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Australasian Marketing Journal

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

Consumers’ perceptions on complexity and prospects of ethical

luxury: Qualitative insights from Taiwan
Stelios Karatzas a, Alexandros Kapoulas b, Constantinos Vasilios Priporas c,∗
a
Alberta Innovates, 5588 Stevens Crescent, Edmonton, AB T6R0A4, Canada
b
Business Administration and Economics Department, The University of Sheffield International Faculty - CITY College, Thessaloniki, Greece, Leontos Sofou
Building, 3 Leontos Sofou st., 54626 Thessaloniki, Greece
c
Department of Marketing, Branding and Tourism, Middlesex University, Business School, W207 Williams Building, The Burroughs, London NW4 4BT, UK

a r t i c l e i n f o a b s t r a c t

Article history: This qualitative study explores ethical luxury in Taiwan, a country that represents a significant demo-
Received 26 February 2019 graphic in the luxury market. The study utilized the ZMET technique and focus groups. A total of 28
Revised 30 July 2019
heavy users of luxury brands were interviewed. Results indicate that luxury brands are chiefly defined by
Accepted 2 August 2019
such constructs as price, quality and aesthetical attributes, whereas ethicality is centrally demarcated by
Available online xxx
human wellbeing, the environment and animal welfare, amongst other elements. The fusion of these two
Keywords: concepts implies several encouraging outlooks and certain deterring factors. Results denote that there is
Consumers’ perceptions potential for ethical luxury’s inception in the Taiwanese market, but with considerable forethought in the
Ethical luxury process. This study extends the body of knowledge in how consumers perceive the prospect of ethical
Ethical consumption luxury, especially from a non-western perspective.
Luxury marketing © 2019 Published by Elsevier Ltd on behalf of Australian and New Zealand Marketing Academy.
ZMET
Taiwan

1. Introduction meaning of this concept of ethical luxury is necessitated; especially

Ethical luxury is a complex conception with a wide-ranging set
of prospects. For example, it could be potentially considered an
additional customer value proposition for brands since exclusivity
is no longer its greatest offering (Hennigs et al., 2013a; Kapferer
and Valette-Florence, 2018; Truong et al., 2009). Nonetheless, the
prospects of ethical infusion into the luxury market is not as
straightforward as simply offering ethical materials or making eth-
ical claims. Studies (Janssen et al., 2017; Moraes et al., 2017) prove
that ethical luxury requires acute deliberations on how the process
is to be taken, if it is to be successful. This is particularly true when
some customers don’t necessarily recognize a positive purchasing
intention towards it (Davies et al., 2012). Since the majority of lux-
ury research has mainly focused on luxury counterfeits (i.e. Block,
2010; Hilton et al., 2004), or on how luxury brands are affected by
counterfeiting (i.e. Nia and Zaichkowsky, 20 0 0; Yao, 20 05), more
research is required in order to maintain more practical implica-
tions and theoretical underpinnings. Therefore, in order to funda-
mentally comprehend its prospects, further exploration into the
∗
Corresponding author.
E-mail addresses: Steliosakaratzas@hotmail.com (S. Karatzas),
akapoulas@citycollege.sheffield.eu (A. Kapoulas), c.priporas@mdx.ac.uk
(C.V. Priporas).
from the consumer’s perspective. This could create, as Moraes et al.
(2017) termed, “co-construction” of ethical luxury fashion.
Luxury brands are often featured in lists of the most valu-
able brands worldwide (i.e. Louis Vuitton and Chanel), meaning
they not only make up large markets (€1.2 trillion) but are a fast-
growing industry (5% in 2018) and are forecasted for steady growth
(Bain and Company, 2018). Another main imperative for further ex-
ploring ethical luxury is luxury acting as an influencer, fostering
greater change within the fashion industry as a whole (Bendell and
Kleanthous, 2007). As Joy et al. (2012) identified, luxury fashion
could influence the fast fashion industry, which is one of the main
contributors to fashion-related unethicality. Luxury fashion is also
considered a laggard in adopting ethical practices and could be ex-
posed and suffer negative publicity (critical to avoid in an online
world) due to some of their harmful practices within their supply
chains (Carrigan et al., 2013). The industry is also exposed to com-
petition from fast fashion (through imitation), outright counterfeit-
ing and growing ethical consumer seeking ethical brands (Hennigs
et al., 2013b). Ethical luxury adoption could credibly counter these
vulnerabilities.
Research in this topic area has only focused on western per-
ceptions (notably European). Cervellon and Shammas (2013) point
towards the significance of uncovering these insights from other
cultural backgrounds; i.e. the collectivist consumers of East Asia.

https://doi.org/10.1016/j.ausmj.2019.08.001
1441-3582/© 2019 Published by Elsevier Ltd on behalf of Australian and New Zealand Marketing Academy.

Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
JID: AMJ
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2 S. Karatzas, A. Kapoulas and C.V. Priporas / Australasian Marketing Journal xxx (xxxx) xxx
One of the major luxury consumer nations in the region is Taiwan.
Taiwan boasts a sizeable and emergent luxury market, with varying
cultural attitudes regarding luxury between Taiwanese and western
consumers (Wen et al., 2012). It is also representative of the largest
demographic of luxury consumers in the world (Chang, 2004). Tai-
wan’s luxury consumption was found to be more status-driven (ex-
trinsic value) than any other nation besides China (Microsoft Ad-
vertising, 2009), making the potential of the ‘higher meaning’ of
ethical luxury even more sought after in such a market. Taiwan
is also undergoing a shift in consumer values, placing cumulative
importance on status, image and wealth that is initiating a more
lavish lifestyle (Euromonitor, 2014). In addition to this factor, Tai-
wan’s economic growth has rewarded its population stronger pur-
chasing power, which has stimulated the growth of luxury (Wen et
al., 2012). Since Taiwan is representative of one of luxury’s major
consumer demographics, it is meaningful to uncover this unique
perspective on ethical luxury through unique approaches (Z-MET
interviews). Consequently, the research objectives comprise of un-
earthing how Taiwanese consumers conceptualize luxury, ethical-
ity, and the fusion of the two, and also how they view the prospect
of its implementation. Introducing a non-western perspective will
add a fresh perspective to the western-based findings researched
thus far.
