Luxury Purchase Research Articles

Conspicuous value and luxury purchase intention in sharing economy in emerging markets: The moderating role of past sustainable behavior

ABSTRACT In the last few years, there has been an increase in a tendency towards the sharing economy. The purpose of this study is to identify the role of conspicuous value, attitude towards luxury goods in the sharing economy, subjective norm, and past sustainable behavior in influencing purchase intention for luxury fashion goods in the sharing economy. Extant literature on luxury goods established the relationship between conspicuous value and purchase intention. However, it is still unexplored whether the same relationship will hold in luxury rental consumption or not. Thus, this study fills gaps in the marketing literature by studying the direct, mediating, and moderating relationship among these variables in the context of luxury sharing economy consumption. Data was collected through a questionnaire from two high-end malls in India (N = 232). Data analysis was done using AMOS 25 and the SPSS PROCESS macro. The findings of the study revealed that both attitude and subjective norm mediate the relationship between conspicuous value and purchase intention. Further, past sustainable behavior was found to moderate the relationship between conspicuous value and attitude. However, the subjective norm does not moderate the relationship between attitude and purchase intention.

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.

The determinants of personal luxury purchase intentions in a recessionary environment

ABSTRACT Luxury brand consumption has remained strong even in countries with recessions. This study explores the role of personal factors, socio-cognitive factors, and potential marketing forces, in driving consumers’ luxury purchase intentions in a market that is struggling to recover from a recession – Greece. Data were collected using a self-administered survey via an online panel. The results indicate that consumers’ need to escape and impulsiveness are positively associated with luxury brand purchase intentions in a recession. Sales promotions moderate the relationship between escape, self-expression, and luxury brand purchase intentions. Consumers’ perceptions about the recession effect on society also moderate the relationship between escape, self-expression, social status, and luxury brand purchase intentions. This study contributes to the literature and practice of luxury branding in recession by identifying the interplay between various personal, social, and marketing factors that can influence luxury brand purchase intentions in a recessionary environment.

“In the sky with diamonds”: Hedonic motivations in experiential luxury buying after a crisis

“In the sky with diamonds”: Hedonic motivations in experiential luxury buying after a crisis

The manifestation of luxury value dimensions in brand engagement in self-concept

This research investigates what consumers in democratized luxury markets value when purchasing luxury items. Nonetheless, these consumers have a limited budget and can not always buy luxury items, yet they are drawn back to these luxury brands. Thus, we use brand engagement in self-concept (BESC) to explain the relationship between these consumers and luxury brands within democratized luxury markets. A conceptualized model of three luxury value dimensions (experiential, symbolic, and functional) is proposed, and 488 cases were gathered through a phone survey. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that the most critical drivers of consumers' luxury purchase intention (LPI) are hedonism, escapism, conspicuousness, quality, and usability in democratized luxury markets. Also, BESC can unify luxury value dimensions into an integrated whole and mediate the relationship between them and LPI.

Sharing luxury possessions in the age of digital experience economy: Consumption type and psychological entitlement

With the advent of the digital experience economy, contemporary luxury brands have embraced social media as an important channel for improving brand perceptions and developing customer relationships. This is because encouraging consumers to share luxury purchases on social media offers a strategic value for luxury brands. The present research investigates the conditions under which consumers are more likely to share luxury (vs. non-luxury) purchases on social media. Across two experiments, we establish that luxury (vs. non-luxury) purchases are shared more when they are associated with material (vs. experiential) consumption, and among consumers with a high (vs. low) sense of entitlement. These findings make several theoretical and managerial contributions, providing avenues for future research on what consumers do with luxury brands on social media.

The Psychology behind Luxury Consumption

This paper will talk about the psychology of consumption of luxury products and experiences and how individuals get emotionally connected to them. This paper discussed new drivers, forms, and consequences of luxury spending. Also, the belief that the psychology of luxury consumption is driven by a series of conflicts between what luxury is to oneself and the external factors that drive luxury consumption. These tensions influence consumer behavior and the post-purchase feelings of consumption of luxurious products or experiences. Since some individuals regard non-luxury items as inferior merely because they are non-luxury, they also conclude that more expensive goods are of more outstanding quality, without any evidence about their absolute level of quality or longevity. Another angle that we discuss in detail is how self-esteem plays a role in impacting a person's choice of purchases and instilling a sense of belonging. This paper is going to be based on an amalgamation of primary and secondary research and will contribute to self-awareness of people who do and do not indulge in luxury buying and what goes behind the mindset of both categories. This will also help brands decide on their unique selling propositions to appeal to their respective target groups.

