Luxury Journals

Page 1
Results
1. Impact of education on purchase behaviour of luxury brands Business & Management Review, January 2015,
Pg. 66, 5405 words, Srinivasan, Srini R
2. How Experiential Marketing is used in Indian Luxury Hotels? Romanian Journal of Marketing, January 2015 /
March 2015, Pg. 2, 6279 words, Verma, Yasha; Jain, Varsha
3. Consumers' Purchase Intentions of Shoes: Theory of Planned Behavior and Desired Attributes International
Journal of Marketing Studies, August 2014, Pg. 50, 3956 words, Wang, Yun
4. Compacts, smaller cities drive Mercedes-Benz's growth in India IHS Global Insight, May 16, 2014, Main Story,
1038 words, Anil Sharma
5. Exploring Generation Z's Purchase Behavior towards Luxury Apparel: a Conceptual Framework Romanian
Journal of Marketing, April 2014 / June 2014, Pg. 18, 6615 words, Jain, Varsha; Vatsa, Reshma; Jagani, Khyati
Page 2
Impact of education on purchase behaviour of luxury brands Business & Management Review January 2015
Return to List
1 of 5 DOCUMENTS
Business & Management Review
January 2015
Impact of education on purchase behaviour of luxury brands

BYLINE: Srinivasan, Srini R
SECTION: Pg. 66 Vol. 5 No. 4 ISSN: 2047-2854
LENGTH: 5405 words
In this study, the authors aim to understand the influence of education on the frequency of buying luxury
products, influence to buy luxury products and intention to purchase the same brand that they have
previously purchased. Also they study the different luxury value dimensions and how these are influenced by
education. Data was collected from 1200 respondents in Mumbai. These people belonged to people of both
genders, different occupations, income groups, religions, age groups, education and marital status. It is
found that there is a relation between education and the place from which they buy luxury brands. There is a
significant difference in perception of financial value among people of different educational levels. There is a
significant difference in perception of self-identity value among people of different educational levels.
FULL TEXT:
Introduction
1.1 Purchase behavior
The actions a person takes in purchasing and using products and services, including the mental and social
processes that precede and follow these actions can be called as purchase behaviour. It helps us to answer
questions such as:
(i) Why people choose one product or brand over another?
(ii) How they make these choices, and
(iii) How companies use this knowledge to provide value to consumers
Purchase decision process: Behind the visible act of making a purchase, lies a decision that must be
investigated. The purchase decision process is the stages a buyer passes through in making choices about
which products and services to buy. There are five stages of purchase behaviour: (i) problem recognition (ii)
information search (iii) alternative evaluation (iv) purchase decision (v) post purchase behaviour
1.2 Luxury brands
Luxury is no longer restricted today to only the rich and the selected few but is being used for mass
marketing now. The concept of luxury has been changing dramatically across time and culture. Earlier, luxury
was connected with things like wines, champagne, designer clothes and sports cars. These days, people
have become richer and luxury is a blurred genre that is no longer the preserve of the elite. More and more
consumers have increased their financial status as the old values of tradition and nobility have become less
important. People are having much more disposable income in comparison to earlier generations, resulting in
a tendency towards fulfilling personal needs and aspirations through experience. Therefore, it could be said
that luxury is more about experience (Yeoman and McMahon-Beattie, 2010), rather than financial value. This
is not to say that luxury is about status, but luxury is more than financial value. Indeed, they run hand in
Page 3
hand. The need for personal gratification and aspirations has led to greater emphasis on having things which
make life better and easy. It means that consumers want to improve their life. This is what Danziger (2005)
and Israel (2003) mean when they say that luxury is not just restricted to trophies and status symbols but
also covers things giving aesthetic experience and indulgence. This is also due to increasing purchasing
power of women in society, which is a good sign for luxury markets such as wellbeing, clothes and tourism.
We see that the earlier concept of luxury of consumption and elitism stills prevails especially in emerging
economies of China. In the recent times, the Global Financial Crisis has led consumers to re-examine their
priorities and as a consequence, attitudes and behaviours towards luxury have changed.
In management field it is accepted to distinguish luxury products from necessary and ordinary products within
their category by their basic characteristics. These include things like financial value, quality, aesthetics,
exclusivity and status giving. All of these characteristics are relative terms. A luxury product is characterised
by a relatively high rating on each of these dimensions compared to other products of its category
(Trommsdorffand Heine 2008, p. 1670). Luxury brands are those whose ratio of functional utility to price is
low while the ratio of intangible and situational utility to price is high.
1.3 Influence of education on purchase of luxury brands
Education is one of the important demographic variables which can have an influence on purchase behaviour
of luxury brands. Undergraduates, graduates and postgraduates can respond differently to the various
attributes of luxury brands. They may want to purchase them from different places or look for different
dimensions of luxury value. The perception of different luxury values like functional value, financial value,
individual value and social value can be different for people of different educational levels.
2. Statement of the problem/Need for the study
In this study, we want to understand the influence of education on different aspects of purchase behaviour of
luxury brands like frequency of buying luxury products, influence to buy luxury products and intention to
purchase the same brand that they have previously purchased. Also we study the different luxury value
dimensions like financial value, functional value, individual value and social value and how these are
influenced by education. Among the various demographic variables, we have selected education because
perception of different dimensions of luxury value can vary for graduate, undergraduate and postgraduate
consumers and luxury brand companies can use different strategies to cater to the requirements of these
segments.
3. Literature Review
3.1 Luxury brands
The concept of luxury is complex and subjective and its meaning is dependent on various personal and
interpersonal motives (Vigneron & Johnson 2004). In order to understand the meaning of luxury, we can first
describe the nature of luxury, luxury goods, luxury brands and brand equity for luxury brands. Kapferer
(1997, p.253; as cited in Vigneron and Johnson 2004) summarised luxury as defining beauty, enlightening
and providing good taste. According to him, luxury products provide sensory pleasure and is the appendage
of the ruling or elite classes. Webster (2002) defines it simply as "non-essential items". Cornell (2002) says
that luxury can be characterised by a strong element of human involvement, scarcity or limited supply and
value recognition by others. Similarly, Kapferer (1997) says that luxury exhibits beauty and aesthetics and
can be applied to functional items. He also says that luxury has an enlightening effect and provides sensory
pleasure. Berry (1994), similarly, characterizes luxury goods as items that rise desire and provide pleasure to
its consumers.
Also the concept of rarity and exclusivity has not been forgotten, being highlighted by Pantzalis (1995). On
the other hand, McKinsey (1990 in Wiedmann, Hennings, and Siebels 2009) sates that luxury goods are the
ones that have the higher ratio of price-quality. Phau and Prendergast (2000) argue that luxury goods are
those which exhibit exclusivity, brand image and identity, brand awareness and excellent in the minds of the
consumers. Finally, Kapferer and Bastien (2008) argue that "luxury is qualitative and not quantitative" and is
when "hedonism takes over functionality" as it has to be "multi-sensory and experiential" to each consumer.
Thus, both authors claim that luxury is only a true luxury when some part of it is handmade and the brand
has the capacity to provide exclusive services to their consumers.
Page 4
Luxury is either a service or a good that is able to fill both functional and psychological needs of the
consumer (Nia and Zaichkowsky 2000). Hence, the service and/or good has to be able to transmit to the
customer extra pleasure (Kapferer 1997) and a truly multi-sensorial experience (Kapferer and Bastien 2008),
as consumers are increasingly seeking more personal fulfilment and aspiration through experience (Yeoman,
McMahon-Beatie and Brown 2005 & Yeoman and Mc-Mahon-Beattie 2006). Luxury goods should present a
high level of perceived quality (Phau and Prendergast 2000), as a high price (McKinsey 1990) and also a
limited supply (Cornell 2002, p.47) to ensure the exclusivity and rarity required by customers (Pantzalis 1995;
Phau and Prendergast 2000). Finally, we believe that luxury goods have to have some part of it handmade
and that the brand has to be able to answer to customer's wishes and needs with special and customized
offers (Kapferer and Bastien 2008).
According to Phau and Prendergast (2000), luxury represents much more nowadays; one of the most
significant changes is that it is on necessarily expensive, but by no means is it a necessity (Brannen, 1996).
Within the literature on luxury, McKinsey (1990) and Nueno & Quelch (1998) defined luxury by the use of
price and quality ratio. Whatever falls into the highest price and quality ratio category is regarded as luxury.
This definition is in line with that of Berry's (1994) who has put forward that luxury is an expenditure that goes
beyond what is necessary and he asserts that luxuries are not required( Berry, 1994, p.23).
Luxury products help to satisfy a consumer's functional needs and also fulfil him/her psychologically (Dubois,
Czellar & Laurent, 2001). A particular good can be desired as a luxury only if the ownership
f915.20150303043001of the goods is able to provide pleasure (Berry, 1994). In addition, luxuries are by
definition always out of the reach of mass consumption (Berry, 1994) and exclusivity and rarity are therefore
features connected to the concept of luxury (Pantzalis, 1995).
3.2 Influence of education on purchase of luxury brands
Bernard Dubois & Gilles Laurent (1993) explain that some differences among the various European countries
can be observed and results indicate that income, education and occupation differentiate consumers to a far
greater extent than country affiliation. It is observed that there is a positive effect of education upon luxury
purchase. It would however appear that in the three Latin countries, France, Spain and Italy, the effect is
strictly linear while there is a very limited additional impact of university education in the Anglo-Saxon world
(U.K. and Germany). One possible explanation for this interesting result is cultural. While buying luxury
brands is well accepted by the cultural elite in the Latin world, it would be much less so in puritan cultures.
The number of brands known by university educated people compared with the middle-education group does
not increase significantly in Anglo-Saxon countries while it does so in France, Spain and Italy.
A study by Alireza Miremadi et al. (2011) aims to explore the possible effects of need for uniqueness's
dimensions on fashion luxury brands purchase intentions and to compare Kish and Dubai market in this
perspective. The definition of uniqueness for both markets is the same due to order of importance for each
constructs in mind of participants in the survey while this definition remain the same between genders and
among respondents with different level of education.
Ching-Yaw Chen et al. (2012) in their study explain that explore the differences in Taiwanese women's
purchasing decisions towards two different categories: luxury goods and general products. Demographic
variables like age, education, occupation, marital status, income play key factor in purchasing decisions.
Taiwanese woman aged 21-40 dominate luxury goods shopping most of them being well educated and
independent. They consider product origin, functionality, prices, reputation, brand awareness, appearance
and design rather than TV shopping, venting bad mood, endorsers influence or just for the sake of it.
Sonny Nwankwo, Nicolas Hamelin, Meryem Khaled (2014) explain that more educated people, generally,
indicated a greater tendency towards rational than impulse buying decisions.
3.3 Dimensionalising Luxury
Wiedmann, K.P., N. Hennigs & A. Siebels (2009) developed a luxury value model useful for studying the
relationship between value perception and luxury consumption. Their model includes four luxury value
dimensions: financial value, functional value, individual value and social value. Different authors have
addressed different combinations of these luxury value dimensions. (a) Several authors have studied the
financial value people derive from buying products they believe others cannot afford. Stokburger-Sauer &
Teichmann (2013) say that despite the fact that the functional value of luxury brands is usually not
Page 5
substantially higher than other non-luxury brands, luxury brands can reach substantial price premiums in the
market over non-luxury ones. (b) Luxury consumption has also been studied from the perspective of the
functional value luxury goods provide. Simply stated, some people buy luxury goods because they believe
they offer superior quality & perform better, that they are more user friendly, or more unique than their non-
luxury-brand competitors are. Luxury brands are supposed to offer greater product quality &performance
than non-luxury brands (according to O'Cass & Frost, 2002; & Vigneron & Johnson, 2004). Others have
shown that perceived usability value drives purchases of luxury goods. Coulter, Price & Feick (2003) have
focused on the functional dimension of luxury brands. Gardyn (2002); Chadha & Husband (2007) and
Berthon et al. (2009) have studied about high reputation of luxury goods which illustrate functional, symbolic
&/or experiential values in perception of owners. Atwal & Williams (2009) have said that luxury products no
longer provide solely on functional values, but also, on emotional values and social values. Ko et. al. (2010)
has emphasised on high quality value for luxury brands.
(c) Several researchers have studied the social value of luxury consumption. Vigneron & Johnson, 2004;
Wiedmann et al., (2009); Han,Y.J , J.C.Nunes & X. Dreze, (2011), have studied the social orientation of
luxury brands. Such social value has two sub-dimensions: snob value and prestige value. People seeking
snob value derive value from buying scarce luxury goods that others cannot access. Prestige seeking
consumers seek to conform to aspirational groups that consume such luxury goods to demonstrate that they
belong to this group.
(d) Individual value: Lipovetsky & Roux (2003); Danziger, (2005); Geerts & Veg-Sala (2011); Srinivasan,
Srivastava, & Bhanot, (2013) have studied the personal oriented consumption of individuals and called it as
emotional luxury. Social value can be associated with Self-identity, materialistic and hedonism values.
4. Gap analysis
The study by Seringhaus, F. H. Rolf (2005) considers the impact of culture on purchase of luxury brands but
other demographic variables like education have not been considered. Yeomann & Mc-Mahon-Beattie (2006)
have said that modern societies seek more personal fulfilment and aspiration through experience, but they
have not concentrated on aspects like limited supply and high price. Chaudhuri & Majumdar (2006) have
found that consumers are motivated to purchase luxury products to enhance self-concept and materialistic
value, but other dimensions like quality and functional value have not been studied. Chadha & Husband
(2006) have divided the Asian economies into five stages of 'Luxe Evolution'. They have studied the brand
awareness, price factor, gifting of luxury brands, status value and aesthetic value of Chinese consumers and
a similar study has been done for Indian consumers. But impact of demographic variables like education on
purchase of luxury brands has not been considered.
Hauck & Stanforth (2007) have considered the impact of age on purchase of luxury brands but other
demographic and psychographic variables have not been considered. Wiedmann et al. (2007) have
considered financial value, functional value, personal value, social value and luxury value for luxury brands