2. Theoretical background
2.1. Luxury brands and meaning
In the case of defining the term luxury in academia, there have
been debates over finding a decisive description, while many have
conferred on its complexity (Cristini et al., 2017). In two recent
studies on luxury brands (Doss and Robinson, 2013; Hennigs et
al., 2013b), the authors conclude that luxury is about pleasing the
emotional aspect (hedonism) of the consumer, over characteristics
like utility and quality, whereas Joy et al. (2012) study found that
consumers merely related luxury to dreams, exclusivity, beauty
and art. Others have implied that luxury involves conspicuousness,
which is associated with the consumer being driven by appear-
ance, image and status; relating to consumers being encouraged
by external or internal motives (Truong et al., 2009). Kapferer and
Bastien (2009) argued that luxury is more about creating a new
social stratification, in that consumers find luxury crucial to ex-
pressing themselves as they see fit socially.
There is also a lack of commonality with how consumers view
luxury, since luxury depends on the consumer’s lifestyle and on
their emotional state of being at the time (Hauck and Stanforth,
2007), or on their geographic and cultural background (Ahuvia
and Wong, 1998). For example, a recent study found that female
Chinese consumers now want to build relationships with luxury
brands and perceive them as not only a source of conspicuous con-
sumption, but as a source of personal meaning (Chen and Wang,
2017). In Davies et al. (2012) study, they further presuppose that
lack of cohesion in the definition in everyday life, which may ob-
scure the candidates in their description and recognition of what
luxury. This could entail incomparability of the literature of luxury
if the authors overgeneralize the terminology with their respec-
tive participants; hence using specific criteria for what constitutes
luxury is key to standardizing the results (in this case, luxury is
utilized in the context of luxury fashion).
2.2. Ethical standards and consumer perception
Guedes (2011) has summarized ethicality as an embodiment of
trading under fairer terms, the reduction of environmental impact
in the modes of production, the utilization of renewable, recyclable
Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
[m5G;August 15, 2019;2:45]
and/or reused resources in the makeup of the product and sup-
porting materials, as well as working responsibly within the given
societies for which the firm either produces or operates its retail
in. These criteria have been abridged into what is known as the
3 Ps: the processes involved in production and distribution, the
products’ use, lifespan and disposability and the impact on place of
where the product is made or sold (Alexander and Nichols, 2006).
Kiewiet and Vos (2007) contend that the firm’s ethical behavior
is not only beneficial to society and the environment, but dimin-
ishes business risks, escalates market opportunities and enhances
the firm’s reputation and consumer loyalty.
Recently, matters of ethicality and sustainability have emerged
as central issues for marketers by way of academic discourse and
public awareness of these concerns. They have recognized that
business practices are linked fundamentally to the future wellbe-
ing of the planet; especially with the emergent warnings of the
potential calamities of global warming (Crittenden et al., 2011).
This has even led to luxury industry figures holding meetings to
discuss the ethical prospects in luxury (Anaya, 2010). In addition,
consumers have more access to information about environmental
issues and participate more in non-governmental/non-profit orga-
nizations; with the affluent being especially disturbed by sustain-
ability issues (Bendell and Kleanthous, 2007). Several luxury firms
have taken this into action, such as Tiffany & Co.’s acts of not buy-
ing Burmese rubies, using 95% recyclable paper for catalogues and
their infamous blue bag, and pledging support for the end of min-
ing in Alaska (Kapferer, 2010). This could also explain why the eth-
ical fashion market has quadrupled in some nations such as the UK
(Guedes, 2011).
2.3. Ethicality and luxury integration
Conceptions, such as Szmigin and Carrigan’s (2005) four dimen-
sions of ethical brands for commodity brands, could potentially
transfer into luxury fashion. For example, the authors propose that
distinction and hedonism are key dimensions in ethical purchases
of commodity goods, which relates to Dubois et al. (2001) charac-
terizing luxury fashion as a distinct and unique experience with in-
trinsic gratifications. Further correlation can be found in Silverstein
and Fiske’s (2003) interpretation of luxury fashion embodying an
experience of aspirations and self-worth. Some luxury experts even
argue that luxury fashion is already aligned with ethicality, such as
luxury’s personification of purity and provenance with sustainabil-
ity’s demand for further reduction of impacts on the planet (Jenkin,
2012). Kapferer (2010, p. 42) concurs with this stating that luxury
is “the business of lasting worth” and declaring that an industry
so heavily dependent on rare resources would have no incentive
to overexploit them; communications that could be underscored
in luxury marketing’s publicity. Additionally, Joy et al. (2012) de-
scribes luxury’s efficient use of materials, low impact assembly and
distribution and after-service advantage of repairs and upgrades.
Luxury firms often engage in local manufacturing and cultural tra-
dition of safeguarding of sources of materials to enforce its an-
chorage of origins and craftsmanship, which echoes sustainability
(Cervellon and Shammas, 2013).
