Following a broader perspective in exploring customer perceptions of and motives for purchasing luxury brands, it is not sufficient to explain the whole picture of luxury consumption in terms of socially oriented consumer motives and the desire to impress others. The main contribution here is to explore a multidimensional framework of luxury value as a general basis for identifying value-based consumer segments. The empirical results can be seen as a first step toward a better understanding of consumers' luxury value perceptions as based on social, individual, functional, and financial aspects. ©2009 Wiley Periodicals, Inc.

Value-based segmentation of luxury consumption behavior

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 value perception is a combination of different evaluations with regard to the sub-dimensions. Furthermore, this differentiated perception of luxury value may be dependent on the cultural context and the people concerned. Following a comprehensive understanding of the luxury construct, all relevant current and potential value sources of the consumers' luxury perception should be integrated into one single model. A customer's luxury value perception and the motives for luxury brand consumption are not simply tied to a set of social aspects of displaying status, success, distinction and the human desire to impress other people, but also depend on the nature of the financial, functional and individual utilities of the certain luxury brand. Pointing to the fact that luxury value lies in social and individual as well as in functional and financial aspects, it is important to synthesize all relevant cognitive and emotional value dimensions in a multidimensional model. Our model might be a useful instrument for both academics and practitioners who want to better understand consumer behavior; it may also serve as a basis to successfully create, market and monitor luxury brands or products in a cross-cultural context. Even if the world of luxury products is not homogeneous, we believe that the underlying consumer motives and desires transcend national boundaries in a structure that derives from the individual's situation and the luxury value dimensions. Our multi-dimensional model integrates these consumers' value perceptions from different perspectives. Encompassing cognitive and emotional dimensions, it might already lead to a better understanding of the conditions and drivers of luxury product perception and to a broadened view of luxury value which lies in social, individual, functional, and financial aspects. …

/pdf/measuring-consumers-luxury-value-perception-a-cross-cultural-56d5y7x05e.pdf

Measuring Consumers' Luxury Value Perception: A Cross-Cultural Framework

This document reviews evidence to December 2008 on the global extent and nature of food promotion to children, and its effects on their food knowledge, preferences, behaviour and diet-related health outcomes. The review was commissioned by the World Health Organization (WHO) and updates a systematic review of the evidence conducted on behalf of WHO in 2006. The 2006 review in turn built on earlier reviews commissioned by the UK’s Food Standards Agency2 and WHO3. All these reviews were conducted by the Institute for Social Marketing (ISM) at the University of Stirling, and the Open University, United Kingdom of Great Britain and Northern Ireland.

/pdf/the-extent-nature-and-effects-of-food-promotion-to-children-4nr0ekqpra.pdf

The Extent, Nature and Effects of Food Promotion to Children: A Review of the Evidence to December 2008

East Asia is fast becoming the world’s largest brand-name luxury goods market. This study develops the concept of face and face consumption to explain why Asian consumers possess strong appetites for luxury products despite their relatively low income. This paper distinguishes the concept of face from a closely related construct, prestige, and examines the influence of face on consumer behaviours in the United States and China. Due to the heavy influence of face, Asian consumers believe they must purchase luxury products to enhance, maintain or save face. Accordingly, face consumption has three unique characteristics: conformity, distinctiveness and other-orientation. The results of a cross-cultural survey support the existence of these three subdimensions and show that Chinese consumers are more likely to be influenced by their reference groups than are American consumers. Furthermore, they tend to relate product brands and price to face more heavily than do their US counterparts. In addition, Chinese consumers are more likely to consider the prestige of the products in other-oriented consumption than are their American counterparts.

How Face Influences Consumption - A Comparative Study of American and Chinese Consumers:

International luxury businesses are challenged by the identification and satisfaction of the common needs and desires of global market segments. Although luxury goods have become available to a wider range of consumers, the traditional conspicuous consumption model has been transformed into a new experiential luxury sensibility that is marked by a change in the way that consumers define luxury. Based on an empirical study in collaboration with American, European, and Asian researchers, the results provide evidence that consumers in various parts of the world purchase or wish to purchase luxury products for varied reasons but that such consumers generally possess similar values. Regardless of their countries of origin, the basic motivational drivers of luxury consumers are similar among the financial, functional, personal, and social dimensions of luxury value perceptions, although the relative importance of these dimensions varies.

What is the value of luxury? A cross-cultural consumer perspective

To help multinationals meet consumer needs in the People’s Republic of China (PRC), this paper describes culture, social forces, marketing mix and consumer behavior for durables and nondurables. Cameras, cosmetics, fast food restaurants and soft drinks are in earlier lifecycle stages in the PRC than in the USA, and represent a price/durability continuum. A joint effort of USA/PRC researchers, with about 3,000 responses, shows that product versus price‐focus differentiates price segments, and consumer product experience differentiates age segments. Results suggest culture‐relevant research procedures, and strategic implications for marketing to price and age segment(s) in regions like Beijing.

Price influence and age segments of Beijing consumers

SUMMARY To help multinationals meet consumer needs in the People's Republic of China (PRC), this paper provides basic information about culture and consumer behavior with respect to fast food. A joint effort of researchers from two countries resulted in two PRC surveys and one USA survey using East-, East/West-, and West-influenced instruments, respectively. Results explain the frequency of purchasing fast food and differentiate the segment preferring “fast” from the segment preferring “food” (taste and nutrition), and the younger from the older consumer segment. Results have implications for planning culture-relevant research and marketing mix for similar products and consumers.

Xiaohong He

Papers

Price influence and age segments of Beijing consumers

Culture and the Fast-Food Marketing Mix in the People's Republic of China and the USA: Implications for Research and Marketing