but impact of demographic and psychographic variables on purchase of luxury brands has not been
considered. Tynan et al. (2008) have considered four types of luxury value i.e. functional value, hedonic
value, symbolic value and cost value. But impact of demographic variables like education on purchase of
luxury brands has not been considered. In the study by Benady, David (2008), financial factors affecting
purchase of luxury brands have been considered but demographic variables have not been considered.
Fionda and Moore (2009) have emphasised on a clear brand identity, premium pricing, heritage and
exclusivity as a characteristic of luxury brands but other things like quality and product integrity have not
been considered. Atwal & Williams (2009) have said that luxury products no longer provide solely on
functional values, but also, on emotional values and social values. But impact of demographic variables like
education on purchase of luxury products has not been studied.
The study by Han, Young Jee et al. (2010) shows how purchase of luxury brands depends on wealth but
other factors like age, occupation, culture, personality, education and culture have not been considered. Jung
& Shen (2011) have studied the cultural effects on consumer behaviour but other demographic and
psychographic variables have not been considered. The impact of culture on purchase of luxury brands was
considered but other demographic variables were not considered in the study done by Shukla, Paurav
(2011). Yu et al. (2013) studied the influence of brand image, country of origin and self-congruity on internet
users' purchase intention. But they have not considered the impact of demographic variables like education
Page 6
on purchase of luxury brands. According to Albrecht et al. (2013), it has become very important to use brand
extensions for business. But other dimensions of luxury value like financial value, functional value and social
value has not been considered. According to Stokburger-Sauer and Teichmann (2013), despite the fact that
the functional value of luxury brands is usually not substantially higher than other non-luxury brands, luxury
brands can reach substantial price premiums in the market over non-luxury ones. But they have not
considered hedonic value, self-identity value and social value in their study.
Yookyung Hwang et al. (2014) have studied how a luxury consumer's desire for conspicuousness and rarity
moderates the impact of price on choice of luxury brands. The gap in the study is that other dimensions of
luxury value like functional value and social value have not been considered. Sandra Loureiro et al. (2014)
aim to analyse how individual and social luxury values affect the customers' attitude, behavioural control and
subjective norms and how these variables and past experience influence the intentions to recommend and
pay more for luxury clothing in the Brazilian market. The gap in the study is that functional value of luxury
brands has not been emphasized.
5. Identification of variables
Based on the gap analysis, following variables have been identified.
The dependent variable is purchase behaviour of luxury products.
The independent variables are
(i) Different dimensions of luxury value namely (a) financial value (b) functional value (c) Individual value (d)
Social value (ii) Education
6. Theoretical construct: Based on the f915.20150303043001gap analysis, following variables have been
identified.
The dependent variable is purchase behaviour of luxury products. The independent variables are (i) Different
dimensions of luxury value (ii) Education
Considering the four main luxury dimensions and gender into account, we have proposed the theoretical
model shown in Fig. 1 and 2.
7. Objectives of the study
The objectives, mentioned below, will be considered:
(i) To understand the different luxury value perceptions among consumers: Here we have identified four
important luxury dimensions namely financial value, functional value, social value and individual value based
on our literature review.
(ii) To understand whether demographic variables like education influence the purchase behaviour of luxury
brands.
(iii) A conceptual model has been made to show the influence of education on the various luxury value
dimensions on purchase behaviour of luxury brands.
8. Formulation of hypotheses
The hypothesis can be written as follows:
(i) First, we want to test whether there is any relation between demographic variables like education and
frequency of buying luxury brands, influence to buy luxury brands and intention to purchase the same brand
previously purchased.
Srinivasan et al.(2014) in their study have found that demographic variables like gender, income, age,
education, religion, ethnicity, marital status and occupation can influence the purchase of luxury products.
Hence the following hypothesis can be taken:
H1: There is a relation between education and frequency of buying luxury brands
Page 7
Srinivasan et al.(2014) in their study have also found that demographic variables like gender, income, age,
education, religion, ethnicity, marital status and occupation are related to a consumer's influence to buy
luxury brands. Hence the following hypothesis can be taken:
H2: There is a relation between education and influence to buy luxury brands
Srinivasan et al.(2014) have also found that demographic variables like gender, income, age, education,
religion, ethnicity, marital status and occupation influence the intention to purchase the same brand
previously purchased. Hence the following hypothesis can be taken:
H3: There is a relation between education and intention to purchase the same brand previously purchased
Similarly, we want to find whether education is related to the place from where a consumer buys luxury
brands and also the kind of luxury product they intend to buy.
Hence we can have the following two hypotheses:
H4: There is a relation between education and the kind of luxury product a consumer intends to buy
H5: There is a relation between education and the place from where a consumer buys luxury brands
(ii) Now, we want to test whether there is any significant difference in perception of different dimensions of
luxury value with respect to education.
We want to find whether financial value of the luxury brand is perceived differently by graduates,
undergraduates and postgraduates. Hence we can have the hypothesis as:
H6: There is a significant difference in perception of financial value among people of different educational
levels.
Similarly, we want to find whether the functional value of the luxury product is perceived differently by people
of different educational levels. Hence we can have the hypothesis as:
H7: There is a significant difference in perception of functional value among people of different educational
levels.
The individual value of the luxury brand can be perceived differently by people of different educational
levels . Hence we can have the hypothesis as :
H8: There is a significant difference in perception of individual value among people of different educational
levels.
Similarly, the social value of the luxury brand can be perceived differently by people of different educational
levels. Hence we can have the hypothesis as :
H9: There is a significant difference in perception of social value among people of different educational
levels.
9. Methodology
To measure the underlying dimensions of consumers' luxury value perceptions, in this study we have used
already existing tested measures (Tian et. al., 2001; O'Cass & McEwen, 2004; Tsai, 2005; Wiedmann et. al.,
2009) and generated various items based on the literature review. The important components of luxury value
dimensions are considered for constructing questionnaire items. 1200 respondents completed a
questionnaire consisting of 57 items.
Sample characteristics and data collection
The present research focuses on the purchase behaviour of consumers of luxury goods; thus, the target
population is individuals from the middle class and upper middle class segment. In this case, judgement
sampling and snowball sampling used to get the list of 2000 respondents and then systematic random
sampling are used to select 1200 people. The Kaiser-Meyer-Olkin measure of sampling adequacy (KMO),
with a value of 0.851, which is greater than 0.7 shows that the sample size was sufficiently large to conduct
factor analyses, described in the results section of this study.
Page 8
The study was done during the time period from April 2013 to February 2014.
The sample of respondents is from Mumbai and consisted of both genders, age ranging from up to 25 years
to more than 50 years. They were people of different educational backgrounds, occupations, income groups,
marital status and religions. A sample size of 1200 people was taken. The age groups considered were 0-25
years, 26-30 years, 31-35 years, 36-40 years, 41-50 years and more than 50 years. The respondents has
monthly income groups as Rs. 50000-1 lakh, Rs. 1.1 lakhs -1.5 lakhs, Rs. 1.6 lakhs-2 lakhs, Rs. 2.1 lakhs-
2.5 lakhs, Rs. 2.6 lakhs-3 lakhs, Rs. 3.1 lakhs-4 lakhs, Rs. 4.1 lakhs-4.5 lakhs, Rs. 4.6 lakhs - 5 lakhs, and
more than Rs. 5 lakhs. This is as per the standards set by the Asian Development Bank and the 2005
Mckinsey report.
Data are collected using a structured questionnaire. All respondents completed the instrument in Mumbai
and Navi Mumbai. The sample seems to well represent India's middle class and upper middle class educated
urban people. The sample was fairly young with 44% of respondents younger than the age of 35 and 53%
between the ages of 35 and 50 years. One third identified as business people while 40% identified as
professionals. The remaining 27% respondents identified as retired or homemakers or service people. The
respondents covered four types of ethnicities i.e. north, south, east and west of India. Sixty two percent were
single. 92% were at least college educated with 47% indicating that they had completed post-graduate work.
The monthly incomes ranged from Rs. 50000 to more than Rs. 5 lakhs. This is as per the standards set by
the Asian Development Bank and the 2005 Mckinsey report.
10. Quantitative Data Analysis
The quantitative data analysis techniques used in this study are (1) Chi-square test (2) Factor analysis (3)
Kruskal-Wallis H test
To understand the different luxury value perceptions among consumers, factor analysis was first performed
on the questionnaire. This will give us the important luxury value dimensions which influence the purchase
behaviour of luxury brands. Chi square test is used to see whether education is related to purchase
behaviour of luxury brands. Also, Kruskal-Wallis H test is used to see how each dimension of luxury value is
influenced by education.
11. Results: The study was intended to find how education influences the important luxury dimensions and
also the purchase behaviour of luxury brands. It involved the following steps:
(a) According to the factor analysis results, a nine- factor solution which explains 56.2 % of total variance in
42 items was obtained. All items grouped meaningfully into the factors with high loadings. Factors with Eigen
values more than 1 were considered. The nine factors were named as prestige value, self-identity value,
quality value, uniqueness value, hedonic value, materialistic value, snob value, usability value and financial
value.
(b) Reliability of the scales is measured by computing the Cronbach alpha. For all the nine factors used in
this research, reliability values had a range between 0.7 and 0.83.
Testing of hypotheses summary results are given below.
12. Summary of testing of hypotheses
13. Findings
(a) From Chi square test: When the influence of education on purchase of luxury products was considered,
chi square test was used and the following results were obtained:
(i) There is no relation between education and frequency of buying luxury products.
(ii) There is no relation between education and kind of luxury product that consumers intend to buy.
(iii) There is a relation between education and the place from which they buy luxury brands. Malls are
preferred more by graduates, postgraduates and doctorates while undergraduates may buy luxury brands
either from speciality stores or malls or company outlets.
(iv) There is no relation between education and influence to buy luxury products.
Page 9
(v) There is no relation between education and intention to repurchase the brand.
(b) From Kruskal-Wallis H test:
Kruskal-Wallis H test was used to find whether there is any significant difference in the perception of the
different dimensions of luxury value with respect to education. The following results were obtained:
(i) There is a significant difference in perception of financial value among people of different educational
levels. Graduates and postgraduates showed a higher rating towards financial value as compared to
undergraduates.
(ii) There is no significant difference in perception of quality value among people of different educational
levels.
(iii) There is no significant difference in perception of uniqueness value among people of different educational
levels.
(iv) There is no significant difference in perception of usability value among people of different educational
levels.
(v) There is no significant difference f915.20150303043001 in perception of materialistic value among people
of different educational levels.
(vi) There is no significant difference in perception of hedonic value among people of different educational
levels.
(vii) There is a significant difference in perception of self-identity value among people of different educational
levels. Graduates, postgraduates and doctorates showed a higher rating towards selfidentity value as
compared to undergraduates.
(viii) There is no significant difference in perception of prestige value among people of different educational
levels.
(ix) There is no significant difference in perception of snob value among people of different educational
levels.
14. Conclusions
Using the chi-square test, it is found that there is a relation between education and the place from which they
buy luxury brands. Malls are preferred more by graduates, postgraduates and doctorates while
undergraduates may buy luxury brands either from speciality stores or malls or company outlets. Using the
Kruskal-Wallis H test, there is a significant difference in perception of financial value among people of
different educational levels. Graduates and postgraduates showed a higher rating towards financial value as
compared to undergraduates. There is a significant difference in perception of self-identity value among
people of different educational levels. Graduates, postgraduates and doctorates showed a higher rating
towards self-identity value as compared to undergraduates.
15. Managerial implications
The results of this research have practical implications for marketers working in the luxury industry. The
results suggest that a focus on designing and managing optimal products together with exclusivity can create
positive emotions. To effectively react to the needs, wants and values of purchasers is vital, especially in an
increasingly competitive global marketplace. Positioning and segmentation decisions have to be made on a
global level. From a market positioning perspective, monitoring the evaluative criteria of consumers can help
marketers to recognise and focus on the specific luxury dimensions, with special reference to education.
Luxury brand companies can understand people of different educational levels respond to the different luxury
value dimensions and how the luxury products can cater to the requirements of each group.
16. Limitations and scope for further research
Firstly, a particular limitation of this study was that the respondents were all from Mumbai and Navi Mumbai
and represented only one specific demographic group i.e. urban people of India. Thus, the results might vary
Page 10
if this study was repeated in different cities or regions of India. In terms of further research, therefore,
researchers should consider expanding the study focus to different areas and different populations.
Secondly, we have considered the influence of education on the different luxury value dimensions and the
purchase behaviour of luxury products. Other demographic variables like age, occupation, income group,
gender, ethnicity and marital status can be considered to study their influence on purchase behaviour of
luxury brands.
Thirdly, only the overall perceptions about luxury value have been tested. We can apply similar analysis for a
specified luxury product or service.
LOAD-DATE: March 3, 2015
LANGUAGE: ENGLISH
ACC-NO: 3610379961
GRAPHIC: Tables
References
Diagrams
DOCUMENT-TYPE: Feature
PUBLICATION-TYPE: Other (Conference proceeding)
JOURNAL-CODE: BSMR
Copyright 2015 ProQuest Information and Learning Company

