Evaluation and Development of a Conceptual Model for Investigating Chinese Consumer's Perspectives of Luxury Value

Abstract

Researchers and marketers in the luxury sector are realizing the need of learning how Chinese customers place a monetary value on luxury goods given the country's rapidly expanding middle class. Even though most research is done in the industrialized world give theoretical insight on luxury value perceptions, but research on Chinese consumers' value judgments of luxury items is scant. To understand what variables, affect Chinese consumers' views of their own and society's luxury, this study reviewed the relevant literature and assessed many different conceptual models. As a result, this study deepens our comprehension of the motivations behind luxury consumption among Chinese consumers, the nature of luxury in the eyes of the Chinese, and the factors that shape their valuation of luxury goods. Therefore, the current investigation aims to establish, propose, and assess a conceptual framework by describing the major variables that impact Chinese consumers' luxury purchasing behavior, using results gathered from existing literature and primary data obtained from Chinese luxury brands, to fill the absence of research on luxury consumption levels in China from a theoretical perspective. To build and test a conceptual model of how Chinese customers perceive the value of luxury goods, a combination of techniques was used for this study. Two rounds of fieldwork were done to execute this. In the first phase of the field study, 10 focus group interviews were chosen to investigate, isolate, and explain the most important factors affecting the value judgments of Chinese luxury customers. The qualitative data and the existing literature were used to generate 10 hypotheses, and the research confirmed the hypothesized relationships between individual and society judgments and the luxury value perceptions of Chinese consumers. Moreover, public opinion may shape how they see themselves. How one sees oneself in relation to luxury goods is directly influenced by their hedonic pursuing value, individuality value, and narcissism value.