The role of socio-psychological and personality antecedents in luxury consumption: a meta-analytic review

PurposeThis paper conducts a meta-analytic review of literature focused on the salient socio-psychological and personality antecedents of luxury purchase intention. It investigates the role of moderators that can assist an effective market segmentation of the luxury market in both emerging and developed economies.Design/methodology/approachThe final analysis includes 95 effect sizes from 42 studies conducted in 15 countries, spanning 5 continents, from 2000 to 2020. The review examined moderating role of Hofstede's cultural dimensions, market type (emerging vs developed) and other study characteristics.FindingsFindings show that socio-psychological antecedents had a more salient role than personality antecedents in driving luxury purchase intention (LPI), across both emerging and developed markets. Normative influence, status consumption and materialism exhibited a stronger influence on LPI in emerging markets than developed markets. Further, stronger effects for normative influence and status consumption on LPI were found in high power distance cultures. The role of seeking uniqueness was more salient and the role of normative influence was less salient in studies with a higher percentage of females. Conspicuous consumption was a stronger driver of LPI for fashion luxury products than other luxury products. The study also proposes distinct definitions of status and conspicuous consumption as there is often theoretical overlap of these constructs in literature.Research limitations/implicationsA meta-analytic review may leave blind-spots due to lack of sufficient number of studies investigating certain theoretically relevant moderators. The authors discuss these gaps, along with study limitations.Originality/valueTo the best of the authors’ knowledge, no previous study has conducted a meta-analytic review of the antecedents and moderators of LPI. With the extension of luxury demand beyond the developed countries in the West to the “new rich” consumers in the East, it becomes imperative to conduct a meta-analysis for a richer understanding of the drivers of luxury demand across different cultural orientations and market segmentations.

The relationship between economics and aesthetics

We live in financially challenging times, and the aesthetic practitioner's ability to sell products is directly related to how confident their patients feel they can afford a luxury purchase. In this article, Jason Ratcliffe details how economic factors impact businesses, personal income and patients

Luxury purchase intentions: the role of individualism-collectivism, personal values and value-expressive influence in South Africa

This study examines the underlying mechanisms for predicting luxury purchase intentions in the context of an emerging market. The authors propose a conceptual model that tests the predictive role o...

Quiet versus loud luxury: the influence of overt and covert narcissism on young Chinese and US luxury consumers' preferences?

PurposeThis study examines the impact of narcissism on young luxury consumers' preferences for quiet versus loud luxury products in China and the United States. As young consumers are increasingly becoming the bedrock of global luxury growth, it is imperative for marketing researchers and practitioners to understand the psychological and social needs of these consumers.Design/methodology/approachA two-study examination of young Chinese and US luxury consumers suggests that the two types of narcissism influence luxury consumption in different ways. Study 1 is a survey of young Chinese consumers that examines how the impact of narcissism on luxury purchase is mediated by social attitude functions and moderated by social anxiety. Study 2 is an experiment conducted in both the United States and China that establishes the causal relationship between the different types of narcissism and purchase intention toward quiet versus loud luxury products.FindingsBuilding on an overarching framework that integrates both the narcissism literature and social attitude function theory, this study shows that overt narcissistic (vs. covert) consumers hold a value-expressive (vs. social-adjustive) attitude toward luxury products, which leads them to prefer quiet (vs. loud) luxury. In addition, higher levels of social anxiety enhance the mediating role of narcissistic consumers' social attitude functions.Originality/valueThis study advances understanding of young Chinese and US luxury consumers' narcissistic consumption patterns by proposing and empirically testing a novel research model that examines the mechanisms by which overt and covert narcissism leads to a different preference of quiet and loud luxury via the routes of different social attitude functions.

Is luxury democratization impactful? Its moderating effect between value perceptions and consumer purchase intentions

Luxury goods, once exclusive to the elite of the society, are now available to a markedly large customer segment, mainly due to the process of democratization. However, academic scrutiny on the influence of democratization on luxury consumption is lacking. This research aims to fill this crucial gap in the extant body of knowledge by offering a unified conceptualization of the construct - democratization of luxury. The study operationalizes this pivotal construct followed by empirical evidence on how democratization has a moderating impact on the relationship between different luxury value perceptions and luxury purchase intentions. This first academic empirical exploration on luxury democratization provides several theoretical advancements and aims to assist luxury brands in developing a coherent long-term positioning strategy to manage this unique challenge.

