Effect of value perceptions on luxury purchase intentions: an Indian market perspective

India is witnessing a phenomenal growth in the luxury market segment. However, empirical studies in this domain are few and far between. The main objectives of this study are, firstly, to build and empirically test the theoretical framework designed to measure the effect of value perceptions on intention to purchase luxury fashion brands among Indian consumers. Secondly, to determine the role of gender in understanding the relationship between luxury value dimensions and purchase intention. This study employed researcher controlled sampling and questionnaires were administered through the personal interview from actual users of luxury fashion brands. Structural equation modeling (SEM) was applied to test proposed hypotheses using AMOS. The statistical analysis indicated that conspicuous value was the most significant predictor of purchase intention among Indian luxury consumers followed by hedonic value and social value. The results of the study also revealed that gender does not play moderating role in the relationship between luxury value dimensions and purchase intention among Indian consumers.     

Externalised vs. internalised consumption of luxury goods: propositions and implications for luxury retail marketing

This study conceptualises the dichotomy of luxury goods consumption (‘externalised luxury’ vs. ‘internalised luxury’) in terms of six dimensions: on the one hand ostentation, materialism and superfluousness (which refer to luxury as a social statement) and, on the other hand individual lifestyle, emotions/hedonism and culture (which refer to luxury as individual style). Through this literary framework, it presents a series of propositions that might be tested in future research, one for each dimension, about retail strategies and operations for fashion luxury brands. Implications for retail managers of luxury companies are discussed for each proposition, considering the main aspects of retailing strategies and tools (e.g. assortment, sales force, in-store experience and atmospherics) together with possible theoretical developments.     

Determinants of purchase luxury counterfeit products in social commerce: The mediating role of compulsive internet use

Research on counterfeit purchase intention has attracted enough attention, and a number of studies have investigated various determinants of luxury counterfeit purchase intention in the offline context. However, less attention has focused on the underlying mechanism of the attitude toward luxury counterfeit purchase intention in the social commerce context. Moreover, extant literature has focused on the influence of compulsive internet use (CIU) on psychological well-being. Based on flow theory, this study examines the mediating role of CIU in the relationship between influencing factors (such as materialism, novelty-seeking behavior, and hedonic benefits) and consumers’ attitudes toward luxury counterfeit products. Additionally, the moderating role of product conspicuousness and positive online reviews also examined the direct effects. Data were collected from active online users of Taobao.com. Results show that materialism and novelty-seeking behavior are significantly related to CIU and subsequently influence the attitude toward luxury counterfeit goods. Furthermore, product conspicuousness and positive online reviews have moderated the direct effect of the conceptual framework. Therefore, the current research contributes to the existing literature by addressing the mediating CIU and moderating (product conspicuousness and positive online reviews) factors that played a significant role in promoting counterfeit purchase intention, comparing the direct effect to promote the counterfeit purchase intention. Theoretical and practical implications are discussed in detail.     

The effect of religiosity on luxury goods: The case of Chilean youths

Religion has always rejected the concept of materialism and urged people to live in simplicity and moderation. Nonetheless, reality reveals a different phenomenon. Studies on religion and materialism have found inconsistent results. We examine the effect of religion on materialism and affective attitudes towards luxury goods and the mediating effect of materialism on affective attitude towards luxury goods. We propose the idea that many religious people reject the concept of materialism, but they consider luxury goods consumption compatible with their religious beliefs. 355 university students show that youth consumers with high intrinsic religiosity possess an affective attitude towards luxury goods. The results show that consumers perceived materialism and luxury goods as two separate constructs. Religious consumers reject the concept of materialism as an attachment to worldly possessions, but they maintain their emotional affection towards luxury goods. The results have several implications for both business and religious leaders. First, from a business perspective, there are no significant differences between religious and nonreligious youth consumers, especially in their acceptance of luxury goods. Simply put, religious youth consumers love God, but they also love Gucci (i.e., luxury goods). On the other hand, if religious leaders are teaching their congregations to reject materialism, they may need to shift the focus of their teaching from materialism to the role of luxury goods in their lives and how the purchase and ownership of luxury items may not reflect the true values of their beliefs.     

