An Empirical Investigation to the Factors Influencing Buying Decision of Luxury Goods: A Study of Y...

GMJACS Volume 4 Number 2 2014

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An Empirical Investigation to the Factors Influencing Buying Decision of Luxury Goods: A Study of Y Generation

Nawaz Ahmad1, Muhammad Ashraf2 and Dr. Khalid Hussain Shaikh3

Abstract

This study aims to explore the main reasons of consumption of luxury branded goods. The research also gives an insight upon the main motivational values towards purchasing luxury branded products. The method chosen for analyzing the raw data collected through offline and online questionnaire survey, through snowball sampling technique, was quantitative models namely descriptive statistics and one way ANOVA, that was run through the help of SPSS. The study analyzes the four major motivational values, which motivate people to purchase and consume luxury branded goods, namely; personal values, functional values, individual values and social values. As a result, we find out that functional values were the most significant motivator in purchase decision-making followed by personal values, individual values and social values respectively. One-way ANOVA analysis interprets that four of these values are significant in term of decision-making process while purchasing luxury branded goods. Post Hoc tests showed us the relationship between these values. The social values and fundamental values were highly significant in all the purchase decisions criteria.

Keywords: Luxury goods, expensive brands, purchase decision criteria, Y Generation, Motivational Values.

1. Introduction

1.1 Background of the Study

The days are gone by, when people happened to shop, in terms of dollar worth, People used to go shopping when compulsion emerged. However those concepts laid a foundation for contemporary buying habits. The emerging frame of mind, while in shopping environment does little to single out the anticipation of even simple customer and the trend of brand contentment. Contemporary shoppers do buy products to heave them sigh of relief, to make themselves feel good, or may be because they intent to be recognized as unique, by purchasing expensive goods, or assuming that quality lies in expensive brands. Modern trends of buying entail the shoppers to laud the social status by purchasing a bit of expensive brands. This trend stresses the sellers to formulate the strategy accordingly. It is no more enough to consider a buyer as a species motivated by reason to make decisions. Hence predicting that buyer purchases owing economic necessity is too no more valid. There are numerous attributes that influence the buying decision (Hasan, 2008). Purchasing activity in itself is a sort of articulacy. People exhibiting thyself through the way of shopping. The tiny decisions about, How, Where, What and why they shop is an attempt to the people attentive about his/her personalities. Companies spend handsome amount of dollars annually finding reasons makes consumer loyal to the specific brand. Even though you might detest it, Yahoo!, AOL, and Google keeps an eye on your web browsing patterns (Tanner & Raymond, 2010). Shopping creates a sense of achievement. For many it add value to life, grey matter to existence, reason to social recognition. The successful shopper feels a sensation of satisfaction, execution and fulfillment. The emotional and psychological factors which compel to shop, has turn a novel tune to contemporary society. Abraham Maslow, (1940) developed a unique way to observe at living of people; the way people prioritize, and determine their aim in life. Maslow recommended that life is based on five constituting elements or layers which initiated from contentment of survival needs, to uppermost psychological needs, similar to those of inner affective accomplishment (Maslow, 1940). The theoretical framework for needs formulated by Maslow, confirms that higher order needs fulfilled conditional to basic needs (Pooler, 2003). Pooler (2003) further argues that, while shopping once lower order needs are accomplished, the higher order needs emerges to be accomplished.

1 Asst Prof., Head of Research & Publications, Indus University, Karachi. [email protected] 2 Visiting Faculty, Dept. of Business Administration & Commerce, Indus University, Karachi. 3 Professor and MS/M.Phil & PhD Programme Coordinator, Bahria University, Karachi.

mailto:[email protected]


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1.1. Luxury Brand Despite of varied approaches, research scholars almost of all fields of inquiry share elementary

comprehension of luxury. To start with, the term luxury is defined as anything that is other than necessary (Reith & Meyer, 2003; Mühlmann, 1975; Sombart, 1996). The debate pertaining to the definition of luxury is still on (Heine K. , 2012). From last two decades are so, there is consensus among all that there is no consensus on the definition (Christodoulides et al., 2009; Virginie de & Rodina, 2006; Heine K., 2011; Reith & Meyer, 2003; Valtin, 2004; Vigneron, 2004; Kapferer, 1999). High sensitivity to the economic fluctuation is defining market attribute of luxury good. Research scholars and luxury experts are reluctant in coming to terms to an encompassing owing to its subjectivity (Sun, 2011). The luxury to one may be average to someone else (Heine, 2011). This irregularity nourishing nothing, but confusion to conceptualizing the luxury.

