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A Study on
Purchase Intentions of Consumers towards Selected Luxury Fashion Products with special reference to Pune Region.
Thesis Submitted to the D. Y. Patil University, School of Management,
In partial fulfillment of the requirements for the award of the Degree of
MASTER OF PHILOSOPHY In
BUSINESS MANAGEMENT
Submitted by
Ms. Rimpy Goyal
(Enrolment No. DYP-M.Phil-126090009)
Research Guide
Dr. R. GOPAL
DIRECTOR, DEAN & HEAD OF DEPARTMENT
DR. D.Y.PATIL UNIVERSITY, NAVI MUMBAI
DEPARMENT OF BUSINESS MANAGEMENT
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai – 400614
APRIL 2014
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“I DEDICATE THIS RESERACH THESIS TO MY PARENTS,
WITHOUT WHOSE INSPIRATION AND SUPPORT,
BLESSINGS AND NOBLE UPBRINGING,
I WOULD NOT HAVE BEEN ABLE TO BE A PERSON
TO DO SUCH AN EXTENSIVE WORK LIKE THIS”
-- RIMPY GOYAL
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DECLARATION
I hereby declare that the thesis titled “A Study on Purchase Intentions of Consumers
towards Selected Luxury Fashion Products with special reference to Pune Region”
submitted for the award of Master of Philosophy in Business Management at D.Y.Patil
University, School of Management is my original work and the Dissertation has not
formed the basis for the award of any degree, associate ship, fellowship or any other
similar titles. The material borrowed from other sources and incorporated in the thesis has
been duly acknowledged.
I understand that I myself could be held responsible and accountable for plagiarism, if
any, detected later on.
The research papers published based on the research conducted out of and in the course
of the study are based on the study and not borrowed from other sources.
Place: Navi Mumbai
Date:
Signature of Student
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CERTIFICATE
This is to certify that the thesis entitled “A Study on Purchase Intentions of Consumers
towards Selected Luxury Fashion Products with special reference to Pune Region”
submitted by Miss. Rimpy Goyal is bonafide research work for the award of the Masters
of Philosophy in Business Management at the D.Y. Patil University, School of
Management in partial fulfillment of the requirements for the award of the Degree of
Masters of Philosophy in Business Management and that the thesis has not formed the
basis for the award previously of any degree, diploma, associate ship, fellowship or any
other similar title of any University or Institution. Also it is certified that the thesis
represents an independent work on the part of the candidate.
Place: Navi Mumbai
Date:
Signature of the Head of Signature of the Guide
Department
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ACKNOWLEDGEMENT
First and foremost, I am extremely thankful to the Dr.D.Y.Patil University, Navi
Mumbai for having accepted me as an M.Phil. Student. I would like to express my
deepest sense to my supervisor Dr R.Gopal for his relentless support, advice and
guidance throughout the entire preparations of this dissertation. I’m greatly touched by
the commitments and dedications they have shown. Without his support and guidance, I
would not be able to complete this study.
I would like to thank all the respondents that took part in collecting valuable data towards
this research.
I am thankful to Dr.Pradip Manjrekar for his recommendations and suggestions in every
stage of my work.
I also would like to express my gratitude and thanks to Dr.Roshan Kazi for his guidance
and comprehensive lecture notes on the using the SPSS tools as well as interpreting the
analysis output from the subject.
I also would like to thank my family members for support and understanding throughout
the course of the completion of this dissertation. Their endless support had been
invaluable and was the force that pushed me to go on. Not forgetting also my colleagues
and fellow course mates who had provided assistance and support encouragement
throughout the completion of the dissertation.
Place: Navi Mumbai
Date: Signature of the student
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TABLE OF CONTENTS
Chapter No. Title Page No.
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
LIST OF TABLES i-ii
LIST OF FIGURES iii
EXECUTIVE SUMMARY iv-x
1 INTRODUCTION 1-27
1.1 Overview 1-8
1.2 Concept of Luxury 9-12
1.3 Luxury Brands 13-17
1.4 Brand Variables 18-24
1.5 Purchase Intentions of Consumers 25-27
2 REVIEW OF LITERATURE & GAP ANALYSIS 28-45
3 OBJECTIVES OF THE STUDY & RESEARCH METHODOLOGY
46-59
3.1 Research Questions 46
3.2 Objectives of the study 47
3.3 Hypothesis 48
3.4 Research Methodology 49-56
3.5 Limitations of the study 57
3.6 Ethical Awareness 58
3.7 Significance of the study 59
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4 DATA ANALYSIS 60-126
5 FINDINGS AND CONCLUSION 127-133
6 SUGGESTIONS AND RECOMMENDATIONS 134-135
7 ANNEXURE 136
Appendix-I BIBLIOGRAPHY 137-146
Appendix-II QUESTIONAIRE 147-152
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LIST OF TABLES
Table 1 Conceptions of Brand image 23
Table 2 Past Studies Conducted on Consumer Purchase Intentions towards Luxury Brand Fashion Products
35-44
Table 4.1 Frequency and percentage of respondents by demographic characteristic w.r.t Gender
61
Table 4.2 Frequency and percentage of respondents by demographic characteristic w.r.t Age
63
Table 4.3 Frequency and percentage of respondents by demographic characteristic w.r.t Income
65
Table 4.4 Frequency and percentage of respondents buy Luxury Fashion Brand products
67
Table 4.5 Frequency and percentage of respondents possessing Luxury Fashion Brand Products
69
Table 4.6 Frequency and percentage of respondents how often do they purchase luxury brand products
71
Table 4.7: Mean and Standard Deviation of respondents for variable influencing purchase of luxury products.
73
Table 4.8 Showing difference in the importance attached to reasons with the help of Ranks Table.
79
Table 4.9 Reasons for purchasing luxury products (Multiple Response Options) 81
Table 4.10 Frequencies of Source of Information about luxury fashion products 85
Table 4.11 Frequencies of Influencers For Purchase of Luxury Products 87
Table 4.12 Brand Variables drives you to purchase luxury Products 89
Table 4.13 Showing the best occasion for purchasing Luxury Brand Products 92
Table 4.14 List of Rational Variables which influence consumer to buy Luxury Products
93
Table 4.14 (a)
List of Emotional Variables which influence consumer to buy Luxury Products
96
Table 4.14 (b)
Comparative analysis in between Rational v/s Emotional 97
Table 4.15 Showing relationship in between Gender and PI with the help of Chi-Square Tests
100
Table 4.16 Showing relationship in between Income and PI with the help of Chi-Square Tests
103
Table 4.16 Gender * Do you buy Luxury Fashion Products Cross tabulation 104
Table 4.17 Income * Do you buy Luxury Fashion Products Cross tabulation 105
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Table 4.18 KMO and Bartlett's Test to check correlation amongst variables 108
Table 4.19 Total Variance Explained with the help of Eigen Values 118
Table 4.20 Rotated Component Matrix was referred to determine which variable lower down to which factor
124
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LIST OF FIGURES
Figure 1 The most luxury brands 14-17
Figure 1.1 Various Brand Variable 19
Figure 4.1 Percentage of respondents by demographic characteristic w.r.t Gender.
62
Figure 4.2 Percentage of respondents by demographic characteristic w.r.t Age
64
Figure 4.3 Percentage of respondents by demographic characteristic w.r.t Income
66
Figure 4.4 Percentage of respondents buy Luxury Fashion Brand Products
68
Figure 4.5 Percentage of respondents possessing Luxury Fashion Brand Products
70
Figure 4.6 Percentage of respondents how often do they purchase luxury brand products
72
Figure 4.14(b)
Rational v/s Emotional Variables 98
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EXECUTIVE SUMMARY
This study attempts to investigate Purchase Intentions of Consumers towards Selected
Luxury Fashion Products. Purchase intentions are one of the main concepts studied in the
marketing literature. The interest of marketing scholars on purchase intentions comes
from its relation to buying behavior. Purchase intention is the implied promise to one’s
self to buy the product again whenever one makes next trip to the market (Fandos &
Flavian, 2006; Halim & Hameed, 2005). It has a substantial importance because the
companies want to increase the sale of specific product for the
purpose to maximize their profit. Purchase intention depicts the impression of
customer retention. There are certain functions of the brand, which have a strong
influence on the purchase intention of the customer’s i.e. brand image, product quality,
product knowledge, product involvement, product attributes and brand loyalty. This study
will show the purchase behavior of the customers that how general public attract to
make purchase of the branded product and also reveal the important aspects which are
quite necessary to capture the purchase intention of the customers.
This research helps to categorize that among these aspects which factors have significant
effect on the purchase intention of the patrons. In this wondrous world where penetration
in the market in the presence of competitors is very problematic and challenging, it is
very much important to determine the exact features, which the consumer wants. It will
help the marketers to focus on the features of the product that are significant and
are positively correlated with purchase intentions of the customers. The customer driven
approach is applied to find out the perception of users to have an exact idea about
preference and desires. Moreover, marketing managers are interested in consumer
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purchase intentions in order to forecast sales of existing and/or new products and
services. Purchase intentions data can assist managers in their marketing decisions related
top product demand (new and existing products), market segmentation and promotional
strategies.
This study also talks about Luxury and Luxury Brands. In regards to the research, it is
important to know individuals behavior towards purchasing luxury brand products. With
the clear differences between social classes the consumption of luxury was limited to the
elite classes. The nineteenth century marked the beginning of the luxury goods sector and
the start of many of the highly valuable luxury brands that we know today, e.g. Hermes,
Cartier and Louis Vuitton in France, Burberry in England and Bvlgari in Italy. During the
last decades, the luxury sector has undergone a large change. The high entry barrier that
the luxury sector guarded for centuries has been lowered driven by globalization and the
Internet. The “democratization of luxury” means that luxury goods or goods that
resemble luxury goods are now available to an increased number of consumers
(Okonkwo 2007, 226–227). The 1990s was a decade of explosive global consumption of
modern luxury fashion goods. The management methods of luxury fashion brands were
affected by the rapid growth of LVMH (Louis Vuitton Möet Hennessey), the first luxury
goods conglomerate with a portfolio of more than 50 brands including Louis Vuitton and
Christian Dior. LVMH’s success led to the rise of a new luxury goods sub-sector and
other corporate brands. Brands like Zara from Spain and H&M from Sweden began to
produce catwalk-style fashion at low cost offering consumers of luxury fashion
alternatives at low prices. Nowadays, the luxury fashion sector is the fourth largest
revenue generator in France, and one of the most remarkable sectors in Italy, Spain, the
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USA and the emerging markets of China, Russia and India. The luxury industry has
increased impressively having a huge growth in demand. The luxury consumer is
powerful. Consumers have much choice in products, shopping channels and pricing of
luxury goods. Today’s companies are interested in individual customers and hope to
achieve profitable growth through larger share of each customer’s expenditure. They also
want to build higher customer loyalty. According to Kotler (2003, 26), many companies
are moving from the marketing concept to the customer concept.
However, this study is limited to the following luxury fashion products-watches, bags,
mobile phones and Perfumes. The study was carried out to know the various factors
influencing buying intentions of consumers towards Luxury fashion Products. This study
also examine the relationship of age, gender, income and other demographic factors with
purchasing intentions of consumers. A comparative analysis had been done to know the
rational and emotional buying behavior regarding luxury fashion products. This study
showed the impact of brand variables on purchasing intention of consumers w.r.t selected
luxury fashion products. To know all this several hypothesis testing had been done. As to
know whether there is significant difference or not in the importance respondents
attached to reasons for purchase of Luxury Products, to know if there is any relationship
exists between gender of respondents and purchase of Luxury Fashion Brand Products, to
know if there is Sufficient correlation exists among variables.
The structure of the methodology will consist of the following: firstly, the research
method will be discussed followed by an explanation to which method would be
appropriate to use in this study. Secondly, data that will be collected from both primary
and secondary sources is going to be explained. Thirdly, sampling will be discussed.
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Fourthly, the questionnaire design, which is considered a key role in gathering data for
results, will be approached. Next, ethical values will be taken into account. Finally, a
short summary will be noted at the end of the chapter.
As mentioned above, this study had been carried out in Pune Region. It describes the
results from a survey of 400 respondents at various areas of Pune like Koregaon Park,
Magarpatta, Aundh, Viman Nagar, Kalyani Nagar and Kondhwa. Convenience sampling
method was applied to distribute questionnaire.
In this study, the statistical data analyses in a form of IBM SPSS Software 20 with the
help of Microsoft Excel were conducted by applying a method of Frequency distribution
tables, Descriptive Statistics, Pie-chart and Bar-chart, Multiple Response Analysis Test,
Chi-square Test of Contingency, Friedman Chi-square Test and Exploratory Factor
Analysis. The combinations of qualitative and quantitative were used to aid the
explanation of the results. This work mainly focuses on reasons for purchasing luxury
brand products, sources of information, rational Vs emotional variables and various brand
variables which drives customer for purchasing luxury products.
Out of the 400 respondents surveyed it is clear that people buy luxury products
sometimes. Based on the Friedman Test it is concluded that there is significant difference
in the importance respondents attached to reasons for purchase of Luxury Products. One
interesting finding is that from the mean ranks table it can be seen that High Quality, Best
design and esteem of brand are the top three reasons for purchase of Luxury products and
show off, envy others with luxury brand products, so I want the same products that they
have and Representation of celebrities associates with luxury brand products influence
me into purchasing them are the bottom three reasons for purchasing luxury products.
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From the Source of Information for purchasing luxury products it can be seen that Online
Adds and Television are the top two sources of information for purchase of Luxury
products. An interesting observation can be seen that Media is the top most influencer for
purchase of Luxury product. Among all brand variables it can be seen that Brand Trust is
the top most brand variable drives you for purchase of Luxury products. Related to
occasion it is found that consumers buy luxury products at any point of time. Regarding
Rational and Emotional Variables, it can be seen that respondents purchase luxury
fashion brand products rationally.
From the Chi-square test it is concluded that there is relationship between income of
respondents and purchase of Luxury Fashion Brand Products, higher income group
people buy luxury fashion brand products. It is concluded that there is no relationship
between gender of respondents and purchase of Luxury Fashion Brand Products. Based
on factor analysis and reasons for purchasing luxury fashion brand products it can be
concluded that a luxury product buyer can be classified as Status Conscious, Brand
Conscious and Quality Conscious.
This study focuses on human subjects; therefore, attention on ethical values must be
provided. Additionally, as a result from the questionnaire to where data is gathered
respondents should not be at risks (Fowler, 2002). Secondly, the protections of comments
from the questionnaires, and individual’s well being have been catered for. During the
statistical data analysis, all information that has been gathered will be combined so
respondents’ comments will remain confidential. In this study, data will not be altered, or
specifically selected for the result to look better because it is considered unethical and
bias due to using data to the advantage of the study. Finally, data that has been acquired
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should be analyzed based on the original design. Data that researcher think they are
interesting can only be suggested as a useful information for further research but not for
researcher’s own study (Jones, 2000). Additionally, care is taken during the analysis
stage, in the presentation of data, over minor details, to avoid respondents being
identifiable (Fowler, 2002).
