An Analysis and Proposed Conceptual Model for Researching the Value of Luxury From the Perspective of Chinese Consumers

Abstract

Researchers and marketers in the luxury industry are realising the importance of knowing how Chinese clients put a monetary value on luxury items given the country's rapidly rising middle class. While studies conducted in developed countries provide some theoretical light on how people place a monetary value on luxury goods, there is surprisingly little information available on how Chinese customers place such a value. This research examined the literature and evaluated several conceptual models to better understand the factors that influence Chinese consumers' perceptions of their personal and society's luxury. As a consequence, this research increases our grasp of the motives behind luxury purchasing among Chinese consumers, the nature of luxury in the perspective of the Chinese, and the elements that impact their appraisal of luxury items. Given this theoretical gap, the current study seeks to fill it by establishing, proposing, and evaluating a conceptual framework that describes the major variables that impact Chinese consumers' luxury purchasing behaviour, drawing on findings from the existing literature and primary data obtained from Chinese luxury brands. Several methods were used to construct and evaluate a theoretical model of Chinese consumers' valuation of high-end products. This was carried out over the course of two iterations of fieldwork. Ten in-depth interviews with Chinese luxury consumers were selected for the first stage of the field research so that we could inquire into, separate out, and provide context for the most significant aspects influencing those consumers' value judgements. Ten hypotheses were derived from the qualitative data and the available literature, and the linkages between individual and societal judgements and the luxury value perceptions of Chinese consumers were validated by the study. Moreover, public opinion may impact how people view themselves. The hedonic seeking value, the individuality value, and the narcissism value of luxury items all contribute to how they make their purchasers feel about themselves.