The objective of this research is to determine the factors compel people spend money and consume

the luxury brands and products. These factors in turn will help marketers developing an insight with the consumer and their preferences, brands and eventually can be used as tool in developing strategies.

2. Literature Reviews 2.1. Luxury Goods

In an arena of luxury brands, understanding and perception are too much significant than utility (Adams, 2013). During the early years, luxury products were considered a privilege (Sun, 2011). According to Nueno & Quelch, (1998) the term luxury was attributed to the products, which were happened to be rare and in dearth, hence were presented to selected class of people. However, the time passage has witnessed a change in this regard. The luxury market brands have developed considerably. Today luxury goods become accessible to the middle class people. Moreover, the advent of industrial revolution has made the wealth abundant and ultimately the capacity to afford the luxury goods has also increased (Hauck & Stanforth, 2007). For instance, the middle class consumers in United Kingdom (UK) noted a 50% increase in purchasing capacity of luxury goods (Miriam & McMillan, 2004). But it is yet difficult to predict, that how middle class consumers identify what are the luxury goods (Hauck & Stanforth, 2007). Luxury goods demand increase is an outcome of business and social factors (Silverstein & Fiske, 2008). With the passage of time and diversification of the luxury product market, the concept of luxury was needed to be refined and redefined, hence luxury now “things you have that I think you shouldn’t have” (Hauck & Stanforth, 2007). There are numerous brands that have been designated as luxury, which turn the size of market difficult to determine. Such variety includes food, automobiles, fashion, jewelry etc. Persons are affected by the events and moments they regard as important to them (Meredith & Schewe, 1994; Ryder, 1965). Such event may include technology, war, celebrities, icons, and economy which impact on person’s perceptions and values. Hauck & Stanforth,(2007) have concluded that besides several influencing factors culture is also most important factor that influences on individual perception. Individuals influence from to indicate the boundary in price setting (Kemp, 1998).

2.2 Approaches to luxury

It is believed that first academic literature on the topic was concluded during the era that fresh economic group, leisure group, emerged as a class of affluent consumers in United states (Ahmed et al., 2002). Aaker, (1997) has segmented the foremost important contexts from the studies of luxury goods. Studies also conducted on the economic perspective of luxury products (Veble, 1899; Leibenstein, 1950). On the other Dubois & Duquesne, (1993) focused on luxury brand from marketing perspective. With regard to the psychological aspect, scholars have also focused luxury products fro this angle (Wickers & Renand, 2003;Vigneron & Johnson, 1999). Besides this numerous areas of studies were also related with various subjects of interest (Ahmed et al. 2002).

2.3 Conspicuous consumption

Refers to the spending of money on and the purchasing luxury brands and services with the intention to exhibit purchasing and economic power to the public. The terms was coined by Veblen way back in 19th century (Veblen, 2000). Acconrding to Kaiser (1997), that fashion is an attempt to acquire social status, which again instigate an attitude among women to buy luxurious attires, outfit and allied accessories so that that communat prestige can be acquired. Such effort is an attempt to gain social status, such practice is also aims at to inspire the surrounding observers (Mortelmans, 2005). Veblen’s conspicous


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consumption has been praised and endorsed, however Campbell, (1987) inked few contrast opinions by raising two objections on veblen’s theory of conspicous consumption. First, who is the intended audience to inspire by the conspicous consumer? Second, which kind of response should be anticipated from the audience? Hence Campbell, (1987) seems to draw attention to the efficacy of Veblen’s theory, which in danger to halt if the intended audience do not transcribe the notion attached to the products.

2.4 Prestige vs. Luxury brand

The term luxury has been extensively used to explain products both tangible and intangible that are of greater worth, similarly prestige has also been considered as synonym. However, Dubois & Czellar, (2002) contradicted. They indicated that prestige is a word that needs achievement and attempt; on the other hand luxury is more prone to self contentment. With the intention to grasp the idea of luxury, Vigneron and Johnson, (1999) used the word prestige as a threshold to investigate the elements of luxury brands. Hece three crucial kinds of prestigious brands was identified: “the up market brands, the premium brands and the luxury brands”. Chambers & Rodina, (2006) Luxury product is graded the uppermost amongst the prestigious brand class.

