Conceptualizing luxury buying behavior: the Indian perspective

Abstract

Purpose – The study aims to draw on existing knowledge and investigates how luxury is perceived in a developing nation with economic and cultural diversity. The present study aims to develop a conceptual framework to understand luxury buying behavior in a developing nation context. Design/methodology/approach – The study utilizes qualitative research (focus group discussions) with 72 luxury consumers (and partly with practitioners) of apparel and accessories in two major metro cities and two major non-metro cities of India. Findings – A framework of luxury buying behavior was constructed with cultural background, antecedents, buying process and post-purchase consequences of luxury buying behavior as its sub-constructs. Gender was identified as a moderating variable between antecedents of purchase and purchase behavior. Research limitations/implications – The most important contribution of the present study is the creation of a comprehensive framework of luxury buying behavior within a developing nation context and a set of testable propositions to further validate using quantitative research. Practical implications – Provides the manager with a workable model of luxury buying behavior that he/she could use to generate the right consumer responses. Originality/value – The present study is the first of its kind which integrates cultural backdrop, antecedents and consequences of luxury consumption in the context of a developing nation.

How digital platforms influence luxury purchase behavior in India?

“…These studies have illustrated the focus of most of these purchases has been primarily personal. However, luxury consumption is moving away from these individuals to those from the new and emerging markets such as India as it has been reflected in the recent studies (Jain, Vatsa, and Jagani 2014;Jain, Roy, and Ranchhod 2015;Schultz and Jain 2015). These papers clearly indicate that these consumers are tech savvy and are found in consumer groups which are both socially and personally orientated as they live in semi-communal groups.…”

“…There is a paucity of academic research on these individuals and their digitized purchase behavior. More specifically, the research on luxury products has focused on different emerging areas such as levels of luxury (Schultz and Jain 2015), experience and purchase (Venkatesh et al 2010;Sierra and Hyman 2011), evaluation of luxury brands' perception, online luxury challenges, experiential luxury (Okonkwo 2009), luxury buying behavior (Jain, Vatsa, and Jagani 2014;Jain, Roy, and Ranchhod 2015), luxury brands on websites (Lin 2009), some conceptual pieces on luxury branding and digital platforms such as luxury branding and design (Samuels 2015), trends in digital luxury (Gupta 2015), mobile and luxury branding (Schultz and Jain 2013b) and digital self-branding and luxury branding (Schultz and Jain 2014). More scholarly work and papers are clearly needed on social media consumption patterns vis-à-vis luxury brands and the role of these platforms on luxury purchases.…”

Investigation of Luxury Values in Shopping Tourism Using a Fuzzy-Set Approach

“…Zhan and He (2012) discuss middle-class Chinese consumers’ tendency to perceive luxury brands as vehicles for meeting social expectations and obtaining positive recognition from others. In addition, Jain, Roy, and Ranchhod (2015) find that young Indian consumers perceive self-expression and the consumption of luxury goods to be the main consumption values of luxury shoppers. A study by Peshkova, Urkmez, and Wagner (2016) finds that Russian upper-middle-class consumers perceive luxury fashion goods to be symbols of prestige and social status.…”

Indian Consumers’ Assessment of ‘Luxuriousness’: A Comparison of Indian and Western Luxury Brands

“…While a definition for luxury remains inconclusive, two distinct approaches for understanding the concept of luxury are discerned from extant literature: the characteristics-based approach and the consequences-based approach. Brand image—often born out of the creator’s aura, ancestral heritage and personal history (Bruce & Kratz, 2007; Dias & Ryab, 2002; Dubois & Laurent, 1994; Dubois, Laurent, & Czellar, 2004; Fionda & Moore, 2009; Fuchs, Prandelli, Schreier, & Dahl, 2013; Jackson, 2004; Kapferer, 2008; Kapferer & Bastien, 2009; Okonkwo, 2009; Phau & Prendergast, 2000b); high quality products—catering to the aesthetic sensibilities of the discerning few and created in a studio or a workshop rather than being mass produced Moore & Birtwistle, 2005); very high price—high ratio of the price to the product’s functional benefits (Jain, Roy, & Ranchhod, 2015; Nueno & Quelch, 1998; Park, Jaworski, & Maclnnis, 1986; Royo-Vela & Voss, 2015); and exclusivity and uniqueness developed by managing demand—achieved by maintaining a high price and supply-scarcity created by the production methods (Erickson & Johansson, 1985; Jackson, 2004; Kapferer, 2008; Keller, 2009) are the characteristics associated with luxury. While the characteristics-based approach aids the identification of luxury, it is the consequence of these characteristics that gives important consumer insights.…”