These views however, do not always correlate with the con-
sumers view on luxury’s integration with ethicality. For example,
several studies have found that consumers do not directly asso-
ciate luxury with ethical terms like sustainability (Achabou and
Dekhili, 2013; Voyer and Beckham, 2014). Moreas’s et al. (2015)
study discovered that luxury consumers require a mutual construc-
tion of what ethicalities can be introduced into luxury. For ex-
ample, if a luxury company wanted to use recycled materials in
their product, customers would first have to signal that recycled
materials are worthy of both being ethical and of the quality ne-
cessitated for luxury status; while luxury brands would need to
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be simultaneously communicating the value of recycled materials
and showing the status of this through endorsements, advertise-
ments and other strategic means. Moreover, another study discov-
ered that consumers are yet to be convinced that luxury is com-
patible with the defining features of sustainability due to luxury
symbolizing excess spending and social inequality (Kapferer and
Michaut, 2015). On the other hand, Kapferer and Michaut-Denizeau
(2014) assert that it is not that luxury is not perceived as sustain-
able per se, it is that luxury is expected to already implement eth-
ical sourcing for the production of its goods. Therefore, it could be
a matter of luxury enhancing its transparency of its supply chain
and focus on local artisanal production.
Many luxury firms are already absorbed in ethical practices
throughout their supply chain (i.e. Edun.com, Bono from U2’s lux-
ury brand), or other firms at various levels of their supply chain,
i.e. Porche (Cervellon, 2013). Affluent consumers of luxury goods
also tend to have greater awareness of social and environmental
issues, increasing the relevancy for luxury brands to communi-
cate ethical concerns (Bendell and Kleanthous, 2007). A study on
fair trade (mostly for coffee) concluded that consumers found the
brand attributes, labeling and quality as the three decisive factors
in their ethical consumption (De Pelsmacker et al., 2005). This cor-
responds to Kapferer’s (2010) suggestion that luxury’s strong brand
attributes could powerfully portray ethicality, that labeling could
aid ethical luxury consumption (Harlieb and Jones, 2009), and co-
incidingly, the perceived quality could even be enhanced through
ethical elements fused into luxury (Cervellon and Shammas, 2013).
Due to fierce competition, rapid growth of brand choices and
counterfeiting, luxury brands may be losing their uniqueness and
may be overexposed (Doss and Robinson, 2013). The insertion of
ethicality into luxury brands could offer this new craved unique-
ness to give the competitive advantage of higher prestige, by being
both exclusive and of a higher consciousness (Bendell and Kleant-
hous, 2007). Hence, luxury brands could be in a “product life-cycle
position commodities were 15 years ago” (Davies et al., 2012, p.
48). The rise of ethical luxury fashion could then hypothetically
influence the role of fast fashion and their consumers. Fast fashion
often emulates desirable goods from luxury fashion, and with fast
fashion comprising of the majority of fashion consumers, a signif-
icant number of consumers could be persuaded to consume more
ethically (Joy et al., 2012).
With all of its prospects, it is yet to be determined whether
consumers view ethical luxury in the same light as consumers,
practitioners and academics in non-western regions. Thusly, eth-
ical luxury is appealing for further investigation, especially with
a new demographic, in order to add further clarity to the “nu-
ances in meaning and different centrality between cultural groups”
(Cervellon and Shammas, 2013, p. 99). Offering a unique perspec-
tive to the potentially biased Western one of what ethical luxury
might be perceived as, could be beneficial as being a starting point
for further research of a similar nature in other Asian nations such
as China, Singapore or Hong Kong. If ethical luxury is to merit any
overall success, beginning to understand its largest demographic’s
perception is crucial.
2.4. Recent ethical luxury research
Recent articles have been published exploring the topic in spe-
cific contexts. Moraes et al. (2017) researched ethical consumption
specifically in luxury jewelry, while Janssen et al. (2017) uncov-
ered whether luxury brands should clearly convey their ethical
elements. Additionally, consumer perceptions were investigated,
which focused on the type of ethical luxury product, rather than
on the industry as a whole (Janssen et al., 2014). Merely focusing
on recycled materials being negatively perceived by consumers
in luxury fashion (Achabou and Dekhili, 2013) will not truly
Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
[m5G;August 15, 2019;2:45]
3
encapsulate ethical luxury’s true potential. The compatibility of
the two terms also depended on how consumers viewed luxury
in the first place (Kapferer and Michaut, 2015). Furthermore, there
have yet to be any academic research focused on the Asian con-
sumer. As Kapferer and Michaut (2015, p. 15) point out: “…luxury
is global and luxury research will less and less rely on the opinion
of a single nationality.” Introducing a broader and more diverse
viewpoint on ethical luxury could motion new insights into this
intriguing affair and incite new research avenues.
3. Methodology
The study is exploratory in nature and demands a theory-
building approach of qualitative data collection, in a topic area that
is still in its “embryonic stage” (Kapoulas et al., 2002), using one of
the techniques (ZMET) of the indicative literature (Cervellon and
Shammas, 2013) in a different approach (asking firstly what lux-
ury and ethical means individually based on the pictures and then
what it would mean to combine the concepts) and then combining
the findings with new research methods. Ultimately the aim of this
qualitative research is not complete transferability, but to compare
findings with existing knowledge of ethical luxury and to possibly
bring new comprehensions toward it (Polsa, 2007).
Firstly, the study incorporated the ZMET approach with face-
to-face interviews, which followed a 9-step protocol based on
Zaltman (1997) and Contardo’s (2004) work. Respondents not only
feel more comfortable expressing themselves with pictorial repre-
sentations (respondents were asked beforehand to bring 12 pic-
tures demonstrating luxury and 12 pictures demonstrating ethical
and were in control of their own stimuli), but also that their ques-
tions are not constrained by words or the framing of structured
questions as in conventional in-depth interviews (Lee et al., 2003).
