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Journal of Retailing and Consumer Services 21 (2014) 394400

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Journal of Retailing and Consumer Services


journal homepage: www.elsevier.com/locate/jretconser

Luxury values and experience as drivers for consumers to recommend


and pay more
Sandra Maria Correia Loureiro a,n, Cristiano Mineiro Branco de Arajo b
a
Instituto Universitrio de Lisboa (ISCTE-IUL), Business Research Unit (BRU/UNIDE), Department of Marketing, Operations and General Management, Avenue
Foras Armadas (D422), 1649-026 Lisbon, Portugal
b
University of Aveiro, Department of Economy, Management and Industrial Engineering, Campus of Santiago, 3810-193 Aveiro, Portugal

art ic l e i nf o a b s t r a c t

Article history: The study aims to analyse how individual and social luxury values affect the customers' attitude, behavioural
Received 15 September 2013 control and subjective norms and how these variables and past experience inuence the intentions to
Received in revised form recommend and pay more for luxury clothing in the Brazilian market. Respondents were surveyed in the
7 October 2013
So Paulo area of Brazil through a panel sample and using an online survey during April and May 2012.
Accepted 20 November 2013
The ndings suggest that individual values inuence intentions positively. Social values have a positive
Available online 12 December 2013
inuence on subjective norms and a negative inuence on behavioural control. Past experience does not
Keywords: inuence intentions signicantly. Extend the theory of planned behaviour introducing luxury values as
Individual luxury values external variables and past experience as a direct antecedent of intentions to pay more and to recommend
Social luxury values
the luxury brand.
Brazilian luxury clothes
& 2013 Elsevier Ltd. All rights reserved.
Past experience
Intention to pay more
Recommendation luxury brand to others

1. Introduction experience inuence the intention to recommend and pay more


for luxury clothing in the Brazilian market.
Luxury goods have always been associated with exclusiveness, In the literature, luxury corresponds to the expression of desires
wealth and power, and have been identied with satisfying desires and emotions (Allrs, 2008). Perhaps few categories of consumption
which are not essential. In practical terms, luxury is associated are as interesting, from an academic standpoint, as luxury products.
with sumptuousness, ostentation, extravagance, superuity, frivo- After all, these objects best exemplify individual subjectivity and the
lity, appearance and material power, or then again with indul- inuence of culture on the human being (D'angelo, 2004; Twitchell,
gence, easy living and opulence. It implies "good taste" and allows 2002), assisting in the multidisciplinary approach to research in
its users to differentiate themselves from others. the area.
Throughout the literature several authors have studied beha- The luxury clothes market represents about 1% of the total luxury
vioural intentions (e.g., Ajzen, 1991; Hansen and Jensen, 2009; market in Brazil (Carozzi, 2004) and continues to grow. In fact, the
Jang and Namkung, 2009; Van der Heijden et al., 2003) and average consumer purchase of luxury goods in Brazil is three to ve
worked on these issues in some luxury sectors (e.g., Hofstra and times higher than the average consumer in the world (Carozzi,
Kent, 2009; Kort et al., 2006; Lawry et al., 2010). However, there is 2004). For that reason, the city of So Paulo was selected to carry out
a gap when revising literature, that is, the effect of luxury values this market research. In this connection, the article is structured as
(individual and social) and also the effect of past experience on follows. After this introduction, the next sections describe the
behavioural intentions. Therefore, this study extends the Theory of conceptual background, methodology and results. Finally, the con-
Planned Behaviour (TPB) and aims (i) to analyse how individual clusions and implications are presented.
and social luxury values affect customers' attitude, behavioural
control and subjective norms and (ii) how these variables and past
2. Conceptual background and hypotheses

2.1. Concept of luxury


n
Corresponding author. Tel.: 351 21 790 3000, 351 96 290 62 08;
fax: 351 217 964 710.
E-mail addresses: sandramloureiro@netcabo.pt,
The term luxury comes from the Latin luxus, which means excess,
sandra.loureiro@iscte.pt (S.M.C. Loureiro), abundance, extravagant life (Danziger, 2005, p. 17). Etymologically,
crismineirobranco@hotmail.com (C.M.B. Arajo). luxury has the same origin as light. The root of both words in Latin