All Rights Reserved
ABI/INFORM
Copyright 2015 The Academy of Business and Retail Management ABRM
Page 11
Page 12
How Experiential Marketing is used in Indian Luxury Hotels? Romanian Journal of Marketing January 2015 /
March 2015
Return to List
2 of 5 DOCUMENTS
Romanian Journal of Marketing
January 2015 / March 2015
How Experiential Marketing is used in Indian Luxury Hotels?

BYLINE: Verma, Yasha; Jain, Varsha
SECTION: Pg. 2 No. 1 ISSN: 1842-2454
LENGTH: 6279 words
Experiential marketing helps in differentiating the brands as the consumers associate their memories with the
products and brands and is widely used by the luxury sector primarily in India. This strategy works very well
for the hotel in the luxury domain. This paper explains the application of experiential marketing by the hotels
in India. A total of five leading luxury hotel chains of India were selected and the marketing heads of these
hotels were interviewed in order to comprehend the experiential marketing practiced by them. We found that
the experiential marketing is a part of all the touch points of the consumer such as pre-experience,
experience and post-experience. It was vital to understand consumers' needs and requirements to create the
most suitable and customized experiences.
FULL TEXT:
1. Introduction
Experiential marketing is one of the favourite buzzword in the branding world. Most of the marketing
conscious brands try to make connections with the consumers by creating experiences sewn around the
brand. There are numerous experiences that are being created and can be seen in the day to day activities
around a common man's world. All these experiences are relevant to the brand and it strengthens its image.
It develops positive perception about the brand in the consumer's mind (Bulearca & Tamarjan, 2010).
Experiential marketing differs considerably from the traditional marketing techniques, and tries to attract the
consumers through creating positive and engaging memories about the brand, resulting in an emotional
attachment to the brand, as opposed to the traditional ways of marketing, where, the marketers attract the
consumers through the rational reasoning of attributes and benefits associated with the product (Petkus Jr,
2002).
This shift in marketing has emerged because of two reasons; the first reason is the mass commoditisation of
the product. When all the brands in the market are similar, it is difficult to stand out as one brand which is
better than the rest of the identical products being offered by the other brands. For example, the services
offered by the mobile operators are very similar to each other. If one operator offered any new scheme, a
similar or even more cost effective scheme is launched by the competing mobile operators in next few days.
In such cases it becomes, very essential that a brand is segregated from the competitors to increase the
brand recall in the consumers' mind. To convert this recall into the top of the mind recall, the brands uses
experiential marketing, so that the consumers remember a brand with positive associations (Bulearca &
Tamarjan, 2010).
The second reason is the knowledgeable and tech-savvy consumers. They do not have time to watch the
long television commercials or read the print ads in newspaper and magazines as they get involved in only
that information that grabs the attention. This can be attributed to the fast paced lives of the consumers,
Page 13
March 2015
where they choose to spend time just the way they spend their hard earned money (Petkus Jr, 2002). In such
a scenario, experiential marketing work very well as consumers can feel the brand.
Furthermore, experiential marketing has affected the luxury brands in India. Luxury culture is very visible in
India and has very high potential (Vadukut, 2011) as consumers are having more disposable income and are
well versed with the latest information about the market. It is expected that Indian luxury market will grow by
20% in the next two years (Bajpai, 2011) and by 2025 it will become fifth largest luxury market in the world
(India and China to spur Luxury Growth, 2011). The current luxury market is pegged at US$ 5.8 billion and by
2015 it will be US$ 14.7 billion (Sharma, 2012). There are many luxurious brands that have entered in the
Indian market in different sectors such as cars, apparels, jewellery, watches, accessories, yachts, houses,
spas and hotels (Bhattacharya, 2011).
The luxury hotel industry in India has domestic and international brands. The Indian popular brands of hotels
are Indian Hotels Company Limited, East India hotel, ITC Welcome group and Hotel Leela venture ltd etc
and the dominant international brands in India are Le Méridien, Four seasons, Hilton etc. The hotel industry
has increased its revenue from Rs. 108,027.6 (2005) to Rs. 210,423.9 (2010) (Passport GMID)), However,
the competition has even increased further as there are several established brands that are booming in the
market.
The hotels have always followed a very different approach to position its brand in the market. They have
segmented the target groups and have tried to appeal them in many innovative ways. Their major customer
segments includes domestic and international tour operators and travel agents, wedding groups, corporate
and MNCs, airlines, embassies etc.. Hotels focus very rarely on the mass marketing approach as the
exclusive image of the hotel is not maintained (Hannam, 2004). Hotels focus on the competent rates and the
bundle of services that can be offered to the potential customers according to their needs. The services are
customized according to the requirement of the prospective customer. For example, a tour operator may be
offered breakfast at 50% discount, or wedding group may be provided with a honeymoon suite at reduced
rates etc.
Being a luxury brand, these hotels have to make sure that certain standards such as exclusivity and limited
access are always maintained by them. The onus of maintaining luxury, is the most important dimension
while framing the experiences for marketing the hotel. These experiences need to be offered in extremely
luxurious environment to the elite consumers. However, designing, executing and providing extremely
luxurious experiences is very expensive due to its nature of being a 'luxury'. It is even difficult, as the
prospective clients are usually highly influential and important members of the society and they would not like
to spare their valuable time on the marketing gimmick. It is very challenging for the luxury hotels to develop
such an amazing experience for the classy consumers along with the time constraint as these consumers do
not spend very long time in the hotel. Therefore, this paper focuses on the process of experiential marketing
used by the Luxury hotels.
The literature review is related to experiential marketing and luxury branding, followed by the appropriate
methodology, analysis of data, implications, limitation and scope for future research and conclusion.
2.1. Experiential Marketing
2.1.1. What is experience?
According to Holbrook (1982), experience is a personal episode integrated with emotional realms that is
created by interaction with a product or stimulus of a brand. The experiences were developed when the
consumers considered the services or products, received or consumed it. It is imperative that the consumer
is directly involved in the process of selecting the product or the service in buying or receiving it and even
consumption of the product plays an important role in leveraging the brand experience. .
There were various kinds of experiences that could be developed to market the brand such as product
experience, shopping or service experience and consumer experience (Arnould, Price & Zinkhan, 2002;
Brakus, Schmit & Zahang, 2008; Holbrook, 2000). The product experience takes place when the consumers
or buyers or the prospective consumers communicate with the products. It can be a direct interaction, when
the consumers or the buyers are physically present near the product or indirect interaction when the
Page 14
March 2015
consumers or the buyers communicate about the product through online media or through an advertisement
in a newspaper, magazine, television, radio or any other medium which does not involve physical contact
with the product. The consumers evaluate the brand while reflecting on the available features and attributes
of the product and its comparisons with other competitors.
The shopping and service experience takes place when the consumer or the buyer is in the store and the
environment, policies of store, attitude of staff members ambiance and the setting of the store are exclusive
and unique to enrich the feelings. The experience in the store is an important factor as the mental faculties
are recharged by the good environment
Moreover, the consumption experience occurs when a customer finally consumes the product or the service
and it needs to be according to their expectations. When the consumption is interwoven by feelings,
fantasies and fun of the consumers then the experiences becomes very memorable.
2.1.2. What is Experiential Marketing?
Caru and Cova (2003) stated that to make an occurrence into experiential marketing the result must be
"something extremely significant and unforgettable for the consumer to be immersed into the experience".
Experience is crucial in understanding the consumer demands. The experiences offered to the consumers
may be analogous to others, but the emotional feeling of the experience is entirely distinctive. The
experiences are memorable and engrossing and the effect of the brand is so deep that consumer develops
positive association with the brand rather than considerin f915.20150907043001g it as a mere marketing
gimmick (Srinivasan & Srivastava, 2010).
In experiential marketing personal involvement of the consumers is important as they are not just provided
with the desired products and services but are asked to demonstrate their dormant emotions. It helps the
marketers to understand the consumers' perspective in the better way (Srinivasan & Srivastava, 2010). The
Experiential marketing is carried out with the intention to engage the consumer through the senses and
create an experience to leave a long lasting impression (Iglesias, Singh, & BatistaFoguet, 2011).
2.1.3. How is experiential marketing different from traditional marketing?
The traditional marketing emphasized that the consumers select the brand that has good features and which
can be utilized by them The traditional marketing approach considers the consumers as the rational decision
makers and marketers observe the consumers' problems as logical and rational and try to solve them.
(Schmitt, 1999).
Experiential marketing concentrates on customer experiences and not on the functional attributes and
benefits of the products. The experiences have emotional, cognitive, sensory, relational and behavioral
values that finally translate into functional values. "Experiential marketers do not think shampoo, shaving
cream, blow dryer and perfume. Instead, they think 'grooming in the bathroom' and ask themselves what
products fit into this consumption situation and how these products, their packaging, and advertising prior to
consumption can enhance the consumption experience". In this marketing approach, the customers are
rationally as well as emotionally geared towards the products as they have both the approaches towards the
brand (Schmitt, 1999).
2.1.4. Why experiential marketing?
There were primarily three reasons for using experiential marketing such as transformation in information
technology, brand dominance and growing importance of communication and entertainment industry.
Information technology has immensely affected the businesses in every aspect The transformation in media
has brought the consumers closer towards the brands and products . There are many computing devices
that interfaces and helps the consumers to interact about the brands and thereby creating a marvelous
consumer experience for the products. These devices are highly personalized, easy to access the
information and have very less errors. The information about the brands and products is easily available and
is quickly and conveniently used by many consumers globally Schmitt (1999).
Jackson (2009) stated that the highly competitive marketing environment obliges the marketers to identify the
alternatives that pay good return on the marketing efforts. This makes them myopic and they tend to focus on
the short term return on investment. The image of the brand in a long term objective is at risk. However
Page 15
March 2015
brands that understand the importance of a long term relationship with the consumers effectively plan their
marketing budget accordingly so that they can maintain healthy relationships with their consumers. Thus,
they have a long term positive effect on their financial investments. These marketers know the importance of
maintaining a genuine loyal relationship with their consumers.
According to Wood and Masterman (2007) there are seven attributes, that form the overall experience such
as involvement (an emotional participation of the consumer with the brand or the product), interaction
(communication of the prospective consumer or buyer with the brand or any other representation of the
brand), immersion (engagement of all the senses to make sure that the brand message is unique), intensity
(experience that has very high effect on the target audience so that they remember it for a long time and
thus, ensuring a long term relationship with the brand), individuality (maintaining one to one relationship with
its consumers), innovation (creative and distinctive ways of marketing) and integrity (honest in delivering the
customer promise).
2.2. Luxury Branding
2.2.1. What is Luxury?
Luxury has different meanings for different people as the importance differs from person to person. The
concept of luxury is very subjective and is completely dependent on the perception of the individual. The
perception of luxury is also determined by individual's moods, feelings, emotions, atmosphere, location,
experiences etc (Wiedmann et al, 2007).
According to Okonkwo (2009) the principles on which luxury is based can neither be ignored, nor
compromised. The sole purpose of luxury is that an individual can indulge in the opulence which is not a
necessity. It helps in feeling better and superior to other consumers in the society. In the olden days luxury
was used by the emperors, kings, czars and aristocrats for lavish consumption of commodities which were
rarely available for the masses. Today, luxury is still prevalent in society as the sense of superiority and
dominance over the other classes. Moreover, luxury brands not only create the superior image in society, but
also deliver personal satisfaction of owning an object of beauty and value.
2.2.2. Characteristics of Luxury Brands
The luxury brand image is supposed to be outstandingly premium and the importance of maintaining the
finest quality illustration is very important for a luxury brand.. The branding in case of luxury goods or
services require high intangible associations and must have an image that would aspire the consumer. This
results in the sense of achievement when a consumer owns the luxury. When luxury brands are marketed
the focus is on quality and excellent consumer service experiences. (Keller, 2009).
The brand names, symbols, logo, packaging, signs etc related to the luxury brand are according to the
consumer experience. Secondary associations with other popular entities also help in building brand equity
for a luxury brand. Celebrities, countries, events etc. help in creating positive image for the luxury brand, and
thus, helps in developing close association with the brand (Keller, 2009).
The service delivery of the luxury products and services are through a selective channel, so that the
secluded fineness is maintained at all the points of the delivery. Luxury brands usually have their own stores.
The luxury brands have very high pricing and do not endorse price cuts, discounts or free gifts etc to lure the
consumers as high prices are indicative of availability of brand to the niche consumers, as well as it is a
symbol of good quality and a promise of excellent services. The luxury brands have excellent brand
architecture. The competing luxury brands might not have similar features and attributes, but if they are able
to engage the luxury consumers in a similar way then they establish a distinctive image in the market (Keller,
2009).
2.2.3. The brand-building emotions generated by the consumption of luxury brands
Keller (2009) stated that the luxury brands evoke six emotions/ feelings in a customer who consumes the
luxury products or the services such as, warmth, fun, excitement, security, social approval and self respect.
The brand also gives a feeling of peace and calm to the consumers. They have a good feeling about the
purchase as it the sense of fulfillment and happiness they possess from the brand. The luxury brand is able
to bring joyfulness, cheerfulness, brightness and exuberance to the consumer. The brand brings in a buoyant
Page 16
March 2015
feeling after purchasing it. This excitement is generated by the consumer after owning the brand. The luxury
brands give a sense of self sufficiency, and a feeling of being secure is developed. It is more of an emotional
feeling of security than the physical security. The luxury brands tend to make a statement in the society.
Therefore, possession of a luxury brand leads to a social approval that makes the consumer of luxury brand
feel a sense of superiority as compared to those consumers who do not possess it. The consumption of
luxury brands brings in a sense of self respect to the consumers as the luxury brands are very inspirational.
Fulfillment of those aspirations gives a sense of achievement and enhances the self respect of the consumer.
2.3. Luxury and Experience
Atwal and Williams (2009) cited that every phase of life including shopping or any business or service is an
experience. Organization ensures not only the good product for its consumers but also delivers an excellent
pre and post purchase experience. It is important that the whole experience of shopping is pleasurable for
the consumers. For example, employees greet the consumers at the cafes and restaurants and even provide
proper lighting and arresting ambience to enrich the consumer experience
Moreover, it is necessary for the brand to develop comprehensive consumer experience around the brand.
The experience starts from the advertisements and promotions to the post purchase . It is very important for
the luxury brands to engage the consumers in a marvelous experience as they are very niche and affluent
consumers, and expect certain level of standards from the luxury brands. The need for an extraordinary
experience is extremely essential for the brand distinctiveness. The luxury brands are exclusive and target
elite and niche segment, therefore, experience of consumer pertaining to these brands needs to be unique.
2.4. Hotels and Luxury
The hotels in the ancient avatar were only used as a night's basic accommodation for the merchants
travelling from one city to another for their businesses during the early 500 BC. These hotels offered the very
minimalistic requirements and were far away from the concept of luxury (Rushmore, MAI, & Baum, 2002).
They offered meals at night or breakfasts in the mornings to the travelling merchants. The system of renting
rooms was not commercialized.
The scenario of minimalistic hotels started to change when the Roman Empire came into power. The flo
f915.20150907043001urishing of Roman Empire resulted in good roads and more affluent men in the
society. These men would spend their free time in Greece or Europe. Slowly and gradually there was an
increase in the number of pleasure travelers (Rushmore, MAI, & Baum, 2002). However, when the Roman
Empire crumbled, the number of people taking these pleasure trips around the world also reduced. The
people stopped travelling but only religious pilgrims used to travel (Ingram & Baum, 1997). In India as the
trade and business expanded, small Musafir-khanas and Dharamshalas opened and drastically transformed
the hotel industry (Rushmore, MAI, & Baum, 2002). Moreover, the industrial revolution around the world
created the need for good lodging facilities. These wealthy industrialists required clean and agreeable
accommodations unlike the humble dwellings which were available earlier. (Ingram & Baum, 1997).
This led to the professional beginning of the hotel industry, when people realized the importance of a
professionally well maintained accommodation for sale. The inns became an important part of all the major
trade hubs and these were the forerunners of the modern day hotel industry (Rushmore, MAI, & Baum,
2002). The inn-keepers became more sensitive towards the need of the travelers and provided them with the
basic food and water. There were no major breakthrough in hospitality industry but the number of such inns
rose drastically (Ingram & Baum, 1997).
The first hotel was opened on 115 Broadway in New York. It was a 73 room hotel in United States and it
started its business in 1794. It was a benchmark for many other hotels that opened shortly in and around the
world. All the succeeding properties that started one after the other were more prolific and luxurious as
compared to the earlier hotels (Rushmore, MAI, & Baum, 2002). The hotels started mushrooming around the
world and thereby increased the competition. To tackle this competition, the concept of hospitality and luxury
became significant. It also became the key criteria for choosing one hotel over the other. This was the
beginning of the inseparable phenomenon of hotels particularly the luxury brands (Ingram & Baum, 1997).
It was even noted that luxury has a very important connection with the experience associated with it,, hotels
also have to maintain certain level of standard to make sure that the whole experience of the customer in a
hotel is pleasant and it would develop the brand loyalty.
Page 17
March 2015
3. Literature Gap and Research objective

