Heterogeneity of luxury value perception: a generational comparison in China

Abstract

Purpose Despite the growing research regarding consumer luxury value perception and their influence on luxury consumption behavior in different cultural contexts, there is little research investigating the cultural variation toward luxury within different generations in a given society. The purpose of this paper is to assess the relationships among Confucian propriety, luxury value perception, and purchase intention of luxury brands, and especially how these relationships differ between young and older consumers in a Chinese context. Design/methodology/approach Data were collected through a questionnaire survey in China. A multi-group structural equation model was used to test the conceptual model and research hypotheses. Findings The results show that the effects of functional value and social value on purchase intention of luxury brands are stronger for older generations than younger ones, while the effects of self-identity and hedonic value on purchase intention are stronger for younger generations than older ones. The Confucian propriety relates positively to the functional value and social value; however, these effects are more salient for older consumers. Originality/value The results of this study reveal the evolution of luxury consumption values and behaviors of Chinese consumers, suggesting that marketers should no longer label Chinese luxury consumers with common behaviors. It is also recommended that marketers of luxury brands in China should adapt this shifting attitude and respond actively to the expectations of different generations.

Exploring relationship between value perception and luxury purchase intention

“…The result of this study revealed that the experiential value plays a significant role in influencing respondents’ luxury purchase intentions in the proposed model. The findings are consistent with the theoretical assumptions that underpinned the study and were in line to the findings obtained by Eng and Bogaert (2010) and Jiang and Shan (2018). This result confirms the fact that experiences play a huge role today for millennial consumers (Fromm, 2018; Farrag, 2017).…”

“…Few empirical studies have been conducted to understand luxury value perception in the context of developed markets (Chattalas and Shukla, 2015), cross-cultural markets (Shukla, 2012; Shukla and Purani, 2012; Aliyev and Wagner, 2017; Hennigs et al , 2012), Asian markets (Shukla et al , 2015), Korean market (Choo et al , 2012), Chinese market (Liang et al , 2017; Jiang and Shan, 2018), Thai market (Vijaranakorn and Shannon, 2017) and Indian market (Jain and Mishra, 2018; Ajitha and Sivakumar, 2017) (Table II presents the review of these studies). However, to date, the influence of luxury value perception on purchase intentions among millennials is poorly understood and widely unexplored.…”

The Tao of consumption: private self in a collective culture

“…Jiang and Shan (2018) insightfully explore the heterogeneity of Confucian influences on luxury Chinese consumers but dismiss Taoism and Buddhism as niche mediums because they are not seen in media, taught in schools or praised by government officials. Taoism and Buddhism, however, are not easily appropriated by social power structures as they tend to be integrated with folk traditions.…”

Managing Country-of-Origin Affiliations for Luxury Brand-Building in China

“…second and third-tier cities or special administrative regions such as Macau). To study the impact of the consumer's age on CoO preferences is of particular relevance given the cultural variation toward luxury within different generations (Jiuan and Shan, 2018). Moreover, it is widely accepted that geographic differences influence consumer behavior as evident when comparing attitudes towards luxury consumption in tier 1 versus tier 3 cities (Atwal and Bryson, 2017).…”