Since respondents did not have the English language as their native
tongue (Z-MET interviews were conducted in English), and may
have suffered in analytical depth if respondents only resorted to
verbal expressions, this approach adopted “a much greater degree
of cultural specificity” (Arnould and Price, 2006, p. 252).
Additionally, semi-structured focus groups of 6–8 participants,
for around one hour each, as advised by Krueger and Casey (20 0 0),
were organized to investigate what discernments Taiwanese heavy
users (homogenous characteristics, ideal for focus groups, Khan
et al., 1991) of luxury goods might have towards ethical luxury.
Heavy luxury users were based on the criteria that they purchased
at least one luxury item a month. Krueger and Casey (20 0 0) ad-
vocated using focus groups until a pattern emerges and repeti-
tious information is produced, which was being demonstrated by
the 2 comprehensive focus groups. Threlfall (1999, p. 103) indi-
cates that: “generally unexplored or new topic areas benefit from
focus group inquiry” and is best used with triangulation and al-
lows participants to formulate their own inquiries, frames and no-
tions (Kitzinger and Barbour, 1999). Protocols such as the use of
preauthorized consent forms, no more than 7 main questions be-
ing asked, sessions lasting around an hour, the use of a facilita-
tor and the session being video recorded were utilized (Kitzinger,
1995). Focus groups were conducted in Mandarin Chinese and
later translated into English (translations were undergone by an
English professor at a local Taiwanese university, National Chiayi
University).
3.1. Analyzing the data and sampling
Qualitative data from these consumers does not presume to
classify statically representative sets of respondents, but rather
seeks to develop analytical categories or theoretical explanations
(Pope et al., 20 0 0). Consequently, thematic categorization and a
constant comparison technique in the analysis of data were used,
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Table 1 luxury, its prospects and implications from the prospective of the
ZMET participant profiles.
Taiwanese luxury consumer.
Participant Sex Age range Marital University Luxury
code status degree held heavy user
4.1. Thematic categorizations
Z1 Female 20–30 Single Bachelors Yes
Z2 Female 20–30 Single Bachelors Yes
Z3 Female 30–40 Married Bachelors Yes Luxury accurately embodied a sense of high quality to respon-
Z4 Female 30–40 Married Bachelors Yes dents, due to the use of the materials chosen, where the products
Z5 Female 50–60 Married Masters Yes were made, its long-lasting construction and the sense of comfort
Z6 Female 20–30 Single Bachelors Yes
given when users used luxury goods. The price of luxury goods
Z7 Female 30–40 Married Bachelors Yes
Z8 Female 30–40 Married Masters Yes
also symbolized luxury, as it created a different level of product
Z9 Female 30–40 Married PhD Yes category, was not easy to buy and often did not have discounts.
Z10 Female 30–40 Married Bachelors Yes Furthermore, luxury was conceptualized as aesthetically pleasing,
Z11 Female 30–40 Married Bachelors Yes from the stores environment to the hedonic pleasure derived from
Z12 Female 30–40 Married Bachelors Yes
its appearance, and modern fashionable design. Luxury was also
Z13 Female 40–50 Married Bachelors Yes
Z14 Male 30–40 Married Masters Yes deemed a conspicuous form of consumption, due to the exhibit-
Z15 Male 20–30 Single Bachelors Yes ing of brand names of product (easily seen logos) and the fact that
celebrities use it. Another salient theme was the rarity factor of
luxury, as it was harder to find and thus harder to buy.
Table 2
Focus group 1&2 participant profiles. Ethicality greatly embodied the environment’s well-being,
through reducing waste/pollution, recycling, using renewable en-
Participant Sex Age range Marital University Luxury
ergy and planting trees. Conceptualizations also included the wel-
code status degree held heavy user
fare of animals by not using fur, eating less meat and not testing
FG1 Female 30–40 Married Bachelors Yes on animals. Another theme of ethicality were the notions of hu-
FG2 Female 30–40 Married Bachelors Yes
FG3 Female 30–40 Married Bachelors Yes
man spiritual well-being through a strong family, spirituality and
FG4 Female 30–40 Married Bachelors Yes being selfless. Other prevailing representations of ethicality were
FG5 Female 40–50 Married Bachelors Yes a sense of having an education, being lawful, being charitable and
FG6 Female 30–40 Married Bachelors Yes using ethically labeled products.
FG8 Female 30–40 Married Bachelors Yes
The themes for ethical luxury embodied a positive purchase
FG9 Female 30–40 Married Bachelors Yes
FG10 Female 30–40 Married Bachelors Yes intention and that it was a possibility for the creation of ethical
FG11 Female 30–40 Married Bachelors Yes luxury goods in the marketplace. Although many other consumers
FG12 Female 40–50 Married Bachelors Yes believed it symbolized something incompatible, by possibly pre-
FG13 Female 30–40 Married Bachelors Yes senting luxury goods as of cheaper value (using recycled materials)
or conversely, making some luxury items too expensive (enhanc-
ing social inequality). Some respondents even visualized ethical
as to increase validity through comparing data and finding com- luxury as being influential by it even embodying ethical luxury
monalities (Boeije, 2002). Finally, in order to validate the data the lifestyles. Other themes included it representing ethical materials
use of triangulation is utilized, in order to crosscheck validity of in- such as using non-animal materials and recycled materials and
formation from the various sources (Kapoulas and Mitic, 2012) and that ethical luxury was conceived as a notion that luxury already
in order to form thematic categories (Creswell and Miller, 20 0 0) had elements of ethicality. Ethical luxury was envisioned as luxury
through the ZMET interviews to the focus groups. brands donating to charitable causes or even using clean energy in
The sampling method used was purposeful, as respondents its practices, as well. However, another theme included customers
were selected according to the purpose of the needs of the study never having preconceived the notion.