2.5 Six dimensions of luxury

Nueno & Quelch, (1998) have identified various definitive characteristics, which are similar to luxury product, are: “uniformity in providing a premium quality, the craftsman tradition, the specific pattern or design that symbolizes the product and the upholding of exceptionally by manufacturing limited quantity. Moreover, there are numerous general characteristics among luxury products that are manipulated by marketing strategists like: global goodwill, more stress on the state of origin of the product, the development of affective appeal to the product and the creation of distinction of the brand (Chadha & Husband, 2006). Several of mentioned pecularities were tested by Dubois & Czellar, (2001), who carriedout qualitative interviews with customers. The authors developed luxur consituted on six dimensions:

2.6 Excellent quality

Dubois & Czellar, (2001) Described the significance of quality assurance offered to consumers by luxury products. It is justifiable to obtain convinced level of brand reliability, while disbursing a superior worth (Dubois, Laurent, & Czellar, 2001).

2.7 Very high price

Consumers of luxury brands are usually priced at higher amount. Since the category is designated as luxury, therefore normally inaccessible to the major chunk of society. The market price have important role to play towards determining the horizons where luxury brands are positioned in society.

2.8 Scarcity and uniqueness

Exceptionality offered by luxury goods are usually well utilized in marketing campaign and the notion is also excellently documented (Pantzalis, 1995). Brand peculiarity is one the defining characteristics in developing a product’s features and the image communicating to the customers. The infrequent or more peculiar the brand is the more worth it indicates, at least from customer’s point of view.

2.9 Aesthetics and Poly Sensuality

Having the luxury brands is not merely materialistic, but also a desire of pleasing experience (Chaudhuri & Majumdar, 2006). Customers aare fully concious about such psychological contentment. Danziger, (2005) termed such state of sense as “psychographic aspect of luxury”.

2.10 Ancestral heritage and Individualistic Identity

Time is happened to be the excellent indication for flourishing luxury products. Kapferer (1998) recommeded that consistency for years can be assumed as quality validity and reliability. Haubl & Elrod, (1999) concluded that one’s sentiments can be stimulus to brand buying.

2.11 Superfluousness

It is an act of more frequent in luxury consumption in which it symbolizes the involvement possessing these brands except concerning unique results rather that make use of the brands (McCracken, 1988). McCracken (1998) also described that six dimension are interrelated; the level of significance is


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attributed to the customer. This model based on six dimensions, was frequently applied in academic investigations pertaining to luxury consumption and has been re investigated in several cultural researches by scholars. DeBarnier et al. (2006) concluded that the numerous deviations cropped up pertaining to the validity test of the model, were basically because of custome elements and evluationary change in cutomer attitude. Whereas, Vigneron and Johnson (2009) developed another model consituting five elements. Having compare and contrast with earlier suggested model of Dubois et al. (1993) common elements emerged between two.

2.12 Symbolic of luxury goods

Dubois & Duquesne, (1993) suggested the style of consumption which associated with symbolism of luxury; such as: “Snobbisim and Bandwagon”. Study on the model describes that Snobism means, consumers are purchasing less of the brand, condition to other are buying (Dubois & Duquesne, 1993, p.176). The consumers of such class inclined to purchase unique brands to symbolise their elite being or unique in the crowd. Whereas, buyers who follow the purchaing pattern of elite are considred as bandwagon (Dubois & Duquesne, 1993).

2.13 Luxury consumer’s value dimensions

There are various perception regarding luxury brands, however this study emphasizes on model developed by Vignerion and Johnson (2004) and a model developed by Wiedmann & Siebels, (2007). The earlier developed a model of luxury based on consumer behavior constituted five perceived values, that distinguishes luxury and non luxury products. The initial tri dimensions exhibits non personal oriented perceptions; whereas rest of two shows personal oriented perceptions (Tian, Bearden, & Hunter, 2001). This study focuses on Vigneron and Johnson’s BLI scale (2004), about the scale the Vigneron and Johnson argued induce the decission taking process that happens when evaluating luxury product. The dimension are:

2.2.1 Perceived Conspicuousness

Perceived conspicuousness as the first dimension of a luxury goods is essential to persons who inspired by reference groups and those purchase luxury to exhibit communal status. This dimension is in alignment with research of Vebelen (1994), who pioneered the term conspicuous consumption associate to public consumption of luxury brands as a source of emphasizing dignity, prestige and status. Perceived uniqueness is happened to be the second dimension of luxury brand, which lay stress on distinctiveness and restricted supply of brands, which in turn augments the customer’s priorities to the product (Sproles & Burns, 1994).

