Measuring Consumers’ Luxury Value Perception: a Cross-Cultural Framework

Topics: Luxury good Pages: 39 (13208 words) Published: August 27, 2010
Wiedmann, Hennigs, Siebels / Measuring Consumers‘ Luxury Value Perception: A Cross-Cultural Framework

Measuring Consumers’ Luxury Value Perception: A Cross-Cultural Framework Klaus-Peter Wiedmann Institute of Marketing and Management Leibniz University of Hanover Nadine Hennigs Institute of Marketing and Management Leibniz University of Hanover Astrid Siebels Institute of Marketing and Management Leibniz University of Hanover Klaus-Peter Wiedmann is Chair of the Marketing Department and a Professor of Marketing, Nadine Hennigs and Astrid Siebels are Research Assistants at the Institute of Marketing and Management, Leibniz University of Hanover, Germany. Correspondence concerning this article should be addressed to Professor Klaus-Peter Wiedmann, Institute of Marketing and Management, Leibniz University of Hanover, Koenigsworther Platz 1, 30167 Hanover, Germany, Phone (+49) 511 762 4862, Fax (+49) 511 762 3142, Email: wiedmann@m2.uni-hannover.de. The authors would like to express their gratitude for the thorough, helpful, and encouraging comments of the Special Issue Editor, John B. Ford, and the anonymous reviewers. This article is part of a special issue on ―CrossCultural Issues in Marketing Research‖ edited by John B. Ford.

EXECUTIVE SUMMARY In view of the dynamic growth in the luxury market and the availability of luxury goods to a wider range of consumers than ever before, the luxury market has transformed from its traditional conspicuous consumption model to a new experiential luxury sensibility marked by a change in the way consumers define luxury. In a global context, it is critically important for luxury researchers and marketers to understand why consumers buy luxury, what they believe luxury is and how their perception of luxury value impacts their buying behavior. The main contribution of the present paper is to develop an integrated conceptual framework of consumers‘ luxury value perception for researchers and marketers of luxury goods who may wish to measure the dimensions of individual luxury perception as a general basis for marketing strategies to improve purchase value for different segments of consumers that span the globe. The model illustrates that individual and social as well as financial and functional dimensions significantly impact the consumer‘s luxury value perception and consumption on an international level. As luxury is a subjective and multidimensional construct, a definition of the luxury concept should follow an integrative understanding. For our purposes, we define luxury as the highest level of prestigious brands encompassing several physical and psychological values. To explain consumers‘ behavior in relation to luxury brands, apart from interpersonal aspects like snobbery and conspicuousness, personal aspects such as hedonist and perfectionist motives as well as situational conditions (e.g., economic, societal, and political factors) have to be taken into consideration. The consumption of luxury goods involves purchasing a product that represents value to both the individual and their reference group. Referring to personal and interpersonal oriented perceptions of luxury, it is expected that different sets of consumers would have different perceptions of the luxury value for the same brands, and that the overall luxury value of a brand would integrate these perceptions from different perspectives. Even if the overall luxury value level of a certain product or brand may be perceived equally across national borders, a differentiated measurement may reveal that the overall luxury Academy of Marketing Science Review volume 2007 no. 7 Available: http://www.amsreview.org/articles/wiedmann07-2007.pdf Copyright © 2007 – Academy of Marketing Science.

Wiedmann, Hennigs, Siebels / Measuring Consumers‘ Luxury Value Perception: A Cross-Cultural Framework

value perception is a combination of different evaluations with regard to the sub-dimensions. Furthermore, this differentiated...
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