Value-Based Segmentation of Generation Z Women Consumers of India : Replication and Validation of Model

This research aimed at understanding the luxury value perceptions of generation Z women consumers of India by using the luxury value perception model (LVP) given by Wiedmann et al. (2009). This study tried to validate and replicate the Wiedmann model, which categorized luxury values as financial, functional, individual, and social, using the emerging generation Z women consumers of India as a context. Data were collected from 208 women consumers across India using an online questionnaire from January – March 2021. The findings validated the usage of the LVP model to create homogeneous clusters based on the preferred luxury values of the generation Z women consumers. The overall luxury values which motivated the Indian generation Z women consumers towards luxury purchases are hedonic values (self-gift giving extravagance) followed by functional value (uniqueness) and then individual values (materialistic value). The results also validated the research done by the authors (Hennigs et al., 2012) later, finding interesting similarities between Indian, German, and US consumers. By identifying the drivers of luxury purchases for young emerging women consumers of India, the outcome of this research would enable luxury brand marketers and branders to build successful marketing strategies to be more profitable.

Luxury goods and their counterfeits in Sub-Saharan Africa: a conceptual model of counterfeit luxury purchase intentions and empirical test

PurposeHeeding the call for insights into the Sub-Saharan African international marketing context, this study aims to empirically examine consumers' desires and motivations for buying counterfeit luxury goods. It examines influences on consumers' attitudes and purchase intentions related to counterfeit luxury goods in Rwanda, one of Sub-Saharan Africa's fastest-growing economies and growing luxury markets, developing and testing a model examining the effect of social context on personal attributes, providing evidence on economic and social-status factors as drivers for counterfeiting.Design/methodology/approachThe data were collected using an online survey administered in Rwanda to consumers who had previously purchased luxury goods and counterfeits. A total of 312 valid responses were analyzed using structural equation modeling.FindingsThis study found that normative and informational influences had a positive effect on Rwandan consumers' attitude toward purchasing counterfeit luxury products, with attitude influencing purchase intentions directly and indirectly, through mediating variable desire for status or through value consciousness and desire for status.Originality/valueThe study contributes to academic research − one of the first empirical studies to examine consumers' desires and motivations for buying counterfeit luxury goods in Sub-Saharan Africa, providing insights that benefit scholars and practitioners seeking to better understand a market where more than half of the world's fastest economies are located.

The Influence of Vlog on Consumers’ Luxury Purchasing Behavior in the Chinese Market—Based on the Theory of Planned Behavior

In the digital era, more and more industries are taking social media marketing seriously, especially for the luxury industry. They need to build a better relationship with their consumers through social media. Among the various social media, vlogs have become one of the marketing tools that luxury brands have to focus on because of their visual nature that allows consumers to better understand the brand's products. As China is a potential market for luxury goods, this study aims to investigate the impact of vlogs on Chinese consumers' luxury goods purchasing behavior. Based on the theory of planned behavior and the influence of social media on consumers' intention to consume luxuries, this study constructs a model of consumers' behavioral mechanism of purchasing luxury goods, and uses the PLS-SEM modelling algorithm and Smart PLS3.0 software to process and analyze the collected questionnaire data. By comparing the behavioral mechanisms of consumers who have not watched a brand vlog with those who have, the findings show that vlogs have a positive impact on the attitudes, subjective norm and perceived behavioral control of consumers' luxury purchases, with a greatest impact on the subjective norm. The study also shows that the influence subjective norm on intention increases because of vlog. The results of this study can help luxury brands to develop more effective social media marketing strategies to increase consumers' purchase intentions and bring more revenues to luxury brands in the Chinese market.

The effect of religious commitment and global identity on purchase intention of luxury fashion products: A cross-cultural study

Drawing insights from social identity theory, this research investigates the interactive effects among consumers’ perceived social value, religious commitment, and global identity on their purchase intention of luxury fashion products in a cross-cultural context. In a study of 307 American and 283 Thai participants, this research shows that consumers’ perceived social value is positively related to the purchase intention of luxury goods in both countries. It also finds that global identity enhances the positive relationship between perceived social value and luxury purchase intention in both countries. Interestingly, this research shows that consumers’ religious commitment escalates the positive relationship between perceived social value and purchase intention of luxury goods if religious commitment is low in Thailand but it is high in the U.S. The analysis result of this study provides ample theoretical and managerial implications.

The role of face (mien-tzu) in Chinese tourists’ destination choice and behaviors