Role of electronic word-of-mouth content and valence in influencing online purchase behavior

Electronic word of mouth (eWOM) becomes an important tool for online consumers for evaluating and selecting a product. Extant research has mainly studied how various eWOM characteristics such as valence, volume, and text-based eWOM content affect purchase behavior. This study, for the first time, has explored the role of mixed neutral WOM valence and rich eWOM content on online purchase intention. Initially, the qualitative analysis method was used to conduct in-depth interviews with experts-cum-online shoppers from different fields. Purposive sampling was used to select 14 experts and online shoppers from diverse fields. Inductive analysis was conducted to analyze the interview generated content. It helped in forming various codes and categories in explaining eWOM constructs. Content analysis was also used to analyze the importance of various factors in key constructs (themes) affecting online behavior. The finding from the content analysis confirmed that both mixed neutral eWOM and rich eWOM content positively affects online purchase intention. This study has also explored how insights derived from the content analysis of valence and content can help marketers to develop an online marketing strategy. Research implications and future research directions have been discussed in this paper.     

Redemption time for coupons with limited duration: role of regulatory focus and product type

Firms spend a lot on coupon promotions and are concerned with their profitability. The characteristics of coupons are associated with success of coupon promotions. This research explores how consumer’s regulatory focus (promotion vs. prevention) and product type (material vs. experience) affect when consumers prefer to redeem coupons (coupon redemption time). Results from two studies show that people’s prevention goal strength is negatively related to redemption time consumers prefer. Besides, a fit between people’s regulatory focus and product type leads to earlier redemption than unfit condition. Specifically, experiential purchases are compatible with promotion-focused consumers and material purchases are compatible with prevention-focused consumers. We discuss the findings in the contexts of coupon research and theory on regulatory focus, and further posit managerial implications for the design of coupon promotions or other marketing activities with limited duration.     

The role of perceived value in vertical brand extensions of luxury and premium brands

Abstract

This study examines the role of perceived value in the relationship between brand attitude, perceived fit, extension attitude and consumers’ purchase intention of downscale vertical extensions of luxury and premium brands in two product categories: cars and shoes. Results from 236 individuals with different income levels show that extension attitude is positively related to purchase intention both directly and indirectly, via the perceived value of the extension; the latter is more strongly correlated than extension attitude to consumers’ purchase intention. Brand attitude is also positively associated with perceived value. Overall, perceived value partially mediates the relationships of brand attitude and of extension attitude with purchase intention. The product category affects the strength of some of the relationships in the model, including the role of fit.     

Consumer participation in using online recommendation agents: effects on satisfaction,trust, and purchase intentions

Online product recommendation agents (RAs) are gaining greater strategic importance as a critical touch-point between marketers and consumers. Yet, the role of consumer participation in using RAs has not been examined. This study shows that greater consumer participation in using an RA leads to more satisfaction, greater trust, and higher purchase intentions, related to the RA and its recommendations. In contrast, the financial risk (associated with the product under consideration) reduces satisfaction, trust, and purchase intentions, and it also moderates the effect of consumer participation on these same variables. The findings extend the literature and suggest actionable implications for marketing strategy.     

The role of intangible attributes of luxury brands for signalling status: A systematic literature review

Previously, signalling status had been primarily studied from the conspicuousness of luxury brands, including high prices and prominent designs. However, less attention has been directed toward other elements of brands that could be strategically managed in order to enable consumers signalling status. This study synthesizes the literature using a framework based on four intangible attributes of luxury brands: user profile, purchase usage, personality and values and heritage. The topics studied under each of the four intangible attributes were analysed using a systematic approach. Based on the interconnectedness of the topics studied, this review proposes that the intangible attributes used as a framework may have a synergistic interaction, in contrast with the current perspective that considers them as independently and equally relevant for consumers signalling status. It also reports the psychological function of these intangible attributes and supports the notion that consumers use luxury brands either to routinely affirm their status within a group or to enhance that status. This review contributes to the literature on luxury and signalling by considering luxury consumption as a social process. A functional perspective on the intangible attributes of luxury brands provides the basis for some insightful directions to advance this field of research.     

Impulse buying tendency in live-stream commerce: The role of viewing frequency and anticipated emotions influencing scarcity-induced purchase decision

Despite the prevalence of scarcity-induced sales promotion in live commerce, scholarly inquiry began to address impulsive buying recently. This research traces live-stream shopping experiences to scarcity-induced purchase decisions. Grounded in the stimulus-Organism-Response paradigm, this research examines the mediating role of viewing frequency in the relationship between past purchases and impulse buying tendency. The aim is to unravel the relationship between impulse buying tendency and scarcity-induced purchase decisions by examining the mediation of anticipated emotions. A self-administered online survey with 376 respondents using criterion-based judgment sampling techniques. The data was validated through a two-step SEM approach using SmartPLS3 package. The result supports that viewing frequency and anticipated emotions fully mediated the relationship between past purchases and future purchase decisions. This study contributes to appreciating the importance of viewing frequency in live-stream commerce strengthening the performance of impulse buying tendency and triggering anticipated emotions (regret and rejoices) in a scarcity-induced purchase decision.     