This study will help the present Marketing Managers to better reposition their branding
and advertising strategy to capture the correct target market to boost the sales in times
where economy are at a challenge. With such study, the impact on online advertisement
is clearly an influential media to promote branding of products and variables that
influence buying decisions is surely a focus to ensure the Marketing Communications are
done correctly and effectively. Ensuring effective execution of strategy are by
understanding how variables such as brand image, reasons for purchasing luxury
products, perceived societal status and brand loyalty can influence consumer buying
intentions of luxury branded goods.
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CHAPTER-1 INTRODUCTION
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Chapter 1
Introduction
1.1 Overview
“Luxury is a necessity that begins where necessity ends.” Coco Chanel
During the early years, luxury products were considered a privilege to possess. As
explained by Nueno and Quelch (1998) the word “luxury” was applied to products that
were rare and scarce which were only presented to minor individuals. However, since
time has changed and the luxury goods market has grown considerably, luxury products
have been more affordable for middle class consumers. Additionally, the contribution of
the Industrial Revolution played a key role in bringing in more wealth, which made
luxury products more achievable for all consumers (Hauck & Stanforth, 2007). For
example, in the United Kingdom, middle class consumers have increased by 50%
towards the purchasing of luxury products (Keane & Mcmillan, 2004). However, it is still
unpredictable how middle class consumers determine what luxury products are (Hauck &
Stanforth, 2007). Silverstein and Fiske (2001) stated that the increases in luxury
purchases are influenced by social and business factors. In regards to the changes of the
luxury goods market, the definition of luxury was also redefined. Twitchell (2003, p.43)
explains that luxury is “things you have that I think you shouldn’t have”. There are many
products that are considered as luxury, which makes the market size undeterminable. The
varieties of products include automobiles, food, jewellery, fashion, and accessories.
Frank (1999) noted that cars and homes are some of the emerging luxury features that are
consumed. Individuals are influenced according to the important events and
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moments that occur in their lifetime (Meredith and Schewe, 1994; Ryder, 1965). These
moments and events may include war, economy, superstars, icons and technology that
influences individual’s perceptions and values. Additionally, the significant influence that
individuals will recall occurs between their adolescent and early adulthood years, that
they will never forget for the rest of their lives (Schuman & Scott, 1989). Researchers
have discovered that culture has been amongst one of the most popular categories in
influencing individual’s perceptions (Hauck & Stanforth, 2007). In regards to the
research, it is important to include Western and Eastern countries to compare different
individuals behaviour towards purchasing luxury brand products. Thus, the United
Kingdom (UK) is included in this study is because it is a part of the Western culture,
which contains the highest amount of millionaires (47,000) that purchases luxury goods
(The Guardian, 2005). Eastern culture such as China is included since the country has a
mass population of 40 million Chinese consumers who purchases luxury brand products
(The Guardian, 2005). Additionally, this figure of consumers has been predicted to rise to
160 million between the next five years (Matheson, 2007). Thailand is also apart of this
study as it is a part of the Eastern culture. It is one of the developing and Newly
Industrializing Countries (NICs), which received considerable changes in culture,
lifestyle, and behaviour towards luxury consumption (Timmer, 1998). From the
perspective of marketers, in targeting individual’s desires is a part of a valuable technique
(Noble & Schewe, 2003). Individuals influence from moments and events, should be
taken into consideration in developing luxury products. Defining luxury products, in
terms of the middle class consumers will gain marketers advantage in product
specification. Kemp (1998) explains that identifying products, which are luxurious,
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would help marketers to indicate the boundary in price setting (Kemp, 1998). Whenever
you switch on the television, or flip through the pages of magazines, you are bombarded
with celebrity news and reality shows that touch your inner needs to feel beautiful,
important and recognized. Those gorgeous people in advertisements tell you that their
lifestyle and material possessions like clothes and accessories can make you beautiful as
well, and help you to be part of their world. All you need to do is to buy the right fashion
goods by the right designers. Then you start to crave for the Louis Vuitton bag or the
Chanel glasses. Soon you are hooked by the luxury fashion fever called brand loyalty.
Fashion has always played a significant role in the history of the great civilizations.
Already in Egyptian, Greek and Roman Empires fashion was a key social element that
reflected the society through apparel, accessories and cosmetics. With the clear
differences between social classes the consumption of luxury was limited to the elite
classes. The nineteenth century marked the beginning of the luxury goods sector and the
start of many of the highly valuable luxury brands that we know today, e.g. Hermes,
Cartier and Louis Vuitton in France, Burberry in England and Bvlgari in Italy.
During the last decades, the luxury sector has undergone a large change. The high entry
barrier that the luxury sector guarded for centuries has been lowered driven by
globalization and the Internet. The “democratization of luxury” means that luxury goods
or goods that resemble luxury goods are now available to an increased number of
consumers (Okonkwo 2007, 226–227). The 1990s was a decade of explosive global
consumption of modern luxury fashion goods. The management methods of luxury
fashion brands were affected by the rapid growth of LVMH (Louis Vuitton Möet
Hennessey), the first luxury goods conglomerate with a portfolio of more than 50 brands
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including Louis Vuitton and Christian Dior. LVMH’s success led to the rise of a new
luxury goods sub-sector and other corporate brands. Brands like Zara from Spain and
H&M from Sweden began to produce catwalk-style fashion at low cost offering
consumers of luxury fashion alternatives at low prices. (See Appendix 2: The major
luxury fashion conglomerates.) Nowadays, the luxury fashion sector is the fourth largest
revenue generator in France, and one of the most remarkable sectors in Italy, Spain, the
USA and the emerging markets of China, Russia and India. The luxury industry has
increased impressively having a huge growth in demand. The luxury consumer is
powerful. Consumers have much choice in products, shopping channels and pricing of
luxury goods. Consumer behaviour is the keystone of marketing planning. In the late
1960s, consumer research was in its infancy. Many different, interdisciplinary
perspectives have influenced the study of consumer behaviour, and nowadays it is an
essential part of business marketing. Today’s companies are interested in individual
customers and hope to achieve profitable growth through larger share of each customer’s
expenditure. They also want to build higher customer loyalty. According to Kotler (2003,
26), many companies are moving from the marketing concept to the customer concept.
Southeast Asia is one of the key regions that luxury fashion brands should not ignore.
Thailand, Singapore, Malaysia, Indonesia, and the Philippines are niche markets with
rising standard of living. (Chada and Husband, 2006) Certainly, Thailand is part of this
phenomenon since the country emerged as an economic tiger in the late 1980s. The
growth of upper and middle-class has contributed to the increase in consumption rates of
luxury fashion brands. It shows a newfound status. (Chada and Husband, 2006)
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Moreover, the government of Thailand tries to promote its capital city Bangkok as a
regional fashion hub and shopping paradise for luxury goods. (CBS, 2010)
The long-term recession in Europe and small population growth rate in Europe has forced
many European luxury brands to expand their business to Asian consumers who regard
Western luxury brands as a symbol of good taste. (Nueno and Quelch, 1998) “Luxury
brands are a modern set of symbols that Asians are wearing to redefine their identity and
social position (Chada and Husband, 2006).” Thailand became a hot spot for this market.
(CBS, 2010) Despite the economic crisis, the luxury market is not severely affected, on
the other hand, people feel burdened with too many belongings. (ITN, 2010)
In Thailand, people always appreciate the fine stuff which has matured over generation.
Right now, luxury fashion brand culture does not only appeal to the high class people but
also to the middle-class and low class people. Consequently, the metropolis of Bangkok
becomes a venue for many luxury brands to open flagship stores. (Chada and Husband,
2006) In addition, there is a lot of luxury malls in Bangkok such as Siam Paragon,
Gaysorn Plaza, The Emporium, Central World, The Erawan Boutique Mall, and The
Peninsula Plaza. All these malls are complete with facilities.
The consumer behavior of Thai female students particularly in Bangkok is definitely
influenced by the commercialization and globalization. This can be seen in the changes in
social value, economy, and culture. People adapt more on foreign cultures. Shopping and
Fashion are playing major roles in young women’s lifestyle. Thai female students in the
present days are more fashion conscious and they are influenced by the media.
(Suadmalai,2006) Luxury fashion products are purchased more for “face” reason.
(Schutte and Ciarlante, 1998) Realizing this trend, luxury brand marketers are developing
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strategies to attract Thai female students. One strategies being used luxury brands in
Thailand is hiring celebrities to promote their brand. (Chada and Husband, 2006)
Globalization has catalyzed the growth of fashion industry and the marketplace
attractions have driven the cultural attributes of consumers significantly across various
consumer segments. Shifts in the cultural values, consumer preferences, and purchase
intentions towards designer products is arguably the most critical issue faced by the
marketing managers today. Many researchers argue that increasing globalization is
reducing the homogeneity of consumer behaviors within countries, while increasing
communalities across countries (Cleveland and Laroche, 2007). Most firms
manufacturing designer apparel are trying to bridge intercultural differences and building
cultural consonance across consumer segments on a variety of contexts that stimulates
interest in fashion apparel. Customer centric market strategy developed on self-esteem
attributes of consumer is used by the firms to enhance purchase intentions towards
fashion apparel (Horowitz, 2009).
Powerful market stimulants such as fashion shows on television, fashion advertisements,
in-store displays, and fashion events in the urban shopping malls have influenced the
transnational cosmopolitanism among consumers. Such interactive marketing strategies
of fashion apparel have shown convergence of traditional and modern values and lifestyle
to develop a homogeneous global consumer culture. The conventional method of using
societal icons as the cultural drivers have now been replaced by global fashion players
with flagship brands as a basis for product position and market segmentation. It is found
that multi-channel systems of brand building and differentiation influence the consumers
towards fashion apparel and need is created at local levels supportive of, and constituted
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by, cultural industries. The Italian city of Milan shows how the city has became a
destination brand; where different various channels are being negotiated and integrate
service fashion and design branding strategies (Jasson and Power, 2010).
Globalization and increasing competition, and short product life cycles in fashion
retailing cultivate asymmetric consumer behavior and pose a number of marketing
challenges for retail firms in Mexico. In order to survive in this industry, it is vital for
manufacturers and retailers to develop and leverage core marketing capabilities. This
study examines the effectiveness of different fashion marketing strategies and analysis of
the consumer behavior in a cross-section of demographic settings in reference to fashion
apparel retailing. This paper also discusses the marketing competencies of fashion
apparel brands and retailers in reference to brand image, promotions, and external-market
knowledge. The study examines the determinants of consumer behavior and their impact
on purchase intentions towards fashion apparel.
Consumer market for fashion apparel has become more diverse by designer brands, store
brands, personalization, advertising, and ethnicity in the global marketplace. If
manufacturers and retailers of fashion apparel can identify the target consumers'
preferences, they may be better able to attract and maintain their target consumer group.
However, little research has been conducted to investigate the factors influencing the
apparel shopping behaviors among Hispanic consumers. Thus, the purpose of the present
study is to investigate the attributes of shopping designer apparel among consumers in
Mexico.
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1.2 The concept of luxury
It is not so easy to define the word “luxury”. What is luxury for someone is just ordinary
for others. In economic terms, luxury objects can be said to be those whose price/quality
relationship is the highest on the market. Quality means their measurable, tangible
functions of an object. Jean-Noël Kapferer criticizes this definition by saying that “what
accounts, indeed, is not the absolute price, but the price differential between luxury
products and products with comparable functions” (Kapferer 1999, 77). The strictly
economic perspective does not help differentiate the upper-range brand from the luxury
brand. He states that upper-range products could be defined as tangibles associated with a
specific product category, while luxury products are intangibles associated with values
and ethics. (Kapferer 1999, 78.) Kapferer uses etymology to clarify the concept. Luxury
comes from “lux” that means light in Latin. Luxury glitters. Like light, luxury is
enlightening. Luxury is visible; others must see it, by the consumer and. Luxury defines
beauty. There are two things relating to luxury: the monetary capacity to pay the price of
quality and a propensity to appreciate the object’s artistic, creative and sensuous
dimensions – something beyond mere practicality. Luxury items provide extra pleasure
and flatter at the senses. Kapferer states that sociology and history can help clarify the
concept, too. Luxury brands are exemplifying the signs and attitudes of the former
aristocracy: a restricted group bonds together and distances itself from the rest of society
in terms of price and preferences. (Kapferer 1999, 78–79.) The Oxford Advanced
Learner's Dictionary defines luxury as the enjoyment of special and expensive things,
particularly food and drink, clothes and surroundings, as a pleasure or an advantage that
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you do not often have and as a thing that is expensive and enjoyable but not essential.
Luxury products include both goods and services.
LUXURY AND PRESTIGE GOODS
1. Fashion
a. Clothing and apparel
designer fashion (haute couture)
ready-to-wear clothing (prêt-à-porter)
sportswear
b. Leather goods and accessories
bags and wallets
shoes
belts
luggage
2. Perfumes and cosmetics
3. Watches and jewelry
4. Eyewear
sunglasses and prescription glasses
5. Wines and spirits
6. Automobiles
Today, the twenty first century, luxury consumption has become so popular (Kapferer
and Bastien, 2009) despite the fact that there is a relatively small number of companies
selling luxury products. (Uche Okwonko, 2007) Everyone aspire for luxury, particularly
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in fashion. In fact, there has been many luxury brands established in the world over the
past centuries regardless of, such as, the industrial revolution period, the first and second
world wars, or democratization. Until now, the period of globalization offers many
sources of luxury. This is driven by the development of industries, economy, new trades,
increase in spending, and even communication. For example, there are some popular
Japanese luxury brands in European countries, there are Asians addicted to European
Luxury brands, and there are European luxury brands that use Chinese silk as raw
materials in productions. (Kapferer and Bastien, 2009) Consequently, people all over the
world are familiar with the word luxury fashion brands.
Obviously, the social stratification is gradually vanishing in the present days. But people
still tend to distinguish the class in society by the leader in society and rich people always
want to have and show off their extravagant life. Since luxury is the symbol of good taste
and wealth, there is no doubt why everyone wants to have it.
Although, the luxury industry is somehow small in terms of number of companies in this
world compared to other industries, luxury fashion industry has been a multi-billion
dollar industry in the world. It plays a remarkable role in the economy, and influences the
modern society. To add on this aspect, Chadha and Husband (2006) said that the
democratization of luxury brands during 90s made the door of exclusivity open to
ordinary people. And, luxury is everywhere today (Kapferer and Bastien, 2009).
“Luxury” means, the state of great comfort and extravagant living or an inessential but
desirable item. (Oxford, 2009) Actually, the word “Luxury” is not the same with
everyone and some people do not exactly interpret this word like that in the dictionary.
They feel that its beyond that and the definition seems to be hard to fathom. If ever, it
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would be a never ending discussion. Kapferer and Bastien (2009) said that the concept of
luxury is very old as the age of humanity.
Luxury is very selective and exclusive which there is almost the only brand in its product
category. The sense of being sophisticated and having a good taste are based on this
definition. The unique attribute of each product category belongs to one brand or it is
called “the icon”. Only one brand specializes in one product category, for example,
Brioni for mens suits, Hermès for leather bags, Valentino for womens dress, and
Guerlain for cosmetics. (Chevalier and Mazzalovo, 2008) Those examples have very long
history and background as well.
Actually, it is true that luxury and expensive products must have high quality and
durable. The history and reputation of the brand are factors in considering luxury. The
statement about luxury is very selective and exclusive and almost only one brand
dominates in one product category. But, it cannot be completely valid in the situation
today.
