IMPACT OF CONSUMER PERCEPTION ON PURCHASE INTENTION OF LUXURY PRODUCTSS. Balakumaran 1 1 Department of
Business Administration, Annamalai University, Annamalainagar, India
2 Department of
Business Administration, Kamarajar Government Arts College, Surandai,
Tamilnadu, India
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Received 21 July 2021 Accepted 07 August 2021 Published 30 September2021 Corresponding Author S.
Balakumaran, assistantprofessor.au@gmail.com DOI 10.29121/granthaalayah.v9.i9.2021.4149 Funding:
This
research received no specific grant from any funding agency in the public, commercial,
or not-for-profit sectors. Copyright:
© 2021
The Author(s). This is an open access article distributed under the terms of
the Creative Commons Attribution License, which permits unrestricted use, distribution,
and reproduction in any medium, provided the original author and source are
credited. |
ABSTRACT |
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Though
the current era has seen a huge extent of recession, due to the Covid 19
issue. But, the consumption of luxury products is seen to be remaining
unchanged, even after the recession period. The concept of luxury can be seen
in every place. It is the term which is commonly used by the individuals in
their daily life. Luxury is the dream of every person for leading an
exclusive lifestyle. It is the main element in the field of marketing
management and also is a tagline in the campaigns of advertising and
commercials. The study is done to examine the effect of consumer perception
on the purchase intention of the luxury products. The respondents of the
study are the consumers of luxury products residing at Chennai and they are
selected through simple random sampling. The collection of data needed for
the study is carried out using a questionnaire and the analysis is done by
executing regression. The results of analysis show that the purchase
intention was highly influenced by the consumer perception. |
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Keywords: Consumer
Perception, Luxury Products, Purchase Intention 1. INTRODUCTION One of the main
constructs examined and analysed in the literature for marketing is the
purchase intention. The scholars doing research in marketing regarding
purchase intention evolve their research background from its connection with
the buying behaviour. The term purchase intention refers to the implied
promise made to one self for buying the things again and again when they go
to the market. This research has been
regarding the influence of consumer perception on the purchase of luxury
products. In this context, it becomes essential to analyse the behaviour of
the individuals regarding the purchase of products which are of luxury brand.
In countries like India, the social classes are categorized into rich and
poor, upper and higher and so on. Regarding these disparities in the social
classes, the purchase and consumption of the luxury products are done only by
the elite classes. The luxury products marked its evolution in the 19th
century, when many of the companies started the production of luxury
products. Some brands of luxury products include Bylgari of Italy, Louis and
Vuitton of France etc. The luxury products sector
has undergone massive changes in the last decade. The luxury products are
selected by all the classes of society. The consumption pattern depends upon
the perception of the consumers regarding the brand |
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name, brand image, product quality, manufacturer’s reputation and so on, regarding the luxury products. Hence, it is essential for the producers of the luxury brand products to consider the perception of the consumers while offering the luxury product in the market, in order to boost up their reputation, which in turn, would help to increase their sales.
2. STATEMENT OF PROBLEM
The current trend of consumption of the luxury products has
changed to a great extent, due to the changes in the preference pattern of the
consumers. Luxury products are regarded to be an indicator of modern and
exclusive life style. But, still there are consumers who pay attention to their
perception regarding the products before making a purchase. They tend to pay
attention to the price, quality, reputation and so on before they actually buy
the product. However, there are also still some companies which do not give
preference to all these factors.
3. NEED FOR
THE STUDY
The need for the study arises, when the companies producing
luxury products, wish to understand better the perceptions of the consumers
before purchasing the product. This study will be helpful for the marketing
managers who desire to frame the strategies for the increased sales of their
luxury products. It will help them to understand better the factors which the
consumers perceive for the purchase of luxury items.
4. OBJECTIVES
The intention with which this research study has been
undertaken is to identify the effect of consumer perception on the purchase
intention of luxury products of the individuals.