The influence of college students' shopping orientations and gender differences on online information searches and purchase behaviours

Using the data collected from a survey of 1277 US college students, this study investigated college students' shopping orientations, and examined the relationships between their shopping orientations and searches for information about and purchases of apparel products online and the differences between male and female students in their shopping orientations, online information searches and purchase experiences. Seven shopping orientation constructs were identified: shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in‐home shopping tendency and brand/store loyalty. Results showed that participants' shopping orientations were significantly related to their searches for information about and purchases of apparel items online. In addition, male and female participants showed significant differences in their shopping orientations, online information searches and purchase experiences. This study provided suggestions for apparel e‐tailors to develop effective marketing strategies to reach their target market, for consumer educators and for educators in the retail merchandizing area to prepare their students for future careers.     

The mitigating effect of matching regulatory focus with arousal-inducing stimuli in service failure situations

Service failures are pivotal touchpoints that can reduce customer satisfaction, encourage negative word-of-mouth, and ultimately impact a firm's market share. We advance a novel perspective that after a service failure occurs, matching incidental arousal-inducing stimuli to one's regulatory orientation can make the negative experience stemming from the service failure less deleterious. In three experiments (two stock out scenarios and one involving a rude salesperson), after a service failure, promotion-focused and prevention-focused individuals were exposed to high versus low arousal-inducing stimuli. Three approaches available to retailers were used to manipulate arousal levels: background pictures (Study 1), colors (Study 2), and music (Study 3). When high (low) incidental arousal-inducing stimuli were presented to those with a promotion (prevention) focus, this raised satisfaction, loyalty, and referral for brands compared to when promotion (prevention)-focused individuals were exposed to low (high) arousal-inducing stimuli. Changes in self-rated arousal and affect valence levels (arousal and valence levels were measured after the service failure and then after exposure to the incidental arousal-inducing stimuli) mediated the effect on these consumer behaviors. These insights extend theory by considering the combined effect of regulatory focus and affect. They also have practical relevance.     

Consumer responses to mobile coupons: The roles of shopping motivation and regulatory fit

Retailers increasingly use mobile coupon services to deliver promotional offers to consumers. This paper draws on the theory of regulatory focus to explain mobile coupon redemption. The paper proposes that redemption depends on the extent to which a mobile coupon requires consumers to divert from their focal shopping motivation. Regulatory fit, the perception of receiving an offer that is relevant to consumers' regulatory goals, mediates this divergence effect, but only for utilitarian shoppers. Results from two scenario experiments support the main hypothesis and show that utilitarian shoppers perceive greater regulatory fit when an offer is compatible with their focal shopping motivation. In contrast, hedonic shoppers perceive no difference in regulatory fit when an offer diverts them from their focal shopping motivation. This explains why hedonic shoppers redeem a wider variety of offers than utilitarian shoppers and why utilitarian shoppers require more personalization to generate coupon redemption.     

Sense and sensibility in personalized e‐commerce: How emotions rebalance the purchase intentions of persuaded customers

This research develops and tests a theoretical model of customer persuasion in personalized online shopping, building on information processing theory, and addressing cognitive and affective stages of the persuasion process. Data from 582 experienced online customers were used to validate the proposed model through structural equation modeling and multigroup analysis. Results show that quality of personalization, message quality, and benefits of the personalized recommendations are important in the persuasion process. Positive emotions increase the effect of persuasion on purchase intentions, contrary to negative emotions. The study extends online personalization theory, offers an in‐depth analysis of the persuasion process in online shopping, and provides valuable recommendations for personalized online marketing.     