Study reflects that customer perceptions of limited availability of a product may direct to increased

priorities for that product (Lynn, 1991). The “perceived quality” has been termed as third dimension. It persuades customers who look a higher worth in the brand separately from the cost, which is to have the surety in eminence and trustworthiness out of brand. Such consumers are likely to consider luxury goods as an exhibition of high peculiarity and presentation weigh against normal products (Garfein, 1989). The “perceived hedonism” has been identified as fourth dimension. Luxury brands are mainly hedonic (Hirschman & Morris, 1982), given that customers spending is primarly linked with an emotional and impulsive occurrence of aesthetic or imaginory contentment (Dhar & Wertenbroch, 2000). This kind of customer usually depends upon his individualistic feelings, while having luxury brands.

Self perceived social value has been declared as fifth dimension of luxury brand consumption,

owning of such products are considered as exhibition of identities (Dillman, 2000; Belk, 1985). Making use of luxurious brands, customers intend to seek endorsement from people around and targeting for a classification of becoming in specific prestigious cohort (Alain & Ahmed, 1999).

Influenced by the five dimension luxury product model of Vigneron and Johnson, Wiedmann,

Hennigs, & Siebels, (2007) proposed a luxury value model based five main dimensions of luxury value perception to differentiate the association amid worth perception and consumption of luxury brands in diverse consumers.


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The financial dimension has been designated as opening dimension. It is concerned with monetary perspective of luxury consumption and it focuses on the real price luxury brands. The second component is functional dimension. It addresses on the actual benefits and primary utilities of luxury brands (Coulter, Price, & Feick, 2003). This factor carries components from perceived exclusivity and perceived quality dimension explained earlier.

Individual dimension was identified as third dimension. It exhibits the feature of the customer’s

individualistic point of reference to luxury spending as well as expressing personal worth (Danziger, 2005). Perceived hedonism can be linked with this dimension also.

The social dimension has been termed as last dimension. It represents the perceived worth of

customers towards the luxury brands within specific communal cohart, which might pose high influence on the evaluation and tendency to spend for luxury product. This dimension shares similar characteristics as of percived conspicouousness and perceived extended self of a luxury product. The way customers percive a luxury product and the worth perceptions of customers with regard to luxury spendings are highly related.

But, Vigneron and Johnson (2004) showed reservations for the reliability of the model, when

customers perception contact all the dimensions in an attempt of luxury goods; for the moment rest may be get ready to opt the most essential worth from their perspectives. Spending and using luxury products can achieve three main objectives, namely: the formation distinctiveness, persistency in distinctiveness, and exhibition of socio-economical position (Wattanasuwan, 2005). There ar some people who believe that owning of luxurious brands is one of their prestige, and kind position which paves them to maintain exclusivity and individuality among the people around (Bhat & Reddy, 1998). According to Schütte & Ciarlante (1998) it is not all the time essential that having luxury goods means equal social status, but it does identify its worth, economic perspective. Scholars put their effort in extensive studies to describe the term luxury brands, by emphasizing on three main interrelated aspects: monitory, psychological and marketing (Schütte & Ciarlante, 1998; Coll, 1994). Researchers from these identified disciplines put forwarded their own approaches to study the topic. Scholars from marketing discipline have studied consumer perceptions; whereas those from economic and psychology discipline focused on the definitions of luxury (Belk, 1988).

Despite of that the copious understanding acquired via various findings; concluded by numerous

experts in different fields, a thought provoking and clear explanation to the constitution of luxury products is still deficient (Jonathan & Renan, 2003; Vigneron & Johnson, 2004). Even though the constructive contribution of Vigneron and Johnson, the entire concept of luxury still remains unsteady, ebecause of the influence of changes in terms of time and culture (Dubois & Duquesne, 1993). Extesive academic context pertaining to luxury goods are deemed as interconnected and interrelated cause the most of the literature heavily focused on persuation of luxury spendings (Ahmed, Johnson, Ling, & Fang, 2002). Reason of such close association of the existing literatrature may be the preceeding literature have been elementary layer, on which the existing is built upon. because of the foundation of recent literature is built on earlier literature (Ahmed et al. 2002).