After rigorously reviewing the research papers pertaining to experiential and luxury branding it was found that
these two areas are distinctive. They were studied separately by the scholars. There were no studies on
Indian luxury hotels. India has become a highly popular touristic destination, for domestic as well as
international travelers. Therefore, it was very important to understand the process of experiential marketing in
the luxury segment of hospitality industry.
The objective of this research was to find how experiential marketing was carried out in the Indian luxury
hotels. There are constant changes in the Indian hospitality scenario, thus, it is imperative for the competing
hotels to create the experiences for the consumers to maintain the exclusive image of the brand. . This paper
aims to find those characteristics of experiential marketing that were undertaken by the Indian luxury hotel.
4. Methodology
Qualitative study was conducted as the objective was to understand the process of experiential marketing in
the luxury hotels. The study was undertaken in western India in Ahmedabad as the luxury hotels are
mushrooming at a very high pace in this city. A list of all the leading luxury hotels was developed from the key
newspapers and magazines. It included Taj, Le Meridian, Marriot, ITC and Pride. Structured in depth
interviews of the sales and marketing managers were conducted as they were the crucial stakeholder in
developing the marketing strategies of the hotel. Moreover, insights of industry professionals are captured by
in-depth interviews (Malhotra and Dash, 2011). The basic focus was on the experiential marketing, its
process, factors and the benefits. Prior appointments were taken from these managers and then face to face
structured in-depth interviews were carried out for 45-60 minutes. These interviews were recorded with the
prior permission of the respondents. Notes were also developed while conducting the interviews. Transcripts
were prepared with the help of the notes and the audio recordings. These transcripts and the notes were
then thoroughly analyzed to comprehend the process of experiential marketing in the luxury hotel.
5. Result and Analysis
The in-depth interviews with the hoteliers have thrown light on the various facets of experiential marketing. It
was interesting to note that the approaches that were undertaken by these hotels to create experiences for
the consumers were at all the levels as they mentioned that at all the instances consumer experience can be
enhanced. The following themes emerged from the insights gathered from the interview -
5.1. Cost and Experiences
Experiences are created from the very first opportunity when the guest is picked up from the airport and
brought in the hotel to the time the person checks out. However, these experiences are not free for the guest.
Mr. Chaitanya Joshi (Marketing Manager, Le Meridian) further added that offering complimentary
experiences does not serve the purpose of marketing. If the services are not charged from the consumer
than they perceive it to be of bad quality.
5.2. Service centric Experiences
The differentiator in case of this service industry is not just the product offered as a hotel structure or food
and beverage, but it is the service and the staff attitude which makes a difference in the experience created
for the consumers. Mr. Ankit Mathur, Corporate Sales and Marketing head of the Pride hotels mentioned that
the services have to be so personalized that the guest must feel as if he/ she are at home.
5.3. Standardization and Personalization
Some luxury hotels do not believe in customization of the experience for a particular consumer. The hotel
chain firmly believes in the set standards and would like to maintain the same standards for all the
consumers. Ms. Trina Mukherjee from the Marriott stated that Marriot as a brand does not let the experiences
being different for various guests. This helps in maintaining the same treatment for every consumer.
Moreover, Safety, security and comfort are the key dimensions for standardization at the luxury hotels and
customer relationship is maintained with the continuous interaction with every consumer.
5.4. Touch points to Create Experience
Page 18
March 2015
The service industry does not include only the personal interactions of the consumer with the hotel as the
opportunities offer great experiences. Mr. Navin Khurana, Marketing Manager, ITC hotel mentioned that
every possible prospect interaction may be through reservation call centre or hotel website or an
advertisement in a magazine is treated as an opening to create experience for the consumer. It also helps in
bringing the consumers closer to the hotel brand.
5.5. Experiences continue after the Departure of the Consumer
These Sales and Marketing personnel interacts with the consumer to understand their experience at the
hotel. For example, Marriott sends flowers and gifts to its selective consumers on their birthdays or special
occasion.
5.6. Feedbacks and Suggestions
The feedbacks were used to tailor made the experiences for the consumers and helps the hotel for the next
visit of the same consumer. Mr. Mehta from The Taj Group of Hotels stated that the post stay feedback from
the guests is called Guest Satisfaction Tracking System (GSTS). It is used to take the feedback from the
consumer about their experience at the hotel. It helps in improving the standards of the hotel and in
customizing the experiences of the consumer.
5.7. Internal Efficient Communication
It was found that the guest history database helps in understanding the needs and requirements of the
consumer. It was shared with the other hotels of the same group. For example, if the consumer made a
special request of the bed due to the back ache in one hotel then this information can be shared with the
other hotels of the same group. Consumer does not have to make the same request again. This experience
delights the consumers immensely and they start liking the hotel.
5.8. 'Wow' Experience
Mr. Joshi from Le Meridian Group of Hotels mentioned that the experiences need to exceed the consumers'
expectations. Every hotel tries to create a 'wow' experience for the consumer so that they are emotionally
associated to the hotel. The experience should be such that whenever the consumers visit the city they
should prefer to stay in the same hotel as some memorable moments and emotions are related with the
hotel.
After analyzing the insights from the in-depth interviews following model was developed (Refer Figure 1)
6. Process of Experiential Marketing by Luxury Hotels in India
This model has segregated the consumer experience into three categories such as pre-experience,
experience and post experience.
6.1. Pre-experience
The pre-experience was created for the consumers before they come to the hotel. It dealt with the touch
points of the consumers such as the website of the hotel, the advertisements of the hotel, reservation centre
of the hotels etc. Most of the hotels use these touch points for the experiential marketing as at this stage the
mindset of the consumer gets developed for the hotel. In order to create more touch points and to enhance
the pre-experience stage of the consumer two sources of information was used by the hotel such as primary
and secondary.
6.1.1. Primary Source
The primary source consists of the database available with the hotels. This database was g
f915.20150907043001ets developed on the basis of the previous guest histories along with their special
request. It also included the suggestions made by the guests during their stay
6.1.2. Secondary Sources
There were various secondary sources that the hotels comprehend to enrich the consumer experience.
These sources were generic such as consumer trends, lifestyles, perceptions of the consumer. Mr. Joshi
from Le Meridian Group of Hotels mentioned that services such as spreading bed-covers during the day time
Page 19
March 2015
in rooms does not serve any purpose as most of the consumers are not in their rooms for the whole day, and
by the time they arrive, the bed covers are changed. Therefore, hotels do change their strategies of
delivering stunning experiences as the consumer alter their approach.
Consumer trends, lifestyles and perceptions make it easier for the marketers to formulate packages
according to their preferences. The secondary sources of preexperience help in building experiences that are
personalized on a mass scale. Mr. Mehta from Taj, cited a similar example to customize an experience on a
large scale. He stated that Taj is situated near the airport, most of the business clients want to change,
shower and leave for their work and they want to use the room only for few hours. In such cases, when these
consumers paid full day rent for a room, they were not completely satisfied as far as the value for money was
concerned. In this case, Taj has planned to offer rooms to such travelers for two hours, at a lower rent.
6.2. Experience
Experience on the other hand starts when the consumers enter in the hotel or meets the chauffer at the
airport for the pick-up. This is the moment of truth when the consumer finally starts using the services of the
hotels. There are various ways in which the consumer experiences ranging from personalizing the stay to the
employees interaction can be enhanced further by:
6.2.1. Personalization
The personalization can be carried out on a consumer request or with the prior information that is available in
the database of the hotel. Mr. Khurana from ITC group of Hotels mentioned that a consumer asked for non
milk products as he was allergic to the dairy products in the first visit. The information was saved in the
database and in the next visit of the consumer it was used by the hotel. The consumer was given all the food
and beverages which did not had milk as the intergradient. This helped in making stronger bond with the
consumer. Moreover, Mr. Joshi from Le Meridian Group of Hotels stated that services that are personalized in
most of the cases do not require any financial investment but the returns are higher.
6.2.2.
Employees also play a very important role in the experience offered to the consumers. The employee attitude
and behavior affects the consumer experience in the hotel as they make their experience to be memorable
and stunning.
6.2.3.
Interaction with the consumers is another crucial dimension that helps in creating experiences for them. The
interaction with the consumers can be through various channels. It can be a human (staff) interaction or
through the services offered or through the food offered or even through the ambiance of the hotel Thus, the
services and the products are always maintained at the highest standards and the consumers are always
provided with the finest offerings.
6.3. Post-experience
Post- Experience involves the experiences created for the consumers after they have checkedout of the
hotel. These experiences can include the feedbacks over a period of time that the hotel receives.
The feedback is taken from consumers in many ways. The most popular is offering the consumer a feedback
card, where the consumers mention about the stay, rates, food, staff, safety etc. In this manner, consumer
leaves an official record with the hotel along with their comments. These comments can be compliments,
suggestions or complaints. Being a luxury hotel, it is important to analyze them as they help in improving the
experiences of the consumers in future. Mr. Mehta stated that in Taj, if the consumer marks service as 'fair' or
'poor', the general manager of the hotel considers it to be the serious issue and tries to improve the services
of the hotel. It is very important for the luxury hotels to note the request of the consumer and change it
according to the feasibility.
Some hotels also give the gifts to the guest while they check out from the hotel. The gift or souvenir serves
as the memory of the hotel and stays for a longer period with the consumer. Lastly, consumers also provide
their personal information which is used by the hotel to enrich the experience.
7. Implications
Page 20
March 2015
Experiential marketing needs to be very strategically implemented in the luxury hotels. It is very important for
the hotels to use this concept as the consumers get very delighted and emotionally associated with the
brand. It can be used at the three stages pre-experience, experience and post experience. Firstly,
Preexperience should make the consumers engrossed with the brand. It can be carried out by the
advertisements, websites, interaction with the employees of the hotel etc. Econdly, Experience stage is that
part of the process when the consumer actually gets mesmerized by the experience given by the hotel. It can
be the interaction with the employees, facilities, features etc. There are various kinds of experiences that can
be incorporated by the marketers at this stage such as sensory, creative, affective, cognitive etc, This could
help the marketers to increase the touch points. However, these points should be relevant to the consumers
and should be used appropriately by the marketers. Thirdly, at the post experience stage long and lasting
relationship needs to be developed with the consumers. Some gifts, flowers etc can be send to the
consumers so that the individual recalls the brand and the memories associated with it which can make the
person more loyal towards the hotel brand.
8. Limitations and Scope for Future Research
Firstly, this study was qualitative in nature as it was an exploratory research project. Further study can be
undertaken to understand the key dimensions of experiential marketing in luxury hotels and its effects of the
sales in the quantitative way. Secondly, this study was carried out in one city , similar study can be conducted
in metro and semi-metro cities in India to have a proper understanding about the experiential marketing and
its process which is used by the luxurious hotels in India. Thirdly, this paper has used only luxury hotels, a
comparative study can be undertaken where luxury hotels can be compared with the non- luxury hotels.
Fourthly, similar studies can also be conceptualized for airlines, cruises etc. Fifthly, cross cultural studies can
be carried between the developed nations such as US and UK and developing nations such as India and
China to understand the gap that exists in the process and usage of experiential marketing in luxury hotels. It
would help the developing nations to create the strategies accordingly.
9. Conclusion
The objectives were met as the entire process of experiential marketing was thoroughly studied. In hotels,
the luxury offered is not only in terms of finest linen, air-conditioned rooms and latest technological security
and surveillance provided at the hotel, but it includes the experience of staying in the lap of luxury which
cannot be forgotten by the consumer. The experiences and interaction with the consumer develops a strong
positive image in their minds. They get emotionally associated to the hotel and would prefer to come back
and stay in the same hotel.
The experiential marketing can be used for the prospective and loyal consumers. The consumers of today
are in search of relaxation or rejuvenation. It is the responsibility of the marketing team of the hotel to
understand the needs of the consumers and accordingly create experiences that will help in building a
stronger relationship between the hotel and the consumers.
The experiences have to be extremely unique and personalized and yet should not intrude in the personal
life of the consumer. The experiences have to be crafted with uttermost care to make sure that the right
objective is achieved. There are innumerable opportunities to create experiences for the consumers that very
well serve in the marketing of the hotel. The challenge is that these experiences must be well thought and
require a good planning and execution for the productive outcome.
LOAD-DATE: September 7, 2015
LANGUAGE: ENGLISH
ACC-NO: 3797864191
GRAPHIC: References
Diagrams
Page 21
March 2015
PUBLICATION-TYPE: Other (Periodical)
JOURNAL-CODE: RMJM

