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.     

The Mediating Role of Customer Relationship on the Social Media Marketing and Purchase Intention Relationship with Special Reference to Luxury Fashion Brands

The reach of internet technology and social media has opened abundance of opportunities for marketers as well as for consumers across the globe. To anticipate future purchase behavior of consumers, marketers are not leaving any stone unturned. The main objective of this study is to investigate the direct and indirect impacts of social media marketing activities (entertainment, customization, interaction, word of mouth, and trend) on consumers' purchase intentions in luxury fashion brands. This study employed higher order Structural Equation Modeling to test the study model with (n = 243) sample data. We found positive significant impacts of social media marketing and customer relationships on consumers' purchase intentions. In addition, our study model confirmed full mediation of customer relationships in the relationship between social media marketing and consumers' purchase intentions. Based on our research findings, we strongly recommend that marketers of luxury fashion brands engage in social media marketing activities to provide value to customers.     

A study of antecedents and outcomes of social media WOM towards luxury brand purchase intention

This research develops a conceptualized model that illuminates the role of luxury perceptions in explaining consumer engagement in social media WOM and luxury purchase intention. It also explores the moderating effects of consumer demographic characteristics and perceived social status. The proposed model is validated by using SEM in AMOS against 282 samples, and chi-square difference test is applied to test the moderating effects. The findings demonstrate that social media WOM positively influences consumer luxury purchase intention. Perceived quality highly influences functional and social value, and social media WOM is strongly influenced by personal and functional value. This research 1) highlights the powerful role of social media WOM in enhancing luxury brands purchase intention, 2) extends current body of knowledge of the social media WOM and its focal antecedents, and 3) shows how consumer characteristics (e.g., age, gender, income, education, perceived social status) are important for developing customized marketing strategy to promote luxury brands on SNS. Overall, this study helps firms to understand which aspect of luxury brands to be emphasized to initiate consumers into social media WOM, which in turn, influences purchase intention.     

Country of Production Biases on Consumer Perceptions of Global Brands: Evidence From an Emerging Market

ABSTRACT

Globalization has created significant opportunities of cost reductions for players to take advantage of location specific benefits. Simultaneously, it has presented significant opportunities for countries, such as China, to actively participate in global trade, attract foreign direct investment, and improve the economic wealth of their nations. However, literature cautions marketers about consumers’ biased evaluations of products based on their country of production. Moving production to low-cost countries could potentially harm brand trust, quality evaluations, and purchase intentions due to unfavorable biases for the country of production. The objective of this study is to investigate country of production biases of Turkish consumers for two global brands, Philips and Adidas. Data for the study (N = 1,608) were collected using mall-intercepts from the 17 largest cities of Turkey. Study findings show that brand trust, perceived quality, and purchase intentions declined sharply for both brands when consumers learned that the product was manufactured in China.     

Mediational role of perceived personal legacy value between consumer agentic generativity and attitudes/buying intentions toward luxury brands

This study evaluates three luxury watch brands of different luxury intensity according to their perceived values with a special attention to personal legacy value. It uses the agentic dimension of consumer generativity as a segmentation variable for luxury brands. A parsimonious and reliable scale of perceived personal legacy value is first developed and further used to discriminate the luxury level of brands. Results show the superiority of a high-end luxury watch versus an accessible and a typical luxury brand on personal legacy. Structural equation modeling shows a mediation effect of personal legacy value between consumer agentic generativity and attitudes/buying intentions toward brands. Implications in marketing literature and industry practices highlight the important role of personal legacy as an added value for luxury brands. It also demonstrates the relevance of targeting agentic generative consumers in a luxury consumption context.     

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 impact of message appeal and message source on Gen Y consumers' attitudes and purchase intentions toward American Apparel

A 3 × 2 experimental design was used to examine the impact of message appeal (fair labor, sex, or a combination of fair labor and sex) and message source (company advertisements or third-party publicity) upon Gen Y consumers' (N = 258) intent to patronize the retailer, American Apparel. Results supported models of hierarchical effects of advertising on patronage intention as well as the inclusion of external variables in the theory of reasoned action. Findings revealed that Gen Y consumers' attitudes toward ad, attitudes toward brand, and purchase intentions toward American Apparel varied by exposure to message appeal in advertisements viewed. Participants' evaluations of source credibility, attitudes toward brand, and purchase intentions toward American Apparel were influenced by message source. Additionally, purchase intentions toward American Apparel were directly predicted by attitudes toward American Apparel and indirectly by perceptions of source credibility. Theoretical and managerial implications are discussed.     