(Suri, 2011); heavy users of luxury fashion who have a personal These results have been thematically categorized into two men-
understanding with high product knowledge and expertise and are tal maps, after having undergone Pope et al. (20 0 0) methodology
more likely to have more elaborate mental models encompassing of familiarization, identifying a thematic framework, indexing and
ethical luxury (Christensen and Olson, 2002). Users were mostly finally charting. One ethical luxury mental map (Fig. 1) depicts
university-educated and represented similar demographics to outcomes from the ZMET interviews, while the other ethical luxury
those found in Chen and Wang’s (2017) study. Respondents were mental map (Fig. 2) illustrates outcomes from the focus groups. As
gathered in the vicinity of an American Private school in Taiwan, Christensen and Olson (2002) point out, respondents should have
as parents were more prone to luxury consumption, and gathered mentioned the factor more than a couple of times in order to be
other respondents using the snowball method (Biernacki and considered a consensus. Thusly, both mental maps chart constructs
Waldorf, 1981). The sample size for this research included fifteen that were mentioned more than a few times, from broader themes
participants (Table 1) to ensure saturation and to be able to create to more specific constructs.
a successful consensus map (Zaltman, 1997). Each ZMET interview
lasted about an hour, with in depth, semi-structured, interviews
4.2. Conceptualizing ethical and luxury integration
discussing their thoughts and reasoning for each picture. More-
over, there were two focus groups of six and seven participants
The conceptualization of ethical luxury did not seem easily
respectively (Table 2).
envisioned when initially discussed with the majority of respon-
dents, but it did seem to help that they had visual indicators (per-
4. Results sonally chosen pictures of what luxury and ethical represented
to them) to more handily contemplate this unfamiliar notion.
The findings are thematically categorized in the following man- Some respondents felt ethical luxury encompassed animal-friendly
ner: the most salient themes (based on the number of mentions and environmentally sound practices, which was more readily de-
by respondents) for luxury, ethicality and then for ethical lux- termined since they had brought in pictures of animal-friendly
ury. Using these results, we then uncover the meanings of ethical products representing ethicality, so incorporating that into luxury

Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
JID: AMJ
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S. Karatzas, A. Kapoulas and C.V. Priporas / Australasian Marketing Journal xxx (xxxx) xxx
Fig. 1. ZMET ethical luxury mental map.
Fig. 2. Focus groups ethical luxury mental map.
products seemed like a natural progression for probing towards the
concept:
“Don’t use rare animals. Yeah, or maybe you can use, but
treat the animals, it’s nice. Maybe they die, it’s from natural
(causes).You know, it’s from natural it dies, its ok. Because nat-
ural. But you don’t, we don’t need to kill them just for the fur.
We want, but we don’t need”. (Z2, Female, 20–30, Single, B.A.).
“Umm, they can. Like um, all the consumer goods can pro-
duce that uh, like the engine that should be environmentally
friendly, or the material of the products can be environmentally
friendly.” (Z9, Female, 30–40, Married, Ph.D.).
Similarly, as Kapferer (2010, p. 40) remarked: “…how much sus-
tainable development is deeply congenial with luxury…”, some
consumers also found that the concepts matched. This is in con-
trast with other studies that found consumers do not see the con-
nection (Achabou and Dekhili, 2013; Voyer and Beckham, 2014).
Nonetheless, a few respondents did extend on this by commenting
that it depends on the product like Janssen et al. (2014) findings,
and one cannot simply generalize the industry as a whole:
“I think you can be ethical (with) bag shoes and uh watch. But
the fashion for clothes it’s not very (likely)” (Z3, Female, 30–40,
Married, B.A.).
“Like BMW used some green materials for the cars, but if you
want to keep the car longer, it’s a little impossible to do that, it
Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
[m5G;August 15, 2019;2:45]
5
will be fragile. Not for bags but it can happen in cosmetics. It’s
impossible for bags to be ethical due to those being made for
the skin of animals” (FG5, Female, 40–50, Married, B.A.).
Ethical luxury could also symbolize brands donating to a
portion of their earnings to bettering the society, which could
lead to further ethical development in brands as discussed by
Doran (2014). In fact, some respondents even suggested it is their
duty to do so, just as Kapfer and Michaut-Denizeau (2014) had
considered:
“[…] just I think, the, they earn lots of money, they should use
that money to help to create better environment. Very impor-
tant. And help does not mean they can get luxury, help maybe
for them is that maybe they build a green building and there
will be a school. And then poor people go inside, and they can
have their education. That is ethical (Z7, Female, 30–40, Mar-
ried, B.A.).
Even though many respondents discerned that it was difficult
for luxury brands to use ethical materials, some others suggested
otherwise. This in divergence to other studies’ results (Achabou
and Dekhili’s, 2013) on consumer perspectives on the use of ethical
materials in luxury. Respondents concurred with Sozanni (2012),
that luxury can now represent the use of fairer materials as well:
“[…] use less paper. Oh, it’s a good idea. So, they can usually
show their new products in a magazine, or beautiful book, so
they can use the recycled paper. Yea, yea it’s good idea” (Z10,
Female, 30–40, Married, B.A.).
“Animals cannot express what they feel to people, but we still
kill them to satisfy our requirement. We should use technology
in the place of animals. I definitely think luxury brands should
be ethical” (FG11, Female, 20–30, Single, B.A.).