All Rights Reserved
ABI/INFORM
Copyright 2015 Editura Rosetti Educational
Page 22
Page 23
Consumers' Purchase Intentions of Shoes: Theory of Planned Behavior and Desired Attributes International
Journal of Marketing Studies August 2014
Return to List
3 of 5 DOCUMENTS
International Journal of Marketing Studies
August 2014
Consumers' Purchase Intentions of Shoes: Theory of Planned Behavior

and Desired Attributes
BYLINE: Wang, Yun
SECTION: Pg. 50 Vol. 6 No. 4 ISSN: 1918-719X
LENGTH: 3956 words
Nowadays, females viewed shoes as not just footwear to protect and comfort foot, but a fashion product for
decoration and express self-image. The total annual sale of shoes is NT$ 60 billion in which female shoes
accounted for about NT$36 billion in Taiwan. The purpose of this research was to investigate what factors
make the difference in female shoes purchase intentions. The factors included: shoes attributes; attitude,
subjective norm, and perceived behavioral control based on Theory of Planned Behavior; and demographic
and shopping behavior variables. A total of 450 convenience questionnaires were distributed outside
department stores using Mall-intercept method in Kaohsiung, Taiwan. The results indicated that female
consumers who have higher purchase intentions of shoes have significant higher appraisal of shoes
attributes in style, colour, collocability, materials and brand name compare to those who have lower purchase
intentions of shoes.
FULL TEXT:
1. Introduction and Research Framework
Nowadays, females viewed shoes are not considered just footwear to protect and comfort foot, but a fashion
product for decoration and express self-image. Gobi International (2010) market research indicated the
global footwear market is reach US$ 174.8 billion in year 2010, and expects to reach US$ 195.6 billion and
have 2.4% compound annual growth rate (CAGR) in year 2011 to 2015. In Taiwan, footwear market sales
grasp NT$ 67 billion in year 2011; and female shoes sales account for almost NT$36 billion (54%) compare
to male (36%) and children (10%) (Industrial Development Bureau, R. O. C., 2011). According to Executive
Yuan, R. O. C. (2013), Taiwan Female labor force participation rate is excess of 50% in the year of 2012.
Female labor amount was 4.61 million in 2010 and increased to 4.77 million in 2012. Hedrick-Wong (2007)
asserts in year 2014 female consumers in affluent countries of Asia hold the consumption power of US$ 516
billion, and women in developing countries have US$ 181 billion. Even though government data and online
market research analysts indicated shoes consumption is important in daily life of women, there is very
limited research that was conducted specifically on shoes worldwide.
The Lancaster's theory of consumer choice (1966) postulates that consumption decisions are determined by
the utility that is derived from the attributes of a good. Because consumers often link attributes to
consequences of purchasing or consuming products (Akpoyomare, Adeosun, & Ganiyu, 2012), marketers
differentiate and set its product apart from competitors based on a specific attributes (Belch & Belch, 2001). A
research by Forney, Park and Brandon (2005) found that image, quality, colour/style, and design/beauty of
fashion products are important criteriawhen purchasing extended brands of casual apparel and home
furnishings. Saha, Dey, and Bhattacharaya (2010) applied the 4Ps of marketing mix as a framework to
Page 24
classify and evaluate the importance level of shoes attributes in Kolkata, India. They found that the factors to
be considered by shoes manufacturers and marketers are "quality, durability, right pricing, after sale service,
and convenient location of the retail shops". Laiwechpittaya and Udomkit (2013) expanded the research of
Saha, Dey, Bhattacharyya (2010) byadding retail mix (6Ps) with additional factors on presentation and
personnel. In their research they found among 50 shoes attributes, most desired attributed for consumers are
"comfort, durability, odorless, value, and quality" in Thailand. In second stage, these 50 attributes were
grouped into 5 factors using Exploratory Factor Analysis and named as "well trained and experienced
salesforce", "product quality and functions", "attractive store and product presentation", "price and perceived
value", "health and comfort", and "fashion and trends". According to Aaker, Batra, and Myers, (1992) an
important attribute is one that offers an important benefit towards the satisfaction of consumer needs. Aaker
(1991) adds that because most product attributes provide consumer benefits, there is usually a one-to-one
comparative between brands. Kotler (2002) explains that the most salient attributes or features of a product
to the consumer do not necessarily always imply that they are the most important ones. Manufacturers must
view product attributes from consumers'point, understand their specific needs to reduce the lost opportunity
to sell or raise the level of customer satisfaction.Therefore, identification of those important factors will help
the shoe-making companies to tailor their marketing and manufacturing strategies to take advantage of these
influences in a way that will satisfy both the consumers and marketers.
The Theory of Planned Behavior (TPB) one of the most widely researched models forpredicting behavioral
intentions by social psychologists (Armitage & Conner, 2001), suggests that beliefs and their corresponding
attitudes, subjective norms, and perceivedbehavioral control influence intentions,which drive actual behavior.
Attitude (ATT) is defined as the psychological emotion and the positive or negative evaluation that arise when
an individual engagesin certain behaviors (Eagly & Chaiken, 1993). Subjective norms (SN) are the perceived
opinions of significant others who are close/important to an individual and who influencehis/her decision-
making (Ajzen, 1991). Perceived behavioral control (BC) refers to an individual's perception of the possible
difficulties when performing aspecific behavior (Ajzen, 1991). Researchers have most frequently relied on the
TPB to explain various consumer issues on ethical (Culiberg, 2014; Shaw & Shiu, 2002), smoking
(Topa&Moriano, 2010), speed driving (Elliott, Armitage, &Baughan, 2007), and drug abuse (Bashirian,
Hidarnia, Allahverdipour, & Hajizadeh, 2012). In fashion field, Kim and Karpova (2010) examined US female
college students' intent to purchase fashion counterfeits based on TPB. They found product appearance,
past purchase behavior, value consciousness, and normative susceptibility are significant predictors of
attitude toward buying fashion counterfeit goods. Attitude, subjective norms, and perceived behavioral control
are significantly related to intent to purchase fashion counterfeit goods. Ling (2009) examine luxury fashion
goods purchase intention in China by applying the TPB with an additional factor, cultural orientation. He
found the three factors of TPB, attitude, subjective norms, and perceived behavioral control have significant
effects on luxury fashion goods purchase intention, but not cultural orientation.
The purpose of this research was to investigate what factors make the difference in female shoes purchase
intentions? Factors included (1) shoes attributes: style, colour, material, brand, collocability, comfort,
durability, and service; (2) attitude, subjective norm, and perceived behavioral control based on TPB; and (3)
demographic and shopping behavior variables: age, income, education level, occupation, marital status,
quantity of shoes own, shoes purchased frequency, average purchased price of shoes, purchased locations,
and shopping frequency. The following hypotheses were proposed:
H1.Consumers who have higher purchase intentions of shoes will differ significantly in shoes attributes
appraisal from those consumers who have lower purchase intentions of shoes.
H2.Consumers who have higher purchase intentions of shoes will differ significantly in attitude, subjective
norms, and perceived behavioral control from those consumers who have lower purchase intentions of
shoes.
H3a.Consumers'demographic variables have significant effects on their preference of shoes attributes and
purchase intention.
H3b.Consumers' shopping behavior variables have significant effects on their preference of shoes attributes
and purchase intention.
2. Methodology
Page 25
2.1 Sample and Data Collection

Prior studies have shown the importance of gender effect (Davis, Lang, & San Diego, 2014) in retail
shopping behavior. Therefore, the sampling for this research is mainly female consumers. Data were collect
by using survey questionnaire, in the beginning of questionnaire; information of fashion shoes that are not
counting sneakers and slippers was given. There are three parts of questionnaires: (1) demographic and
shopping behavior variables; (2) shoes attributes; and (3) attitude, subjective norms, consumer perceived
behavior control and purchase intention (PI) of fashion shoes. Consumers' belief of fashion shoes attributes
was operationalized based on Stanton, Michael and Bruce (1991) definition of product attributes, Chang,
Wang, and Cheng (2010) research of sport shoes attributes, Laiwechpittaya and Udomkit (2013), and
interviewed five fashion shoes sales and ten female consumers in Taiwan. An 8-items scale of fashion shoes
attributes was produced at the end. Attitude, subjective norms, and consumer perceived behavior control
were measured on the basis of Canniere, Pelsmacker and Geuens (2009). Purchase intention (PI) was
measured using three items adapted from Bhattacherjee (2000). All measurements used a 7-point Likert
scale with response options ranging from 1-strongly disa f915.20140828043001gree to 7-strongly agree. A
pilot study including sixty-six female customers was conducted to test the clarity of questionnaire wording.
Using Mall-intercept method we distributed 450 questionnaires to customers of four department stores during
the months of October and November, 2013. These department stores locate in Kaohsiung, a Southern city
in Taiwan. The final data analysis included 422 completedquestionnaires and the overall response rate was
94%.
2.2 Data Analysis
Data were analyzed by SPSS 17.0. In order to test research hypotheses, respondents were classified into
two groups based on the difference between their mean scores on purchase intentions of fashion shoes. A
cluster analysis was performed to help classify respondents into more homogeneous preference groups. This
approach has been conducted by various researchers in order to determine customer segments based on
distinct preference profiles (Head & Ziolkowski, 2012). The k-means cluster procedure in SPSS was used to
perform the segmentation. An analysis of variance revealed that the segments in the 2-cluster solution
differed significantly (F=4.73, p< .001) from low and high purchase intentions of fashion shoes. Cluster 1 is
the low purchase intentions of fashion shoes group (n=142, Mean= 4.20, SD=.75), and cluster 2 is the high
purchase intention of fashion shoes group (n=208, Mean=6.24, SD=.55). After these low and high purchase
intentions groups were identified, the independent t-test analysis ofvariance for groups mean difference was
performed to test hypotheses 1 and 2. Afterward, one factor analysis of variance (ANOVA) was apply to
examine hypotheses 3a and 3b, differences in consumers'demographic and shopping behavior variables in
their preference of shoes attributes and purchase intentions.
3. Results and Analysis
3.1 Reliability and Descriptive Analysis of Respondents
Internal reliability was identified by calculating the Cronbach's alphas, which ranged from 0.77 (shoes
attributes), 0.80(BC), 0.84 (SN), 0.89 (ATT), to 0.91(PI), indicates our research variables have good internal
consistency reliability. The majority of respondents are females age between 26-35 years old (40.5%),
haveeducation of college degree (54.7%) and with monthly income around NT$20,001~30,000 (39.3%).
Detail information of the study population was given in Table 1.
3.2 Differences between Low and High Purchase Intentions in Shoes Attributes
The results of independent t-test showed the differences between low and high fashion shoes purchase
intentions in each attribute of shoes were displayed in Table 2. Two important facts were derived. First,
among these shoes attributes, female consumers rank the highest importance in comfort (Mean=6.48), follow
by style (Mean=6.33), colour (Mean=6.19), shoes materials (Mean=6.15) and collocability (Mean=6.14)
attributes of shoes in Taiwan. Compare the results with Laiwechpittaya and Udomkit (2013) research in
Thailand unisex shoes market, both research initiated "comfort" is the most important attribute for consumers
while evaluate the shoes product. However, Thailand consumers evaluated the durability, odorless, value for
price paid and high quality as the following important desired attributes of shoes which are not the same as
Taiwan female consumers' perspective. Second, results in Table 2 suggested our hypothesis 1, consumers
who have higher purchase intentions of shoes differ significantly in shoes attributes appraisal from those
Page 26
consumers who have lower purchase intentions of shoes, is partial supported. Female consumers who have
higher purchase intentions of shoes have significant higher appraisal of shoes attributes in style, colour,
collocability (in p< .001 level), materials and brand name (in p< .01 level) compare to those who have lower
purchase intentions of shoes. However, no significant differences were found between those high and low
groups in comfort, durability and service attributes of shoes. Meaning even though "comfort, durability, and
service" are important attributes in shoes market from most consumers' and shoes manufactures
perspective, these factors are the minimum essential attributes of shoes; the "style, colour, collocability,
material, and brand name" are the real motivated attributes trigger female consumers' purchase intentions of
shoes.
3.3 Differences between Low and High Purchase Intentions in ATT, SN, and BC
To examine the hypothesis 2, independent t-test was performed and results were display in Table 3. Overall
most consumers have favorite attitudes toward fashion shoes (Mean= 5.13) and consider themselves have
high perceived behavior control of fashion shoes purchase behavior (Mean= 5.41). Results in Table 3 also
suggested our hypothesis 2, consumers who have higher purchase intentions of shoes have significant
differences in attitude (t=-11.56, p< .001), subjective norms (t=-5.82, p< .001), and perceived behavioral
control (t=-8.37, p< .001) from those consumers who have lower purchase intentions of shoes, is supported.
Particularly, consumers who have higher purchase intentions of shoes have better attitude (Mean=5.50),
higher subjective norms (Mean=4.81) and perceived better behavior control (Mean=5.68) compare to those
who have lower purchase intentions of shoes in attitude (Mean=4.39), subjective norm (Mean=4.18), and
behavior control (Mean=4.86).
3.4 Demographic and Shopping Behavior Variables Differences in Shoes Attribute and Purchase Intentions
Analysis of variance (ANOVA) was used to examine hypotheses 3a and 3b: consumers' demographic and
shopping behavior variables have significant effects on their preference of shoes attributes and purchase
intentions. If significant exist, Scheffé post hoc analysis is applied to reveal the difference among variable
categories. Results in Table 4 suggested Hypothesis 3a is partial supported, since the different age, marriage
status, and income level of female consumers had significant effects on style, colour, brand name, comfort
attributes and purchase intentions of fashion shoes. In general, youth female consumers age between 18-35
years old have significant higher purchase intentions (F(3,418)=12.906, p<.001) than elder consumers. To be
specific, female consumers age between 26-35 years old tend to care shoes' style (F(3,418)=4.320, p< .01),
colour (F(3, 418)=5.780, p<.01) and brand name (F(3,418)=3.843, p< .05) more than those female
consumers age between 36-45 years old. Consumers in the group of higher monthly income
(NT$40,001~50,000) emphasize the comfort attribute of shoes more than those consumers who have
monthly income less than NT$20,000 (F(4,417)=2.851, p< .05). In addition, female consumers who are
single tend to care shoes style (F(2,419) =3.080, p<.05) and have higher purchase intention(F(2,419)=5.667,
p<.01) more than those married females consumers.
Results in Table 5 suggested Hypothesis 3b is partial supported, since the differences of consumer in shoes
quantity, shoes purchased frequency, purchased price, and purchased locations had significant effectson
style, brand name, comfort attributes and purchase intentions of fashion shoes. In general, the more shoes
quantity consumers own (F(4,417)=23.161, p< .001) and the higher shoes purchase frequency consumers
have (F(4,417)=23.825, p< .001), the higher purchase intentions of shoes would perceived. Precisely,
females consumers who have more shoes quantity (F(4,417)=6.996, p<.001) and have higher shoes
purchased frequency (F(4, 417)=2.675, p< .05) tend to care shoes' style more than those who own less
shoes quantity and have lower shoes shopping frequency. Additionally, females consumers who have more
shoes quantity (F(4,417)=5.715, p<.001) tend to care shoes' brand name more than those who own less
shoes quantity. Females consumers who spend more on shoes purchased price tend to care more in shoes
material (F(4,417)=6.738, p< .001), collocability (F(4,417)=4.567, p< .01) and comfort performance
(F(4,417)=3.678, p< .01). For the shoes purchase locations, consumer rank shoes sell in online stores have
more style choice than retail stores and night market (F(4,417)=3.502, p< .01); shoes sell in department
stores have better materials than street vendors (F(4,417)=3.708, p< .01), and better collocability
presentation than those sell in night market (F(4, 417)=4.467, p< .01). Shoes sell in department stores and
retail stores tend to have better wear comfort (F(4, 417)=3.875, p< .01) and service (F(4, 417)=3.388, p< .01)
compare to those shoes sell in street vendors.
Page 27
4. Conclusion and Managerial Implication

