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The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption

Stathopoulou, A. and Balabanis, G. (2019). The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption. Journal of Business Research, 102, pp. 298-312. doi: 10.1016/j.jbusres.2019.02.053

Abstract

This paper investigates the effect of Schwartz's (1992) four cultural value orientations on the values consumers ascribe to luxury products. In response to well-documented criticisms of assessing cultural values as aggregates measured at the nation level, this study examines the effects of value orientation measured at the individual level. Using survey data from U.S. consumers, the study shows that cultural values influence consumers' perceptions of the usability, uniqueness, quality, and social luxury values. Self-enhancement and social luxury values are the key drivers of consumers' proclivity for luxury consumption. A post hoc analysis reveals four luxury consumers groups: “unconcerned,” “functionalists,” “moderately-eager,” and “luxury-enthusiasts.” People with high self-enhancement and self-transcendence values are more likely to be luxury-enthusiasts, whereas functionalists and unconcerned share similar cultural value profiles. Luxury-enthusiasts have the highest proclivity for luxury consumption, followed by moderates and functionalists. These findings have marketing implications for segmenting luxury customers in a cross-cultural setting.

Publication Type: Article
Additional Information: © Elsevier 2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: Value orientations, Luxury values, Proclivity for luxury, Luxury consumption
Subjects: H Social Sciences > HD Industries. Land use. Labor
Departments: Cass Business School > Management
URI: https://openaccess.city.ac.uk/id/eprint/23526
[img] Text - Accepted Version
This document is not freely accessible until 6 September 2020 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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