With one noting how it is a distinguishing factor for her, and
thus seeks a deeper ‘luxe’ from her luxury purchases like Proctor
(2009) had indicated:
“[…] because I am a vegetarian now, so one day when I went
to the Hermes store to buy a bag. I saw one bag that is made
of animal skin, so I didn’t buy it. For two reasons: first, I didn’t
want to carry a bag made by animals… And that’s the reason
why I carry Longchamp recently, made only by canvas. I will
pay more to buy luxury things that use ethical ways of making
it” (FG5, Female, 40–50, Married, B.A.).
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This concern for unethical materials not only included luxury
bags but extended to product categories such as cosmetics, as
well. In addition, these concerns represent the affluent consumer’s
awareness of ethical deliberations (Bendell and Kleanthous, 2007)
by noting:
“According to a report, the eyelash growth nourishing products
of L’Oreal, use the animal lapin (rabbit) in their product. That
is not ethical to me. A lot of girls love this product, but I don’t
want companies to use animals to make products, so I don’t like
it” (FG11, Female, 20–30, Single, B.A.).
Ethical materials also included the use of green materials:
“Luxury brands can start to promote to use some green materi-
als, because people follow them” (FG1, Female, 30–40, Married,
B.A.).
“Luxury can be green […] Yes, but I think it …can only be a
part of it. I think the material can be green” (FG4, Female, 30–
40, Married, B.A.).
Besides what measures luxury brands could undertake to be-
come more ethical, a few respondents felt that luxury already
possessed some ethicality, as thoroughly debated by Kapferer
(2010) and Bendell and Kleanthous (2007). This is mainly due to
luxury’s longevity, as one respondent mentioned:
“Yes! Of course, because maybe it’s the price is higher, but I can
use for many, many years. But the cheaper bag maybe just one
month. I give someone, they throw out. So, the quality is very
important” (Z10, Female, 30–40, Married, B.A.).
Moreover, it was indicated by some respondents that the mode
of production of luxury is already ethical. This was voiced by
Cervellon and Shammas (2013) and could be a factor in which lux-
ury brands could further underscore in their communication ef-
forts. As this respondent argued, it makes luxury already ethical:
“I think so, but a lot of these things are handmade so, actually
they are not, they don’t hurt the environment, some of it” (Z5,
Female, 50–60, Married, M.A.).
Luxury could be deemed more ethical than fast fashion, just
as Joy et al. (2012) maintained. This was expressed by the notion
of the practice of inter-generational inheritance of luxury goods
and counter to western views of luxury merely representing excess
consumption (Kapferer and Michaut, 2015):
“I think the throw away is the style [fast] fashion. Yes, [lux-
ury] more green…you can use and your daughter can use” (Z3,
Female, 30–40, Married, B.A.).
These statements also correspond to what practitioners in the
press proclaim as luxury can encourage consumers to consume less
(Heathcote, 2012), which then in turn, can reduce the impact on
the environment (Jenkin, 2012).
4.3. Perceived prospects of ethical luxury integration
While the majority of consumers conceptualized ethical lux-
ury in various manners, there were some respondents who de-
picted dialogue of positive notions towards actually wanting to
consume ethical luxury, analogous to an article that suggested
that Taiwanese consumers are now demanding more corporate
responsibility from the brands they patronize:
“Yes. I believe so […] for myself, you know, definitely. Of course,
that would be wonderful. That would be wonderful yes (Z5,
Female, 50–60, Married, M.A.).
Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
[m5G;August 15, 2019;2:45]
If you can connect them together, I think very it’s important”
(Z11, Female, 30–40, Married, B.A.).
As Cervellon (2013) stated, some luxury consumers now per-
ceive the importance in sustainable luxury and how current means
of communication can greatly disperse any negative practices un-
dergone by brands. One respondent articulated this by saying:
“[…] Nowadays there is more news about the sweatshop. So,
the consumers like myself, so I’m more aware of where the
product comes from. How the product comes from I think
there’s the information, the Internet or Facebook will deliver
the news very quickly. And if the person sees it’s not good or
it is very unfair things happening in the society, it transfers
so quickly, that everyone knows” (Z9, Female, 30–40, Married,
Ph.D.).
Just as Bendall and Kleanthous (2007) discussed that the lux-
ury consumer is becoming more aware of ethical issues, some re-
spondents even expressed the will to pay more for ethical luxury,
precisely contrary to Davies et al.’s (2012) findings from western
consumers:
“I am willing to pay more for something more environmentally
friendly” (FG3, Female, 30–40, Married, B.A.).
However, another noted:
“It depends, depends on the price. If it is too expensive, I will
not consider it. But I also want to buy something using ethi-
cal ways to make it, but not so that it’s too expensive” (FG4,
Female, 30–40, Married, B.A.).
Although a few respondents noted that the Taiwanese con-
sumers were still not ready for ethical luxury, analogous to many
results uncovered from western consumers (i.e. Achabou and
Dekhili, 2013). Nevertheless, a respondent expressed a promising
notion about the future of ethical luxury in Taiwan:
“We now can’t sell mink coats in Taiwan, but some other coun-
tries still allow people to buy it. This uses animals, which are
endangered. It is also luxury, but not ethical” (FG8, Female,
30–40, Single, B.A.).
It is however yet to be seen whether there is an attitude-
behavioral gap (De Pelsmacker et al., 2005), in that they might just
be expressing ethical attitudes but might not follow through when
it came to actual purchasing decisions. A respondent used an ex-
ample of a major American fashion brand to illustrate this:
“Gap is a big company. They oppress the employees of where
the products are made. It is not ethical, but a lot of people
still buy Gap goods even if people from whole the world know
about this. So, the concept of ethicality is not so assuredly im-
portant or not” (FG13, Female, 20–30, Single, B.A.).