On the other hand, according to Dr. Yuwa Hedrick-Wong, Economic Advisor,
Asia/Pacific MasterCard Worldwide (2007), luxury is “a brand of goods/service with
exclusive/selective distribution; usually higher than the average price of goods/service in
the same category; typically have higher quality/design; while commanding a strong
appeal to the desire and aspirations of its potential customers...” (Wong, 2007)
Another group of people think that expensive goods are always good and credible.
Although, sometimes, the quality of expensive goods is not that good but people still buy
it because its aspirational. According to Kapferer and Bastien (2009), the luxury goods
are not perfect, but an affecting goods. It is the price, not the product that is sold to the
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customer. At this point, people want to own luxury goods just because it is expensive.
They are not concerned much about quality. Sometimes they are not very happy with the
function of the purchased
1.3 Luxury brands
In this chapter the author looks at brands, because you cannot talk about luxury goods
without talking about brand names. By the definition of the American Marketing
Association, a brand is “a name, term, sign, symbol, or design or a combination of them,
intended to identify goods or services of one seller or groups of sellers and to
differentiate them from those of competitors” (Kotler 2003, 418). The brand identifies the
origin of an item. It has the key credibility factor: offers a guarantee, a source of
confidence and is a sign of power, expertise and ethics. It is the mark on the product, but
it is also the overall value conveyed with promises of tangible and intangible satisfaction.
(Kapferer 2001, 3, 10–11.) As Okonkwo (2007, 4–5) says, developing and effectively
managing a luxury brand is a long process; there are few existing brands that can claim
true luxury status. Interbrand is a global branding consultancy. It releases an annual
ranking of the best global brands by value, known as "The Best Global Brands." In 2010,
Interbrand placed a brand value of 21,860$m on Louis Vuitton making it the most
valuable brand in the luxury goods industry and the sixteenth most valuable brand in any
product category in the world. FIGURE 1 represents the most valuable luxury brands in
the world in 2010.
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LUXURY BRAND
MERCEDES-BENZ LOUIS VUITTION
GUCCI ARMANI
FERRARI PORCHES
BURBERRY COACH
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ZARA DIESEL
VERSACE PRADA
CALVIN KLEIN CHANEL
RALPH LAUREN HUGO BOSS
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D&G GIVENCHY
GUESS DKNY
CHRISTIAN DIOR ESBADA
HERMES ELIZABETH ARDEN
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TISSOT KENNETH COLE
RADO JAGUAR
CARTIER ROLLS ROYCE
Source: Website of the Various Organizations
Figure 1: The most luxury brands (Interbrand 2010)
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1.4 Brand Variables
Branding
Branding may also provide a source of differentiation for other reasons. The pace of
today’s technology change has made it difficult to differentiate purely on physical
attributes. Consider the various brands of televisions, video, cassette recorders and
personal computers. It is ironic that in such technologically sophisticated products, the
similarity between different brands is not unlike the similarity between various brands of
gasoline. They have become commodity items (Kohli & Thakor, 1997).
Today brands play an integral part in marketing strategy in capturing consumer attention.
This is because brands have become an important marketing component to the
manufacturer and a rich source of information for consumer. For the manufacturer,
brands provide a means of identifications for ease of handling and tracing, a means of
legal protection of unique features and of endowing products with unique associations.
Furthermore, brands signal quality levels to consumer and can be effectively used to gain
competitive advantage, derive satisfaction from product consumption and secure financial
returns. To the consumer, a brand identifies the source of the product, which in turn,
assigns responsibility to the product maker and provides a promise or bond with the
maker of the product (Keller et al., 2008).
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Source: Own Analysis
Figure1.1: Various Brand Variables
Brand attitude
In dual mode persuasion process, Attitude towards the advertisement and brand cognition
directly impact on attitude towards the brand. Teng et al. (2007) revealed that abundant
studies expressed that advertisement is evaluated by the impact of ad context. Formation
of responses that are cognitive gives back a necessary process directing to account
change in the attitude. Porter (1974) said that by activation of the feelings may not only
be occur speedily but also may lead to believe processing that is following in order or
succession. Porter (1974) forbade that advertisement should not be presented in
hollowness and competes against other advertisements so in this context a consumer’s
Brand Variable
Brand Loyalty
Brand trust
Brand Attachment
Brand Attitude
Core Brand Images
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perception in general of other advertisements may have impact on his or her attitude
leading to the focused advertisement. Teng et al. (2007) concluded that a customer
attitude leading to a focused brand not only is dependent on his cognition of brand, but
also dependent on his perceptions of brand in a competition. As a result researches extend
to one more factor i.e. attitude towards advertisement and attitude towards the brand
interaction to purchasing behaviour or intention leading towards the brand. Consumers
very often embed information in advertisements into easy presentations throughout the
globe. The reactions to advertisements are not as such valid. However the models like
attitude, embedded information, and other such models perhaps lend better possibilities to
form brand attitude (Bagozzi and Recall,1983). Bagozzi and Recall (1983)
operationalized definition of brand attitude as consumer attitudes in a un dimensional
sense as the sum of the products of beliefs times evaluations, it may be fruitful to
examine attitudes as multidimensional constructs consisting of networks of
interconnected beliefs and evaluations. According to Batey (2008) brand attitudes are a
function of the belief that consumers have with regard to a brand and the degree to which
the brand possesses certain attributes or benefits and consumers evaluative judgment of
those believe (i.e., how desirable it is that the brand possesses these salient attributes or
benefits). Brand attitudes can be seen as consumers affective response to a brand.
Attitudes toward a brand are determined in large part by more rational and functional
elements where consumers are likely to be more able to verbalize their attitudes and their
reason for them.
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Brand attachment
Aspects of public interactions include sensation for other people. On the other hand trust
is a vital result of these interactions. In earlier researches in psychology as well as in
marketing, it is concluded as vital element for the close interactions. Trust on the brand is
impact based, that refers to a touch, which is the result of public interaction associated
with brand (Esch et al., 2006). Thus in the model satisfaction for the brand is included in
addition trust is also added on the brand to testify rational and affective results. Since
interactions are relationship over time. Therefore one more construct has been included
that indicates this interdependence: attachment towards the brand. Only if a brand’s
outcome is a satisfied customer and is trusted by the customer then there will be
attachment that can be observable (Berry, 2000). Secondly the attachment towards the
brand makes interaction and specifies the brand powerfully express an outcome in
advance that how often brand was bought in the past and will be bought in the future.
Brand plays an extra ordinary role in companies related to services because brands, which
are strong, increase the pace of customer’s trust of the purchase that is invisible (Berry,
2000). Binninger (2008) suggested that earlier in 1990s customers loyalty is marked as a
main concept against in association with many others that consists of commitment,
satisfaction, identification, trust and the relationship with or attitude leading to brand.
Trust of the customer and satisfaction with a retailer mediates the impact of trust in brand
and satisfaction on consumer intentions to repurchase (Zboja and Voorhees, 2006).
Sirdesh mukh et al. (2002) declared trust of the customer as a vital and necessary
construct in developing customer relationships stronger and achieve sustainable share in
the market. Few segments related to consumers are interested in store brands where as
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customers that are satisfied marked as loyal (Martenson, 2007). Delgado-Ballester and
Munuera-Aleman (2005) declared trust associated from past experience becomes the part
for current purchase and terms the customers as loyal which further intact the brand
equity. Esch et al. (2006) defined operationally as Brand attachment is a longer lasting,
commitment inducing bond between the brand and the consumer.
Core brand image
In the perspective of core brand image and in the context of extension of a brand one
obvious issue is the strength of a brand, which is vital part when extending the brand
process. Older studies ended that the strength of the brand is perceived both as
objectively or subjectively. Shwu-lng and Chen-Lien (2009) said that market share,
channel stronghold, distribution, and promotional and advertising costs are pointing out
objectively. He further explained that overall assessment of the consumers to the brand,
which are on the top normally, produces more publicity and share in the market so as a
result the consumers perceive these brands as superior. Shwu-lng and Chen-Lien (2009)
portrayed researches on a larger scale suggesting the major components of core-brand
image are awareness for the brand and preference for the brand. The two components of
core brand image; awareness for the brand and preference for the brand has an impact on
core-brand image and is positively associated with the attitude of the core-brand (Shwu-
lng and Chen-Lien, 2009). Moreover for the effective branding, relevance and awareness
both are vital (Sevier, 2001). Bogart and Lehman (1973) explained that brand awareness
came into being from the big consists of dissimilar parts and dependent upon extension to
different fields of advertised messages. Moore and Steve, (2000) described that fashion
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brand expansion into global market has achieved success in space of brand image and
awareness. Furthermore attributes (the thing which exists and can be distinguished from
each other) that are rational might be in true sense viewed as “causes” to the image of the
brand rather saying than the image itself. (Da Silva and Alwi, 2006). Take a closer look
at the brand; it represents the ability of producing synergy effect of complete efforts of
the marketing that inserts and stretch the existence of an image in the minds of consumer,
and add a helping hand to the firm’s success with the help of stronger cash flows and
higher values in terms of the shareholders (Wong and Merrilees, 1998). Atmosphere and
quality of the store positively impacts the perception of quality of private label brands.
Contrary to it, the similarity among national brand and image of the store shows negative
impact on the quality of private label brands (Vahie and Paswan, 2006). Roberts and
Dowling (2002) explained operational definition as “The corporate brand is a valuable
intangible asset, that is difficult to imitate, and which may help to achieve sustained
superior financial performance”.
Table 1: Conceptions of Brand image
Source Main Meaning Conceptions of Brand image
Park (1986) Functional, symbolic and
experience image
Brand image is not a simple
phenomenon of
understanding, affected by
communication activity of
the company. This is a
consumer’s understanding
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of a complete brand set,
developed by a company.
Keller (1998) Conception Brand conception,
reflecting associations of a
consumer’s conscious.
Aaker (2002) Associations How is a brand conceived
by a consumer
Source: Janonis, and Virvilaite, 2007:79
Brand Associations
Brand associations take up many forms from concrete to abstract, from the conscious to
the unconscious, the direct to indirect. Direct associations are those that occur directly
between two elements without the need or presence of a third, intermediary element
while indirect associations are what lead to associative chains, where elements are linked
together thorough one or more intermediary elements. Brand associations are categorized
into three significant groupings, which are attributes, benefits and attitudes (Batey, 2008).
Attributes, as described by Batey (2008) may be product-related such as physical
composition of a product and those elements, such as ingredients and design features,
which affect product performance or non-product-related such as extrinsic attributes that
do not have a direct bearing on product performance, though they mane be very
important in the purchasing decision. Utilitarian considerations such as functional
benefits and product-related attributes constitute the more concrete and pragmatic
meanings of a brand. Non-product-related attributes and elements that are not factual,
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objective or instrumental underpin the more symbolic meanings of the brand. Products
and product-related attribute formed the basis for categorization in the consumer
behaviour, particularly given that most brands were mono brands – that is, based on
single products or product types – with specific attributes. Benefits describe how a brand
can solve a problem or offer an opportunity to the consumer or how it can make a
consumer’s life easier, more fun, more enjoyable or more meaningful. The differentiating
benefits that motivate brand purchase may be functional (as a result of on or more
product attributes and the functional utility they buy.
1.5 Purchase Intentions
Purchase intention is the implied promise to one’s self to buy the product again whenever
one makes next trip to the market (Fandos & Flavian, 2006; Halim & Hameed, 2005). It
has a substantial importance because the companies want to increase the sale of specific
product for the purpose to maximize their profit. Purchase intention depicts the
impression of customer retention. There are certain functions of the brand, which have
a strong influence on the purchase intention of the customer’s i.e. brand image, product
quality, product knowledge, product involvement, product attributes and brand loyalty.
This study will show the purchase behavior of the customers that how general public
attract to make purchase of the branded product and also reveal the important aspects
which are quite necessary to capture the purchase intention of the customers. This
research helps to categorize that among these aspects which factors have significant
effect on the purchase intention of the patrons. In this wondrous world where penetration
in the market in the presence of competitors is very problematic and challenging, it is
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very much important to determine the exact features, which the consumer wants. It will
help the marketers to focus on the features of the product that are significant and
are positively correlated with purchase intentions of the customers. The customer driven
approach is applied to find out the perception of users to have an exact idea about
preference and desires.
Purchase intentions are one of the main concepts studied in the marketing literature. The
interest of marketing scholars on purchase intentions comes from its relation to buying
behaviour. Several studies have reported a positive correlation between purchase
intentions and purchase behaviour (Morwitz and Schmittlein, 1992; Morwitz et al.,
1996). Moreover, marketing managers are interested in consumer purchase intentions in
order to forecast sales of existing and/or new products and services. Purchase intentions
data can assist managers in their marketing decisions related top roduct demand (new and
existing products), market segmentation and promotional strategies. Studies have
reported an indirect effect of values (Pitts and Woodside, 1984) and involvement
(Swinyard, 1993), and a direct effect of consumer satisfaction (Reichheld and Teal, 1996;
Zeithaml et al. , 1996; McQuitty et al. , 2000) on purchase intentions. There is a debated
issue on the relation between perceived quality and purchase intentions. Some scholars
have found a direct relationship between perceived quality and purchase intentions
(Carman, 1990; Boulding et al. , 1993; Parasuraman et al. , 1996), whereas some others
have reported an indirect relation mediated by satisfaction (Cronin and Taylor, 1992;
Sweeny et al. , 1999). Despite its importance, purchase intentions have not been
explained well in marketing provide), sensorial (physical experience of a brand and
derive from its sensorial properties – looks, taste, smell, texture and so forth), expressive
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(allowing the consumer to express certain values, contributing to a sense of identity) or
emotive (positive feelings created in consumers when buying or using a brand often have
a symbolic dimension and respond to profound human needs such as the need to be cared
for or the need to give and receive love). Strong brands often deliver a combination of
those benefits type (Batey, 2008).
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CHAPTER-2 REVIEW OF LITERATURE
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Chapter 2
Literature Review
2.1 Dubois’s, Laurent’s and Czellar’s researches
As Radón (2010, 17–18) says, Dubois and Kapferer were among the first to recognize the
importance of luxury products and brands in academic literature. They were also the first
to try to characterize them. These contributions to the field of luxury research are the
most significant among a growing – but still relatively small-scale academic research
within the field of luxury brands. There is little systematic research on luxury. In this
chapter the most important luxury researches will be explored. Perhaps the most
interesting thing in Bernard Dubois’s and Gilles Laurent’s (1995) research concerning
luxury possessions and practices is their theoretical starting point based on earlier
findings. Previously, it had been possible to identify two major consumer segments in the
market for luxury goods. First, the” Excluded”, who, in most countries, comprised a vast
majority of the population, without access to luxury, and secondly, the “Affluent” (well-
to-do) who could be sub-segmented into two groups: “Old money” and the “Nouveaux
Riches”. Then it, however, appeared that a major part of the market consisted of
“Excursionists”, a third group of consumers who, in certain product categories such as
perfumes, could account for more than three purchases out of four. In opposition to the
Excluded, for whom the world of luxury was, at best, a dream, Excursionists did have
access to luxury items.
But in contrast to the Affluent, for whom luxury, according to Dubois and Laurent, was
an "art de vivre", their acquisition and consumption of luxury items was intermittent,
often linked to exceptional situations or circumstances. The purpose of this research was
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to develop an empirical scale to measure to which degree a person is immersed in luxury.
