The Relationships Among Materialism, Luxury Consumption and Social Value

Topics: Luxury good, Factor analysis, Sociology Pages: 12 (2780 words) Published: November 6, 2011
THE RELATIONSHIPS AMONG MATERIALISM, LUXURY CONSUMPTION AND SOCIAL VALUE

Ming-Cheng Lai,
Graduate Institute of Business Administration, National Taipei College of Business No.321, Sec. 1, Jinan Rd., ZhongZheng District, Taipei City 100, Taiwan (R.O.C.) laimc@mail.ntcb.edu.tw

Yi-Fan Hsieh,
Department of Business Administration, National Taipei College of Business, No.321, Sec. 1, Jinan Rd., ZhongZheng District, Taipei City 100, Taiwan (R.O.C.) misa1202@gmail.com

Yu-Chen Chu,
Graduate Institute of Business Administration, National Taipei College of Business, No.321, Sec. 1, Jinan Rd., ZhongZheng District, Taipei City 100, Taiwan (R.O.C.) chu.yj@msa.hinet.net

ABSTRACT
Buying the luxury goods in the past often was the patents of famous persons in the ethnicity of top of the pyramid. But with the formation of emerging market, extension of luxury product market and the changes of consumer behaviors, luxury goods industry take a important role in global economics. Literature suggested an individual’s level of materialism influences the attributes they seek and consequently their consumption behaviors. This study decomposes the luxury consumption of status consumption and conspicuous consumption. Little research, however, has taken into account the relationship between status consumption and conspicuous consumption and how such it affect the social value of consumer. It is the aim of this study to discuss the relationships among materialism, luxury consumption and social value. This study focuses on consumers had bought luxury goods, but what luxury goods point to 38 luxury brands collected. Interceptions at various mall locations in Taipei were used as the survey method for the main study. Keyword: Materialism, Luxury Consumption, Social Value

INTRODUCTION
As previously communist countries turn to capitalism and as former third world economies become more affluent, demand for luxury and conspicuously consumed products is increasing. With the formation of emerging market, extension of luxury product market and the change of consumer behavior, luxury goods industry take an important role in global economics. In the past, purchasing the luxury goods will be seen to a kind of extravagant wasted consumption behavior. However, along with the change of the social values and the consumption value, the psychological state of purchasing luxury goods also changes gradually. Behavior of buying luxury goods calls it as "luxury consumption". In addition, the luxury products not only can inspire consumer but also can be a kind of investment. Previous studies of luxury consumption show slightly shortage and existing studies mostly discuss status or conspicuous consumption. Little research, however, has taken into account the relationship between status consumption and conspicuous consumption. In addition, the reason and outcome that cause the consumption are worth to discuss. In this study, we combine status consumption and conspicuous consumption into luxury consumption as well as consider social value is the outcome variable of luxury consumption. Hence, we discuss luxury consumption whether can raise the social value of consumer through the outcome variable.

LITERATURE REVIEW
Materialism

The terms “materialism” and “materialistic” are used freely in ordinary conversation and by writers, frequently without definition. Materialism originally referred to the philosophical notion that nothing exists except matter and its movements (e.g., Labnge1865;1925). The concept of materialism suggests the possessions and money are to personal happiness and social progress (Moshis and Churchill, 1978). Belk (1985) argues that materialism can be thought of as a cluster of related traits, attitudes, and values focusing on possessions and guiding the selection of events and things. In popular usage materialism more often refers to a “devotion to material needs and desires, to the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • working relationships health and social care Essay
  • Essay on social values
  • Consumption Creates New Social Divisions Essay
  • Essay on Social Relationships
  • Is There a Relationship Between Consumption and Identity? Essay
  • Essay on Materialism
  • Change in Family Relationships and Values Essay
  • Paradoxes and strategies of social media consumption among adolescents Essay

Become a StudyMode Member

Sign Up - It's Free