3. Methodology:

This study aims to explore consumer behavior, which focuses on motivation towards purchasing luxury brand products. Since there have been a large number of young consumers purchasing luxury brand products, the method of quantitative research is; therefore, more suitable to help collecting data from large sample sizes. However, study based on preferences requires people’s opinion and views, in which numerical data alone is not able to show a complete understanding, whereas using the qualitative method is able to explain people’s expressions in descriptive text format.


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3.1. Data collection: Gathering information from consumers of luxury brand products through face-to-face

questionnaires, and the usage of the internet via e-mails, (electronic survey) was used in collecting primary data. The advantage of data collection from consumers by using face-to-face questionnaire is that it is possible to correct any misunderstanding of the questions that is being asked, and any missing information that has not been filled in. The disadvantage is that face-to-face data collection is not able to provide a large amount of samples. As there are limitations in face-to-face data collection with large amount of sampling, the use of electronic surveys is also applied. Although electronic surveys may be supplied to large amounts of people, it does not necessarily mean that people will answer the questionnaire. The method of “snow ball sampling” was used in distributing the questionnaires. The electronic medium used in the survey was social media, Face book.

3.2 Statistical Data Analysis

The collected data, through the identified data collections tools, has been analyzed through the statistical tools. One way ANNOVA through SPSS has been conducted.

3.3 Sampling

Snowball sampling is one type of non-probability sampling, which is used as a method in distributing questionnaires in this study. “Snow ball sampling” is interpreted as when personnel are asked to fill in the questionnaire, they are also recommended to distribute to others that are in similar age groups that meets the criteria. The method of snowball sampling is more convenient to apply in circumstances when participants are difficult to obtain. The respondents for this study are students’ age range from 19 to 35 years old. This research was conducted within the university and the social group. The number of responses made part of this study is 70.

4. Research Results and Analysis

The data analysis based on the 70 questionnaires distributed in order to answer the research questions. According to the objectives of the study and the questionnaire designed, the results of data has been analyzed quantitatively and qualitatively as:

4.1. Gender:

Table 1: Rate of Response

Respondents Gender Response Rate

50 Male 71.42

20 Female 28.57

4.2Descriptive Statistics:

Since this study has made focus on four determinants of purchasing decision for luxury brand, hence these determinants were personal values, functional values, individual values and social values. The consumers associate themselves to these values through luxury brand and its associations.

Table 2: Descriptive Statistics

N Mean Std. Deviation

Personal Values 70 3.2857 .77235

Functional Values 70 3.5929 .78271

Individual Values 70 3.2714 .63713

Social Values 70 2.9694 .76715

Total 280 3.2798 .77057


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According to the descriptive statistics, the respondents preference criteria is that they go for functional values first that is the luxury consumers seek for exclusivity and uniqueness. They have a perception in mind that the luxury goods cannot be produced on mass quantity. These consumers do not like to be dictated they choose luxury on their own criterion such as performance aesthetics. The quality of the product is the major concern for these consumers.

Secondly, they look for the personal attitude attached towards the particular luxury brand or

product. They have a perception in their minds that the high price tag is the quality and pride symbol. These consumers are willing to pay premium price in order to get exclusivity and uniqueness such as Limited Edition goods. These consumers have sort of a perception that they do not like those brands are easily accessible to general public.

Thirdly, they seek for individual values in the brand or luxury good that is they develop an

association with the luxury brand and the lifestyle they provide. For Example; Gucci provide a lifestyle which is hip, lively and to up to the world. These consumers indulge themselves into the lifestyles of the luxury brands. They match their own personality with the characteristics of the brand and select accordingly. For example if a person is in his forties, is at a top position of an organization and an urge for sports, should buy a Tag heuer, because it is how they associate brand with the lifestyles. The luxury brand should speak for itself that is the perception created in the minds of luxury brands consumers; the brand should reflect the personality of the consumer. Furthermore, these consumers feel self actualized and motivated when they wear such luxury brand and these things are deeply attached to them.

Lastly, they seek what social value that brand or product have; for example, Rolex watches is the

symbol of pride and self-actualization. The users of luxury brands and products are more prone to know what things are in fashion trend these days and what other people buy or most importantly what luxury brands or products impress other people. They also keep in mind while purchasing, that which group of people actually buy certain brands, what they think about the particular brand and also they keep in mind what the observer or their social friends think about the people who wear such brand. These consumer are very fashion and trend oriented, they do not select luxury brands or products which are not in style. They have sort of a psyche which makes them worry about what impression they create on others when they purchase such expensive luxury items.

Table 3: One-Way ANOVA Analysis

Sum of Squares df Mean Square F Sig.

