The effect of vertical individualism on luxury purchase intentions: the moderating role of brand image
Date
2020
Authors
Zici, Ayanda
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Abstract
The consumption of luxury brands has grown significantly in emerging markets, particularly in Africa. These developments have resulted in marketers seeking to investigate the factors that influence purchase intentions for luxury brands, in order to develop brand communication strategies that will resonate with consumers and increase brand loyalty. There is, however, a lack of academic research in developing markets, such as South Africa, that reveal how individual consumer factors, like personal and social orientations, interact with each other to influence purchase intentions for luxury brands.
The purpose of this study was to examine the relationship between vertical individualism and luxury purchase intentions. The study also examined the mediation effects of self-enhancement, materialism, value-expressive attitudes and symbolic benefits of brand image. The moderation effect of brand image was examined on value-expressive attitudes.
An online survey questionnaire was conducted. 253 responses were obtained through voluntary sampling. Data was analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM) on Mplus.
The results showed that vertical individualism does have a positive relationship with self-enhancement and materialism values. These values were found to have a positive influence on value-expressive attitudes. Materialism was shown to have a significant relationship with symbolic benefits of brand image. Brand image and value-expressive attitudes were shown to have a positive relationship with luxury purchase intentions. Brand image was found to have a moderation effect on value-expressive attitudes. It was recommended that future studies test the conceptual model in other emerging markets wherein luxury brand consumption is expected to rise in the foreseeable future, and include other variables.
Description
A research report submitted in fulfilment of the requirements for the degree of Master of Management in the field of Strategic Marketing to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2020
Keywords
Emerging market, Vertical individualism, Self-enhancement, Materialism, Value-expressive attitudes, Brand image, Luxury brands, Purchase intentions, South Africa