Nevertheless, a few other respondents mentioned how this
could be a differentiating factor for a brand, adding credibility
to what Doulton (2011) refers to as making more business sense
when luxury brands become ethical. This contrasts western con-
sumer findings, were respondents were less likely to buy ethical
luxury (Moraes et al., 2017). Two respondents argued that:
“They have two brands…one brand is making a lot of money
but does nothing…other brand…help with the environment
or something… People will consider buying (indicates the
charitable brand)” (Z11, Female, 30–40, Married, B.A.),
“[…] Luxury brand they, the people who can buy them because
they rich. They have money […] have the ability to do […] good
thing for the environment, compared to others” (Z4, Female,
30–40, Married, B.A.).
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Likewise, Bendell and Kleanthous (2007) commented that ethi-
cal matters are the responsibility of luxury brands and also that it
can enhance growth of the brand (Kiewiet and Vos, 2007). Some
respondents observed that it is possible due to the brand names’
strength:
“It’s the same, as long as it’s Gucci. Because people trust the
name. The name symbolizes quality, even though it’s sustain-
able products. But I think people still trust Gucci brand, their
products” (Z9, Female, 30–40, Married, Ph.D.).
Bray et al. (2011) argue that this is due to consumers’ strong
brand loyalty. Although Cervellon and Shammas (2013) concur
with this, they express that the luxury brand’s trust for a cause
must relate to where it can hold credibility. Since luxury possesses
influencing potential (Bendell and Kleanthous, 2007), some respon-
dents discussed this for ethical luxury as well:
“[…]People will follow the brand or what they like it […] be-
cause they can influence a lot of people” (Z2, Female, 20–30,
Single, B.A.).
“I think if the big company, if they do that it can also encourage
people to do it[…]have advertisement to tell people how to do,
or what they do” (Z4, Female, 30–40, Married, B.A.).
While a few respondents said it was due to the fame factor of
luxury brands, as depicted by Bendell and Kleanthous (2007) with
the role of how recognized brands fuse this with ethical principles:
“They attract a lot of media. So, if they [the luxury brands] do
something good, I mean the media will broadcast it” (Z9, Fe-
male, 30–40, Married, Ph.D.).
Some respondents noted how luxury brands could influence
luxury shoppers to use reusable bags or even use clean transporta-
tion. The influencing power express by these consumers contrasts
Voyer and Beckham (2014) findings from western consumers
finding the concepts incompatible:
“This one they can have the recycled bag for shopping. Make
luxury for recycling to use next time and after, it’s good idea”
(Z10, Female, 30–40, Married, B.A.),
“Yes, maybe if they can make a fancy bicycle. Yeah then maybe,
or easy ride bicycle. Then maybe they can make it more pop-
ular, and maybe people will like it more” (Z11, Female, 30–40,
Married, B.A.).
This goes beyond what either Kapferer (2010) or Bendell and
Kleanthous (2007) remarked, hinting that luxury could possess
even more persuasive authority than previously considered. And
for all these ethical measures that could be undertaken by luxury
brands, some respondents revealed how there should be labels so
that consumers can easily recognize these ethical efforts and as Joy
et al. (2012) discussed, ethical endeavors should not overtake the
aesthetic appeal of fashion goods. One respondent argued in con-
trast to Janssen et al. (2017), that luxury brands should ‘say it out
loud’:
“[…] the products should possess a tag label with the com-
pany information and if it’s an ethical product [or not] to let
customers know” (FG13, Female, 20–30, Single, B.A.).
Thusly, Atwal and Williams’ (2009) term ‘the information gap’
could be countered through labeling, as suggested by Harlieb and
Jones (2009). Also, a few respondents concurred with Kiewiet and
Vos (2007), that these efforts could create positive marketing for
the brands and the importance of these promotional efforts:
Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
[m5G;August 15, 2019;2:45]
7
“If they can that would be great. Then it also creates a posi-
tive image for their brands. “I think it’s marketing value” (Z9,
Female, 30–40, Married, Ph.D.).
“[…] It is important to promote ethical luxury and to let other
people know, so they can support it” (FG4, Female, 30–40, Mar-
ried, B.A.).
This is precisely the argument of Cervellon and Shammas
(2013) made to enhance the image of the brand and create fur-
ther awareness. Nevertheless, ultimately the demand and respon-
sibility for ethical luxury was contested by a majority of the
consumer responses:
“[…] Not the responsibility of businesses but of customers,
because business couldn’t make it [unethical products] if we
weren’t buying it” (FG11, Female, 20–30, Single, B.A.).
“Luxury is accompanied by market trends. We need to change
what people think and desire, if we want what is not ethical in
luxury to become ethical” (FG12, Female, 20–30, Single, B.A.).
Celebrities and the media could play a crucial role in ethical
luxury’s launch, as Bendell and Kleanthous (2007) inferred regard-
ing the use of celebrity endorsements for ethical issues for luxury
brands, and as Jin (2012) implied, fashion trends are systematically
shaped by the media:
“I think the word luxury comes from the media. Female stars
chasing fashion from fashion shows, so if the shows could in-
troduce not using use any animals in the production of their
products, then the customers won’t chase unethical products”
(FG11, Female, 20–30, Single, B.A.).
