An investigation of the influence of luxury values perception in China : insights of theory of planned behaviour

Sivapathy, Arunnaa

Abstract

This thesis aims to investigate the effect of luxury values on Chinese consumer’s purchasing intention-behaviour predicting by attitudes towards the behaviour, subjective norms, and perceived behavioural control and consumer knowledge in China.

The luxury industry is considered as unique where the products that are sold rely on the marketing communication strategy to communicate their values with the targeted market. Even in the global economic crisis, the sale of luxury products has been growing from 16% in 2008 to 30% in 2015. In particular, China is now the second largest luxury market. Therefore, a better understanding of the Chinese consumers’ purchase intentions of luxury fashion products may assist the luxury industry when targeting China as the soon-to-be largest luxury products market.

Prior research indicates that the perception of luxury value plays an essential role in influencing a consumer’s commitment in buying luxury products. Consumers believe that luxury products accrue power, position, status, prestige, unique characteristics and relationships with other consumers who have positive attitudes towards purchasing luxury products.

Furthermore, the Theory of Planned Behaviour (TPB) has been applied to various areas of studies to predict consumer behaviours such as energy, coupon usage, and online clothing shopping, toothpaste, coffee, and alligator leather apparel. Prior research on the TPB has focused on the cultural influence and its effect on consumer behaviour, while few scholars have analysed the external values that affect TPB towards consumer’s purchasing intention of luxury products. This research examines individuals’ luxury value perceptions to assess what causes an individual to perform a particular behaviour by adopting the Theory of Planned Behaviour model.

An online survey was used to obtain primary data. Eight hundred and forty-one samples were collected from Shenzen, Guangzhou, Shanghai and Beijing in China during May and June 2016. The measurement was adapted from previous studies with minor changes on the statements to justify the current research. The validity and reliability of the measurement were tested.

The multiple regression tests confirm that luxury value perceptions have a significant impact on Chinese consumers’ intentions to purchase luxury fashion products. Specifically, Chinese consumers acknowledge that attitude, subjective norms and perceived behavioural control influence their purchasing behaviour in China. Furthermore, while consumer knowledge moderated positively in the relationships between subjective norms and purchase intentions, consumers’ attitudes and perceived behavioural control towards Chinese purchasing intention of luxury fashion products were unaffected by the consumer knowledge.

The contributions of this study are divided into two aspects. Theoretically, the findings have extended the understanding of the Theory of Planned Behaviour by examining luxury value perceptions and consumer knowledge. Practically, this research has provided important outcomes on the role of consumer knowledge in influencing consumers’ purchase intentions. Consumer knowledge has a negative relationship towards attitude and perceived behavioural control which means that consumer knowledge does not influence the Chinese consumer’s purchasing intention in luxury values. In conjunction with the scenario, this research would assist managers and marketers to develop appropriate marketing strategies to satisfy consumers’ multiple needs and their expectations in the growing Chinese luxury market. This research is also necessary for business activities, which have many dimensions, that is, from product development and branding strategy to communication management.

Future research would suggest examining whether other variables could be further added as determinants of behavioural intention in China or other markets. Furthermore, the findings on purchasing intention-behaviour in this research can be applied to other luxury product categories beyond fashion products that share the same target consumers as luxury products.

Citation

Sivapathy, A. (2017). An investigation of the influence of luxury values perception in China : insights of theory of planned behaviour. (Thesis). University of Hull. Retrieved from https://hull-repository.worktribe.com/output/4224305

• Thesis Type: Thesis
• Deposit Date: Sep 23, 2022
• Publicly Available Date: Feb 24, 2023
• Keywords: Business
• Public URL: https://hull-repository.worktribe.com/output/4224305
• Additional Information: Business School, The University of Hull
• Award Date: Sep 1, 2017