Executive summary of “Conceptualizing luxury buying behavior: the Indian perspective”

Citation

(2015), "Executive summary of “Conceptualizing luxury buying behavior: the Indian perspective”", Journal of Product & Brand Management, Vol. 24 No. 3. https://doi.org/10.1108/JPBM-05-2015-847

Executive summary of “Conceptualizing luxury buying behavior: the Indian perspective”

Article Type: Executive summary and implications for managers and executives From: Journal of Product & Brand Management, Volume 24, Issue 3

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.

Luxury consumption was for long enough the sole privilege of society’s elite. Now it is on the radar of many ordinary people, and spending on luxury brands worldwide has increased significantly. Markets for such offerings have emerged in several Asian countries, and strong growth is reported in China and India. Research to date has largely adopted a practitioner-oriented approach to the study of luxury. But the fact that meanings and perceptions of luxury could be subject to cross-cultural differences makes it imperative that greater awareness of the consumer view is obtained.

Scholars routinely believed that luxury consumption was a means for “conspicuous consumers” to flaunt their wealth. It has similarly been associated with, for example, lavishness, splendor and profligacy. Creating a desired social image and gaining social acceptance are other often-quoted motivations.

Some analysts contend that alterations in consumer traits have given rise to greater emphasis on comfort and enjoyment. Luxury items permit individuals to experience positive feelings obtained through self-indulgent behavior. Lifestyle and hedonism are among the drivers of luxury consumption, which is now linked to the attainment of “functional, financial, personal, and social needs”.

Marketers have created an image of luxury brands in consumer minds that encompasses quality, uniqueness, aesthetics, rarity and high price. In addition to the prestige and status such brands convey, various benefits within the functional, symbolic and experiential dimensions are proffered. It is generally accepted that sustained success in the luxury brand category demands constantly high performance on the key dimensions.

Private consumption is the societal norm in Western nations, whereas collectivist cultures in the East are more oriented toward public consumption. Such tendencies imply the existence of conceptual differences and prompt beliefs that it may be erroneous to assume the existence of a “global luxury consumer”. Support for this is provided by different studies which found cross-nation similarities for some aspects of luxury but not for others.

Research has established that individual tastes and preferences can also impact on luxury consumption. Personality and other internal stimuli are often significant along with external impetuses such as marketing. Influence from peers and other significant referents has likewise been noted. Gender is another factor known to influence purchases of luxury goods, and recognized differences in the processing styles of males and females are assumed to partly explain this.

The relationship between high price and luxury brands has been examined, and a marketing focus on premium price can induce possession to be a primary consumption motive. In some categories, marketers who emphasize product-related features like quality and design have similarly influenced consumption.

Luxury consumption among Asian consumers has thus far attracted only minimal academic attention. Different studies have found desire for social acceptance, status-seeking and material possession as motivating factors. Brand popularity, personal values and symbolic meaning also influenced the behavior of some individuals. Given the paucity of research, Roy et al. examine the perceptions, motivations and purchase of luxury brands in India.

Cultural diversity prompted India’s use as study context, as did the unique blend of global and traditional consumption patterns. The country’s potential as a luxury market and the different socio-economic structures in Indian cities further justified the choice.

To elicit consumer views, focus group discussions were considered the best approach. These subsequently took place in two metro cities and two non-metro cities to ensure a diverse representation in terms of luxury market development. As the study focused on apparel and accessories, participants aged 18-30 years who typically aspire toward luxury brands were recruited.

Discussions explored a variety of perspectives, issues and concerns associated with luxury and the purchase of luxury brands. In many instances, responses were subject to vary by gender and city of residence both within and between metro and non-metro locations.

Analysis revealed that luxury means different things to different people. It was variously connected with quality, elegance and style, whereas others value, for example, aesthetics and exclusivity. For some respondents, luxury brands were once restricted to special occasions but are now purchased more frequently. Some people indicated a live for the moment mentality, whereas others were willing to save to buy a luxury product. Awareness evidently drives consumption, and social media platforms play a major part.

Motivations to use luxury brands were equally varied. Self-expression, social identity and status were revealed as important antecedents. The hedonic aspect appealed to some, whereas conspicuous consumption was also a driving force. From the vocabulary used, Roy et al. suggest that a shift is taking place that sees Indian consumers of luxury brands focusing more on themselves as an individual rather than the social-self normally more pronounced in collectivist nations. Functional reasons inspired the purchase behavior in certain cases, whereas others indicated different reasons such as attracting the opposite sex. Impulse buying as a consequence of peer pressure was also reported. In addition, the desire to become associated with an elite social group or a celebrity influenced purchase behavior on occasions. Another key behavioral antecedent is how luxury is perceived. In this respect, consideration of the symbolic and experiential value of a luxury item was relevant.

When shopping, females are more independent and typically consider a wider range of choices. Males are by comparison more focused and brand loyal according to some responses. Roy et al. partly attribute this to gender differences regarding associations and perceptions.

Facebook and Twitter are routinely used by consumers to seek information about potential purchases. Subjects also reported certain obstacles for obtaining luxury fashion brands. Price, availability of brands and inexperience were among those most commonly cited. In the authors’ opinion, language and cultural diversity add to the problem. Such hurdles are seen as a new phenomenon and are possibly exclusive to developing nations. Existing knowledge influenced consideration of alternatives, with the more informed consumer usually spending less time searching once in a store. Advice from retail staff was valued in some cases. Discounts were considered a “bonus” rather than a factor that would influence the decision-making of some. To others, price is more significant. Perceived quality rather than actual quality often determined the choice eventually made. Purchase was widely seen as an “achievement” and many subjects reported positive feelings during consumption. This prompted favorable word-of-mouth recommendations, although subsequent behavioral loyalty was less evident.

Practitioners interviewed for the survey expressed many similar observations but commented on impediments to growing luxury brands in India. These include economic and infrastructural issues such as the monetary exchange rate and slow growth of shopping malls. Availability and fluctuating demand in smaller cities also concerns them. On a more positive note, the growing spending power of Indian consumers, awareness of luxury brands among adolescents and the influence of social media are all seen as growth stimulants.

The authors feel this work confirms that the Indian market should not be considered in its entirety. Marketers instead need to focus on gender, geographical and cultural nuances. Given the hurdles previously identified and the explosion of social media usage, they recommend efficient online marketing as a viable option. However, awareness of different consumer motives can help ascertain the most ideal communication strategies. Measures are needed to increase loyalty and address the willingness to buy counterfeit brands that some respondents indicated.

Additional research could be carried out in other developing nations and consider other luxury product categories.

To read the full article enter 10.1108/JPBM-07-2014-0655 into your search engine.

(A précis of the article “Conceptualizing luxury buying behavior: the Indian perspective”. Supplied by Marketing Consultants for Emerald.)