5. Conclusion and implications
This research paints an overall picture that ethical luxury
could be possible for the Taiwanese market, in contrast to many
findings from western consumers. However, how exactly luxury
becomes ethical and how it will be communicated has yet to be
seen. Consumers did cite that luxury already held some ethical
elements, which could be a crucial starting point for luxury brands
to begin by communicating these features in future marketing
and advertising campaigns. The following steps in creating a more
ethical luxury are not without serious contemplations, such as the
use of ethical materials. Luxury marketers must first convincingly
communicate and demonstrate that ethical materials can offer
the same quality, appearance and feel, before considering using
them; and ‘co-construct’ this evolution. This could take the form
of offering ethical lines first, and then considering adopting these
materials for the entire offering of the brand. Thus, commencing
the conversion to ethical luxury by firstly offering limited ethical
luxury offerings as a soft launch to discover consumer’s initial
reactions. In addition, this paper offers marketers insights into
some of the ways they could take on cause-related marketing in
the Taiwanese market. Suggestions from respondents included: en-
vironmental donations such as for planting trees or philanthropic
deeds like donating to poverty from proceeds of a certain prod-
uct. Taiwanese consumers viewed these as meaningful actions.
Participants also confirmed that ethical implications like using
renewable energy could be easily adopted by luxury brands, and
thus marketers should greatly consider these actions.
Luxury marketers could also consider using their influential fac-
tor to promote clean transportation, either by creating luxury bicy-
cles, as noted by some respondents, but would first need to ascer-
tain if the brand is extendable in that category so as to avoid the
blunders of unsuccessful brand extensions (Hennigs et al., 2013b).
Additionally, luxury marketers could create bicycle accessories if
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8 S. Karatzas, A. Kapoulas and C.V. Priporas / Australasian Marketing Journal xxx (xxxx) xxx
their brand could not extend in this category, such as Louis Vuit-
ton canvas leather bike seats. Some respondents also felt strongly
about animal welfare issues, and brands could either make chari-
table efforts for this cause or offer lines that do not use any ani-
mal materials. Taiwanese respondents are still highly influenced by
traditional media efforts such as magazines, TV, celebrity endorse-
ments and newspapers, thus luxury brands could utilize these are-
nas for their ethical promotional efforts. And as many respondents
noted, this could offer them an enhanced positive image. Taking
these considerations into account could avoid the pitfalls of ‘green-
washing’ and avoid unfitting ethical measures for the Taiwanese
market.
Finally, one must take into account the incredibly adverse envi-
ronmental effects the fashion industry has on the planet (Claudio,
2007). Luxury acts as a chief influencer (Joy et al., 2012) in this
industry and must take accountability. In addition, the increasing
awareness of the poor working conditions of workers for fashion
goods, as discussed widely by such authors as Bendell and Kleant-
hous (2007) begs for a call-to-action to ameliorate the fashion in-
dustry to a higher standard. Due to this exceptional influence that
luxury has on the cultural behavior on consumption (Cervellon,
2013; Cervellon and Shammas, 2013), it is seemingly evident that
the implications of ethical luxury are not just important to the aca-
demic literature or the marketer, but to the world at large.
This research paper was exploratory in nature and acts as a
starting point to further in-depth research (Davies et al., 2012). Re-
searchers now have a new framework for which to base further
research upon. This could take form by doing more representative
examinations, as in large surveys or other quantitative techniques,
in order to ascertain whether these beliefs of luxury or ethical-
ity are truly representative of the Taiwanese. Future research could
also determine whether larger sample sets would find these eth-
ical infusions viable for luxury, and to discern which ones would
be the most appropriate and possibly for which brands. They
could also investigate whether the conceptualizations determined
from respondents could have potential in ethical luxury’s promo-
tional efforts (like images of yoga or clean water) to create more
effectiveness in their marketing efforts.
This study is limited in scope by several factors. The first being
the use of translations and of conducting interviews in the respon-
dent’s non-native language. A barrier to clear articulation and un-
derstanding can occur in this context. In addition, the sample size
was small and may not have resulted in enough of a clear pattern
and may not have represented the broader Taiwanese luxury con-
sumer. Only investigating the Taiwanese consumer may not be rep-
resentative of Chinese, or other Asian consumers without further
comparison and investigation. Future investigations could appeal to
these limitations to clarify the understanding of ethical luxury and
it’s potential.
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Please cite this article as: S. Karatzas, A. Kapoulas and C.V. Priporas, Consumers’ perceptions on complexity and prospects of ethical
luxury: Qualitative insights from Taiwan, Australasian Marketing Journal, https://doi.org/10.1016/j.ausmj.2019.08.001
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Stelios Karatzas is a Marketing Manager and works for the provincial government
in Canada helping small businesses commercialize their innovative products. He
holds a B.Sc. in Environmental Science from Kingston University and a M.A. in Mar-
keting, Advertising and PR from the University of Sheffield. He has also co-authored
a text book in digital marketing.
Alexandros Kapoulas is Research Director of the Business Administration and Eco-
nomics Department and Senior Lecturer in Marketing at The University of Sheffield
International Faculty - CITY College, Thessaloniki, Greece. He holds B.A. (Hons in
Business Administration from University of Derby (UK), an MBA from Cardiff Busi-
ness School, University of Wales (UK), Pg.D. in Research Methods in Business &
Management and a Ph.D. in Marketing from University of Derby (UK). He is re-
searching newly and emerging phenomena mainly within the marketing and man-
agement arenas. He has published in several international academic journals and
conferences. He is a reviewer of academic journals and conferences papers.
Constantinos Vasilios Priporas, Ph.D., MCIM, FEMAB, is a Senior Lecturer in Mar-
keting at Middlesex University Business School, UK. His research interests include
consumer behavior and strategic marketing with main emphasis on tourism, re-
tailing and food. He has published in several international academic journals and
conferences, including Tourism Management, Journal of Travel Research, Computers
in Human Behavior, International Marketing Review, International Journal of Con-
temporary Hospitality Management, Journal of Retailing and Consumer Services.
In addition, he co-edited a book in Market Sensing. He is a member of several
professional bodies and he is editorial board member of the Journal of Customer
Behaviour and has acted as a guest editor, reviewer, and track chair in academic
journals and conferences.