The effects of influencer type,regulatory focus,and perceived authenticity on consumers' purchase intention

Companies often use influencers to promote their products, and many celebrities have expanded their activities on social media as influencers. In this work, we classified influencers into celebrity and noncelebrity groups and analyzed how they affect consumers' purchase intention. We also analyzed how psychological variables, such as regulatory focus and perceived authenticity affect this process. We conducted three studies with consumers in China, South Korea, and the United States who participated in each between-subjects experiment. The results showed that people have higher purchase intention for products recommended by noncelebrity influencers than those recommended by celebrity influencers. We also found that regulatory focus moderates the relationship between the influencer type and consumers' purchase intention. Purchase intention for products recommended by noncelebrity influencers were stronger among prevention-focused consumers. However, no significant difference in the effect of influencer type was found among promotion-focused consumers. We found that perceived authenticity mediated this moderating effect. The results of this study provide effective marketing strategies and implications for companies when they use influencers as a tool for marketing activities.     

The impact of self-construal and message frame valence on reactance: a cross-cultural study in charity advertising

In the context of charity advertising, this two-study design project aims to contribute at the intersection of three literatures: psychological reactance theory (PRT), messaging framing, and self-construal theory. Using a survey with student samples from the US and China, Study 1 demonstrated that self-construal affected reactance, such that independent self-construal was more associated with reactance. Further, it outperformed cultural background in predicting reactance. People with predominantly interdependent self-construals showed higher intention to purchase a product with social causes. Study 2 was a 2 (framing: gain vs. loss)?×?2 (self-construal: independent vs. interdependent) between-subjects experiment using a non-student sample in the US results on the associations between self-construal and reactance and the intent to donate were consistent with findings of Study 1. Study 2 also indicated that compared to gain-framed appeals, using loss-framed appeals in charity advertising generated more reactance, the gap was more pronounced among individuals with relatively higher interdependent self-construals (i.e. moderate and high levels of interdependent-independent self-construal). This project offers important theoretical and applied implications and provides a robust avenue for future research. Limitations were also outlined.     

The role of destination personality fit in destination branding: Antecedents and outcomes

Drawing from fit research in strategic management, this study develops and investigates a model predicting destination attitude and (re)visit intention. The study introduces the concept of destination personality fit on the basis of how well consumer perceptions of a tourist destination's brand personality fits that of what the destination brand manager wishes to convey. A model incorporating destination advertising awareness as an antecedent of destination personality and consumer‐manager destination personality fit is tested on international consumers with the destination personality of Switzerland as the study setting. Structural equation modeling results reveal that destination advertising awareness does indeed relate positively to both stronger perceived destination personality and destination personality fit in consumers’ minds. Interestingly, the subsequent destination personality–destination attitude relationship is moderated by consumer–manager destination personality fit in such a way that the link grows stronger in cases where fit is high. The results have important implications for destination brand managers in that they reinforce the importance of strong and distinct destination personalities. The findings also show the importance of actively communicating the destination brand to consumers since the positive outcomes of a strong destination personality increase in magnitude when successfully communicated, and the vision of the destination brand manager has been adopted by the consumer.     

The role of mobile value and trust as drivers of purchase intentions in m-servicescape

Building on the premises of the unified theory of acceptance and use of technology (UTAUT), this study introduces the concept of mobile servicescape (m-servicescape) and explores the drivers of purchase intentions in the mobile service environment. Data were collected from a sample of 284 service mobile users and analyzed using structural equation modeling. Results show that the dimensions of m-servicescape (i.e., aesthetic appeal, perceived security, and layout and functionality) generate mobile value (i.e., hedonic and utilitarian), which in turn, leads to user purchase intentions. Utilitarian value was found to have a higher effect on purchase intentions than hedonic value and trust was found to enhance this effect. We highlight theoretical contributions and offer managerial insight for mobile marketers and designers on the specificities of consumer behavior in the service mobile environment.     

The role of cognitive and affective responses in the relationship between internal and external stimuli on online impulse buying behavior

Based on the impulse purchase decision-making process, the stimulus-organism-response framework, and technology acceptance model, this study investigated the role of cognitive and affective responses in the relationship between internal and external stimuli and social-media-based impulse buying behavior. We conducted an online survey and applied partial least squares structural equation modeling for data analysis and found that navigability, price attribute, trust propensity, and self-confidence are direct predictors of online impulse buying. Variety of selection and quality of information had indirect effects on the same through utilitarian browsing, while quality of information, navigability, and price attribute affected it through hedonic browsing. Trust propensity and self-confidence moderated the relation between utilitarian browsing and online impulse buying, while self-confidence moderated the hedonic browsing effect. Furthermore, utilitarian browsing affected hedonic browsing and online impulse buying. Thus, online merchants should control both external and internal stimuli to boost impulse buying through social media platforms.     

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.