Dubois and Laurent (1994) explored the meanings attached to the word "luxury" using a
two-step survey methodology. A professional psychologist conducted first, in-depth
interviews with sixteen consumers having very different occupations, both males and
females of 17 to 70 years of age. The interviews were done on a faceto-face basis and
taped. The researchers found out that luxury items provoked many ambivalent feelings
and reactions: luxury products were desirable at a daydreaming level, contemplated at a
distance. But when thinking of buying them, guilt feelings awoke. One could say that
many negative feelings were attached to "others' luxury", while the positive opinions
were kept for "my" luxury. Then, on the basis of the results, a battery of attitudinal items
was developed and administered to a sample of 440 French consumers. In order to
improve the understanding of the attitudinal structure, correlation and principal
component analyses were performed. The researchers also used factor analysis in their
research. Dubois, Laurent and Sandor Czellar (2001) published a consumer report
analyzing complex and ambivalent attitudes to luxury. Again they conducted two studies.
The first study was a consumer-based exploratory analysis with usual qualitative
interviewing methods. From the comments offered by the respondents on characteristics
of luxury, six facets emerged to define the cognitive domain of content: excellent quality:
exceptional ingredients, delicacy, expertise, craftsmanship very high price: expensive,
elite and premium pricing scarcity and uniqueness: restricted distribution, limited
number, tailor-made aesthetics and polysensuality: piece of art, beauty and dream
ancestral heritage and personal history: long history, tradition, pass-on to Generations
super fluousness or uselessness: non-functional.
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Their main objective in the second study was to assess the great diversity of luxury
attitudes in a quantitative way. They therefore collected data in twenty different
developed countries in a Western cultural context, located on four continents. The final
sample comprised 1848 subjects (39.4 % female mean age 26.5). This study was based
on a large-case survey using items derived from the first study. All items were asked
using a 5 point agrees-disagrees Likert format.
Dubois and Czellar (2002) have also explored the relationship between the concepts of
"luxury" and "prestige" as applied to brands by means of an interpretative analysis of in-
depth consumer interviews. The results indicated that prestige can be achieved
independently of luxury in many categories. At a symbolic level, consumers can interpret
luxury as the symbol of brand prestige.
2.2 Silverstein’s researches
Michael Silverstein and Neil Fiske conducted, with the help of the research team of The
Boston Consulting Group, an extensive survey of American consumers’ product choices
and the way how companies create “new luxury” brands that appeal to the mass-market
consumer. The results were published in their book Trading Up in 2003. Their research
can be regarded as a sociological study and as a business strategy. Much of their
information was gathered from public sources, e.g. US Census Bureau data, Health and
Labor Statistics, companies’ news and annual reports. In 2002, the researchers conducted
a quantitative survey of American households, in partnership with a leading marketing
research firm Harris Interactive. They polled 2333 adults using Internet surveys asking
questions about luxury shopping. The data was analyzed using a variety of statistical
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techniques. In 2003, they did another survey polling 2105 consumers. The results were
consistent with those of the first survey. The quantitative surveys raised many questions
about consumer motivations, and to gain further information the researchers interviewed
thirty respondents that had participated in their survey. (Silverstein & Fiske 2008, 276–
279.)
According to Silverstein’s researches, there is no “typical” new luxury spender although
consumers have some common features. They are very selective buyers: “They carefully
and deliberately trade up to premium goods in specific categories while paying less or
trading down in many, or most, others” (Silverstein & Fiske 2008, 15–16). Many of them
are single working people in their twenties. As an example Silverstein mentions a 22-
year-old single woman working as a business professional. She buys Coach handbags and
premium wines and visits gourmet food shops but her shampoo is from a cheap
drugstore. (Silverstein & Fiske 2008, 16.) Other important traders up are “empty nesters”:
married couples, widows or widowers with good incomes having no children at home any
more. Divorced women were the top traders up. Dual-income couples with no kids
(DINKs) and dual-income couples with kids (DIWKs) are also new luxury buyers as they
afford to buy premium goods that make their lives easier and less stressful. (Silverstein &
Fiske 2008, 16–17.) In general, women are the dominant new luxury consumers in
America. Most American women participate in the workforce. Nowadays, they are less
likely to get married or do so later in their lives. Young, single and workingwomen have
a high influence on the new luxury market both as consumers and tastemakers. As their
prime categories of new luxury goods, Silverstein mentions fashion, food and beverages,
cars, furniture, pet food and travel. This same trend is also seen in Japan. Young, single
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and workingwomen – who live at home with their parents and have very low living
expenses – have helped make Louis Vuitton the most successful luxury brand.
Respondents were also asked how buying luxury goods make them feel. Four emotional
spaces were found (Silverstein & Fiske 2008, 35):
Taking care of me
Connecting
Questing
Individual style.
The emotional spaces are closely related without any strict boundaries between them.
Taking care of me
For many American consumers the most important reason to buy new luxury goods is the
Taking care of me –emotions they arouse. Chocolate, ice cream, coffee, home-theatre
equipment, appliances, furniture, bedding etc. give emotional uplift, stress reduction,
comfort, pampering and rest. When women have some moments for themselves, they
want to make the most of them, maybe have an aqua therapy bath or restaurant dining.
Men retreat into a room equipped with a personal computer or a home theatre.
(Silverstein & Fiske 2008, 35–37.)
Because these goods or activities are so personal, people sometimes think they are selfish
when indulging in them and feel guilty, especially working mothers. People live in an
uncertain world with fears of terrorism, war and other conflicts, but by using Silverstein’s
(2008, 41) words:
But even in the face of uncertainty–especially in the face of uncertainty– Americans don’t
want to spend their money on bland, emotionally empty goods. They want to spend on
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items that bring emotional engagement, from spirits to nice sheets. Why not? As Frances
put it, “There’s a part of me that feels like, ‘Spend some money. Have some fun! You’re
going to die tomorrow.’ “
Connecting
New luxury goods are instrumental in helping to make connections and keep them strong.
For many singles, dating is a serious marketing exercise. Goods can be used to send
prospective partners signals to show who you are and what you are looking for. Goods
tell about taste, knowledge, achievements and values. After a romantic breakup goods
can bring solace, reward or revenge. In many families when family members cannot
spend much time together, goods can act as compensations or substitutes for the lost
moments. (Silverstein & Fiske 2008, 41–44.) New luxury goods also give consumers a
way to make affiliations and to “join the club”. People buy premium goods to show that
they belong to the ranks of successful people. (Silverstein & Fiske 2008, 44–45.)
Questing
According to Silverstein (2008, 45), “questing is about venturing out into the world,
experiencing new things and pushing back personal limits”. Travelling is the most
popular way to add adventure and exoticism to life. Travel is not anymore only a rest and
getaway but also acquiring new skills and memorable experiences.
Individual style
Brands are important when creating an individual style, especially when talking about
shoes, clothing, watches, fashion accessories, spirits and cars. Brands send messages to
friends, lovers and potential employers about who a person is or would like to be. Not
only the brand names but the specific attributes which stick with the brands are important
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to new luxury consumers. Goods can be a nonverbal method of self-expression and social
dialogue. The home is an important expression of individual style and a place for status
purchasing, too. (Silverstein & Fiske 2008, 48–51.)
Silverstein’s and Fiske’s research was meant to make a tool to help consumers and
creators of new luxury understand the key impulses behind most purchases. According to
Silverstein (2008, 248), the four emotional spaces they identified in the United States also
drive European consumers, but with some nuances. Europeans are more focused on
authenticity than US consumers and care a lot about the origin of their goods. They are
also more focused on individual style than Americans. Especially in France the
genuineness of premium goods is important. Babette Leforestier (Silverstein & Fiske
2008, 248) from a French research firm says that “the claim of authenticity is one of the
major trends in consumption and the ingredients strengthen the image of these products
as genuine”. In addition to the well-known premium global brands, many new luxury
brands have emerged in France. Also in Europe women have increased their influence
and roles in the economy and workplace, the average household size is decreasing and
the number of single women has increased as well as the number of divorces. Europeans,
just like Americans, are stressed by fast-paced lives. (Silverstein & Fiske 2008, 247.)
2.3 Other researches
Table 2: Past Studies Conducted on Consumer Purchase Intentions towards Luxury
Brand Fashion Products
Title Author Source, Year Key Findings
Consumer Behaviour patterns in luxury market
Perception of Kaufmann, H.R., European J. Cross- *Russian luxury
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luxury:
Idiosyncratic
Russian consumer
culture and
Identity
Vrontis, D.,
Manakova, Y.
Cultural
Competence and
Management, Vol.
2, 2012
consumption differs
from that of Western
societies; not deeply
specified; *Two groups
of consumers: real
connoisseurs (value of
quality, exclusiveness)
and status lookers (show
off in the society)
Limitations: lack of
broader exploration,
further relation on
factors as loyalty or
country of origin.
Fashion and
demonstrative
behaviour in
Russia
Andreeva A.,
Marmi E.
Brand
Management 02
(63), 2012
*No culture of luxury
consumption in Russia,
adaptation to the
Western lifestyle;
*Segmentation on upper
and upper middle class
consumers with their
consumer behaviour
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differentiation *The
purchase of goods, the
price of which
corresponds to the
quality
Marketing of luxury goods
Marketing of
luxury, modern
strategies
Andreeva A.,
Bogomolova N.
Publishing House
of St. Petersburg.
University Press,
2008
*Characteristics of
Luxury products;
*Motives for luxury
consumption; *6P’s of
Luxury Marketing
description: people,
product, passion,
pleasure, purpose, price;
*Theory of hedonic
consumption(emotions
and pleasure);
Contributing
clarity by
examining brand
luxury in the
Miller, K. W., &
Mills, M. K.
Journal of
Business Research,
65(10), 1471–
1479, 2012
*Brand innovation,
which includes
uniqueness,
creativeness, originality,
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fashion market expressiveness and
imagination, seems to
affect brand luxury;
*Brand leadership has a
reasonably strong direct
effect on brand luxury
assessments;
* Path in the Brand
Luxury Model is
innovation→ leadership
→brand luxury → user-
imagery fit →value →
willingness to pay a
premium;
The Marketing of
Luxury Goods
Vickers, J. S., &
Renand, F.
The Marketing
Review, No. 3,
459-478, 2003
*Luxury goods can be
differentiated from
normal or 'non' luxury
goods by the extent to
which they exhibit a
distinctive mix of
dimensions:
functionalism,
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experientialism and
symbolic interactionism;
* The symbols
displayed by luxury
products have a major
influence on the choice
of one product
compared to another;
Luxury Consumption Behaviour
A review and a
conceptual
framework of
prestige-seeking
consumer
behaviour
Vigneron, F.,
Johnson, L.
Academy of
Marketing
Science Review,
Vol. 1, 1999
*‘Hedonic’ (positive
emotions) and
‘perfectionist’ (quality&
design) luxury purchase
motivations;
*Prestige values:
conspicuous, unique,
social, emotional,
quality;
Status brands:
examining the
effects of non-
O’Cass, A. &
Frost, H.
Journal of Product
and Brand
Management,
*Consumers evaluate a
brand’s image in terms
of its
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56
product related
brand associations
on status and
conspicuous
consumption
Vol. 11, No. 2,
2002
symbolicmeaning;
*By symbols individuals
communicate meaning
about themselves to
their reference groups,
desire of status;
Luxury
consumption
factors
Husic, M., &
Cicic, M.
Journal of Fashion
Marketing and
Management,
13(2), 231–245,
2009
*Consumers perceive
quality as a brand
determinant; *”Snob
effect”: consumers buy
the expensive products
to distinguish
themselves;
*Rare products indicate
prestige and respect;*
Sub categories: ”old
aristocracy” and “new
money”;;
To be or not to be?
- A study of
Luxury
Consumption
Benita Patel The Swedish
School of Textiles,
Report No.
2010.13.10, 2010
*Consumers of luxury
brands perceive the
service they receive as
an added value, highly
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appreciate it; *Young
consumers tend to mix
luxury fashion with fast
fashion, whereas older
once are stick only to
luxury;
Brand and country-
of origin effect on
consumers’
decision to
purchase luxury
products
Godey, B.,
Pederzoli, D.,
Aiello, G.,
Donvito, R., Chan,
P., Oh,
H., Weitz, B
Journal of
Business Research,
65(10), 1461–
1470, 2012
*Intercultural analysis
of brand effect and Coo
effect on the luxury
purchasing decision
(China, France, Italy,
Russia, Japan and the
USA)
*Criteria governing the
decision to purchase
luxury goods
worldwide: design,
brand, guarantee;
*Russian consumers
attach more specific
significance to design
and Coo;
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58
Intrinsic
motivations, self-
esteem, and luxury
Goods
consumption
Truong, Y., &
McColl, R
Journal of
Retailing and
Consumer
Services, 18(6),
555–561, 2011
*The findings confirm
that intrinsically
motivated consumers of
luxury goods tend to
look at the actual quality
of the product and its
ability to provide self-
directed pleasure;
*The relationship
between self-esteem and
self- directed pleasure
proves to be very
salient; an individual
can maintain or boost
self-esteem by
purchasing luxury
goods;
Luxury in emerging countries
Logic of Luxury in
Emerging Markets
Som, Ashok Vikalpa: The
Journal for
Decision Makers.
*By 2015 BRIC
countries will have 36
per cent of the global
Page 59
59
Vol. 36
Issue 1, p75-77,
2011
luxury market;
*Challenges in BRIC
countries: education and
knowledge about
luxury; the size and
population of countries;
distribution (not many
exclusively luxury
destinations can be
found); *Consumer
expectations are very
varied in BRIC
countries: in Russia
consumers expect
luxury products to have
a balance between
tradition, modesty and
wealth; Russians like to
show off that they can
spend a huge amount of
money for a valuable
product; *Russia has
knowledgeexperience
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inpotential for
consumption is in
Moscow and St.
Petersburg;
Luxury in
emerging countries
Stéphane Truchi IfopLive Journal
(19), 2010
*In Russia luxury is
motivated by pleasure
and the quest for social
distinction; *Country-
specific aspects: ability
to mirror symbols of
pleasure and sensuality
inherent to the Russian
spirit; to integrate local
elements in the
communication of
international brands;
Source: Referred various journals and research papers
The motivation to consume for the sake of consuming was first discussed by the social
analyst Thorstein Veblen (1857–1929). He claimed that a major role of products was to
be used to inspire envy in others through display of wealth or power. He created the term
“conspicuous consumption” to refer to people’s desire to show their ability to afford
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luxury goods. For him the process of conspicuous consumption was most evident among
“the leisure class”, people for whom productive work was taboo. (Solomon et al. 2002,
395–396.) Anita Radon (2010) made her study of luxury brands online, using the Internet
and websites. She collected her empirical material through e-mail interviews, instant
messaging or live chat and visual data presentation.
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CHAPTER-3OBJECTIVES OF THE STUDY
AND RESEARCH METHODOLOGY
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Chapter 3
Research Methodology
3.1 Research Questions
The purposes of this study to know the purchasing intentions of consumers regarding
luxury fashion brand products. In evaluating the statement, this study attempts to answer
the following questions:
Why do the buyers buy Luxury Fashion Brand Products?