The role of art infusion in enhancing pro-environmental luxury brand advertising

Underpinned by art infusion theory, this present research examines the effect of art infusion on brand attitudes under different brand conditions (i.e. pro-environmental luxury brands and luxury brands) in advertising. Across two experimental studies, this research offers empirical evidence to a moderated mediation model, such that when an advertisement features an artwork (vs. no-artwork), consumers will perceive lower levels of incompatibility between luxury and sustainability, leading to a more favorable brand attitude toward the pro-environmental luxury brand. However, such differences will not occur among consumers evaluating an ordinary luxury brand. The findings of this research broaden the current body of knowledge related to the art infusion effect and provide important implications for marketers in their advertising strategy. Furthermore, these findings suggest that art infusion may be the solution to the dilemma facing sustainable luxury brands since luxury and sustainability are often perceived as incongruent concepts.     

Not all organic food is created equal: the role of product type,perceived authenticity,and construal level

Abstract

Consumption of processed organic food is on the rise while fresh organic food still dominates organic food market. Drawing from the literature on authenticity and construal level theory, this study aims to investigate the role of perceived authenticity and message construal level in consumers’ evaluations of two types of organic food (fresh vs. processed). Two experiments were conducted among college students (N = 129, Study 1) and adults 18–70 (N = 249, Study 2). Our findings suggest that consumers’ evaluations of organic food are fully mediated by perceived authenticity of each organic food type. Specifically, compared to processed organic food, consumers perceive fresh organic food more authentic, which leads to more favorable attitudes and higher purchase intention. This research further demonstrates that the indirect effect of organic food type via perceived authenticity is moderated by construal level of marketing messages. That is, when messages are construed at a low level, consumers tend to have more positive attitudes and higher purchase intention toward fresh than processed organic food. By contrast, product type makes no difference when messages are construed at a high level. These findings have clear implications on message development strategy when promoting processed organic food, in particular. Future research directions are discussed.     

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.     

Do they shop to stand out or fit in? The luxury fashion purchase intentions of young adults

A three‐study examination of young adults suggests that their motivation for status in terms of their luxury fashion purchase intentions is impacted by a bandwagon effect. In Study 1, qualitative research informs what fashion items represent status to young adults, how they view these items, and how they view others owning these items. In Study 2, survey research establishes the link between the motivation for status (status consumption) and purchase intention/ownership of these fashion items. In Study 3, a national survey of young adults examines what mediates and moderates the motivation for status to lead to luxury fashion purchase intentions. Results from the three studies indicate that status consumption has a positive impact on purchase intention of luxury fashion. This research also finds that cultural variables have an impact (mediate) the relationship between status consumption and purchase intention. Specifically, collectivism, uncertainty avoidance, power distance, and masculinity mediate the relationship between status consumption and purchase intention. Finally, the moderating impact of the bandwagon effect has a significant effect on the relationship between status consumption and fashion purchase intention for the cultural variables of uncertainty avoidance, long‐term orientation, and power distance. Implications for marketers are provided based on the findings.     

Counterfeiting: Friend or Foe of Luxury Brands? An Examination of Chinese Consumers’ Attitudes Toward Counterfeit Luxury Brands

ABSTRACT

While the Chinese luxury industry is enjoying rapid growth, the market for counterfeit luxury brands is growing equally fast. There are contradictory views regarding the role counterfeit luxury brands play in the marketplace. Luxury brand owners denounce counterfeit luxury products for harming the reputation of luxury brands and reducing their profitability. Others believe that the availability of counterfeit luxury products may help increase the brand awareness of luxury names and thereby make authentic products more sought after. In this study, we examine the impact of counterfeit luxury products from the consumers’ standpoint. Specifically, the authors investigate whether and how Chinese consumers with different luxury consumption experiences view counterfeit luxury products differently. The study contributes to a better understanding of Chinese consumers’ attitudes toward counterfeit luxury products and thus helps marketers and policy makers develop more effective strategies for dealing with the issue.     

Chinese Luxury Consumers: Motivation,Attitude and Behavior

This study examines Chinese consumers’ motives, attitudes toward luxury brands (ATLB), and the impact of ATLB on consumer behavior. Specifically, Chinese luxury consumers were segmented into three groups: the elitist, the distant, and the democratic. Compared to the democratic group, the more one believes luxury is of good quality, the less likely one will belong to the distant group; the more likely one buys luxury for others, the more likely one belongs to the distant group. The more one buys luxury for self-actualization, the more likely one belongs to the elitist group. The more one consumes luxury for social comparison reasons, the more likely one belongs to the elitist. The more often one buys luxury for special times, the more likely one belongs to the elitist. Results show that the elitist on average bought more pieces of luxury products than the distant and the democratic.     

Does Service Employee Arrogance Discourage Sales of Luxury Brands in Emerging Economies?

