How isolation leads to purchasing luxury brands: the moderating effects of COVID-19 anxiety and social capital

Abstract

Purpose The 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/approach Survey 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. Findings The 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/implications Luxury 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/value Given 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.

Social media influencer (SMI) as a human brand – a need fulfillment perspective

“…As an escape mechanism, individuals limit their exposure to noxious stimuli during stressful situations by disengaging themselves from them and diverting their attention to wishful thinking and fantasies (Tobin et al , 1989). To escape, people may also turn to close others (Thapa et al , 2022). Research indicates that seeking social support helps individuals more effectively with long-term health benefits and psychological well-being (Gurung et al , 1997; Malik and Paswan, 2022; Pierce et al , 1996).…”

Luxury consumption amidst the COVID-19 pandemic

“…Phygital enables them to develop, maintain and strengthen relationships with existing friends, meet new people and make new connections/friends from other social groups. Prior studies have suggested that phygital connectedness comprises interaction with friends and peers (representing closer connectedness), opinion leaders, influencers and celebrities (representing social connectedness) (Sun et al, 2022) in order to generate emotional bonds, support and happiness during a stressful time (Thapa et al, 2022). This study adds phygital-facilitating engagement with virtual human/animal companions, work from home, study from home and entertainment at home amidst the pandemic.…”

“…Prior studies have suggested that phygital connectedness comprises interaction with friends and peers (representing closer connectedness), opinion leaders, influencers and celebrities (representing social connectedness) (Sun et al. , 2022) in order to generate emotional bonds, support and happiness during a stressful time (Thapa et al. , 2022).…”

“…, 2019). Amidst the pandemic, phygital connectedness has helped luxury consumers share their thoughts, challenges and struggles and seek support to deal with anxiety regarding their safety and well-being in the future (Thapa et al. , 2022).…”

“…When consumers realise that they are phygitally connected with others, they interact with them, understand their Luxury consumption consumption behaviour and the underlying rationale and aspire to match their consumption behaviour with that of others, thereby strengthening bonding and uncovering happiness (Jaunky et al, 2019). Amidst the pandemic, phygital connectedness has helped luxury consumers share their thoughts, challenges and struggles and seek support to deal with anxiety regarding their safety and well-being in the future (Thapa et al, 2022). Moreover, consumers become empathetic towards each other, more understanding and emotionally bonded (Wang et al, 2022a).…”