What is the gender distribution of Luxury Fashion Products buyers?
What is the income distribution of Luxury Fashion Products buyers?
What sources of information do they seek?
What is the impact of brand variable on purchase decision?
Which income group normally buys luxury fashion brand products?
Is luxury buyer’s gender specific?
What is the relationship between gender of respondents and purchase of Luxury
Fashion Brand Products?
What is the relationship between income of respondents and purchase of Luxury
Fashion Brand Products?
What is the difference in the importance respondents attached to reasons for
purchase of Luxury Products?
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3.2 Research Objectives
To study various factors influencing buying intentions of consumers towards
Luxury fashion Products (Products taken are Mobile Phones, Watches, Perfumes,
Bags).
To study the factors w.r.t age, gender, income and other demographic factors.
To examine reference group influence on purchasing intentions of consumers.
To study rational and emotional buying behavior regarding luxury fashion
products in different areas of Pune Region.
To study the impact of brand variables on purchasing intention of consumers w.r.t
selected luxury fashion products.
To provide necessary suggestions to Brand Marketers.
The study is limited to the following luxury fashion products-watches, bags, mobile
phones and Perfumes and to the city of Pune
3.3 Hypothesis
H01: There is no difference in the importance respondents attached to reasons for
purchase of Luxury Products.
H11: There is significant difference in the importance respondents attached to reasons for
purchase of Luxury Products.
H02: There is no relationship between gender of respondents and purchase of Luxury
Fashion Brand Products.
H12: There is a significant relationship between gender of respondents and purchase of
Luxury Fashion Brand Products.
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H03: There is no relationship between income of respondents and purchase of Luxury
Fashion Brand Products.
H13: There is a significant relationship between income of respondents and purchase of
Luxury Fashion Brand Products.
Ho4: No Sufficient correlation exists among variables.
H14: Sufficient correlations exist among variables.
3.4 Research methodology
3.4.1 Introduction
The methodology section cannot be overlooked, as it is considered important to apply a
suitable method to achieve the research objective. Additionally, the significance of using
the correct method also generates a more accurate result (Silverman, 1993). Therefore,
this investigation has been taken towards selecting an appropriate approach in regards of
the research question. In this chapter, the structure of the methodology will consist of the
following: firstly, the research method will be discussed followed by an explanation to
which method would be appropriate to use in this study. Secondly, data that will be
collected from both primary and secondary sources is going to be explained. Thirdly,
sampling will be discussed. Fourthly, the questionnaire design, which is considered a key
role in gathering data for results, will be approached. Next, ethical values will be taken
into account. Finally, a short summary will be noted at the end of the chapter.
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3.4.2 Method Selection
Howard (1985) explains that in applying a particular method towards research does not
tests how useful its techniques are, but just relates the strengths and limitations that have
been used. There are two options in regards to research method. These methods are
quantitative and qualitative, which will be defined below.
3.4.3 Comparing Quantitative and Qualitative Methods
The quantitative approach uses numerical values in explaining research and problem
solving. The importance of quantitative research will be focusing on the collection of
numerical, statistical analysis, and the results of the data (Curwin & Slater, 2002).
However, there has been criticism towards quantitative methods. Qualitative researchers
explain that the use of quantitative data alone may ignore the social and cultural variables
of the information acquired (Silverman, 2000). For example, Kirk and Miller (1986)
stated that attitude cannot be simply explained using researches of series of numerical
analytical assumptions. Qualitative can generally be defined as a multi method, which
includes naturalistic and interpretive approaches to research (Denzin & Lincoln, 1998).
This means that “qualitative researchers study things in their natural settings, attempting
to makes sense of, or interpret, phenomena in terms of meanings people bring to them”
(Denzin & Lincoln, 1998, p.3). The materials that are used for qualitative methods
include: personal experiences, life story, interviews, observation, interaction, and visual
texts. The data for qualitative methods are usually descriptive moments, meanings, and
complications from individual’s experiences.
This study aims to explore purchase intentions of consumers towards purchasing luxury
fashion brand products. Since there have been a large number of young, middle age and
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old consumers purchasing luxury brand products, the method of quantitative research is;
therefore, more suitable to help collecting data from large sample sizes.
The approach to the research question has been applied with the mix method strategy,
which is a combination of both quantitative and qualitative data . Using this method for
research heads the data towards a direction of analysis, and resolving a problem.
Although these data have been collected in single studies, they will be combined in the
mix method process. Quantitative data consists of closed end information that includes
numerical figures. The study has collected quantitative data by applying closed-end
questions towards a questionnaire. Analysis of the information that is collected could be
used for research questions or to test hypothesis. Qualitative data includes open-ended
information. Gathering qualitative data is also applied in the questionnaire. The reason
that qualitative questions are included in this part is because respondents are able to give
in depth answer of their personal views, and own opinion of their thoughts and behavior
towards luxury brand products. The use of the mix method approach that uses both
qualitative and quantitative data is because once these two types of data is combined it
provides a better understanding of the data rather than if they are explained individually.
Additionally, the combination of these two data is able to bring balance for the weakness
of individual method that is applied (qualitative or quantitative) alone. The purpose of
using both types of data collection is because; for example, quantitative (numerical
figures) could be expanded on and explained further by qualitative (words) resulting in a
more in depth explanation of the analyzed gathering of information and vice versa.
Additionally, by mixing both qualitative and quantitative data would also be able to
answer questions that words or numbers are not able to explain alone. The benefit of
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using the mix method approach is because it is able to address complex questions, and by
gathering both forms of data enables all audiences to understand the information. Mix
method is also a neutral approach to research so that if audience’s prefers one type of data
to another, they are able to relate to the result in one form or another.
3.4.4 Data Collection
There are many forms of data collection – mail, internet, data base, questionnaires,
interviews, and etc, which are all related to research. However, there are conditions to
which specific data collection method should be approached (Fowler, 2002). Dependent
on the way the data will be used, will affect how the data will be collected (Waters,
1994). In this section, data collection is divided into two parts: primary and secondary
data collection.
3.4.4.1 Primary Data
Gathering information from consumers of luxury brand products through face-to-face
questionnaires was used in collecting primary data. The advantage of data collection from
consumers by using face-to-face questionnaire is that it is possible to correct any
misunderstanding of the questions that is being asked, and any missing information that
has not been filled in. Questionnaires will be distributed to respondents and collected all
the necessary information required for the study.
3.4.4.2 Secondary Data
Secondary data is collected from mainly journals, articles, and books. Previous researches
from various authors were found from databases that include Emerald, Proquest, EBSCO,
and etc. These sources of data provided useful background information on the luxury
fashion brands and luxury goods market, as well as indicating investigations that had
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already been taken place. Additionally, previous research identified areas of studies that
have not been explored before. Secondary data provided relevant information that is used
in designing the survey questions and identifying the problems that has occurred
rendering significant outcome.
3.4.5 Statistical Data Analysis
Once all primary data is gathered from the online questionnaire, they will then be
analyzed by using a statistical method. Thomas et al. (1997) explain that the raw data,
which is analyzed in the correct method, would produce useful information, which will
aid the decision-making process or gain competitive advantage in organization. In this
study, the statistical data analyses in a form of IBM SPSS Software 20 with the help of
Microsoft Excel were conducted by applying Descriptive Statistics, Multiple Response
Analysis Test, Chi-square Test of Contingency, Friedman Chi-square Test and
Exploratory Factor Analysis. As a result, the data that has been analyzed will be
presented in the form of cross tables, figures, pie charts and bar-charts.
3.4.6 Sampling
The sampling method represents a larger group of population. In usual, situations
questionnaires will use samples rather than populations because it is impractical to obtain
data from an entire population (Waters, 1994). A reliable sample is a copy of the larger
population, but in smaller size (Fink, 2003). In other words, “data are collected from a
representative sample of items or people, and these are used to infer characteristics about
all items or people” (Waters, 1994, p. 79).
Sampling Frame: Areas covered in Pune Region (Koregaon Park, Viman Nagar, Kalyani
Nagar, Magarpatta, Kondhwa, and Aundh)
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Sample Size: 400
(Koregaon Park=100, Viman Nagar=50, Kalyani Nagar=50, Magarpatta=100,
Kondhwa=50, Aundh=50)
Sample size was determined using mean method. Since most variables that are measured
using Interval Scale.
Formula:
n= z2 X s2
e2
where n= sample size
z= standard score associated with chosen level of confidence, 95% in this case
Hence z=1.96 (derived from normal distribution)
S=variation in the data
E=tolerable error (10%)
S was computed as a ratio of range/six standard deviation
Range=7-1=6
Derived from the 7 point scale used for measuring variables.
Hence s=6/6=1
Therefore n= (1.96)2 X (1)2
(0.10)2
= 3.84 0.01 =384
Thus the sample size rounded off to 400
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Sampling: The current study utilizes a non-probability sampling techniques that is
convenience sampling.
3.4.7 Questionnaire Design
Curwin and Slater (2002) explain that it is irrelevant how well investigations have
gathered data or how methods have been applied. If the questions that are used in the
survey are bias, the results in the questionnaire will lose significant value. Within the
questionnaire, the majority of the data that will be gathered are quantitative in a form of
closed questions with support of data that are qualitative consisting of open questions.
The reason why a few qualitative questions are attached is the qualitative questions
involve more attention and thinking for participants. Additionally, interpretation of
results from numerous qualitative data is more complex and consumes more time than
quantitative data. Since there is limited number of time in conducting this research, lots
of the qualitative data might not be valuable. The questionnaire design is composed of
three parts (as shown in appendix 1). Part one consisting of quantitative questions
contains personal details of respondents including: age, gender, and income.
Additionally, the question of how often do respondents purchase luxury items indicates
the personal frequency of purchasing luxury items. Personal details are required for
general background of respondents who purchase luxury brand products. Part two also
consists of quantitative questions that are comprised of questions, which requires rating
from 1 to 7 (1= strongly agree, 2=partially agree 3=agree, 4= neutral, 5= disagree, 6=
partially disagree and 7=strongly disagree) on their answers. These types of questions are
also related to ordinal data; for example, questions are categorized and ranked on scales,
whereby respondents are required to rate their decisions (Waters, 1994). In this part
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requires responses from individuals in what influences them into purchasing luxury brand
products. The flow of the questionnaire moves from topic to topic that involves questions
that are directed towards source of information, influencer influences for purchasing
luxury fashion brand products, time period for purchasing luxury products in order to
“avoid any radical jumps between topics that will disorientate respondents” (Cuwin &
Slater, 2002, pp.58). Qualitative questions are included in part three. These open
questions require answers where respondents are allowed to elaborate using words and
expressions of how they feel (Fink, 2003).
3.4.8 Chapter Summary
In this study, a selection of mixed methods, which is a combination of quantitative and
qualitative research, was conducted to examine, firstly, how reasons for purchasing
luxury brands products.
Secondly, various source of information and brand variables which drives the consumer
for purchasing luxury products. The survey in the form of questionnaire composed of 13
close questions and one open question with a help of “sampling method” was use to
collect raw data. The raw data were obtained from students who age less than 25,
between 26-35, 36-45 and above 45 years old. Then, the use of IBM SPSS Software 20
along with Microsoft Excel analyzed all data that met the sampling criteria. Analysis
obtained from conducting Descriptive Statistics, Multiple Response Analysis Test, Chi-
square Test of Contingency, Friedman Chi-square Test and Exploratory Factor Analysis
will be presented in a form of cross tables and various figures which will be further
discussed in the next chapter in more detail.
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3.5 Limitations of the study
Even though results of this study are based on the past researches in an area of Purchase
intentions of consumers towards luxury fashion brands products, appropriate
interpretation of the results are needed in order to avoid misconception. This study focus
on Pune region. Areas covered under Pune are Koregaon Park, Magarpatta, Aundh,
Viman Nagar, Kalyani Nagar and Kondhwa. As this study employed “convenience
sampling” which is a type of non- probability sampling method. This method does not
ensure that each unit will has an equal chance of being selected as in probability
sampling; therefore, such samples are vulnerable to selection biases.
Since a limited amount of time is a constraint in this study, only a small sampling size of
400 respondents can be obtained. However, a clearer view of purchasing intentions of
consumers towards products known as luxury would be more reliable if large numbers of
participants are taken into account, which would generate lower risk for external validity.
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3.6 Ethical Awareness
This study focuses on human subjects; therefore, attention on ethical values must be
provided. Additionally, as a result from the questionnaire to where data is gathered
respondents should not be at risks (Fowler, 2002). As obliged by the Belmont Report,
conducted by the National Commission (1979) for the Protection of Human Subjects of
Biomedical and Behavioral Research, this study has taken precautions over ethical
principles.
Firstly, the respect for individuals has been taken into account. In regards to the
questionnaire part one, details of individuals’ names have not been recorded, therefore
respondents remaining anonymous. Secondly, the protections of comments from the
questionnaires, and individual’s well being have been catered for. During the statistical
data analysis, all information that has been gathered will be combined so respondents’
comments will remain confidential. In this study, data will not be altered, or specifically
selected for the result to look better because it is considered unethical and bias due to
using data to the advantage of the study. Finally, data that has been acquired should be
analyzed based on the original design. Data that researcher think they are interesting can
only be suggested as a useful information for further research but not for researcher’s
own study (Jones, 2000). Additionally, care is taken during the analysis stage, in the
presentation of data, over minor details, to avoid respondents being identifiable (Fowler,
2002).
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3.7 Significance of the Study
This study is to explore the relations between variables that influence the purchasing
decision of consumer on luxury brand. Understanding of variables such as reasons for
buying luxury products, quality and societal status will be able to help further understand
how these variables affect the decision making of consumer.
This study will help the present Marketing Managers to better reposition their branding
and advertising strategy to capture the correct target market to boost the sales in times
where economy are at a challenge.
With such study, the impact on online advertisement is clearly an influential media to
promote branding of products and variables that influence buying decisions is surely a
focus to ensure the Marketing Communications are done correctly and effectively.
Ensuring effective execution of strategy are by understanding how variables such as
brand image, reasons for purchasing luxury products, perceived societal status and brand
loyalty can influence consumer buying intentions of luxury branded goods.
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CHAPTER-4DATA ANALYSIS
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Chapter 4
Data Analysis
This chapter presents the data analysis based on the 400 questionnaires
distributed in order to answer the research questions. According to the
objectives of the study and the questionnaire designed, the results of data
will be analyzed in two main sections; Quantitative Results and Qualitative
Results.
Statistical Data Analysis using IBM SPSS Software 20.
1. Gender wise distribution of respondents
Gender
N Valid 400
Missing 0
Table 4.1: Frequency and percentage of respondents by demographic characteristic w.r.t
Gender
Frequency Percent Valid PercentCumulative
Percent
Valid Male 290 72.5 72.5 72.5
female 110 27.5 27.5 100.0
Total 400 100.0 100.0
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Figure 4.1: Percentage of respondents by demographic characteristic w.r.t Gender.
The above frequency table and pie chart shows frequency distribution for gender of
respondents. Out of 400 respondents surveyed, 290(72.5%) were men and 110(27.5%)
were women. Most respondents in the survey were men
.