4.1 Shoes Attributes
According to the findings, comfort, style, colour, materials and collocability attributes of shoes are the most
desire attributes for female consumers in Taiwan. Meanwhile, even though "comfort, durability, and service"
are important attributes in shoes market from most consumers' and shoes manufactures perspective, these
factors are the minimum essential attributes of shoes; the "style, colour, collocability, material, and brand
name" are the real motivated attributes trigger female consumers' purchase intentions of shoes. This
research identified the important trigger attributes of female shoes that they use most when purchasing
shoes. It can provide retailers with a tool for aligning in female fashion shoes market. While shoes
manufacturers focusing on comfort, durability, and materials attributes of shoes, they must also strive to
establish designs in style and colour; increase collocability with fashion products; and build a positive brand
image to achieve consumers' ultimate buying.
4.2 Attitude, Subjective norms, and Perceived Behavior Control
In addition, this research provides valuable insights for fashion shoes retailers by indicating consumers'
purchase intentions would affect by different extent of attitude, subjective norms and perceived behavior
control of consumers. The findings of this study sugg f915.20140828043001ests that creating a positive
attitude toward purchasing fashion shoes may be a significant consideration for retailers to increase
consumers' purchase intentions of fashion shoes. In order to cultivate favorable attitudes, footwear retailers
should invest resources in shopping circumstances and atmosphere to create shopping value of excitement
and pleasure which would eventually enhance consumers' attitude. In other hand, to increase the idea of
social norms acceptance, footwear retailers could develop advertisements to cultivate the idea by using
family and friends' alliance image. Latterly, footwear retailers who wish to improve consumer perceived
behavior control should imply the affordable price image and affluent information of shoes in different media
for consumers' resource.
4.3 Demographic and Shopping Behavior Variables
In demographic part, results identify two prominent segmentations: 18-35 years old single female consumers
versus 36 to over 45 years old married female consumers. This single youth females group has higher
purchase intentions of shoes and tends to care the style and colour attributes of shoes more than those elder
married females. This youth group comprises college students and fresh employees in the job market. Unlike
married females, most consumers in this group don't have pressures in financial and have personal time to
shopping. They enjoy shopping and have supreme purchase power. Therefore, footwear retailers might want
to target this niche market and study what is their favor design in style and colour. From the shopping
behavior part, results indicated the purchase intentions of shoes is significant different from those who own
more shoes quantity and have higher shoes purchase frequency (heavy user/buyer) than those who have
own less shoes quantity and have lower shoes purchase frequency. The more pairs of shoes consumers
own, the more they care about the brand name of shoes. Therefore, to increase sales and obtain higher
market share, shoes retailers need to build and promote their brand image. Footwear retailers could use
well-known starsas spokesman and integrate marketing communications skills to explore their brand image
to consumers. Besides, results indicated the higher price consumers paid for shoes, the better material,
collocability and comfort they care for the shoes. It is about the comprehensive value consumer perceived. If
consumers spend more on shoes prices, of course they will like to receive a high quality of shoes. Footwear
retailers that are target in luxury market need to pay more attention in material, collocability and comfort of
shoes. Finally, since findings indicated that shoes distribution in different locations have significant
differences of consumers appraise in style, material, collocability, comfort and service. Consumers tend to
give higher appraise in department stores related to material, collocability, comfort and service, but not the
style. Shoes retailers need to launch their merchandise carefully according to their target market.
5. Limitations and Future Research
Although the present findings provide a valuable insights for fashion shoes retailer, several suggestions for
future research are made due to the study's limitations. First, the majority of study participants used in this
research was female between the ages 18-45. Although female ages 18-45 is an appropriate age
demographic for fashion shoes purchase behavior, future studies might examine whether differences exist
Page 28
between other age groups or gender in overall evaluations. In addition, this research is limited to female
shoes category, findings may only be applicable to fashion merchandise categories; further study needs to
obtain greater generalizability with variety of product categories. Additionally, since the mall-intercept method
was used to collect survey data from Kaohsiung, a southern city in Taiwan, the findings of this study may not
be applicable to all consumers in Taiwan or elsewhere. Thus future research could incorporate online survey
method which would allow samplings from various geographic locations. Finally, this study can be extended
to be an international comparative study. Study found in this research shows attitude, subjective norms and
perceived behavior control made significant differences between high and low purchase intentions of shoes
in Taiwan, it is important to explore the effect of attitude, subjective norms, and perceived behavioral
controlon purchase intention varies in different cultures.
LOAD-DATE: August 28, 2014
LANGUAGE: ENGLISH
ACC-NO: 3414243311
GRAPHIC: Tables
References
JOURNAL-CODE: NJMS

All Rights Reserved
ABI/INFORM
Copyright 2014 Canadian Center of Science and Education
Page 29
Page 30
Compacts, smaller cities drive Mercedes-Benz's growth in India IHS Global Insight May 16, 2014
Return to List
4 of 5 DOCUMENTS
IHS Global Insight
May 16, 2014
Compacts, smaller cities drive Mercedes-Benz's growth in India

BYLINE: Anil Sharma
SECTION: Main Story
LENGTH: 1038 words
German luxury OEM Mercedes-Benz is set to bring the GLA sport utility vehicle to India this year amid an
increased focus on tier-two and tier-three cities.
Having been the first entrant in India's luxury automotive market, Mercedes-Benz is often regarded as the
market maker. After the automaker was overtaken by its German rivals BMW and Audi in terms of annual
sales, the Daimler company embarked on a product offensive strategy last year that was underpinned by the
A- and B-Class compact luxury models. Although initially appearing counterintuitive, this strategy resulted in
a 32% year-on-year (y/y) jump in Mercedes-Benz India's sales volumes last year to more than 9,000 units,
while its first-quarter 2014 sales volumes have risen 27.1% y/y to 2,554 units. IHS Automotive recently
interviewed Eberhard Kern, Mercedes-Benz India's managing director and CEO, and asked him about topics
ranging from the automaker's future plans to government policies. Here are excerpts of the interview.
IHS:How has been the performance of the A- and B-Class vehicles launched last year?
Kern:We are very happy with the initial success, today one out of five Mercedes is an A- or B-Class and
these are doing better than we expected. I think India is quite ready for compact luxury other than cars such
as gadgets, smartphones, studio apartments, especially young Indians. A and B did very well and we are
happy with the success. We showcased at the Auto Expo the GLA and the CLA 45 AMG which are based on
the same platform. We think that those two and one of the competitors' product which enters the market next
month will further push this segment. In the future in luxury market, you will have three main areas - the
established one like sedans, limousines; second one fast growing SUVs [sport utility vehicles]; and then the
compacts. In future, we might have to distinguish between three of them. As a manufacturer, I think it is a
very good idea to be present in all of them. Launched less than a year back, today it [compact vehicles] is
20% [of our sales]. We expect in the mid-term, compacts will be up to 40% by 2020. More than half of the A-
Class customers are completely new to the brand.
IHS:Mercedes-Benz has a strong presence in metro cities, how do you see the market shaping up in smaller
cities?
Kern:India is not concentrated geographically in the way Russia or Taiwan is. Big metro areas like NCR,
Mumbai together make around 40% of our annual sales. It means more than half of the business comes
from areas outside metro cities. We follow a strategy to cover more and more tier-two cities and we are now
Page 31
Compacts, smaller cities drive Mercedes-Benz's growth in India IHS Global Insight May 16, 2014
looking into tier-three cities. Over the last few years, we have opened outlets in several smaller cities
including Bhopal, Coimbatore, Lucknow, Varodara, Ludhiana, Kanpur, Nasik, Madurai, Vijayawada. As part
of our strategy, we now have 64 touch points in 36 cities in India, and we are going to add 11 more this year.
We have a very concrete plan behind this. We are going to cover every potential market.
IHS:What demand variations do you see in smaller cities?
Kern:In tier-two cities, we see an even high preference for SUV. There we have sort of two big gaps, we do
not have mid-size luxury SUV and we do not have a small size SUV. There are some segments where we
first look at and especially for tier-two and tier-three cities. The GLA we showcased in Auto Expo is on its
way, it is a work in progress. For mid-size SUV, we have GLK in Mercedes-Benz global portfolio.
Unfortunately, this is only a left-hand drive as of now.
IHS:What potential do you see in India given the inconsistent government policies?
Kern:If we come to a stable government, I think the potential is huge in India. Ten years back, our China
sales were less than what they are in India today. Today, China is 25 times sales of India. In a time period of
10 years, if you have a strong government, if you have clear framework, if you have decision makers in
business, then it is all about investment. They [business] have to rely on good governance. If this is given,
there is no reason why there should be not a success story here. We are very sure with good governance,
India can make it.
IHS:How is Mercedes-Benz performing on its capacity expansion plans? What specific challenges are you
facing in India?
Kern:We prepared by investing in expanding our capacities here. Our production capacity is getting doubled
right now. It is almost done, we are waiting for the environmental clearance. We are expecting it in the next
one to three months and then it can be used. Our new production capacity is 20,000 units while last year we
sold 9,003 units. Our product portfolio has become much more attractive over the 12-18 months and we are
continuing putting new models in what fits the Indian market. If you look at the 6Ps in marketing - product,
price, promotion, processes, they are all there. Now place and people, that's the main focus. We have
dealerships everywhere where the potential is and to get the high performing people there - that's a
challenge. Vocational educational system is not in place, we do it ourselves.
Outlook and implications
After ceding its leading position in the Indian luxury market to its German rivals, Mercedes-Benz has made a
remarkable comeback with a string of model launches. Important in this success has been the contribution of
compact vehicles - a portfolio that is going to expand further following the introduction of the CLA sedan and
GLA SUV later this year. In a country where luxury is often associated with large dimensions, the success of
compact premium vehicles is rather exceptional and has sparked competition among other luxury
automakers, which have launched similar products. IHS Automotive concurs with the automaker's projections
that compact vehicles will gain prominence and forecasts that combined volumes of A- and B-Class models
will account for 40% of Mercedes' expected sales volumes in India of 25,200 units in 2020. Although the
contribution of compact vehicles is well documented, a rather overlooked aspect is the local assembly and
increasing localisation undertaken by the automaker. The strategy has led to substantial savings, some of
which have been passed on to customers.
LOAD-DATE: May 16, 2014
LANGUAGE: ENGLISH
PUBLICATION-TYPE: Web Publication
Copyright 2014 IHS Global Insight

All Rights Reserved
Page 32
Page 33
Exploring Generation Z's Purchase Behavior towards Luxury Apparel: a Conceptual Framework Romanian
Journal of Marketing April 2014 / June 2014
Return to List
5 of 5 DOCUMENTS
Romanian Journal of Marketing
April 2014 / June 2014
Exploring Generation Z's Purchase Behavior towards Luxury Apparel: a

Conceptual Framework
BYLINE: Jain, Varsha; Vatsa, Reshma; Jagani, Khyati
SECTION: Pg. 18 No. 2 ISSN: 1842-2454
LENGTH: 6615 words
Generation Z known as the Digital natives operates in a diverse manner set of consumers as they have a
distinctive taste, choice, opinion, preference, attitude and behavior which make it crucial to understand how
they play, learn and interact with their friends, peers, family, and brands. Generation Z is highly fashion
conscious demands for high-end luxury goods, especially Luxury apparels. The present study aims to
understand the purchase behavior, drivers and the process of buying luxury apparels of Generation Z. The
study suggests that marketers need to be creative and interactive not only in their stores and advertisements
but also on the digital platform and market in a subtle manner.
FULL TEXT:
1. Introduction
Generation Z or the Digital natives are born in the Digital world with complete technology of PCs, Mobile,
Gaming Devices and Internet (Westlund, 2010). They prefer to stay indoors and play online rather than go
out and play outdoors. They have virtual friends and hang out with friends virtually over the mobile phones,
social networking sites and messages. Generation Z is collaborative, creative, multitaskers and thrives for
instant gratification. Indian Generation Z is highly fashion conscious and demands for high-end luxury
products. This is the result of the growing consumer market and increasing disposable income of the upper
middle class and the elite class.
The Indian consumer market is growing as high net-worth households are increasing. A wealth management
study projects India to have 219,000 ultra wealthy households by 2015 (Crisil and Kotak Wealth
Management, 20xx), with the net worth of this elite class estimated to increase by more than five times in
2015-16 ($45 to $235 trillion). The elite class of Indians including Generation Z travel abroad extensively and
hence they are exposed to the latest fashion and the luxury brands available in the international market (Jain
& Patel, 2013). Therefore, the consumers have acquired the taste for international aesthetics, latest fittings,
and mesmerizing designs (Mohanram, 2012). International luxury brands have entered Indian markets to
seize the opportunities of this emerging market. This provides opportunities for luxury apparel brands to
target this lucrative segment (A CIIA.T. Kearney report, 2011).
The Indian households that can afford luxury brands emphasize on products rather than services. The luxury
products that are primarily growing in the Indian market are electronics, jewellery, accessories, wines &
spirits and apparel. The apparel sector has grown at a Compound Annual Growth Rate (CAGR) of 19%
between 2002 and 2009 (Jain et al., 2012). According to the A T Kearney report (2011), luxury apparel and
accessories have grown by 30% to a value of US$ 266.5 million in India.
Page 34
The sales of apparel had beenprojected to be strong from 20122016 as the consumers particularly in Tier
One larger metropolises prefer western clothing and branded products, ("Apparel in India", 2012). India's
young consinner's annual spending is esti-mated at US$6.5 billion and expenditure is high on the luxury
brands. It is therefore crucial for the marketers to understand the drivers and process of purchasing luxury
apparel among Generation Z. The subsequent section will discuss the literature review pertaining to luxury
branding, Indian luxury market, and apparel sector and consumer behaviour of Generation Z.
2.1. Generation Z
Teenagers in the age group of 13-19had spent $150 billion annually in 2007 (Swain, 2007). Around 22 million
of Indian Generation Z belongs to the upper middle class. India's Generation Z consumers spend
approximately US$6.5 billion annually and 60% of it on clothing (Yu et al., 2002). Generation Zneed to talk,
get connected and feel belonging to a set of peer group. In order to do so, they read about fashion trends,
electronic gadgets, video games, online games and music (Swain, 2007). They discuss about clothing and
apparel with their Mends and peers. They spend high amount in buying different luxury brands (Yu et al.,
2003).
Generation Z are the people born between 1991 and 2002. They are the followers of Generation Y and the
grand children of the Baby boomers, but are raised by Generation X. Also known as the connected
Generation, digital natives, and net Generation, Generation Z is individualistic by nature who believes in
speaking their mind and express their opinion ("Make Way for Generation Z: Marketing to Today's Tweens
and Teens," 2011). The digital natives are highly tech-savvy, and multi-tasks with online products, variety of
electronic devices and processes large information on the internet (Williams, 2010). The young teenagers in
this Generation are older than their age and are smarter than the previous Generation. Generation Z is highly
brand conscious and materialistic as they do not like to be compromise on the coolest product in comparison
with their Mends and peers ("Make Way for Generation Z: Marketing to Toda/s Tweens and Teens," 2011).
They do not believe in discrimination and have a realistic attitude as compared with the previous Generation.
This Generation has access to the credit cards of their parents and also receives high amount of allowances
and gifts from their parents. Generation Z is constantly connected with their Mends across countries and
cultures over the mobile phones, internet and online gaming. ("Make Way for Generation Z: Marketing to
Today's Tweens and Teens," 2011). They are not only comfortable with the technology but also dependent on
the technology. Generation Z feels responsible towards the environment, thus prefers green products.
Friends have a great influence on the purchase decision of Generation Z (Sophocleous, 2013; Clarke et al.,
2010). According to a global survey more than 50% of Generation Z is online on a daily basis to
communicate with their Mends. This Generation prefers social networking sites such as Facebook and
instant messaging apps such as whatsapp over emails and SMS. Generation Z also has a strong connection
with their parents, that is, Generation X, as both this Generations are purchasing the same brands, such as
Gap, Polo, Tommy Hilfiger, etc ("Consumer of Tomorrow", 2011).
2.2. Luxury Branding
Luxury is defined as something that consumers do not need but want (Finn, 2011). Many authors have stated
that luxury products have special attributes such as uniqueness, exclusivity, quality and craftsmanship
(Fionda & Moore, 2009). There can be four main groups of luxury goods: apparel (ready to wear), jewellery &
watches, perfumes & beauty products, spirits & wines(Jackson, 2004). According to other studies, the best
products and services that are expensive and have the best quality are perceived to be luxury branded
products (Teimourpour & Hanzaee, 2011).These products and services could also be defined as goods that
are not essential to satisfy the basic needs as it is related to their wants.
There are two reasons for pin-chasing luxury goods; extrinsic (social and interpersonal) or intrinsic (reserved)
(Amatulli & Guido, 2011). The intrinsic factors consists of unique experience, feelings, emotions, purchase
pleasure, memories & desire; and the extrinsic factors consists of features, price, quality, status & prestige
(Daswani & Jain, 2011). This outlook on the value of the luxury product or service would depend on the
background, perceptions and the intentions of the buyer of luxury product (Wiedmann, Hennigs, & Klarmann,
2012). There might be multiple influences to purchase luxury goods such as the desire to emulate the
wealthy person (Vigneron & Johnson, 2004) or a need to be self-indulgence (Silverstein & Fiske, 2005).
Page 35
2.2.1. India as a Luxury Market