0969-6989/$ - see front matter & 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.jretconser.2013.11.007
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is lux, which means exactly light (Braga, 2004). According to In this context, if the fashion industry is just an industry concerned
Lipovetsky (1980), luxury means lying outside the pathways of the with "conspicuous consumption", the consumer's decision to buy a
trend, following its own route, and imposing its own rules. More- luxury product depends not only on product functionality, but also
over, luxury objects are those that provide pleasure (Li et al., 2012) and (and especially) on social "needs" such as prestige (Kort et al., 2006).
would, therefore, be linked with desires, comfort and individuality In short, the social values associated with luxury clothes refer to the
(Lawry et al., 2010). Kemp (1998) notes that the perception of luxury utility perceived by individuals when they purchase a product and
changes from one society to the next. Although, luxury is viewed as a the feeling of recognition within their social group.
subjective concept, we can say that luxury corresponds best to the
expression of desires and emotions (Allrs, 2008).
2.4. Theory of planned behaviour
2.2. Brazilian luxury clothes market
The theory of planned behaviour (TPB) is based on the Theory of
According to Kepferer and Bastien (2009, p. 38), luxury is for the Reasoned Action (TRA), which states that human beliefs inuence
fashion industry as fashion is for luxury. The luxury clothes market attitudes and shape behavioural intentions. Ajzen (1991) extended the
represents about 1% of the total luxury market in Brazil (Carozzi, TRA adding perceived behaviour control. The core factor of the TPB is
2004), a relatively low percentage compared to that of developed the individual's intention to perform a given behaviour, that is, the
countries. However, it seems that the average consumer of luxury intentions are assumed to capture the motivational factors that
goods in Brazil purchases three to ve times more than the average inuence a behaviour; they are indications of how hard people are
consumer in the world (Carozzi, 2004). This is due to increased willing to try, of how much of an effort they are planning to exert, in
family income, especially in So Paulo, Rio de Janeiro, Belo Horizonte order to perform the behaviour (Ajzen, 1991, p. 181). The key lies in
and Braslia (Carvalho and Mesquita, 2010). the idea that the stronger the intention to engage in a specic beha-
viour, the more likely the individual performs that same behaviour
2.3. Individual and social luxury values (Suntornpithug and Khamalah, 2010).
TPB highlights three independent variables of intention: The rst,
Individual values have often been described as a boost for the attitude towards the behaviour, refers to the degree to which a
luxury consumption (Lawry et al., 2010). According to Wiedmann person has a favourable or unfavourable evaluation or appraisal of the
et al. (2009), individual values comprise materialism, hedonism behaviour in question (Ajzen, 1991, p. 188); the second variable is the
and self-identity. Materialism is described as the degree to which subjective norm that focuses on perceived social pressure to carry out
possessions play an important role in the lives of individuals or not carry out the behaviour; the third is the degree of perceived
(Lawry et al., 2010). More materialistic consumers are more likely behavioural control, which refers to the perceived ease or difculty of
to have positive attitudes towards acquisition and attribute high performing the behaviour and it is assumed to reect past experience
priority to material goods. Materialism inuences the perspective as well as anticipated impediments and obstacles (Ajzen, 1991, p.
of power (Rucker et al., 2011). Thus, in general, people who have 188). Here, the key is, the more favourable the attitude and subjective
more money can spend more and thus satisfy their needs and norm with respect to behaviour, and the greater the perceived
wants to a greater extent. behavioural control, the stronger should be an individual's intention
Luxury consumption also involves emotional aspects such as to perform the behaviour under consideration (Ajzen, 1991, p. 188). In
sensory pleasure, aesthetic beauty and emotion (Wiedmann et al., the current study behavioural intention comprises two components,
2009). Thus, hedonism is connected to personal rewards and recommend the brand to others and pay more for the same product,
compliance (Zarantonello and Schmitt, 2010; Lawry et al., 2010; as proposed by Zeithaml et al. (1996) and Loureiro and Kastenholz
Dubois et al., 2005). Hedonism describes the perceived subjective (2011).
utility and property achieved from the purchase and consumption Solomon et al. (2006, p. 113) point out that a value can be
of a luxury brand. Hedonistic values are activated during sensory dened as a belief about some desirable end-state that transcends
gratication from luxury goods (Lawry et al., 2010). specic situations and guides selection of behaviour. Beliefs are
Finally, the consumer uses self-identity values to assess the considered as determinants of attitude, behavioural control and
perceived level of perfect congruence between luxury goods and subjective norms (Ajzen and Fishbein, 1980). Therefore, we may
their self-image or desired self-image (Lawry et al., 2010; Wiedmann infer that individual and social values can be regarded as inuencing
et al., 2009). Self-identity refers to an internal aspect of private the three main variables of TPB, that is, attitude, behavioural control
individuals in terms of perception. and subjective norms (see Fig. 1). Thus:
Nevertheless, individual values are directly linked to lifestyle.
H1. Individual luxury values have a positive impact on attitude
This, in turn, is a term from the eld of psychology. Lifestyle covers
(H1a), behavioural control (H1b) and subjective norms (H1c).
cultural afliation, social status, family background, personality,
motivation, cognition and marketing stimuli (Li et al., 2012). Social H2. Social luxury values have a positive impact on attitude (H2a),
value refers to people's desire to own a particular brand of luxury behavioural control (H2b) and subjective norms (H2c).
fashion. Consumers can use luxury clothing brands to assert their
professional position or demonstrate their social status (Li et al., H3. Attitude (H3a), behavioural control (H3b) and subjective
2012), or even to classify or differentiate themselves from others norms (H3c) have a positive impact on intentions.
(Li et al., 2012). In this context, social values are linked to personal
issues, wants and desires (Kanagaretnam et al., 2009), demon- 2.5. Past experience
strating social position and status. Thus, some consumers may buy
luxury goods mostly to impress others, (Lawry et al., 2010). In this The literature provides studies about consumer experience with
case, social values are closely linked to what others say and reect the brandbrand experience (e.g., Brakus et al., 2009; Ha and Perks,
the participation of the community and society in general (exter- 2005; Kim and Sullivan, 1998; Morrison and Crane, 2007; Mosley,
nalization of the image). 2007; Schmitt, 2009), but we did not nd studies related to consumer
Following Wiedmann et al. (2009), we can mention that visibility behaviour regarding luxury products. Current literature suggests that
or conspicuousness and prestige are two values that can signicantly past experience is represented by stimuli related to the brand, the
affect the evaluation and willingness to buy a luxury brand product. store and the product. Consumer experiences are multidimensional
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Fig. 1. Proposed conceptual model.