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2. Age
Age
N Valid 400
Missing 0
Table 4.2: Frequency and percentage of respondents by demographic characteristic w.r.t Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid less than 25 63 15.8 15.8 15.8
26 to 35 248 62.0 62.0 77.8
36 to 45 83 20.8 20.8 98.5
above 45 6 1.5 1.5 100.0
Total 400 100.0 100.0
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Figure 4.2: Percentage of respondents by demographic characteristic w.r.t Age
The above frequency table and bar chart shows frequency distribution for age of
respondents. Out of 400 respondents surveyed, respondent groups aged between 26 and
35years were 248(62.0%) followed by age groups between 36 and 45 years were
83(20.8%) followed by age groups less than 25 years were 63(15.8%) followed by age
group above 45 years were 6(1.5%). Most respondents in the survey fall in the age group
between 26 and 35 years.
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3. Income
Income
N Valid 400
Missing 0
Table 4.3: Frequency and percentage of respondents by demographic characteristic w.r.t Income
Frequency Percent Valid Percent
Cumulative
Percent
Valid less than 5 Lakhs 21 5.3 5.3 5.3
6 to 12 lakhs 127 31.8 31.8 37.0
13 to 18 lakhs 176 44.0 44.0 81.0
above 18 lakhs 76 19.0 19.0 100.0
Total 400 100.0 100.0
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Figure 4.3: Percentage of respondents by demographic characteristic w.r.t Income
The above frequency table and bar chart shows frequency distribution for income of
respondents. Out of 400 respondents surveyed, about 176(44.0%) had an annual income
ranging between 13 to 18 lakhs followed by 127 (31.8%) had an annual income in
between 6 to 12 lakhs followed by 76(19.0%) had an annual income above 18 lakhs
followed by 21(5.3%) had an annual income of less than 5 lakhs.
Most respondents in the surveyed had an annual income ranging between 13 to 18 lakhs.
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4. Do you buy Luxury Fashion
Products
N Valid 400
Missing 0
Table 4.4: Frequency and percentage of respondents buy Luxury Fashion Brand Products
Frequency Percent Valid Percent Cumulative Percent
Valid yes 367 91.8 91.8 91.8
no 33 8.3 8.3 100.0
Total 400 100.0 100.0
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Figure 4.4: Percentage of respondents buy Luxury Fashion Brand Products
The above frequency table and pie chart shows frequency distribution for buying luxury
products. Out of 400 respondents surveyed, 367(91.75%) buy luxury products and
33(8.3%) does not go for luxury products.
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5. Do you posses any luxury goods
N Valid 400
Missing 0
Table 4.5: Frequency and percentage of respondents possessing Luxury Fashion Brand
Products
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 373 93.3 93.3 93.3
No 27 6.8 6.8 100.0
Total 400 100.0 100.0
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Figure 4.5: Percentage of respondents possessing Luxury Fashion Brand Products
The above frequency table and pie chart shows frequency distribution for respondents
possessing luxury products. Out of 400 respondents surveyed, 373 (93.25%) possessing
luxury products and 27(6.75%) does not possessing luxury products.
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6. How often do you purchase luxury brand products
N Valid 400
Missing 0
Table 4.6: Frequency and percentage of respondents how often do they purchase luxury
brand products?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Often 151 37.8 37.8 37.8
sometimes 210 52.5 52.5 90.3
seldom 39 9.8 9.8 100.0
Total 400 100.0 100.0
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Figure 4.6: Percentage of respondents how often do they purchase luxury brand products
The above frequency table and pie chart shows frequency distribution for frequency of
luxury product purchase. Out of 400 respondents surveyed, 210 (52.50%) purchase
luxury products sometimes followed by 151 (37.75%) buy luxury products often
followed by 39(9.8%) buy luxury products seldom.
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Descriptive Statistics
Table 4.7: Mean and Standard Deviation of respondents for variable influencing purchase
of luxury products.
Descriptive Statistics
N Mean Std. Deviation Skewness
Statistic Statistic Statistic Statistic
High Quality 400 1.80 1.202 1.480
Best Design and Aesthetic 400 2.07 1.207 1.357
To fit in with friends 400 2.86 1.576 .650
Esteem of brand 400 2.57 1.427 .844
Follow the trend 400 2.84 1.333 .324
Value for money 400 2.62 1.409 .919
Brand name 400 2.50 1.328 .593
Show off 400 4.16 1.955 -.207
Differentiate myself 400 3.65 1.765 .131
Upper class status 400 3.49 1.712 .291
Envy others 400 3.97 1.931 .067
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Representation of celebrity 400 3.62 1.734 .094
Valid N (list wise) 400
Descriptive Statistics
Skewness Kurtosis
Std. Error Statistic Std. Error
High Quality .122 1.851 .243
Best Design and Aesthetic .122 2.742 .243
To fit in with friends .122 .117 .243
Esteem of brand .122 .896 .243
Follow the trend .122 -.025 .243
Value for money .122 .923 .243
Brand name .122 .311 .243
Show off .122 -.905 .243
Differentiate myself .122 -.904 .243
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Upper class status .122 -.582 .243
Envy others .122 -1.008 .243
Representation of celebrity .122 -.870 .243
Valid N (list wise)
The above table shows descriptive statistics for variable influencing purchase of luxury
products. Respondents were offered with 12 commonly observed reasons behind
purchase of luxury products and were asked to rate each reason on the basis of
importance they attach to these reasons while purchasing luxury products.
The scale used was a 7-point Likert Scale as mentioned below:-
Strongly agree =1
Partially agree=2
Agree=3
Neutral=4
Disagree=5
Partially disagree=6
Strongly disagree=7
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Mean and standard deviation values for all variables are as follows, it can be concluded
that high quality ( mean=1.8, s.d=1.2), best design (mean=2.07, s.d=1.2), brand name(
mean=2.5, s.d=1.3) are the top three reasons for purchase of Luxury Products whereas
show off( mean=4.1, s.d=1.9), envy others with luxury Brand products, so I want the
same products that they have( mean=3.9, s.d=1.9), to differentiate myself from others(
mean=3.65, s.d=1.7) are the bottom three reasons for purchasing luxury products.
Based on the mean and standard deviation values it can be concluded that High Quality,
Best design and aesthetic and Esteem of brand are the three top reasons for purchasing
luxury products and Show off, Envy others with luxury brand products, so I want the
same products that they have and differentiate myself from others are the bottom three
reasons for purchasing luxury products.
Friedman Test
A Friedman Chi square test was conducted to see if there is a difference in the
importance respondents attached to the various reasons to purchase of luxury
products.
Statistical Test: Friedman Chi-square test
Variables and Measurement: Respondents were offered with 12 commonly observed
reasons behind purchase of luxury products and were asked to rate each reason on the
basis of importance they attach to these reasons while purchasing luxury products.
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12 Variables are:
(a) High Quality
(b) Best Design & Aesthetic
(c) To fit in with Friends
(d) Esteem of Brand
(e) Follow the Trend
(f) Value for Money
(g) Brand Name
(h) Show Off
(i) To differentiate myself from others
(j) Want others to view me as an upper class status
(k) Envy others with luxury brand products, so I want the same products that they
have
(l) Representation of celebrities associates with luxury brand products influence me
into purchasing them.
The scale used was a 7-point Likert Scale as mentioned below:-
(Strongly agree=1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially
disagree=6, Strongly disagree=7)
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Hypothesis-I
H0: There is no difference in the importance respondents attached to reasons for
purchase of Luxury Products.
H1: There is significant difference in the importance respondents attached to
reasons for purchase of Luxury Products.
Level of Significance:
α= 0.05
Test Statistics
N 400
Chi-square 1161.798
Df 11
Asymp. Sig. .000
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OBSERVATION
X2 (11)= 1161.798
P value=0.000
N=400
Conclusion
Since P value (0.000) is less than level of significance (0.05) the null hypothesis is
rejected. Therefore it is concluded that there is significant difference in the
importance respondents attached to reasons for purchase of Luxury Products.
In order to identify where the difference lies we refer to Ranks Table.
Table 4.8: Showing difference in the importance attached to reasons
with the help of Ranks Table.
Mean Rank
High Quality 3.78
Best Design & Aesthetic 4.42
To fit in with friends 6.01
Esteem of brand 5.23
Follow the trend 6.22
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Value for money 5.79
Brand name 5.27
show off 9.11
Differentiate myself 7.95
Upper class status 7.59
Envy others 8.64
Representation of celebrity 8.00
Note: Labels of Likert scale were coded as below:-
(Strongly agree=1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially
disagree=6, Strongly disagree=7)
It is interesting to know that a favorable response was given a lower code. Hence a mean
rank of smaller value indicates more importance. From the mean ranks table it can be
seen that High Quality, Best design and esteem of brand are the top three reasons for
purchase of Luxury products and show off, envy others with luxury brand products,
so I want the same products that they have and Representation of celebrities
associates with luxury brand products influence me into purchasing them are the
bottom three reasons for purchasing luxury products.
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Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Reasons for purchasing
luxury products
399 99.8% 1 .3% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.9: Reasons for purchasing luxury products( Multiple Response Options)
Responses
Percent of CasesN Percent
Reasons for purchasing
luxury products
High Quality 308 24.3% 77.2%
Best Design and
Aesthetic
249 19.7% 62.4%
To fit in with friends 68 5.4% 17.0%
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Esteem of brand 72 5.7% 18.0%
Follow the trend 85 6.7% 21.3%
Value for money 197 15.6% 49.4%
Brand name 164 13.0% 41.1%
show off 27 2.1% 6.8%
Differentiate myself 30 2.4% 7.5%
Upper class status 46 3.6% 11.5%
Envy others 9 .7% 2.3%
Representation of
celebrity
11 .9% 2.8%
Total 1266 100.0% 317.3%
a. Dichotomy group tabulated at value 1.
The above table 4.9 shows multiple reason analysis for reasons for purchase of luxury
products. Each reason was measured using a two point scale.
1=Yes
0=No
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a) High Quality
b) Best Design & Aesthetic
c) To fit in with Friends
d) Esteem of Brand
e) Follow the Trend
f) Value for Money
g) Brand Name
h) Show Off
i) To differentiate myself from others
j) Want others to view me as an upper class status
k) Envy others with luxury brand products, so I want the same products that they
have
l) Representation of celebrities associates with luxury brand products influence me
into purchasing them.
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 1266 YES response 308(24.3%) accounted for High Quality, 249(19.7%)
accounted for Best Design, 197(15.6%) accounted for Value for Money, 164(13.0%)
accounted for Brand Name, 85(6.7%) accounted for Follow the Trend, 72(5.7%)
accounted for Esteem of Brand, 68(5.4%) accounted for to fit in with friends, 46(3.6%)
accounted for Want others to view me as an upper class status, 30(2.4%) accounted for to
differentiate myself from others, 27(2.1%) accounted for Show Off, 11(0.9%) accounted
for Representation of celebrities associates with luxury brand products influence me into
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purchasing them, 9(0.7%) accounted for Envy others with luxury brand products, so I
want the same products that they have.
From the table 4.9 we conclude that reasons for purchasing luxury products it can be seen
that High Quality, Best design and value for money are the top three reasons for purchase
of Luxury products and show off, envy others with luxury brand products, so I want the
same products that they have and Representation of celebrities associates with luxury
brand products influence me into purchasing them are the bottom three reasons for
purchasing luxury products.
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Source of
Information
400 100.0% 0 .0% 400 100.0%
a. Dichotomy group tabulated at value 1.
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Table 4.10: Frequencies of Source of Information about luxury fashion products
Responses
Percent of CasesN Percent
Source of
Informationa
TV 199 21.2% 49.8%
Online Add 235 25.0% 58.8%
Face book 90 9.6% 22.5%
News paper 73 7.8% 18.3%
Fashion
Magazine
175 18.6% 43.8%
Friends 119 12.7% 29.8%
Videos 48 5.1% 12.0%
Total 939 100.0% 234.8%
a. Dichotomy group tabulated at value 1.
The above table 4.10 shows multiple reason analysis for source of information about
luxury products. Each reason was measured using a two point scale.
1=Yes
0=No
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a) High Quality
b) Best Design & Aesthetic
c) To fit in with Friends
d) Esteem of Brand
e) Follow the Trend
f) Value for Money
g) Brand Name
h) Show Off
i) To differentiate myself from others
j) Want others to view me as an upper class status
k) Envy others with luxury brand products, so I want the same products that they
have
l) Representation of celebrities associates with luxury brand products influence me
into purchasing them.
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 939, YES response 235(25.0%) accounted for Online Adds, 199(21.2%)
accounted for Television, 175(18.6%) accounted for Fashion Magazine, 119(12.7%)
accounted for Friends, 90(9.6%) accounted for Face book, 73(7.8%) accounted for
Newspaper, 48(5.1%) accounted for Videos.
From the table 4.10 we conclude that Source of Information for purchasing luxury
products it can be seen that Online Adds and Television are the top two sources of
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information for purchase of Luxury products and Newspaper and Videos are the bottom
two sources of information for purchasing luxury products.
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Influencers For
Purchase of Luxury
Productsa
400 100.0% 0 .0% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.11: Frequencies of Influencers For Purchase of Luxury Products
Responses
Percent of CasesN Percent
Influencers For
Purchase of Luxury
Productsa
Friends
Influence
120 24.8% 30.0%
Ask a relative 40 8.3% 10.0%
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Colleague 54 11.2% 13.5%
Media 164 34.0% 41.0%
No Influence 105 21.7% 26.3%
Total 483 100.0% 120.8%
a. Dichotomy group tabulated at value 1.
The above table 4.11 shows multiple reason analysis for Influencers for purchase luxury
products. Each reason was measured using a two point scale.
1=Yes
0=No
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 483 YES response 164 (34.0%) accounted for Media Influence, 105
(21.7%) accounted for No influence, 120(24.8%) accounted for Friends Influence,
54(11.2%) accounted for Colleague, 40(8.3%) accounted for Relatives.
From the table11 we conclude that Influencers influence for purchasing luxury products
it can be seen that Media is the top most influencer for purchase of Luxury products and
Colleague is the bottom influencer for purchasing luxury products.
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Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Brand Variable Drives
You To Purchase
Luxury Productsa
400 100.0% 0 .0% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.12: Brand Variable Drives you to purchase Luxury Products
Responses
Percent of CasesN Percent
Brand Variable Drives
You To Purchase
Luxury Productsa
Core Brand
Image
124 18.5% 31.0%
Brand Attitude 133 19.8% 33.3%
Brand attachment 72 10.7% 18.0%
Brand Trust 196 29.2% 49.0%
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Brand Loyalty 146 21.8% 36.5%
Total 671 100.0% 167.8%
a. Dichotomy group tabulated at value 1.
The above table 4.12 shows multiple reason analysis for Influencers for purchase luxury
products. Each reason was measured using a two point scale.
1=Yes
0=No
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 671 YES response 196 (29.2%) accounted for Brand Trust, 146 (21.8%)
accounted for Brand Loyalty, 133 (19.8%) accounted for Brand Attitude, 72(10.7%)
accounted for Core Brand Image, 40(8.3%) accounted for Brand Attachment.
From the table 12 we conclude that Brand variables drives you for purchasing luxury
products it can be seen that Brand Trust is the top most brand variable drives you for
purchase of Luxury products and Brand Attachment is the bottom brand variable which
drives you for purchasing luxury products.