The luxury market intrigues many stakeholders to experience the market as it has become a lifestyle
statement. There is an upsurge not only in the developed countries but more so in the emerging countries
such as India. According to Chadha and Husband(2007) in their book The Cult of Luxury Brand developed
the model that follows a fivestage process: (a) subjugation; (b) start of money; (c) showing off; (d) fitting in;
and (e) way of life. The Asian-Pacific countries have graduated through only few stages as there is an
increase in the disposable income, economic growth and relaxed FDI policies has allowed the single-brand
retail brands to enter these countries. Indian consumers are now in the "showing off' stage as they buy and
display symbols of wealth (Eng & Julie, 2010).
2.2.2. Indian Preferences for Luxury Products
Indians prefer to stick to their traditional styles and use western brands to boost their social image. They may
integrate both the traditional styles and western style to suit their sensibilities and enhance their status in the
society. Indian consumers would consider their reference groups while purchasing luxury brands. Indian
consumers focus on the hedonic reasons and have a subtle way of portraying their brands in the upper class
society (Eng & Julie, 2010).
2.2.3. Motives for purchasing luxury brands
The motivation to buy luxury products can be categorized broadly into two main segments: personal
orientation or social orientation (Truong, 2010). Intrinsically motivated consumers purchase luxury goods for
personal pleasure& quality and not for the display of wealth. Extrinsically motivated consumers purchase
luxury for both: conspicuous consumption as well as self-directed pleasure. It was found that emerging
markets such as China and India the focus is more on materialism than the Western markets (Eng & Julie,
2010). However, there has been a shift in the luxury consumption from flaunting to self-indulgence (Jain &
Patel, 2013). The meaning of old luxury which was attributes, qualities, features, status & prestige has now
shifted to a new definition of intrinsic, meaningful, unique experience & consumer centric (Daswani & Jain,
2011).
2.2. Luxury Apparel
Luxury apparel brands are believed to have the best quality, material, fit and exclusivity. Consumers want to
purchase a luxury apparel product for physical attributes such as quality, fit, craftsmanship and design; for
abstract values such as elegance and sophistication; and for feel good factor when they purchase (Amatulli &
Guido, 2011). Once the consumer pin-chases luxury apparel from a store, they realize that the fabric, fitting
and look is amazing, they would like to purchase other products from that store in future. Another consumers
study found that quality of the apparel, symbolism by means of a status, a reason for performing marketing
activities and keeping up with latest trends were the important drivers to purchase apparels (Kamenidou et
al., 2007).
2.2.1. Theoretical Background
Research has found that consumers are ambivalent and inconsistent towards consuming luxury apparels.
Keegan et al's (1992) theoretical model known as Black Box, which focuses on the consumer-buying
behaviour in a holistic manner, was used as the framework for the study. The Black Box shows the
interaction of environmental factors such as marketing stimuli and environmental stimuli, on the consumer
characteristics and decision process, which results in buyer's response. In Black Box, consumers respond in
different ways to various stimuli after processing it extensively in their mind. External drivers are the stimuli
that "integrate" with the persona of the individual, which then works as the internal stimulus, in the decision-
making process of the consumer. Marketing exposure is the trigger to the actual purchase decision of the
consumers (Monga and Chaudhary, 2011).
Research in the luxury apparel market prior research has been conducted mainly in the western and
developed economies. However, with India as one of the fastest growing economies it is crucial to
understand the behaviour of Generation Z, which is the fastest growing segment with high purchasing power
and intention in the Indian context. A gap between the luxury apparel brands and Generation Z buying
behaviour was identified in the Indian context, and to fill this gap the present study intends to explain the
Page 36
purchase behaviour of the Generation Z consumers towards luxury apparel products with a comprehensive
model.
3. Research Questions
- What are the key drivers for Generation Z to buy luxury apparel brands?
- How do these drivers affect the purchase decision of luxury apparel brands?
- What is the process of buying luxury apparel brands among Generation Z consumers?
- How males and females process information pertaining to luxury apparel purchase?
4. Methodology
The research was conducted in three phases: structured observations, in-depth interviews of consumers,
and in-depth interviews of the store managers. Structured observations were carried out on 42 teenage
consumers between 13-19 years old (25 female and 17 male consumers) in eight different luxury stores by
the authors. These upscale and premier stores were located at different locations in Mumbai such as
Palladium, Lower Parel and PhoenixMall, Kurla. Mumbai was selected for the study because the two metros
of India i.e., New Delhi and Mumbai have 50% of luxury consumption. The authors developed a recruitment
format for the respondents primarily created to identify the socio-economic background of the respondents
and their last luxury apparel purchase. They must belong to SEC Al and should have purchased luxury
apparel in the last one year. The recruitment format also documented the respondents' demographic
information such as age and gender. The list of the luxury apparels was developed after reviewing the
magazines, reports and newspapers of the last one year.
Structured observations were noted to understand the luxury purchase behaviour and to enhance the
reliability of the data obtained through the interviews. This method helped the authors to understand the
shopping patterns of Generation Z, time spend in the store, etc., and also reduces the bias of the author
while understanding the consumers during interviews. Observation of the consumer was undertaken on the
basis of interactions between the consumers, their companions and store managers. Reason or occasion of
purchase, persona and lifestyle of the consumer were also noted. Observation of the store managers was
conducted on the basis of language, grooming, knowledge of trends/fashion and understanding. Extensive
notes were recorded for further analysis.
A total of 36 in-depth interviews were conducted: 30 (15 male and 15 female) with Generation Z consumers
and six with the store managers by the authors. These structured in-depth interviews helped to understand
the consumers' perception about luxury apparel, their purchase patterns, their views on celebrity
endorsement and role of media in purchasing the luxury brands. The in-depth interviews with the store
managers also helped to comprehend the perception, interaction and their influence on the consumers.
These interviews helped in determining the key drivers and understanding the decision making process of
Generation Z. It also helped to determine the differences between the male and female consumers. All the
interviews were recorded with prior permission from the respondents. The interviews were transcribed and
verbatim transcripts were developed by the authors. Finally, the notes from the observation along with the
transcripts were studied and analyzed.
5. Data Analysis and Result
5.1. Drivers of Generation Z for purchasing Luxury Apparels
The key drivers of Generation Z for purchasing luxury apparels were Fabric, Quality, Fit, Exclusivity, Trendy,
Stylish and Brand Recognition. Many respondents even mentioned that they felt unique if they bought a rare
fit that no other apparel brand offered. A male consumer, said, "I bought a pair of denims from a luxury
apparel brand because it offered a carrot fit that no other brand offered. I received compliments by my friends
and made me feel good." Respondents enjoy the recognition that they receive after wearing exclusive and
stylish apparel. They stated that they felt happy if they stood out in a crowd. They also preferred if their
friends start the conversation about the luxury apparel and complimented them. A female respondent stated,
"I do not want to purchase anything that can be replicated and can be seen on the street shops after some
months."
Page 37
However, drivers specific to both the genders were also observed. Male respondents stated that they
purchase luxury apparels for comfort, fashion, trend and style. High-end brands have a sense of
exclusiveness and elegance that are an extension to their image. They even cited that they would prefer to
be associated with a brand that has historical presence in the luxury market. A male consumer stated, "I was
a die-hard loyalist of a certain brand because it was the brand that started making tennis apparel and I was a
big tennis fan. Wearing high-end international brands exudes good taste." Male respondents stated that
luxury apparels display the personality of an individual (Refer Fig 1).
Female respondents also consider the shades & colour, and a wider collection design that suits their
physique. A female consumer cited, "I become more attractive when I wore apparel that made them look
good and suited me well." Moreover, peers have a major role to play when the respondents decide the
apparels as they discuss the latest trends with them. They shop regularly but from different brands as
aesthetics is more important to them than the brand. They also love to do experiments with different brands
(Refer Fig 1).
5.2. Occasion for Shopping
5.2.1. Males:
Males buy casual wear and exclusive apparels for auspicious occasions. The respondents purchase for
different occasion such as wedding, anniversary, party etc.and takes opinion of their family members.
However, they shop with their close friends especially when they have to buy casual apparels. If the apparels
are expensive then they seek permission from their parents to make the purchase. A respondent stated,
"Parents are involved if it is too expensive and when it is associated with some cultural programs such as
weddings, festivals etc."
5.2.2. Females
Female Generation Z consumers shop for casual wear and western apparel for occasions such as birthdays,
parties, engagement parties, dinners, weddings, dates, festivals, movies, birthdays, Bachelorette party etc.
They shop in the absolute high-end stores with family members primarily mother, elder sister or and cousins
while purchasing expensive apparels. Their fashion sense is attuned to Indian markets and they are open to
learn about the latest fashion trends. Some respondents emphasized that they would like to shop alone for
various occasions as they are independent and empowered.
5.3. Knowledge about the Brands through Different Media
Generation Z consumers primarily acquired knowledge about the brands through their family members. Many
respondents have travelled abroad and have been exposed to many international brands. One male
respondent stated, "My dad asked me if I wanted a suit when he was going abroad. I said yes. So, he bought
us similar ones. One was brought from Hugo Boss and another from Calvin Klein. Hugo Boss has a better
feeling." They also learn about the new brands through close friends, family, movies, sitcoms and online
emails. Consumers do not post status messages on Facebook regarding the brands they like or the recent
purchase, as they consider it to be "uncool" and conspicuous behaviour. However, they prefer to share
pictures where they have worn the apparels which they have recently purchased with their friends. They
message each other to notify about sale or new collection. They also receive apparel as the gifts from
relatives who live abroad. A female consumer stated, "I buy Burberry luxury apparel because my cousin sent
me a Burberry wallet from the United States of America." Other female consumer cited, "I learnt about brands
from my sister. She shops like mad. I like her style. I wear most of what she wears. I get to know all the
brands from her."
5.3.1. Males
Male respondents mentioned that they read fashion blogs written by other Generation Z consumers.
However, they do not use any traditional media such as magazine, TV, radio, newspapers to gain knowledge
about the luxury apparel brands (Refer Fig 2).
Generation Z male consumers search for new brands online before going to the store, as they get curious
about the brand. Several male consumers were active on Twitter but said they did not tweet about brands.
They discuss their recent purchases but do not tweet about what they want to purchase. A male consumer
Page 38
stated, "I love to tweet about my recent purchase because all friends are not active on Twitter."However, they
also tweet about fashion, trends and exclusive styles of different celebrities. They even follow fashion
bloggers to gather comprehensive information about luxury apparel brands.
5.3.2. Female
Female Generation Z consumers subscribe to international and Indian fashion magazines such as Vogue,
Elle, Cosmopolitan and Marie Claire. They watch fashion shows such as Lakme Fashion Week. They are
influenced by Bollywood and the Indian film award ceremonies as well. They have mobile applications such
as Flipboard, which has news on various topics such as technology, photography, style and much more on
their mobile phones. It provides them with a Style board that comprises of articles and pictures of latest
fashion trends. Many female teenage consumers who are high on fashion and style are active on Pinterest, a
website where members can create boards and pin up photographs they like. They frequently add pictures of
apparel, bags, shoes, hairstyles on various boards. Another respondent stated, "I turned to Pinterest when I
want to learn different ways of wearing a top with a sash, or how to team up a scarf with various tops." Some
consinners also used YouTube to access the information. One consumer mentioned, "I also have Flipboard
with a 'Style' board. I am also on Pinterest where I keep repining the looks, hairstyles that I like. I go to style,
com. Actually I downloaded that on my iPad from the appstore. I also watch fashion parties and fashion
shows on YouTube. (Refer Fig. 2)."If a friend or a cousin living in India or abroad recommends a brand for
apparel wear, the teenage consumer will go online and visit its website. They are not active on Twitter but
they use mobile applications. Pinterest is where they share their wish-list of apparel wear. They share what
they want to purchase with their friends on what's app but not on the Facebook.
5.4. Motives within the Store
Respondents emphasized that lighting of the store is the most important factor to make a purchase. A male
consumer cited, "Some apparel look different under different lights, and the changing room makes you feel
like you look really great." They emphasized that changing room and its lighting is important as they make
their final decision when the attire looks good on them. Moreover, with good lighting respondents would also
prefer a full length mirror as it helps them to assess their look and style.
5.4.1. Males
Male consumers stated that they need excellent service, comfortable ambience and a well-lit store. The male
consumers do not spend much time in the store and so they need wide collection of apparel. It is even crucial
to display the new fashion trends in the store (Refer Fig 3).
5.4.2. Females
Generation Z female consumers stated that shopping experience is the basic requirement for purchasing
luxury apparels. They like to get pampered when they shop. They stated that good service is absolutely
necessary while they shop. They prefer a salesperson that pays attention and understands their need.
Female consumers stated that music in the store makes remarkable difference to their shopping behaviour.
Consumers stated that if there was a familiar song that they liked, they would look through more clothes
around the store as it makes them happy. One consumer mentioned, "Music excites the person to stay
longer in the store.''Teenage female consumers emphasized that the collection of apparel needs to be
according to the latest trends (Refer Fig 3).
5.5. Influence of Reference Group
5.5.1. Males
The respondents do not discuss brands with everyone as their comfort level varies from person to person. A
consumer said, "Other guys act as if they do not care about fashion even if they do.''Generation Z consumers
trust few male friends with whom they can discuss the apparel brands. They shop only with their close
friends. Respondents ask the store manager and sales personnel about the latest trends, fashions and
designs. They seek the store personnel's help when they cannot identify their size, design, new collection
etc. The consumer might also seek second opinion of the sales person while making the final purchase.
Some consumers take pictures of the apparel with their mobile phone via internet (whatsapp) and sent it to
their friends to seek their opinion. They think that the opinions of their family members and friends are more
Page 39
valuable and reliable than the salesperson. A consumer stated, "I didn't think that the salesperson would
have any idea what his friends circle dressed like and what they thought looks good."
Celebrity endorsement of a luxury apparel brand drives consumers to buy the brand. Consumers have
bought Ferrari jackets as it is endorsed by Michael Schumacher, Hugo Boss by Roger Federer, H&M
pyjamas by David Beckham, "Being Human"T-shirts by Salman Khan, Armani by Rihanna and Louis Vuitton
by Shilpa Shetty. They are influenced by celebrities as they admire them.
5.5.2. Females
The female Generation Z consumer knows about luxury brands from her mother, elder sister, family member
who resides abroad and friends. The female consumer takes her elder sister or friends when she wants to
shop for casual wear. They shop with their mother when they are buying apparels for a particular occasion
and seek their permission before purchasing expensive apparel. They do not take the opinion of the sales
personnel in making their purchase but may need some assistance.
Generation Z female consumers stated that they follow some celebrities on Facebook as they are stylish and
aspiring. The popular celebrities that they follow are the characters of Serena van der Woodsen and Blair
Waldorf on the American sitcom. Consumers stated they would buy the apparel brands that are endorse by
the celebs.
Consumers cited that they noticed brands in movies, sitcoms, film award ceremonies such as Filmfare and
music channels. A consumer stated, "I was introduced to many brands while I was watching music channels
where Video Jockey has displayed different luxury apparel brands." Respondents also know about various
brands through movies such as Devil Wears Prada, Sex and The City etc.
5.6. Generation Z Traits and Preferences
5.6.1. Males
Male Generation Z respondents spend less time in the store, and they do not shop frequently. Several
respondents stated that they go to the luxury apparel stores during the discount periods, but they do buy
from the non-discounted new arrivals section. A consumer stated, "I browse through the collection in the
discounted section and feels that I can always find something better in the new arrival section and so I
purchase something from the new arrival section instead." Few respondents dislike going to the stores during
the sale as they dislike the crowds, the lack of space, the restriction of movement and less attention of the
sales personnel. One consumers cited, "I would not like more than five to six people in a store when I
shop.''This could happen because male respondents shop only on special occasions.
5.6.2. Females
Female consumers shop at high-end stores regularly throughout the year but they shop more during the
discount season. Several female consumers stated that they felt very happy once they had shopped during a
sale period and received a good deal. They can even shop in the crowded area as they enjoy the experience
and they shop on various occasions. Many female consumers spend hours in identifying a particular design
in the store. A consumer stated, "I went shopping to Palladium mall, Phoenix mills, Lower Parel during the
discount period for seven hours because it was my birthday. I shopped with my best friend." Another
consumer mentioned, "I shop heavily during discounts. If I like something and it's not in my size, if it's one
size bigger or smaller, I end up purchasing it just because I love the brand. I shop from sale as well as from
the new arrival."
5.7. Store Members Perspective on Generation Z Purchase Behaviour
The store manager mentioned that companion of the consumers in the store, their media usage, celebrity
endorsements, peers and salesperson affects the final purchase. The store managers said that many
Generation Z consumers come to stores after browsing on internet. They visit the store on weekdays as well
as the weekends and buy for various occasions. If they are at the store to shop for a party or dinner, they
shop with friends of the same gender and with their parents or cousins when they have to make an
expensive purchase.
Page 40
The store managers stated that the teenage consumers had a good knowledge about the brands and female
consumers have more information than the male consumers. The store manager stated that both male and
female consumers need to feel good when they shop. In order to fulfil their needs, the store manager
regularly reassures them by complimenting them in their look and style. The salesperson ensures that the
consumer has enough options to choose and good music in the background as it helps in the final purchase.
The salespersons are well versed with the fashion trends. They obtain information about the latest fashion
trends from Twitter, Pinterest and Facebook. Store managers and salespersons also read newspapers and
magazines to understand the views of editors and fashion divas. Store managers perceive that boys discuss
brands more on the virtual platform than question girls.
Store managers stated that Generation Z consumers would follow celebrities online as they focus on style.
The consinners follow trend setters and not endorsers of a particular brand. One store manager stated,
"Female consumers follow Victoria Beckham as she is a fashion diva." Store managers said that the
consumers remember the style or the look of the celebrities in sitcom or movie.
The store managers stated that female consumers interacted more with a male salesperson and male
consumers interacted more with a female salesperson. A store manager stated "consumers shop during a
discount period with their Mends.''Generation Z use their mobile phones when they shop (Refer Fig 4). A
store manager stated, "One female consumer showed a picture of a dress of a brand she wanted on her
mobile phone using a Vogue mobile application."
6. Discussion
The research found four varied views on Generation Z buying behaviour and decision making process: first,
change in the preference for selecting luxury apparel. Second, shift in Media usage for information gathering.
Third, Generation Z traits and behavioural differs of male from females. Fourth, consumer buying behaviour
based on internal and external stimuli.
The present study found that product attributes such as Quality, Exclusivity, Style and Fit are important
factors for both genders, which is consistent with the previous studies (Fionda & Moore, 2009; Jain et al,
2012). However, in the present study it was observed that the male consumers also want to get associated
with the established brands, and the female consumers focuses on shades, colour, wider collection and
aesthetic appeal.
Previous studies have found that Generation Z use internet, magazines, electronic gadgets, and music to get
information about the brands (Swain, 2007), but, the present study shows that there is a shift in the media
usage of the Generation Z. They watch movies, sitcoms, fashion shows, award functions, and youtube
videos to learn about the latest fashion. They also read online mails, fashion blogs, and fashion related
articles; use Pinterest and mobile applications for gathering information; discusses their latest purchase on
Twitter, but does not like to post it on facebook; rather the consumers post their pictures wearing those
brands. It happens because the consumers do not believe in show-off and would like to consume luxury for
hedonic pleasure.
In the present study, differences in the consumption and preferences among male and female consumers
have been observed. Male consumers do not prefer discount season as stores are crowded but, the female
consumers enjoy discounts, which is consistent with the previous research (Jain et al., 2012). Moreover, the
present study also found that female consumer purchase luxury apparel from discount section as well as new
arrival section. Present study identified that the male consumers spends very less time in the store, but the
females loves to spend long hours in the store; this may happen because the males prefer simple solutions,
while the females select complex information processing methods in decision making(0'Donnell & Johnson,
2000). Male and female consumer purchase luxury apparel for different occasions, while male consumers
mainly purchase for auspicious occasions such as wedding and anniversary; female consumers purchase for
more auspicious occasions such as birthdays, dinners and parties. According to Eng & Julie(2010), male
consumers like to purchase with friends or relatives, which is also observed in the present study. However
the female consumer prefers to purchase alone for various occasions which is consistent with previous
findings (Jain et al, 2012).
Keegan et al (1992)in the Black Box Model stated that stimuli affect the consumer characteristics and
decision making process in eliciting consumer responses. The model stated that internal stimulus such as
Page 41
motivation, perception, attitudes, personality & lifestyle; and the external stimulus such as environmental and
marketing factors affects the consumer behaviour. The present study focuses on the key drivers of
purchasing luxury apparel such as comfort, fit, quality, and aesthetics; these parameters are being evaluated
by the consumers on the basis of their personality & lifestyle. The external environmental and marketing
factor such as reference group, celebrity and salesperson also affects the final decision making.
7. Implications
The main finding of the present study is that the key drivers of luxury apparel for Generation Z were quality,
fit, uniqueness and recognition in the society. It implies that luxury apparels brands can focus on the
exclusivity of the product and social image of the consumer while developing communication strategies. The
present study found that male Generation Zerstended to focused on elgance and their personality which they
portatry with the brand and females empasize more on aesthetics and broader collection with different design
and colors. They could help the brand managers to weave the story of the advertisments accordingly. It was
found in the present study that within the store, male Generation Z tended to prefer good ambience, proper
lighting and merchandizing. Females in addition tended to prefer good shopping experience. It implies that
brand managers can develop some strategies to pamper females within the store. Brand managers can
ensure that good music is played at the stores as it makes consumers happy.
The present study found that GenerationZ gather information about the luxury apparels form their family
members, friends, movies, fashion blogs ad sitcoms. Moreover, males access mails and twitter and females
are more tech savvy as they use different mobile applications, websites etc. to know about the variuos luxury
apparel brands. Brand mangers can advertise their appareal brands on these platforms but in a very subtle
manner. They can even develop branded apps especially for females with the focus on latest styles and
fashion. Generation Z likes interactive communication and hence brand managers can develop interactive
tools such as online games stimulations to connect with the consumer by giving them the opportunity though
it to customize and use their creativity for their choice of product.
It was found in the present study that females buy more appareals during the discount persiod than the
males. Brand managers can develop strategies exclusively for females as they shop more duimg the sale
period.
Present study emphasized that Generation Z is primarily infuenced by the family members and friends.
Brand managers can develop a strategy for the parents of the Generation Z and can indireclty involve teens.
Celebrities also have a key role in affecting the purchase of the GenerationZ. They can be endorsed for the
luxury apparels especially for females. Store mangers and sales personnel needs to be updated about the
latest fashion statement and styles as the consumers are very knowledgeable. They need to be well
groomed and should be polite to provide a good shopping experience to the consumers. Moreover, females
love to receive good comments on their styles and choices so store managers can compliments and pamper
them. This could help in gaining their confidence and then eventually could promote the products in a very
subtle and tactful manner.
8. Conclusion
The present research offers insights on Generation Z purchase behaviour related to luxury apparel. The
study proposes a model for the purchase behaviour of Generation Z in the luxury apparel market. According
to this model in the first stage Generation Z has high prior knowledge of luxury brands mainly through media
such as online mails, Twitter, online blogs, fashion websites, sitcoms, etc. In the second stage the consinners
analyse the choices of apparel based on the intrinsic and extrinsic stimuli and drivers, and then in the third
stage the consumer evaluates for the making the decision with the help of mobile applications, friends and
family who has accompanied them and on the basis of their entire shopping experience in the store. In the
fourth stage the consumer makes the final purchase decision and then the consumers uploads their photos
on Facebook wearing those apparel in order to show their new purchase in a subtle and hedonic manner.
They only post pictures on Facebook as they think this text messages portray conspicuous consumption
(Refer Fig 5).
9. Limitations and Future Scope of Research
This study was qualitative in nature, and the responses were collected only from Mumbai. Future studies can
be conducted in other cities such as New Delhi or Bangalore. Research can be carried in B-tier cities and a
Page 42
comparative study can be conducted in the buying behaviour of A-tier and B-tier cities as luxury consumption
has increased even in B-tier cities. Moreover, further studies can be conducted using quantitative research
techniques. Cross-cultural studies can also be conducted in developed and developing countries to check
the resemblances between the luxury apparel purchasing behaviour. Similar studies can be conducted for
other luxury categories such as accessories, fine dining, cars, watches, jewellery, wines & spirits, airlines,
tourism, banking, hotels, furniture and personal care. Furthermore, research can be conducted on the
Generation Alpha that is the kids luxury apparel brands as the focus of consumer have emerged.
Comprehensive and exclusive study can be conducted on shopping experience of women as it was on
important dimension of the present study.
LOAD-DATE: August 1, 2014
LANGUAGE: ENGLISH
ACC-NO: 3388746441
GRAPHIC: Diagrams
References
JOURNAL-CODE: RMJM