5. REVIEW OF
LITERATURE
Aggrawal and Manjrekar (2010) explored the effect of
consumer perception on the buying behaviour of individuals with reference to
the purchase of products of luxury in the retail sector for apparels. The study
was done only in certain cities in India. The perception of the consumers regarding
apparels can be considered as the outcomes of the changes in tastes and
preferences and the cultural elements which the consumers consider. The major
challenge for the marketing personnel is to understand the relation between the
brands and the consumers, in particular, the features like materialism which is
a strong driving force for the acquisition and consumption of particular brand
products. The authors of this research study had examined the relation of
consumer features like gender, materialistic level and nation of origin with
the perception of brand. The consumers perceive that brands give them emotional
(prestige, wealth, status) and utilitarian (low price, quality) advantages.
This perception regarding the brand had got to affect the purchase intention of
the consumers regarding the brand.
Joya et al. (2014) had done a study
regarding the art world. They had examined the perception of the consumers
regarding the way in which the stores of luxury brand became art institutions.
The authors had done an ethnographic research regarding the perceptions of
consumers regarding the flagship stores of Louis Vuitton and revealed that the
stores for luxury products had turned out into hybrid institutions, which
comprised of museums and art galleries. They had coined the word “M(Art)World”
for capturing the crux of this artistical oriented strategy. The respondents
considered the elegant architecture of the firm, lighting design and interior
design. The merchandize of the store is artisanal, which is produced in
association with the artists. The products meant for sale were kept at the side
of the art, which gave importance for both the products and the art. The
workers of the company acted as curators and gave knowledge and guidance and
also products to the consumers for selling the products. The authors had
analysed the ways in which the consumers of luxury products experience and assess
the manner of operation of the luxury stores as a fashionable art institution.
Chattalas and Shukla (2015) examined the
effect of value perceptions regarding the purchase intention of luxury
products. The study was a comparison made amidst the developed markets. The
subjective value for any product is made on the bases of the perceptions made
by the consumers. The authors had made this study to analyse such effects of value
perceptions on the purchase intention of luxury products. The study was done in
two largest markets of luxury products; USA ad UK. The design of the study was
cross-sectional. Data needed for the study was collected through a survey and
analysis was carried out through SEM. The outcomes showed that, in both the
nations, the perceptions regarding functional value influenced the purchase
intention of luxury products. The consumers in US gave more importance to
social value of the product and personal value of the product was given more
significance by the consumers in UK. The results provide managers opportunities
for strategic differentiation and brand positioning of their luxury brand in a
cross-national context. The findings demonstrate that while the USA and the UK
remain fairly similar on most macro cultural traits, consumer value perceptions
differ significantly. Hence, a cautionary approach is advised in making
generalised assumptions using national-level cultural indicators at
consumer-level decision making.
AyselErcis and Celik (2018) studied the effect of the perceptions of value on the purchase intentions of luxury products with the role of consumer knowledge as the moderator. The aim of this study was to identify the effect of consumer’s perception regarding value on their purchase intention of luxury products and also the way in which the consumer knowledge moderated the relation of consumer’s perception of values with the purchase intention of luxury products. Data collection was done using a survey and the sample size was 271. The respondents were the consumers of Bursa. The analysis of the data was done by executing SEM. The findings of analysis showed that perceptions of functional, personal and social values influenced the purchase intentions of luxury products by the consumers. The study also revealed the role played by the consumer knowledge as a moderator in the relation of functional and personal value perceptions and purchase intentions of luxury products. But, there was no moderation of consumer knowledge on the relation of social value with the purchase intention of luxury products.
Salehzadeh and Pool (2016) examined the
perceived value and brand attitude and the purchase intention of the consumers
regarding the luxury products of global brands. The aim of this paper was to
investigate the way perceived value and brand attitude affected the purchase
intention of the consumers regarding luxury products of global brands. After
reviewing the literatures regarding the consumer behaviour, The authors had
tested the relation amidst brand attitude, perceived value and the purchase
intentions. The relation amidst the study variables was done by
performing SEM analysis. The findings of the study revealed that the perceived
value along with its dimensions were influenced positively by brand attitude.
Additionally, the perceived values made by the consumers were found to be the
antecedents of the consumer’s purchase intention. The study was done in the
context of a luxury firm of Iran.