and include hedonic dimensions such as feelings, fantasies and fun. regard to social and individual values, the items were from
Brakus et al. (2009) commented that the experience is conceptualized Wiedmann et al. (2009). Finally, past experience was measured
as sensations, feelings, cognitions and behavioural responses evoked using one question: in the last 12 months, how many times have
by the brand. These experiences can be evaluated in four dimensions: you purchased luxury clothes? Respondents rated all measures on a
sensory, affective, intellectual and behavioural. So we can say that 5-point Likert-type scale. However, before data collection, a pilot
experiences are related to the intimate nature of each consumer and sample of 6 personally interviewed consumers was used to ensure
this can explain why some consumers are faithful to a premium brand that the wording of the questionnaire was clear.
(Broillet et al., 2009; Kepferer and Bastien, 2009) and are loyal when More than 200 people answered the questionnaire, of which
using its products (Clifton and Simmons, 2003; Ferreira, 2010). 192 gave complete responses. The sample was characterized
In fact, past experience can inuence consumer behaviour inten- mainly by female participants (68%), and the remaining 32% were
tions. Evidence appears in studies related to e-commerce, where past male. Regarding age, most of the sample was comprised of people
experience is a signicant predictor of consumer behaviour (Klein, aged 2534 years (52%), followed by individuals aged 1524 (15%).
1998). Similarly, Liang and Huang (1998) found that the consumer's Finally, most respondents came from the middle-upper class and
experience has a moderating effect on internet shopping (Shim et al., upper-class. When asked to mention the brand that participants
2001). Positive experiences with the brand can result in emotional appreciate and buy, the most frequently bought brands were
bonds (e.g., Brakus et al., 2009). Over time, these experiences affect Chanel, Tommy Hilger, Calvin Klein and Louis Vuitton.
long-term consumer behaviour, the satisfaction experienced being
stored in the memory, which generates an internal stimulation
towards the bond and loyalty (Zarantonello and Schmitt, 2010). A 4. Results
brand's loyal consumers tend to buy more products from that brand
(Schiffman et al., 2008, p. 10) and they become less sensitive to price The model proposed in the current study has formative con-
and pay less attention to competitors' advertising (Dubois and structs. Thus, in order to test the model we used the repeated
Czellar, 2002). Therefore, we formulated the hypothesis: indicators method (Chin et al., 2003; Kleijnen et al., 2007) and we
H4:. Past experience has a positive impact on intentions. chose the PLS approach because it avoids two problems: inadmis-
sible solutions and factor indeterminacy (Fornell and Bookstein,
1982). In this vein, rst the suitability of the measures was assessed
3. Methodology by evaluating the reliability of the individual measures, and the
convergent (see Table 1) and discriminant validity of the constructs
Data collection was conducted over two months, in April and May (Hulland, 1999). The measures also demonstrate that the convergent
2012. Respondents were contacted in the So Paulo area of Brazil validity (see Table 2) as the average variance of manifest variables
through a panel sample and using an online survey (we provided a extracted by constructs (AVE) was at least 0.5; this indicates that
brief explanation of the concept of luxury based on Wiedmann et al. more variance was explained rather than unexplained by the
(2009)). Only participants who had already purchased a luxury brand variables associated with a given construct. Table 1 shows that the
could complete the online questionnaire. lowest value of AVE is 0.548, higher than the minimum value of 0.5.
The questionnaire contained a section with socio-demographic Regarding past experience, on average participants had already
variables and the items of the latent variables. Attitude was bought luxury products 2 times.
measured based on Suntornpithug and Khamalah (2010) and Zhan The measures have discriminant validity (see Table 3) since the
and He (2011) (see Table 1). The items for subjective norms were square root of AVE is greater than the correlation between the
based on Bearden et al. (1989), Suntornpithug and Khamalah (2010) construct and other constructs in the model (Fornell and Larcker,
and Zhan and He (2011). Regarding perceived behavioural control, 1981).
this was based on Suntornpithug and Khamalah (2010). The inten- Then, the structural model was appraised (see Fig. 2). In Fig. 2,
tions (word-of-mouth and pay more) were measured based on hypotheses H1 (1a 0.670, po0.001; 1b 0.576, po0.001; 1c
Zeithaml et al. (1996) and Loureiro and Kastenholz (2011). With 0.218, po0.01) and H3 (3a 0.237, po0.01; 3b 0.385, po0.001;
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Table 1
The latent variables, items, and source.