Upscalex stores selling luxury brands from Western, developed countries are having a strong presence in many emerging markets. However, it is not uncommon to find that the service employees of these stores are arrogant and inhospitable. This article uses a dual attitudes perspective to show how service employee arrogance affects customers’ attitudes and purchase intentions toward luxury brands in emerging markets. Experimental findings show that arrogance produces dual attitudes, with positive implicit attitudes exerting a stronger influence than unfavorable explicit attitudes on purchase intentions. In addition, for customers with high self‐esteem, service employee arrogance has a negative effect on their purchase intentions. In line with the expectation disconfirmation model, when service employees change their arrogant attitudes and subsequently show hospitality, customers also change their expectations. When the improved service exceeds customers’ expectations, their explicit attitudes turn positive and exert a stronger influence on purchase intentions than when service employees are consistently hospitable.     

How consumption values and perceived brand authenticity inspire fashion masstige purchase? An investigation

Rising income and the aspirations of the middle-class have resulted in the emergence of a new category of luxury brands popularly known as “masstige brands”. Researchers have attempted to establish masstige branding and masstige marketing as a differentiated research domain from luxury marketing. As an attempt to this end, the current study, which is confined to women's fashion clothing brands, investigates whether various luxury consumption values are equally applicable in inspiring masstige purchase. In addition, this study investigates whether dimensions of perceived authenticity of a masstige brand moderate the association between various consumption values and masstige purchase intention. By employing an online survey, 462 useable responses were collected from middle-income female consumers in India and analysed using PLS-SEM and multi-group analysis. The findings show that functional, experiential and symbolic consumption values inspire masstige fashion purchase but the zero-moment-of-truth consumption value does not. Quality and sincerity (but not heritage) dimensions of perceived brand authenticity enhance the consumption value perceptions leading to masstige purchase. This study is the first of its kind to examine the applicability of various luxury consumption values in masstige consumption besides testing the moderating effect of perceived brand authenticity.     

An investigation on the effectiveness of hedonic versus utilitarian message appeals in luxury product communication

This research studies the role of hedonic versus utilitarian message appeals in luxury goods communication, investigating how using one or the other type of message appeal affects product perceived luxuriousness and, in turn, product attitude, and consumers' willingness to buy. This research presents three experiments in which message appeal and brand prominence have been manipulated, while perception of luxuriousness, attitude toward luxury products, willingness to buy them and consumers' conspicuous consumption orientation have been measured. Hedonic, compared with utilitarian, message appeals increase perceived luxuriousness, thereby increasing product attitude and consumers' willingness to buy the product promoted. This effect is particularly likely to occur for consumers with lower levels of conspicuous consumption orientation and for products carrying lowly prominent logos. We extend the literature on luxury communication by studying the effect of hedonic versus utilitarian message appeals on consumers' responses, and the literature on hedonism versus utilitarianism by studying this dichotomy in the context of luxury goods communication. This research suggests that different message appeals used in luxury goods communication produce different effects on consumers' responses and that this differential effectiveness is particularly likely to manifest for certain types of consumers and certain types of luxury products.     

When luxury brands meet China: The effect of localized celebrity endorsements in social media marketing

In social media marketing, celebrity endorsement is a widely used strategy. Luxury brands use their social media accounts to post pictures of celebrities using their products. However, they would be confronted with the dilemma of whether to standardize or localize their celebrity endorsers for different markets. This dilemma of whether to standardize or adapt their advertisements to the local market has been haunting luxury brands for a long time. This paper examines the effectiveness of localized celebrity endorsements for luxury brands on Chinese social media. We analyze whether Chinese celebrity endorsers could trigger more social media interactions and enhance perceived brand luxury than Western celebrity endorsers, based on an analysis of online big data and two experiments. We also explore when localized celebrity endorsement is most effective, focusing on the moderating role of patriotism. The results suggest that localized (vs. standardized) celebrity endorsements lead to more social media interactions. Using localized (standardized) celebrity endorsements enhance the perceived brand luxury for people with high (low) patriotism.     

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.     

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.     

Idolizing “My Love from the Star”: Idol attachment and fanaticism of luxury brands

This study examines the influence of idol attachment and consumer fanaticism on consumers’ attitude toward celebrity product placement of luxury fashion brands in Korean television dramas. A 2 × 2 research design was used to examine two different product categories (fashion apparel vs. fashion accessories) and two celebrities (Kim Soo Hyun vs. Jun Ji‐Hyun). Respondents were screened and limited to those who were aware of the Korean television drama My Love from the Star. The findings show that the gender of celebrity and the category of product placement have differential impacts on viewers or fans’ attitudes and intention toward the product placement.