limitations/implicationsLuxury marketers should focus on highlighting bandwagon elements of their brands, such as their popularity and how they enhance social connectedness when tailoring their brand communication to isolated consumers. The data is limited to luxury consumers in the USA; thus, the findings are specific to the US market.Originality/valueGiven the paucity of research on luxury consumption for isolated consumers, this study adds to the literature on luxury brands by examining how the feeling of isolation affects the intention to purchase luxury brands.

Luxury rental purchase intention among millennials—A cross‐national study

AbstractIn the last few years, a radical shift has been observed in luxury consumption behavior, particularly in millennials who are increasingly inclined toward sustainability. There has been a tremendous rise in demand for services providing a non‐ownership model of consumption. However, hardly any study has focused on exploring the consumption behavior of the millennials for luxury fashion goods in the context of sharing economy. Hence, this research aims to examine the key drivers that affect millennials attitude and purchase intention of luxury fashion on rent. Data were collected via mall‐intercept questionnaire survey method from millennials in India and United Arab Emirates (UAE) who aspired to consume luxury fashion goods on rental basis. Statistical tests, including confirmatory factor analysis, multi‐group analysis, and structural equation modeling, were applied for data analysis. Furthermore, an integrated conceptual model based on self‐determination theory and theory of reasoned action is proposed to examine the key driving motivators that affect millennials' attitude and purchase intention of luxury fashion on rent in the UAE and India. The results reveal that significant differences exist across the nations. Experience value and identity projection value had a higher impact on UAE citizens than Indians. The current study is a pioneer study that attempted to understand the young consumer's attitude and purchase intention for luxury fashion rental consumption and examine differences and similarities of millennials across nations.

Role of conspicuous value in luxury purchase intention

PurposeGeneration Y consumers are the key drivers for luxury market growth in the future. Yet, very few studies have been performed to understand Gen Y consumers' luxury consumption behavior, mainly in context of emerging markets like India. The main objectives of this study are first, to develop a conceptual framework which integrates the role of key variables that influence Gen Y consumers' purchase intention for luxury goods. Second, to analyze the mediating effect of attitude and subjective norm on the relationship between conspicuous value and luxury purchase intention.Design/methodology/approachData were collected through structured questionnaires from a sample of 215 Gen Y luxury fashion consumers in India. Collected data were analyzed through confirmatory factor analysis (CFA) and Hayes Process macro in SPSS.FindingsThe findings revealed that attitude and subjective norm partially mediated the relationship between conspicuous value and luxury purchase intention. The findings also demonstrated that mediation effect significantly differs between consumers with low and high need for status as well as consumers with low and high need for uniqueness.Originality/valueThis is the first study performed to understand the mediating and moderating effect of various contextual variables (namely, attitude, subjective norm, uniqueness value and status value) on the association between conspicuous value and luxury purchase intention. This study will have important implications for both academicians and practitioners.

Assessing the moderating effect of subjective norm on luxury purchase intention: a study of Gen Y consumers in India

PurposeAlthough Generation Y consumers contribute significantly to the luxury market, still there is a limited amount of research conducted to explain their luxury consumption behavior, particularly in context of emerging markets like India. The main objectives of this study are to understand the key factors that affect luxury purchase intentions of Generation Y consumers using the theory of planned behavior (TPB) and to examine the moderating effect of subjective norm on other TPB variables, namely, attitude and perceived behavioral control.Design/methodology/approachPurposive sampling method was used to collect data from Generation Y luxury fashion consumers in New Delhi, India. Confirmatory factor analysis and structural equation modeling was employed to analyze the data.FindingsThe findings of this study revealed subjective norm and perceived behavioral control were positively related to luxury purchase intentions. Further, subjective norm was found to moderate the relationship between attitude and luxury purchase intentions.Originality/valueThis study will help consumer behavior researchers and practitioners to understand the core reason behind luxury purchase intentions of Generation Y consumers in India. It will enable luxury brand companies to create suitable marketing strategies which align with the mindset of this new demographic segment.

Luxury fashion consumption in sharing economy: A study of Indian millennials

ABSTRACTRecently, the trend of sharing economy has gained popularity in fashion, particularly among millennials. Few studies in the past have focused on sharing economy in the clothing industry, mainly in the US and European context. However, whether this global phenomenon of sharing economy will work in emerging markets for the luxury fashion industry is still unknown. Therefore, the main objective of this study is to understand the impact of the various key factors viz. economic benefits, fashion involvement, self-pleasing experience, social projection, perceived risk, and past sustainable behavior on luxury consumption behavior in the sharing economy. Self-determination Theory (SDT) perspective was adopted to show what motivates Indian millennials to participate in luxury fashion rental consumption. Probability sampling technique was used to collect data from Indian millennials who aspired to use luxury fashion brands on a sharing basis. Confirmatory factor analysis was conducted, followed by multi-group analysis and path estimates to test the hypothesized relationships. The results of the study indicated “social projection value” as the most significant predictor of intention to consume luxury fashion on a sharing basis. Furthermore, the effect of perceived risk and the influence of past sustainable behavior on young consumers’ luxury fashion rental consumption was also found to be significant.