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Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Purchase Occasiona 400 100.0% 0 .0% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.13: Purchase Occasion
Responses
Percent of CasesN Percent
Purchase Occasiona Festive
Offers
101 20.3% 25.3%
Seasonal 148 29.7% 37.0%
Special 88 17.7% 22.0%
At any point 161 32.3% 40.3%
Total 498 100.0% 124.5%
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Table 4.13: Purchase Occasion
Responses
Percent of CasesN Percent
Purchase Occasiona Festive
Offers
101 20.3% 25.3%
Seasonal 148 29.7% 37.0%
Special 88 17.7% 22.0%
At any point 161 32.3% 40.3%
Total 498 100.0% 124.5%
a. Dichotomy group tabulated at value 1.
The above table 4.13 shows multiple reason analysis for Influencers for purchase
luxury products. Each reason was measured using a two point scale.
1=Yes
0=No
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
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Out of the total 498 YES response 161 (32.3%) accounted for at any point of time, 148
(29.7%) accounted for Seasonal, 101 (20.3%) accounted for Festive Offers, 88(17.7%)
accounted for Special Offers.
From the table 4.13 we conclude that Purchase Occasions for purchasing luxury products
it can be seen that people purchase luxury products at any point of time is the top most
reason and Special Offer is the bottom reason for purchasing luxury products.
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Rational Variablesa 383 95.8% 17 4.3% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.14: List of Rational Variables which influence consumer to buy Luxury
Products
ResponsesPercent of
CasesN Percent
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Rational Variablesa You Compare the
feature
134 25.4% 35.0%
Compare of price 133 25.2% 34.7%
Online survey 210 39.8% 54.8%
Search local shop 51 9.7% 13.3%
Total 528 100.0% 137.9%
a. Dichotomy group tabulated at value 1.
The above table 4.14 shows multiple reason analysis for Influencers for purchase luxury
products. Each reason was measured using a two point scale.
1=Yes
0=No
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 528 YES response 210 (39.8%) accounted for Online Survey, 134
(25.4%) accounted for comparison of features with other brand, 133 (25.2%) accounted
for comparison of price, 51(9.7%) accounted for Search local shops to get best deals.
From the table 4.14 we conclude that Rational variables for purchasing luxury products
it can be seen that Online survey is the top most reason and search local shops to get best
deal is the bottom rational variable for purchasing luxury products.
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Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Emotional Variablesa 42 10.5% 358 89.5% 400 100.0%
a. Dichotomy group tabulated at value 1.
Table 4.14(a) List of Emotional Variables which influence consumer to buy Luxury
Products
Responses
Percent of CasesN Percent
Emotional Variablesa Do not bother 11 23.4% 26.2%
Known ones 28 59.6% 66.7%
Family
likings
8 17.0% 19.0%
Total 47 100.0% 111.9%
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Table 4.14(a) List of Emotional Variables which influence consumer to buy Luxury
Products
Responses
Percent of CasesN Percent
Emotional Variablesa Do not bother 11 23.4% 26.2%
Known ones 28 59.6% 66.7%
Family
likings
8 17.0% 19.0%
Total 47 100.0% 111.9%
a. Dichotomy group tabulated at value
The above table 4.14(a) shows multiple reason analysis for Influencers for purchase
luxury products. Each reason was measured using a two point scale.
1=Yes
0=No
Responses were analyzed using “Multiple Response Option” in IBM SPSS Software
20.
Out of the total 47 YES response 28 (59.6%) accounted for purchased the product from
your known ones, 11 (23.4%) accounted for they do not bother to compare its features &
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price with other Brand, 8 (17.0%) accounted for they buy the products because your
family liked it, irrespective of all other reasons.
From the table 4.14(a) we conclude that Emotional variables for purchasing luxury
products it can be seen that purchased the product from your known ones is the top most
reason and buy the products because your family liked it, irrespective of all other reasons
is the bottom emotional variable for purchasing luxury products.
Statistics
Rational v/s Emotional
N Valid 400
Missing 0
Table 4.14(b) Comparative analysis in between Rational v/s
Emotional
Frequency Percent Valid Percent
Cumulative
Percent
Valid rational 352 88.0 88.0 88.0
emotional 48 12.0 12.0 100.0
Total 400 100.0 100.0
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Figure 4.14(b): Rational vs Emotional
As per the above pie-chart, 352(88.0%) respondents purchase luxury fashion brand
products rationally, 48(12.0%) respondents said that they purchase luxury brand products
emotionally.
Conclusion: Respondents were asked to tell about their feelings after purchasing luxury
products:--
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Good Quality, Felt Happy after purchasing luxury products, felt a brand name is attached
to you on which you can trust, felt better, felt awesome, felt like my standard is raised,
look like an upper class status, felt better in the society, it makes me feel comfort and the
quality we get help us to buy more products, luxury brands gives an overall satisfaction.
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Gender * Do you buy
Luxuxy Fashion
Products
400 100.0% 0 .0% 400 100.0%
Hypothesis-II
Purpose: To study if there is any relationship between gender of respondents and
purchase of Luxury Fashion Brand Products.
Statistical Test: Chi-Square test of contingency
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Variables and Measurement: Both the variables gender and purchase of Luxury
Fashion Brand Products where nominally scaled variables with two response options.
(1=Yes, 0=No)
Null Hypothesis H0: There is no relationship between gender of respondents and
purchase of Luxury Fashion Brand Products.
Alternate Hypothesis H1: There is a significant relationship between gender of
respondents and purchase of Luxury Fashion Brand Products.
Level of Significance:
α=0.05
Table 4.15: Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square 1.566a 1 .211
Continuity Correctionb 1.098 1 .295
Likelihood Ratio 1.693 1 .193
Fisher's Exact Test .308 .146
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Linear-by-Linear
Association
1.562 1 .211
N of Valid Cases 400
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.08.
b. Computed only for a 2x2 table
Observation:
X2(1)=1.5666
P value=0.211(two-tailed), 0.10(one -tailed)
Since P value (0.10) is more than level of significance, the null hypothesis is retained.
Hence it is concluded that there is no relationship between gender of respondents and
purchase of Luxury Fashion Brand Products.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
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Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Income * Do you buy
Luxury Fashion
Products
400 100.0% 0 .0% 400 100.0%
Hypothesis-III
Purpose: To study if there is any relationship between income of respondents and
purchase of Luxury Fashion Brand Products.
Statistical Test: Chi-Square test of contingency
Variables and Measurement: Both the variables income and purchase of Luxury
Fashion Brand Products where nominally scaled variables with two response options.
(1=Yes, 0=No)
Null Hypothesis H0: There is no relationship between income of respondents and
purchase of Luxury Fashion Brand Products.
Alternate Hypothesis: There is a significant relationship between income of respondents
and purchase of Luxury Fashion Brand Products.
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Level of Significance:
α=0.05
Table 4.16: Chi-Square Tests
Value Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 28.402a 3 .000
Likelihood Ratio 31.622 3 .000
Linear-by-Linear Association 22.588 1 .000
N of Valid Cases 400
a. 1 cells (12.5%) have expected count less than 5. The minimum expected
count is 1.73.
Observation:
X2(3) =28.40
P value=0.000
Since P value (0.000) is less than level of significance, the null hypothesis is rejected.
Hence it is concluded that there is relationship between income of respondents and
purchase of Luxury Fashion Brand Products.
To study the nature of relationship we refer to cross tabulation.
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Table 4.16: Gender * Do you buy Luxury Fashion Products Cross tabulation
Do you buy Luxury Fashion
Products
Totalyes No
Gender Male Count 263 27 290
Expected Count 266.1 23.9 290.0
% within
Gender
90.7% 9.3% 100.0%
female Count 104 6 110
Expected Count 100.9 9.1 110.0
% within
Gender
94.5% 5.5% 100.0%
Total Count 367 33 400
Expected Count 367.0 33.0 400.0
% within
Gender
91.8% 8.3% 100.0%
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Table 4.17: Income * Do you buy Luxury Fashion Products Cross tabulation
Do you buy Luxury Fashion
Products
TotalYes No
Income less than 5 Lakhs Count 18 3 21
Expected Count 19.3 1.7 21.0
% within
Income
85.7% 14.3% 100.0%
6 to 12 lakhs Count 104 23 127
Expected Count 116.5 10.5 127.0
% within
Income
81.9% 18.1% 100.0%
13 to 18 lakhs Count 169 7 176
Expected Count 161.5 14.5 176.0
% within
Income
96.0% 4.0% 100.0%
above 18 lakhs Count 76 0 76
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Expected Count 69.7 6.3 76.0
% within
Income
100.0% .0% 100.0%
Total Count 367 33 400
Expected Count 367.0 33.0 400.0
% within
Income
91.8% 8.3% 100.0%
From the cross tabulation table (Table 4.16 and 4.17) it can be seen that out of the 400
respondents, 367(91.8%) said they purchase luxury fashion brand products. Out of the
367 respondents who said they purchase luxury fashion brand products 46% were
between the income groups 13-18 lakhs followed by 20% in the income above 18 lakhs
followed by 28% were between the income group 6-12 lakhs. Only 4% with their income
less than 5 lakhs.
Conclusion: Hence it is concluded that higher income group people buy luxury
fashion brand products.
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Hypothesis: IV
Factor Analysis
An exploratory factor analysis of 12 reasons for purchasing luxury products:
a) High Quality
b) Best Design & Aesthetic
c) To fit in with Friends
d) Esteem of Brand
e) Follow the Trend
f) Value for Money
g) Brand Name
h) Show Off
i) To differentiate myself from others
j) Want others to view me as an upper class status
k) Envy others with luxury brand products, so I want the same products that they
have
l) Representation of celebrities associates with luxury brand products influence me
into purchasing them
was performed on the data collected from 400 sample size.
Ho: No Sufficient correlation exists among variables.
H1: Sufficient correlations exist among variables.
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The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was 0.812 indicated
that correlation between variables identified were suitable for principal component
analysis (Factor Analysis).
The Bartlett’s test of sphericity was significant P=0.000 indicating sufficient co
relationship between variables.
Table 4.18: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .826
Bartlett's Test of Sphericity Approx. Chi-Square 1809.140
Df 66
Sig. .000
Correlation Matrixa
High
Quality
Best Design
& Aesthetic
To fit in with
friends
Correlation High Quality 1.000 .539 .096
Best Design &
Aesthetic
.539 1.000 .194
To fit in with friends .096 .194 1.000
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Esteem of brand .107 .248 .423
Follow the trend .070 .085 .404
Value for money .049 .140 .300
Brand name -.047 .059 .239
show off .057 -.097 .288
Differentiate myself -.020 .033 .329
Upper class status .024 .047 .535
Envy others .072 -.010 .397
Representation of
celebrity
.081 -.028 .400
Sig. (1-
tailed)
High Quality .000 .027
Best Design &
Aesthetic
.000 .000
To fit in with friends .027 .000
Esteem of brand .016 .000 .000
Follow the trend .081 .044 .000
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Value for money .165 .003 .000
Brand name .174 .121 .000
show off .126 .026 .000
Differentiate myself .346 .255 .000
Upper class status .314 .174 .000
Envy others .077 .424 .000
Representation of
celebrity
.052 .292 .000
a. Determinant = .010
Correlation Matrixa
Esteem of
brand
Follow the
trend
Value for
money
Correlation High Quality .107 .070 .049
Best Design &
Aesthetic
.248 .085 .140
To fit in with friends .423 .404 .300
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Esteem of brand 1.000 .332 .354
Follow the trend .332 1.000 .229
Value for money .354 .229 1.000
Brand name .435 .297 .372
show off .390 .409 .082
Differentiate myself .318 .507 .056
Upper class status .315 .431 .291
Envy others .430 .429 .298
Representation of
celebrity
.308 .415 .133
Sig. (1-
tailed)
High Quality .016 .081 .165
Best Design &
Aesthetic
.000 .044 .003
To fit in with friends .000 .000 .000
Esteem of brand .000 .000
Follow the trend .000 .000
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Value for money .000 .000
Brand name .000 .000 .000
show off .000 .000 .051
Differentiate myself .000 .000 .131
Upper class status .000 .000 .000
Envy others .000 .000 .000
Representation of
celebrity
.000 .000 .004
a. Determinant = .010
Correlation Matrixa
Brand name show off
Differentiate
myself
Upper class
status
Correlation High Quality -.047 .057 -.020 .024
Best Design &
Aesthic
.059 -.097 .033 .047
To fit in with friends .239 .288 .329 .535
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Esteem of brand .435 .390 .318 .315
Follow the trend .297 .409 .507 .431
Value for money .372 .082 .056 .291
Brand name 1.000 .379 .314 .296
show off .379 1.000 .539 .424
Differentiate myself .314 .539 1.000 .417
Upper class status .296 .424 .417 1.000
Envy others .369 .549 .522 .610
Representation of
celebrity
.306 .596 .542 .590
Sig. (1-
tailed)
High Quality .174 .126 .346 .314
Best Design &
Aesthetic
.121 .026 .255 .174
To fit in with friends .000 .000 .000 .000
Esteem of brand .000 .000 .000 .000
Follow the trend .000 .000 .000 .000
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Value for money .000 .051 .131 .000
Brand name .000 .000 .000
show off .000 .000 .000
Differentiate myself .000 .000 .000
Upper class status .000 .000 .000
Envy others .000 .000 .000 .000
Representation of
celebrity
.000 .000 .000 .000
a. Determinant = .010
Correlation Matrixa
Envy others
Representatio
n of celebrity
Correlation High Quality .072 .081
Best Design &
Aesthetic
-.010 -.028
To fit in with friends .397 .400
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Esteem of brand .430 .308
Follow the trend .429 .415
Value for money .298 .133
Brand name .369 .306
show off .549 .596
Differentiate myself .522 .542
Upper class status .610 .590
Envy others 1.000 .701
Representation of
celebrity
.701 1.000
Sig. (1-
tailed)
High Quality .077 .052
Best Design &
Aesthetic
.424 .292
To fit in with friends .000 .000
Esteem of brand .000 .000
Follow the trend .000 .000
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Value for money .000 .004
Brand name .000 .000
show off .000 .000
Differentiate myself .000 .000
Upper class status .000 .000
Envy others .000
Representation of
celebrity
.000
a. Determinant = .010
Communalities
Initial Extraction
High Quality 1.000 .762
Best Design &
Aesthetic
1.000 .781
To fit in with friends 1.000 .462
Esteem of brand 1.000 .556
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Follow the trend 1.000 .451
Value for money 1.000 .706
Brand name 1.000 .537
show off 1.000 .617
Differentiate myself 1.000 .604
Upper class status 1.000 .561
Envy others 1.000 .680
Representation of
celebrity
1.000 .723
Extraction Method: Principal Component
Analysis.
Total variance explained table (4.19)
The total variance explained table shows that three factors have Eigen values >1
cumulatively accounting for 62.01% of variance.
The scree plot which is a graphical representation of Eigen values and factors suggested
three factors to be retained. Although the point of inflection was slightly below the point
of inflection.