Latent variable Item Source

Individual luxury values My life would be better if I owned certain things I don't have Adapted from Wiedmann et al. (2009)
I'd be happier if I could afford to buy more products of luxury of this brand
Materialistic It sometimes bothers me quite a bit that I can't afford to buy
all the things I'd like
I have all the things I really need to enjoy life
Self-identity I never buy a luxury brand inconsistent with the characteristics with which I describe
myself
The luxury brands I buy must match what and who I really am
My choice of luxury brands depends on whether they reect how I see myself but not
how others see me
Self-gift Purchasing of product luxury brands can be seen as giving me gifts to celebrate an
occasion that I believe signicant to me
On the whole, I may regard product of luxury brands as gifts I buy for treating myself
When in a bad mood, I may buy clothes of luxury brands as self-given gifts for alleviating
the emotional burden
Reward for hard work or that I feel I have earned or am entitled to is an important
motivator for my luxury consumption
To me, luxury consumption is a way to reduce stress
Extravagance I enjoy spending money on things that aren't practical
I usually buy only the things I need
Buying things gives me a lot of pleasure
Self directed pleasure Clothes of luxury brands are one of the sources for my own pleasure without regard to
the feelings of others
I can enjoy products of luxury brands entirely on my own terms no matter what others
may feel about them
Life enrichment For me as a luxury clothes consumer, cultural development is an important motivator by
buy
Purchasing clothes of luxury brands provides deeper meaning in my life
Self-actualization is an important motivator for my luxury consumption
Luxury consumption enhances the quality of my life

Social luxury values I like to know what brands and products make good impressions on others Adapted from Wiedmann et al. (2009)
I usually keep up with style changes by watching what others buy
Prestige relations and status- Before purchasing a product of luxury it is important to know what brands or products to
conspicuousness buy to make good impressions on others
I want to know what kind of person buys the products luxury of this brand before
purchasing it
Before purchasing a product of luxury it is important to know what others think
of people who use certain brands or products of this brand
I tend to pay attention to what others are buying
Before purchasing a product of this brand it is important to know what my friends think
of different brands or products
I actively avoid using products that are not in style
If I were to buy something expensive, I would worry about what others would think of
me
Social standing is an important motivator for my luxury consumption
For me as a luxury consumer, share experiences with friends are
an important motivator
I often refer my friends to help in choosing the best alternative available from a product
category that mark
My friends and I tend to buy the same brands

Attitude I buy clothes from this brand because I have many benets (e.g., quality, Based on Suntornpithug and Khamalah
designer, is fashion, status, etc..) (2010)
Luxury clothes of this brand satisfy my needs and Zhan and He (2011)
This luxury brand helps to show my social status
In general, I am happy with the clothes of this luxury brand

Subjective norms When buying luxury clothes, I usually buy this brand, since others will approve Based on Bearden et al. (1989),
If I want to be like someone, I often try to buy the same brands that they buy Suntornpithug
I often identify with other people by purchasing the same brands they and Khamalah (2010) and Zhan and He
purchase (2011).
I would love to shop for luxury products from this brand because others
think I should do it

