Purpose – This study aims to investigate the effect of perceived values & quality, status seeking, emotional attachment and visual merchandising on young affluent towards the purchase intention of luxury bags
Design/methodology/approach – Hypotheses were tested with a random sampling (students who use luxury bags) of 297 university students using distribution of survey forms. Structural equation modeling was used to test the hypotheses.
Findings – The results revealed that young affluent purchase intention and consumption towards luxury bags could be influence by factors such as perceived values & quality, status seeking, emotional attachment and peer influences.
Research limitations/implications – This research is limited by several variables that might be important to the purchase intention of young affluent but were not taken into account.
Originality/value – Many luxury bags are available in Malaysia. However, only several paper are conducted on this field. This paper contributes to the field by presenting several stimuli variables as the influence of purchase intention.
Keywords – Luxury bags, luxury products, perceived value, visual merchandising, Social status, social influences, purchase intention, young consumers
Paper type - Research paper
For centuries, human beings have been satisfied themselves with the possession of luxury goods (Husic and Cicic, 2009). According to Nueno and Quelch (1998), luxury was applied to products that were rare and scarce which were only presented to minor people. However, follow by the time changed, luxury products have been more affordable for young affluent (Sriviroj, 2007). Young affluent can be describes as generation Y that are born in the year of 1977 to 1994 and generation Y consumers can be considered as the wealthiest group of people (Horovitz, 2002). Hence, Vatikiotis (1996) stated that generation Y consumer which is young affluent considered as wealthy and they are willing to spend more money on something that can differentiate themselves from other such as luxury products. Therefore, young affluent will play an increasingly important role in the future target market for luxury marketers over the years (Danziger, 2004).
The research of Nueno, et al (1998) highlighted that the global expansion of luxury products has been largely related to the rising wealth in the emerging market of Asia. Statistic shows that the demand for luxury goods and services in Asia could grow by 12% yearly to reach a total of USD258.7 billion in 2016 reflecting the region’s rising affluence (Euromonitor, 2007). The objective of this research is to examine on the relationship between factors that influence young affluent purchase intention towards luxury bags. This research is structured around three main parts. First, main attributes that influence the purchase intention of young affluent on luxury products will be present. Then, second part will focus on results that obtained from qualitative survey undertaken within the university in Klang Valley region. Finally, we will conclude on the main contributions of this research and on the future research that could be undertaken.
Relationship between perceived value and purchase intention on luxury bags.
In context, the concept of perceived value gained its importance and wide popularity in the business environment because its result on consumer purchases intention and providing strategic implications for marketers (Al-Sabbahy, Ekinci and Riley, 2010). Thaler (1985) considered that perceived value is an important antecedent to influence consumer purchase intention because it is the composition of transaction utility and acquisition utility. Perceived value includes quality, whereby quality value can be defined as the consumer’s judgment about a product’s overall excellence or superiority such as performance and durability (Zeithaml, 1988; Ergin and Akbay, 2010)....