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Table 4.19:Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
dim
ensi
on0
1 4.575 38.129 38.129 4.575 38.129 38.129
2 1.670 13.917 52.046 1.670 13.917 52.046
3 1.196 9.965 62.011 1.196 9.965 62.011
4 .878 7.313 69.323
5 .740 6.169 75.492
6 .630 5.251 80.743
7 .522 4.348 85.091
8 .480 3.999 89.090
9 .399 3.326 92.416
10 .351 2.924 95.341
11 .307 2.555 97.896
12 .252 2.104 100.000
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Table 4.19:Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
dim
ensi
on0
1 4.575 38.129 38.129 4.575 38.129 38.129
2 1.670 13.917 52.046 1.670 13.917 52.046
3 1.196 9.965 62.011 1.196 9.965 62.011
4 .878 7.313 69.323
5 .740 6.169 75.492
6 .630 5.251 80.743
7 .522 4.348 85.091
8 .480 3.999 89.090
9 .399 3.326 92.416
10 .351 2.924 95.341
11 .307 2.555 97.896
12 .252 2.104 100.000
Extraction Method: Principal Component Analysis.
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Total Variance Explained
Component Rotation Sums of Squared Loadings
Total % of Variance Cumulative %
dim
ensi
on0
1 3.780 31.496 31.496
2 2.047 17.057 48.553
3 1.615 13.457 62.011
4
5
6
7
8
9
10
11
12
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Total Variance Explained
Component Rotation Sums of Squared Loadings
Total % of Variance Cumulative %
dim
ensi
on0
1 3.780 31.496 31.496
2 2.047 17.057 48.553
3 1.615 13.457 62.011
4
5
6
7
8
9
10
11
12
Extraction Method: Principal Component Analysis.
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Figure 4.7 : Scree Plot
Component Matrixa
Component
1 2 3
Envy others .812
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Representation of
celebrity
.775
Upper class status .746
show off .712
Differentiate myself .696
Follow the trend .667
To fit in with friends .641
Esteem of brand .629
Brand name .566 -.465
Best Design &
Aesthetic
.856
High Quality .730 .466
Value for money .409 -.663
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Component Transformation Matrix
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Component 1 2 3
dim
ensi
on0
1 .868 .487 .103
2 -.291 .328 .899
3 .404 -.810 .426
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
The factor rotation technique used was Varimax. The rotation component matrix was
referred to determine which variable lower down to which factors.
Table 4.20: Rotated Component Matrixa
Component
1 2 3
Representation of
celebrity
.846
show off .777
Differentiate myself .776
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Envy others .770
Upper class status .676
Follow the trend .610
To fit in with friends .441
Value for money .839
Brand name .659
Esteem of brand .627
High Quality .866
Best Design &
Aesthetic
.860
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
From the Rotated Component Matrix (Table 4.20) it can be seen that “Representation of
celebrities associates with luxury brand products” influence me into purchasing them,
“Show Off”, “Envy others with luxury brand products, so I want the same products that
they have”, “To differentiate myself from others”, “Want others to view me as an upper
class status”, “Follow the Trend” have high loadings on factor 1.Thus Factor 1 can be
named as Status Conscious.
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Similarly “To fit in with Friends”, “Esteem of Brand”, “Value for Money”, “Brand
Name” have high loadings on factor 2. Thus Factor 2 can be named as Brand Conscious.
Similarly “High Quality”, “Best Design & Aesthetic” have high loadings on factor 3.
Thus Factor 3 can be named as Quality Conscious.
Conclusion: Based on factor analysis and reasons for purchasing luxury fashion
brand products it can be concluded that a luxury product buyer can be classified as
Status Conscious, Brand Conscious and Quality Conscious.
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CHAPTER-5
FINDINGS AND CONCLUSION
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Chapter 5
Findings and Conclusion
Findings
Based on the 400 questionnaires distributed, the various findings are mentioned below:
The frequency distribution for gender of respondents showed that most respondents in the
survey were men. Most respondents in the survey fall in the age group between 26 and 35
years. Most respondents in the surveyed had an annual income ranging between 13 to 18
lakhs.
In descriptive statistics for variable influencing purchase of luxury products. Respondents
were offered with 12 commonly observed reasons behind purchase of luxury products
and were asked to rate each reason on the basis of importance they attach to these reasons
while purchasing luxury products. The scale used was a 7-point Likert Scale as
mentioned below:-
(Strongly agree =1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially
disagree=6, Strongly disagree=7)
Based on the mean and standard deviation values it can be concluded that High Quality,
Best design and aesthetic and Esteem of brand are the three top reasons for purchasing
luxury products and Show off, Envy others with luxury brand products, so I want the
same products that they have and differentiate myself from others are the bottom three
reasons for purchasing luxury products.
In Friedman Chi square test was conducted to see if there is a difference in the
importance respondents attached to the various reasons to purchase of luxury products.
Respondents were offered with 12 commonly observed reasons behind purchase of
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luxury products and were asked to rate each reason on the basis of importance they attach
to these reasons while purchasing luxury products.
Variables are:
(High Quality, Best Design & Aesthetic , To fit in with Friends, Esteem of Brand ,
Follow the Trend , Value for Money, Brand Name, Show Off , To differentiate myself
from others, Want others to view me as an upper class status, Envy others with luxury
brand products, so I want the same products that they have , Representation of celebrities
associates with luxury brand products influence me into purchasing them)
Therefore it is found that there is significant difference in the importance respondents
attached to reasons for purchase of Luxury Products.
Out of the 400 respondents surveyed it is clear that people buy luxury products
sometimes. Based on the Friedman Test it is concluded that there is significant difference
in the importance respondents attached to reasons for purchase of Luxury Products.
One interesting finding is that from the mean ranks table it can be seen that High Quality,
Best design and esteem of brand are the top three reasons for purchase of Luxury
products and show off, envy others with luxury brand products, so I want the same
products that they have and Representation of celebrities associates with luxury brand
products influence me into purchasing them are the bottom three reasons for purchasing
luxury products.
From the Source of Information for purchasing luxury products it can be seen that Online
Adds and Television are the top two sources of information for purchase of Luxury
products. An interesting observation can be seen that Media is the top most influencer for
purchase of Luxury product.
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From the table11 we found that Influencers influence for purchasing luxury products it
can be seen that Media is the top most influencer for purchase of Luxury products and
Colleague is the bottom influencer for purchasing luxury products.
From the Purchase Occasions table for purchasing luxury products it can be seen that
people purchase luxury products at any point of time is the top most reason and Special
Offer is the bottom reason for purchasing luxury products.
Among all brand variables it can be seen that Brand Trust is the top most brand variable
drives you for purchase of Luxury products. Related to occasion it is found that
consumers buy luxury products at any point of time.
Regarding Rational and Emotional Variables, it can be seen that respondents purchase
luxury fashion brand products rationally. Respondents answered on how they felt when
they bought luxury products, some of the answers are as Good Quality, Felt Happy after
purchasing luxury products, felt a brand name is attached to you on which you can trust,
felt better, felt awesome, felt like my standard is raised, look like an upper class status,
felt better in the society, it makes me feel comfort and the quality we get help us to buy
more products, luxury brands gives an overall satisfaction.
From the Chi-square test it is concluded that there is relationship between income of
respondents and purchase of Luxury Fashion Brand Products, higher income group
people buy luxury fashion brand products. It is concluded that there is no relationship
between gender of respondents and purchase of Luxury Fashion Brand Products.
From the Rotated Component Matrix it can be seen that “Representation of celebrities
associates with luxury brand products” influence me into purchasing them, “Show Off”,
“Envy others with luxury brand products, so I want the same products that they have”,
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“To differentiate myself from others”, “Want others to view me as an upper class status”,
“Follow the Trend” have high loadings on factor 1.Thus Factor 1 can be named as Status
Conscious.
Similarly “To fit in with Friends”, “Esteem of Brand”, “Value for Money”, “Brand
Name” have high loadings on factor 2. Thus Factor 2 can be named as Brand Conscious.
Similarly “High Quality”, “Best Design & Aesthetic” have high loadings on factor 3.
Thus Factor 3 can be named as Quality Conscious.
Final from the data analysis and factor analysis it was concluded that reasons for
purchasing luxury products it can be seen that High Quality, Best design and value for
money are the top three reasons for purchase of Luxury products and show off, envy
others with luxury brand products, so I want the same products that they have and
Representation of celebrities associates with luxury brand products influence me into
purchasing them are the bottom three reasons for purchasing luxury products and a
luxury product buyer can be classified as Status Conscious, Brand Conscious and Quality
Conscious.
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Conclusion
Based on the findings a number of conclusions are generated as follow:
From the study it is clear that higher income group people buy luxury fashion brand
products. Based on the results it is concluded that High Quality, Best design and aesthetic
and esteem of brand are the top three reasons for purchase of Luxury products and show
off, envy others with luxury brand products, so I want the same products that they have
and Representation of celebrities associates with luxury brand products influence me into
purchasing them are the bottom three reasons for purchasing luxury products.
From the study it is concluded that Media is the top most influencer for purchase of
Luxury products and Brand Trust is the top most brand variable drives customer for
purchase of Luxury products and Online Adds is the top most Source of Information for
purchasing luxury products. People generally go for online survey to buy luxury
products.
Based on the Friedman Test it is concluded that there is significant difference in the
importance respondents attached to reasons for purchase of Luxury Products.
Regarding Rational and Emotional Variables, it can be concluded that respondents
purchase luxury fashion brand products rationally. Respondents answered on how they
felt when they bought luxury products, some of the answers are as Good Quality, Felt
Happy after purchasing luxury products, felt a brand name is attached to you on which
you can trust, felt better, felt awesome, felt like my standard is raised, look like an upper
class status, felt better in the society, it makes me feel comfort and the quality we get help
us to buy more products, luxury brands gives an overall satisfaction.
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It is also concluded that there is no relationship between gender of respondents and
purchase of Luxury Fashion Brand Products.
In summary, it was concluded that reasons for purchasing luxury products it can be seen
that High Quality, Best design and value for money are the top three reasons for purchase
of Luxury products and show off, envy others with luxury brand products, so I want the
same products that they have and Representation of celebrities associates with luxury
brand products influence me into purchasing them are the bottom three reasons for
purchasing luxury products and a luxury product buyer can be classified as Status
Conscious, Brand Conscious and Quality Conscious.
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CHAPTER-6SUGGESTIONS AND RECOMMENDATIONS
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Chapter 6
Suggestions and Recommendations
It is considered a priority for marketers to know the reasons behind the purchasing
intentions of consumers towards luxury fashion products.
From this study it is clear that consumer purchase luxury products due to its high quality
and best design. Research has also indicated that consumers consider quality as a high
priority when purchasing luxury brand products. Marketers could use this finding towards
improving products. Products that show more quality could be beneficial to consumers.
Marketers should also design such strategies so that consumers also consider other
variables as shown in this study for purchasing luxury products.
Another interesting discovery that has been found in this research is that the majority of
consumers purchase luxury brand products to fit in with friends. Marketers should
consider the idea of identifying which luxury products has been consumed the most by
consumers, which will then be able to accumulate other consumers alike into purchase
similar products.
Marketers should also note that, the use of the media has a mass influence on consumers,
so they should give more advertisement on Television and put some more pop ups on
Face book regarding luxury products for maximum efficiency in attracting consumers.
Research has also indicated that consumers have their high trust on Brands. Marketers
could use this finding and make the consumer more comfortable and build the brand
Loyalty towards luxury fashion brand products.
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CHAPTER-7
ANNEXURE
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APPENDIX-1
BIBLIOGRAPHY
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Questionnaire
A Study on Purchase Intentions of Consumers towards Selected Luxury Fashion Products
with special reference to Pune Region.
I’m Rimpy Goyal, Student of D.Y.Patil University studying M.Phil. in department of
Business Management. This questionnaire is about fashion luxury products in your mind,
Luxury can be defined as “something adding to pleasure or comfort but not absolutely
necessary; an indulgence in something that provides pleasure, satisfaction, or ease”
(Merriam Webster Dictionary 2004). Luxury can be in forms of Watches (Armani,
Kenneth Cole, Rolex, Rado Tag-Heuer, Tissot etc.), Bags (Louis Vuitton, Coach, Gucci,
Prada, etc.), Mobile Phone (Apple, Nexus, Samsung, Sony, etc.), and Perfumes (Chanel,
Victoria secret, Bvlgari, Ferrari & Hugo Boss etc.). If you have purchased products that
have been included above, Please answer all questions as completely as possible, as each
one will contribute to the final analysis.
The information used by me in this study will be highly confidential and used only for
statistical purpose and it will not be disclosed anywhere.
Name: Rimpy Goyal Contact: Email ID:
Address:
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1. Gender Male Female
2. Age (in Years) Less than 25 26 – 35 36 – 45 Above 45
3. Income (in lakhs) Less than 5 6 – 12 13 – 18 Above 18
4. Do you buy luxury fashion branded products, such as Versace, Armani, Gucci, Chanel, Prada, Calvin Klein, Hugo Boss, Christian Dior, Ralph Lauren, Hermes, Giorgio Armani, DKNY, Tommy Hilfiger, Louis Vuitton, Escada, Givenchy, Elizabeth Arden, Diesel, Benetton, Guess, Coach, etc.? Yes No
5. Do you possess any luxury good? Yes No
6. How often do you purchase luxury brand products? Often Sometimes Seldom
7. Reasons for buying purchase luxury products (You are required to rate each of the following statements on a scale arranging from 1 to 7 where 1 indicates Strongly agree and 7 indicates strongly disagree and 4 indicates that you are Neither agree nor disagree)?
Strongly Partially Agree Neutral Disagree Partially Strongly
Agree Agree Disagree Disagree
High Quality
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Best Design & Aesthetic
To fit in with Friends
Esteem of Brand
Follow the Trend
Value for Money
Brand Name
Show Off
To differentiate myself From others
Want others to view me As an upper class status
Envy others with luxury Brand products, so I want The same products that They haveRepresentation of celebrities Associates with luxury brand Products influence me into Purchasing them
8. Reasons for buying purchase luxury products High Quality Best Design &
Aesthetic To fit in with
Friends Esteem of Brand
Follow the Trend Value for Money Brand Name Show Off
To differentiate myself from others
Want others to view me as an upper class status
Envy others with luxury brand products, so I want the same products that they have
Representation of celebrities associates with luxury brand products influence me into purchasing them
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9. What is the source of information about luxury fashion products for you? Television Online Adds Facebook/Twitter Newspaper
Fashion Magazine
Friends Videos Others__________
10. Name the factor which influenced you in the purchase of luxury fashion products? Friend influence
on me to make purchase
Ask a relative for advice
Ask Colleague/mates for advice
Media significantly influence me to make purchase
No influence
11. While purchasing luxury fashion products, which Brand Variable drives you most to purchase Core Brand
Images Brand Attitude Brand
Attachment Brand trust
Brand Loyalty
12. When do you prefer the most to buy luxury fashion products? Festive Offers Seasonal Offers Special Day Offers At any point of
time
13. What are the ways through which you buy luxury fashion products (rational variables)? You Compare
the feature with other Brand
Comparison of Price
You do Online Survey
Search local shops to get best deals
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OR
What are the ways through which you buy luxury fashion products (Emotional variables)? You do not
bother to compare its features & price with other Brand
You purchased the product from your known ones
You buy the products bcoz your family liked it, irrespective of all other reasons
What do you feel when buying luxury fashion brands? Why?
Thank you very much for taking the time to complete this survey. Your feedback is valued and very much appreciated!