All Rights Reserved
ABI/INFORM
Copyright 2014 Editura Rosetti Educational

Luxury Journals

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Luxury Journals

Hochgeladen von

Copyright:

Verfügbare Formate

Page 1

Business & Management Review

Impact of education on purchase behaviour of luxury brands

SECTION: Pg. 66 Vol. 5 No. 4 ISSN: 2047-2854

LENGTH: 5405 words

LOAD-DATE: March 3, 2015

PUBLICATION-TYPE: Other (Conference proceeding)

Copyright 2015 ProQuest Information and Learning Company

Romanian Journal of Marketing

January 2015 / March 2015

How Experiential Marketing is used in Indian Luxury Hotels?

SECTION: Pg. 2 No. 1 ISSN: 1842-2454

LENGTH: 6279 words

3. Literature Gap and Research objective

LOAD-DATE: September 7, 2015

PUBLICATION-TYPE: Other (Periodical)

Copyright 2015 ProQuest Information and Learning Company

International Journal of Marketing Studies

Consumers' Purchase Intentions of Shoes: Theory of Planned Behavior

SECTION: Pg. 50 Vol. 6 No. 4 ISSN: 1918-719X

LENGTH: 3956 words

2.1 Sample and Data Collection

4. Conclusion and Managerial Implication

LOAD-DATE: August 28, 2014

PUBLICATION-TYPE: Other (Periodical)

Copyright 2014 ProQuest Information and Learning Company

IHS Global Insight

May 16, 2014

Compacts, smaller cities drive Mercedes-Benz's growth in India

SECTION: Main Story

LENGTH: 1038 words

LOAD-DATE: May 16, 2014

PUBLICATION-TYPE: Web Publication

Copyright 2014 IHS Global Insight

Romanian Journal of Marketing

April 2014 / June 2014

Exploring Generation Z's Purchase Behavior towards Luxury Apparel: a

SECTION: Pg. 18 No. 2 ISSN: 1842-2454

LENGTH: 6615 words

2.2.1. India as a Luxury Market

LOAD-DATE: August 1, 2014

PUBLICATION-TYPE: Other (Periodical)

Copyright 2014 ProQuest Information and Learning Company

Das könnte Ihnen auch gefallen