Perceived behavioural I feel condent about choosing this brand when I do search for luxury products Based on Suntornpithug and Khamalah
control I clearly know the right things to do (not confused) during the process of buying (2010)
a brand of luxury clothing
I feel comfortable during the process of buying a luxury product of this brand
I feel I have total control over my personal information during the purchase of this brand

Intentions I will speak well about this brand to other people Based on Zeithaml et al. (1996) and Loureiro
I will recommend the clothes of this brand if someone asks for my advice and Kastenholz (2011)
I will encourage my friends and relatives to buy clothes of this brand
I prefer to pay a bigger price for this brand than for others brands for the advantages
that I received when I use the clothes
I would buy continually even if the price increases
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3c0.283, po0.001) are fully supported. Hypothesis H2 (2a  Stone-Geisser Criterion) is used for evaluating the structural
0.163, NS; 2b 0.213, po0.01; 2c 0.553, po0.001) is partially model, the cross-validated redundancy (Chin, 1998). If the rela-
supported. Hypothesis H4 (4 0.080, NS) is not supported. tions in the model have predictive relevance, then Q2 4 0 (Fornell
In Fig. 2, R2 indicates the amount of variance explained by the and Cha, 1994). Therefore, all values of Q2 are positive, so the
exogenous variables (Barclay et al., 1995). Q2 (chi-squared of the relations in the model have predictive relevance. The model also
demonstrated a good level of predictive power (R2) as the
modelled constructs explained 52% of the variance in intentions.
Table 2 The global t measure (GoF) for PLS path modelling proposed by
Measurement results. Tenenhaus et al. (2005) and R2 revealed a good t with the
collected data sets.
Construct Mean AVEn Composite reliability

Intentions 3.5 0.657 0.851


Attitude 4.0 0.788 0.882
B. control 4.0 0.803 0.891 5. Discussion, conclusions and implications
Extravagance 2.8 0.627 0.789
Self-gift 3.4 0.742 0.852
As far as we know from the literature review, this study is the
Life-enrich. 2.7 0.548 0.784
Materialism 3.1 0.736 0.893 rst attempt to analyse the effect of individual and social luxury
S. Norm 2.2 0.667 0.800 values as external variables of TPB and explore past experience as
Pleasure 3.5 0.646 0.782 acting on intentions. Therefore, the major ndings of this study are
Prestige-relations 1.7 0.616 0.865 as follows: individual luxury values are important predictors of
Self-identity 3.9 0.641 0.781
attitude, behavioural control and subjective norms. In contrast,
P. Status-C. 2.6 0.816 0.899
social values seem to have only a positive and signicant inuence
AVE average variance extracted. on subjective norms and a negative impact on behavioural control.

Table 3
Discriminant validity analysis.

1 2 3 4 5 6 7 8 9 10 11 12 13

1 Intentions 0.810
2 Attitude 0.593 0.888
3 Control 0.624 0.724 0.896
4 Extravagance 0.280 0.209 0.187 0.792
5 Self- gift 0.569 0.612 0.433 0.318 0.861
6 Life-Enrich 0.505 0.487 0.387 0.419 0.536 0.740
7 Materialism 0.393 0.294 0.193 0.445 0.419 0.460 0.858
8 S. Norm 0.413 0.217 0.173 0.254 0.370 0.491 0.420 0.817
9 P. Experience 0.256 0.196 0.231 0.243 0.322 0.288 0.102 0.142 1.000
10 Pleasure 0.365 0.470 0.435 0.289 0.439 0.384 0.288 0.085 0.197 0.804
11 Prestige-relations 0.160 0.043  0.036 0.203 0.221 0.338 0.342 0.615 0.013  0.043 0.785
12 Self-ident. 0.372 0.407 0.430 0.136 0.305 0.317 0.160 0.100 0.109 0.425  0.086 0.800
13 P. status 0.328 0.248 0.168 0.420 0.353 0.550 0.509 0.492 0.190 0.234 0.508 0.099 0.903

Diagonal elements in the correlation of constructs matrix are the square root of AVE. For adequate discriminant validity, diagonal elements should be greater than
corresponding off-diagonal elements.

Fig. 2. Structural results.


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S.M.C. Loureiro, C.M.B. Arajo / Journal of Retailing and Consumer Services 21 (2014) 394400 399

Therefore, cosmopolitan luxury consumers (at least in the So sible to consider other dimensions of luxury values and other beliefs to
Paulo area) need to be self-identied with a certain luxury brand, analyse their effect on attitude, subjective norms and behavioural
feel pleasure, extravagance, a self-gift, life-enrichment and to give control (e.g., functional and nancial value).
signicance to materialism to have a positive attitude towards
purchasing a luxury brand of clothing, have perceived control of the
purchase process and feel accepted by their own social group. The
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