Between Groups 13.613 3 4.538 8.237 .000

Within Groups 152.050 276 .551

Total 165.662 279

The one-way ANOVA test shows that the results are significant as the sig value is less 0.05 and

also significant F value. The values used in this study to analyze the consumer behavior of luxury goods consumers are significant and have a great impact towards purchase decision.

Table 4: POST HOC Tests - Multiple Comparisons

Mean

95% Confidence Interval

(I) i (J) i Difference (I-J)

Std. Error Sig.

Lower Bound

Upper Bound

LSD personal Functional -.30714* 0.12546 0.015 -0.5541 -0.0602


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Individual 0.01429 0.12546 0.909 -0.2327 0.2613

social .31633* 0.12546 0.012 0.0693 0.5633

Functional personal .30714* 0.12546 0.015 0.0602 0.5541

Individual .32143* 0.12546 0.011 0.0744 0.5684

social .62347* 0.12546 0 0.3765 0.8704

Individual personal -0.01429 0.12546 0.909 -0.2613 0.2327

Functional -.32143* 0.12546 0.011 -0.5684 -0.0744

social .30204* 0.12546 0.017 0.0551 0.549

social personal -.31633* 0.12546 0.012 -0.5633 -0.0693

Functional -.62347* 0.12546 0 -0.8704 -0.3765

Individual -.30204* 0.12546 0.017 -0.549 -0.0551

Dependent Variable: Purchase Decision The table shows two very significant values which are significant with every other value that are

social value and functional value; as a result it concludes that people tend to seek more social value and functional value in the luxury brands and products no matter what ever the criteria of decision making is.

While comparing personal values with other three values, functional and social values are

significant, when we compare functional values with other three values, all the values are significant, when we compare individual values with other three values, functional and social value are significant and have an immense impact. Social values are significant with all other values as they exist in every decision making criteria.

5. Conclusion

In conclusion, this research aims to investigate the reasons why people consume luxury goods in spite that they are very expensive. The findings reveal that people around us consume luxury goods for four reasons which motivate them towards the purchase decision. These reasons are in form of values which a brand pursues namely, personal values, functional values, individual values and social values. These values are promoted through the different medium of communications by the luxury brands. The reason for such high consumption of luxury goods is the awareness and exposure people have through travelling abroad or through electronic media.

In terms of motivation towards purchase decision of luxury goods, functional values play a vital role

followed by individual, personal and social values respectively. On the other hand, people are more prone towards adopting the lifestyle a luxury brand offers. People buy luxury goods to fulfill their inner desire of luxury and to gift themselves for their accomplishments. They seek for exclusivity and uniqueness at times and they do not want to comprise on the quality of the product at any cost. The class of people which consume luxury goods is elite class which does not want to be dictated, they have their own decision making criteria, and they selected the brands and products according to their preferences and lifestyles. They do not like to use things which are not in style or are easily available to general public. Lastly, some of them carry luxury goods to show off and use them as a status symbol.

6. Recommendations

It is considered a priority for marketers to know how to reach their customers in luxury markets with maximum efficiency. This study shows marketers the soft corners of consumers which can be targeted through different strategies. Furthermore, it shows the decision making criteria of selecting and purchasing the luxury goods, so marketers can target accordingly.


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Research has also indicated that consumers consider quality as a high priority when purchasing luxury brand products. Marketers could use this finding towards improving products. Products that show more quality could be beneficial to retailers, and also consumers. Retailers would benefit from the increase in price for each product, whereas consumers would benefit from the quality that is received. Even though the price has increased in luxury products should not affect consumers as long as they are exclusive and high in quality. Another interesting discovery that has been found in this research is that the majority of consumers purchase luxury brand products to fit in with friends. Marketers should consider the idea of identifying which luxury products has been consumed the most, which will then be able to accumulate other consumers alike into purchase similar products. Marketers should also note that, the use of celebrities associated to luxury brands influences consumers to purchase similar products. This research has also found that celebrities set the trend for fashion, and the use of the media has a mass influence on consumers. From a marketing perspective take these findings into account, and use celebrities associated to luxury brands on advertisement, presenting exclusive luxury brand products for maximum efficiency in attracting consumers.

7. Limitations

This study is conducted in a limited amount of time due to which only a small sampling size of 70 respondents can be obtained. However, a clearer view of consumer behavior towards products known as luxury would be more reliable if large numbers of participants are taken into account.

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