6. RESEARCH METHODOLOGY
The
study is performed to explore the effect of perceptions made by the consumers
on the purchase of the luxury products. the respondents are the consumers of
luxury products in Chennai. They are
selected by means of simple random sampling and questionnaires are handed over
to them for the purpose of data collection. The analysis of the data so
collected is done by the execution of regression. Scale adopted from Salehzadeh and Pool (2016)
ANALYSIS AND INTERPRETATION
R |
R Square |
Adjusted R Square |
F |
Sig. |
.980(a) |
.960 |
.956 |
238.150 |
.000(a) |
Coefficients(a)
|
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
|
B |
Std. Error |
Beta |
|||
(Constant) |
-.108 |
.101 |
|
-1.073 |
.286 |
Owning this luxury accessories indicate
a symbol of prestige |
.078 |
.022 |
.115 |
3.571 |
.001 |
I would buy a luxury accessory just
because it has status |
.053 |
.038 |
.055 |
1.416 |
.160 |
I would pay more for a luxury accessory
if it has status |
.121 |
.020 |
.198 |
5.921 |
.000 |
During purchasing luxury accessories, I
feel the excitement of the hunt |
.206 |
.033 |
.229 |
6.323 |
.000 |
When in a bad mood I may buy luxury
accessories to enhance my mood |
-.017 |
.028 |
-.018 |
-.585 |
.560 |
I purchase luxury accessories to reflect my
own image |
.086 |
.019 |
.121 |
4.561 |
.000 |
The quality of a luxury accessory is
important to me |
.191 |
.026 |
.222 |
7.426 |
.000 |
The luxury accessories superior quality
is my major reason for purchasing them |
.087 |
.026 |
.102 |
3.357 |
.001 |
I am very attracted to unique luxury
accessories |
.237 |
.024 |
.348 |
9.688 |
.000 |
a
Dependent Variable: Purchase Intention |
The
above table revealed a positive coefficient, which means that among all the
statements of consumer perception were influence on the purchase intention of
luxury product purchasers in Chennai. There was a positive relation
found between consumer perception and purchase intention. R value of this study
was 0.903 and significant value of the study was 0.00. Findings show that the purchase
intention was highly influenced by the consumer perception.
7. CONCLUSION
The
products of luxurious nature are a symbol of leading a modern, prestigious and
exclusive life style. People of the modern-day world go in search of such
products which feed their desire of leading a luxurious life. They make the
purchase of luxury products on the basis of their perceptions regarding those
products. these value perceptions regarding the products made by the consumers
have to be given importance by the producers, in order to satisfy the needs of
the customers and also to boost up their sales and profit as well. Findings show that
the purchase intention was highly influenced by the consumer perception.
REFERENCES
Amit Aggrawal and Dr. Pradip Manjrekar (2010) impact of consumer Perception on Buying Behavior in Apparel Retail Sector, with special reference to Selected Indian Cities; Thesis Submitted to the Padmashree Dr. D. Y. Patil University, Department of Business Management in partial fulfilment of the requirements for the award of the Degree of doctor of philosophy in business management. Retrieved from http://www.dypatil.edu/schools/management/wp-content/uploads/2015/10/AmitAggrawal-2010-Ph.D.pdf
Annamma Joya, Jeff Jianfeng Wang, Tsang-Sing Chan, John F. Sherry Jr. and Geng Cui (2014); M(Art)Worlds: Consumer Perceptions of How Luxury Brand Stores Become Art Institutions; Journal of Retailing 90 (3, 2014) 347-364. Retrieved from https://doi.org/10.1016/j.jretai.2014.01.002
AyselErcis and Bilal Celik (2018) Impact of value perceptions on luxury purchase intentions: moderating role of Consumer knowledge; PressAcademia Procedia, V.7, p.52-56. Retrieved from https://doi.org/10.17261/Pressacademia.2018.855
Michael Chattalas and Paurav Shukla (2015) Impact of value perceptions on luxury purchase intentions: a developed market comparison; June 2015; Luxury Research J 1(1): 40-57. https://doi.org/10.1504/LRJ.2015.069806
Reza Salehzadeh and JavadKhzaei Pool (2016) Brand Attitude and Perceived Value and Purchase Intention toward Global Luxury Brands Journal of International Consumer Marketing Volume 29, 2017 - Issue 2. https://doi.org/10.1080/08961530.2016.1236311
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