Determinants of Luxury Purchase Behaviour: A Study of Young Indian Consumers

Indian luxury market is expected to grow tenfold in the next decade. Young consumers are the key factor driving the growth of Indian luxury market. Yet, hardly any study has been performed to understand young consumers' luxury consumption behaviour in India. Therefore, the main objectives of this study is to examine firstly, the influence of personal and non-personal luxury values on consumers' attitude and subjective norms and secondly, the influence of these variables on consumers' purchase intentions and behaviour towards luxury fashion goods using theory of reasoned action (TRA). Results show that hedonic value is the key predictor of young consumers' attitude towards purchase of luxury fashion goods. In addition, conspicuous value and social value are found to have positive impact on consumers' subjective norms. The findings of this study have important implications for both academicians and practitioners.

Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers

The study examined influencing factors that affect Chinese consumers' attitude towards purchasing foreign luxury fashion goods online. Data were collected in mainland China. A total of 502 respondents were included. Using structural equation modelling, results indicated that materialism, brand consciousness and bandwagon luxury consumption behaviour have a significant effect on intentions to buy foreign luxury fashion products online. In addition, results show that consumer ethnocentrism moderates the relationship between materialism and intentions to buy.These findings provide insight into consumer perceptions of luxury brands and offer managerial implications for companies and marketers to develop and sustain luxury businesses in the Chinese online market.

Luxury consumers’ behavior: a cross-cultural aspect

A comprehensive study of the consumers’ needs and demands, the patterns of their social and cultural behavior are essential to the success of the modern luxury companies in their market activity. The purpose of research is to study the possible differences and similarities in the perception of luxury and motivation to purchase these goods by consumers in different parts of the world and selection of acceptable marketing tools. The study is built on the results of analysis of cultural values in some countries using the country comparison tool developed by Hofstede and the results of analysis of scientific articles on the behavior of luxury goods consumers in different countries. The methodology approach – Hofstede’s model of national culture and scientific studies belonging to cultural impacts on luxury consumers’ behavior – is applied to explore cross-cultural differences in luxury consumption behavior. The findings of the study are as follows: consumers from countries with high power distance, collectivism, and masculinity, long-term orientation, and low indulgence primarily perceive social values in consuming luxury goods and are sensitive to conspicuous luxury-status. In cultures with high individualism, masculinity, indulgence, and low power distance, consumers display to perceive individual and functional values and are sensitive to “emotional hedonistic luxury.” The consumption of luxury goods in the Asian region is characterized by significant focusing on social values and status consumption, more than in the rest of the world. The motives of achievements in the form of self-realization and self-actualization are among the main reasons for the luxury consumption of European Union consumers.

Applying machine learning to market analysis: Knowing your luxury consumer

Chinese consumer research in the luxury sector is the emphasis in the business research field. However, it can be cost-intensive or time-consuming to interpret big data from any research conducted in the field. In this paper, the researchers created a machine-learning model to help minimize those research barriers.This study analyzed Chinese luxury consumption behavior, while the Chinese contributed 33% of the global luxury market in 2018 and play as a growth engine in the luxury market (Bain & Company. 2019. https://www.bain.com/insights/whats-powering-chinas-market-for-luxury-goods/). The researchers interpreted this analysis using machine-learning algorithms through different sets of conditions and then proposed an understandable and highly accurate machine-learning model.Unlike traditional statistical methods, which rely on domain experts to create hand-crafted features, this paper proposes an unsupervised end-to-end model that can directly and accurately process questionnaire data without human intervention. This paper also demonstrates how to practically apply an automatic unsupervised analysis method (PCA) to find inferences in the big data, and helps interpret the implied meaning to the questions.

The bandwagon luxury consumption in Tunisian case: The roles of independent and interdependent self concept

Using exploratory and confirmatory analyses, this study analyzes the impact of certain psychological and sociological factors (self-concept, social comparison, and materialism) on the “bandwagon” type of luxury consumption in Tunisia. We test if the two components of self-concept (interdependent and independent) have different impacts on the “bandwagon” luxury consumption behavior. In support of existing research on the “bandwagon” effect that focuses on luxury consumption, our framework provides empirical evidence on the direct and indirect effects of the abovementioned psychological and sociological factors as antecedents of the “bandwagon” luxury consumption behavior. Our findings show that the luxury goods industry has evolved, giving rise to new lifestyles and consumption behaviors, where luxury is no longer reserved to the upper class but available to the majority. This phenomenon has created the luxury democratization effect, whereby major luxury brands are favoring luxury goods that are affordable to all.

Face consciousness and conspicuous luxury consumption in China

Purpose Luxury consumption in China is featured by clear conspicuous purposes. The purpose of this paper is to investigate this phenomenon from the indigenous perspective of face consciousness. Design/methodology/approach Drawing on Ho’s (1976) framework of gaining vs losing face process, the authors decomposed the construct of face consciousness into two dimensions, namely, desire to gain face and fear of losing face, and developed a multi-dimensional scale for face consciousness. Then, a survey that consisted of 338 participants was conducted to test the relationship between face consciousness and luxury consumption. Findings The face consciousness scale was shown to be reliable and valid. Furthermore, the authors found both desire to gain face and fear of losing face had a unique contribution in explaining why Chinese consumers purchase luxury products. Originality/value This paper fills the gap in the extant literature by developing a multi-dimensional face consciousness scale, providing convenience for empirical research in future. Moreover, this research shows that Chinese consumers’ luxury consumption behavior contains both promotion and prevention motivation.