Face, or mien-tzu, has been identified as a crucial sociocultural concept in Chinese society. However, limited research has examined the role of face/mien-tzu in tourism. This qualitative study fills this void and explores how mien-tzu may be a vital motivation to travel, influencing travel behaviors and destination choices among Chinese tourists. Purposive and snowball sampling techniques were employed to select Chinese tourists with extensive and limited travel experience. In total, 20 participants were interviewed in Weihai and Qingdao, China. The Chinese concept of mien-tzu with the theory of the leisure continuum (1966) and Riley’s (1995) prestige-worthy tourism was integrated to guide the analysis.The results indicated that the interviewees would travel to high-tier or prestigious destinations, purchase luxury tourism products, take pictures with famous landmarks, and share travel photos on social media because they believe these behaviors make them “gain face.” Additionally, this study also showed that Social Media postings or sharing had blurred the delineation between travel engagement and post-travel. Tourists share their experiences during their travel to inform their circle of friends where they are and what they are doing and savor these memories. This sharing also benefits in making them an expert, allowing them to gain face in their circle. Moreover, this study also found an inherent, implicit characteristic of face. Participants though not admitting face gaining reason for sharing, enjoy the attention and positive feedback from their social media posts and revel in the prestige or face gain conferred by their social circle/network. Theoretically, this study situates Riley's framework in the 21st century. Although the study of Chinese tourists gives it an Eastern point of view, the propensity to post on social media is a trait shared by tourists worldwide. As such, a new framework is proposed and this is the main contribution of this study. This proposed framework can be used in other studies with tourists of different nationalities.The practical implication of this study is for DMOs' to include in their plan a way to provide tourists to create more memories that can be shared on their Social Media. More places where they can take photographs or videos of their experiences can be developed. Providing precious memories that the tourists can continuously share could help in the destinations' promotion because the visitors (tourists) become the de facto expert in their social circle and willing marketers for the destination. Due to the popularity of social media and its influence, the DMO's looking to increase their presence in the Chinese market should include advertising in Chinese Social Media in their plans. Advertising in social media may be a more cost-effective way to advertise and reach more citizens than traditional marketing can.

Dynamic Luxury Advertising: Using Lifestyle versus Functional Advertisements in Different Purchase Stages

Prior work shows that luxury brands predominantly prefer lifestyle advertisements to functional advertisements such that abstract or intangible elements are prevalent, but concrete or tangible elements are less common. This begs the following question: Is this because lifestyle advertisements are more effective than functional advertisements? This research shows that, depending on the situation, functional advertisements can be more effective for luxury products than lifestyle advertisements. Specifically, we apply a two-stage model of decision-making to the luxury purchase context. In stage 1, the motivation formation stage, consumers do not yet intend to buy a luxury product and are still forming purchase interest and motivation. In stage 2, the purchase decision-making stage, consumers desire to buy a luxury product, and their focus is on deciding which product to buy. Compared with stage 1, in stage 2, functional advertisements can be more effective for luxury products than lifestyle advertisements. This effect is consistent with the construal level theory. That is, the matching of construal levels between functional advertisements and the purchase decision-making stage increases the likelihood of making a purchase. This research contributes to literature on luxury branding, luxury advertising, lifestyle and functional branding and offers practical implications to luxury brand managers.

How and when actual‐ideal self‐discrepancy leads to counterfeit luxury purchase intention: A moderated mediation model

AbstractDrawing on the self‐discrepancy and moral decoupling theories, this study investigates how and when actual‐ideal self‐discrepancy (AISD) leads to consumers' purchase intentions toward counterfeit luxury brands. Across a survey study (Study 1: N = 531) and an experimental study (Study 2: N = 543), this research demonstrates that AISD is positively related to consumers' purchase intention toward counterfeit luxury products, and this relationship is mediated by the need for self‐enhancement. Furthermore, moral decoupling moderates this relationship, such that the mediated relationship is stronger when moral decoupling is high rather than low. The findings provide strategic insights for brand managers and policy makers to reduce demands for counterfeit products and tackle the counterfeit industry effectively.

Role of religiosity and the mediating effect of luxury value perception in luxury purchase intention: a cross-cultural examination

PurposeThis study aims to explore the relationship between consumers’ religiosity, their perceived functional, individual and social value of luxury and their luxury purchase intention.Design/methodology/approachThe proposed relationships were explored in an intercultural setting by using samples from two considerably different cultures, Saudi Arabia and India. The identified constructs were measured by adapting the established scales. Statistical tests including exploratory factor analysis, multi-group confirmatory factor analysis and covariance-based structural equation modeling were applied to test the conceptual model and research hypotheses.FindingsThe results show that religiosity is not found to be negatively related to luxury purchase intention in both samples. Moreover, it was found that the functional and social values produce positive mediating effects, whereas the individual values (materialism, hedonism) of luxury products negatively mediate the relationship between religiosity and consumer purchase intention.Practical implicationsThis research suggests that a non-traditional strategy may be effective to market luxury goods to religious consumers such as suppressing the materialistic aspect to focus on the quality and functionality aspects of the products.Originality/valueThe role of luxury value perception as a mediator between religiosity and luxury purchase intentions has not been studied in the previous researches to the best of authors’ knowledge, and is therefore, the unique contribution of this study. This research addresses the gap in the existing body of knowledge by probing how religiosity effects perceptions of luxury value and resultant luxury purchase intention.