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A Study on

Purchase Intentions of Consumers towards Selected Luxury Fashion Products


with special reference to Pune Region.

Thesis Submitted to the D. Y. Patil University,


School of Management,
In partial fulfillment of the requirements for the award of the
Degree of

MASTER OF PHILOSOPHY
In
BUSINESS MANAGEMENT

Submitted by

Ms. Rimpy Goyal

(Enrolment No. DYP-M.Phil-126090009)

Research Guide

Dr. R. GOPAL

DIRECTOR, DEAN & HEAD OF DEPARTMENT

DR. D.Y.PATIL UNIVERSITY, NAVI MUMBAI

DEPARMENT OF BUSINESS MANAGEMENT

Sector 4, Plot No. 10,

CBD Belapur, Navi Mumbai 400614

APRIL 2014

1
I DEDICATE THIS RESERACH THESIS TO MY PARENTS,

WITHOUT WHOSE INSPIRATION AND SUPPORT,

BLESSINGS AND NOBLE UPBRINGING,

I WOULD NOT HAVE BEEN ABLE TO BE A PERSON

TO DO SUCH AN EXTENSIVE WORK LIKE THIS

-- RIMPY GOYAL

2
DECLARATION

I hereby declare that the thesis titled A Study on Purchase Intentions of Consumers

towards Selected Luxury Fashion Products with special reference to Pune Region

submitted for the award of Master of Philosophy in Business Management at D.Y.Patil

University, School of Management is my original work and the Dissertation has not

formed the basis for the award of any degree, associate ship, fellowship or any other

similar titles. The material borrowed from other sources and incorporated in the thesis has

been duly acknowledged.

I understand that I myself could be held responsible and accountable for plagiarism, if

any, detected later on.

The research papers published based on the research conducted out of and in the course

of the study are based on the study and not borrowed from other sources.

Place: Navi Mumbai

Date:

Signature of Student

3
CERTIFICATE

This is to certify that the thesis entitled A Study on Purchase Intentions of Consumers

towards Selected Luxury Fashion Products with special reference to Pune Region

submitted by Miss. Rimpy Goyal is bonafide research work for the award of the Masters

of Philosophy in Business Management at the D.Y. Patil University, School of

Management in partial fulfillment of the requirements for the award of the Degree of

Masters of Philosophy in Business Management and that the thesis has not formed the

basis for the award previously of any degree, diploma, associate ship, fellowship or any

other similar title of any University or Institution. Also it is certified that the thesis

represents an independent work on the part of the candidate.

Place: Navi Mumbai

Date:

Signature of the Head of Signature of the Guide

Department

4
ACKNOWLEDGEMENT

First and foremost, I am extremely thankful to the Dr.D.Y.Patil University, Navi

Mumbai for having accepted me as an M.Phil. Student. I would like to express my

deepest sense to my supervisor Dr R.Gopal for his relentless support, advice and

guidance throughout the entire preparations of this dissertation. Im greatly touched by

the commitments and dedications they have shown. Without his support and guidance, I

would not be able to complete this study.

I would like to thank all the respondents that took part in collecting valuable data towards

this research.

I am thankful to Dr.Pradip Manjrekar for his recommendations and suggestions in every

stage of my work.

I also would like to express my gratitude and thanks to Dr.Roshan Kazi for his guidance

and comprehensive lecture notes on the using the SPSS tools as well as interpreting the

analysis output from the subject.

I also would like to thank my family members for support and understanding throughout

the course of the completion of this dissertation. Their endless support had been

invaluable and was the force that pushed me to go on. Not forgetting also my colleagues

and fellow course mates who had provided assistance and support encouragement

throughout the completion of the dissertation.

Place: Navi Mumbai

Date: Signature of the student

5
TABLE OF CONTENTS
Chapter No. Title Page No.
DECLARATION

CERTIFICATE

ACKNOWLEDGEMENT

LIST OF TABLES i-ii

LIST OF FIGURES iii

EXECUTIVE SUMMARY iv-x

1 INTRODUCTION 1-27

1.1 Overview 1-8

1.2 Concept of Luxury 9-12

1.3 Luxury Brands 13-17

1.4 Brand Variables 18-24

1.5 Purchase Intentions of Consumers 25-27

2 REVIEW OF LITERATURE & GAP ANALYSIS 28-45

3 OBJECTIVES OF THE STUDY & RESEARCH 46-59


METHODOLOGY

3.1 Research Questions 46

3.2 Objectives of the study 47

3.3 Hypothesis 48

3.4 Research Methodology 49-56

3.5 Limitations of the study 57

3.6 Ethical Awareness 58

3.7 Significance of the study 59

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4 DATA ANALYSIS 60-126

5 FINDINGS AND CONCLUSION 127-133

6 SUGGESTIONS AND RECOMMENDATIONS 134-135

7 ANNEXURE 136

Appendix-I BIBLIOGRAPHY 137-146

Appendix-II QUESTIONAIRE 147-152

7
LIST OF TABLES
Table 1 Conceptions of Brand image 23

Table 2 Past Studies Conducted on Consumer Purchase Intentions towards 35-44


Luxury Brand Fashion Products
Table 4.1 Frequency and percentage of respondents by demographic 61
characteristic w.r.t Gender
Table 4.2 Frequency and percentage of respondents by demographic 63
characteristic w.r.t Age
Table 4.3 Frequency and percentage of respondents by demographic 65
characteristic w.r.t Income
Table 4.4 Frequency and percentage of respondents buy Luxury Fashion Brand 67
products
Table 4.5 Frequency and percentage of respondents possessing Luxury Fashion 69
Brand Products
Table 4.6 Frequency and percentage of respondents how often do they purchase 71
luxury brand products
Table 4.7: Mean and Standard Deviation of respondents for variable influencing 73
purchase of luxury products.
Table 4.8 Showing difference in the importance attached to reasons with the 79
help of Ranks Table.
Table 4.9 81
Reasons for purchasing luxury products (Multiple Response Options)
Table 4.10 Frequencies of Source of Information about luxury fashion products 85

Table 4.11 Frequencies of Influencers For Purchase of Luxury Products 87

Table 4.12 Brand Variables drives you to purchase luxury Products 89

Table 4.13 Showing the best occasion for purchasing Luxury Brand Products 92

Table 4.14 List of Rational Variables which influence consumer to buy Luxury 93
Products
Table 4.14 List of Emotional Variables which influence consumer to buy Luxury 96
(a) Products
Table 4.14 Comparative analysis in between Rational v/s Emotional 97
(b)
Table 4.15 Showing relationship in between Gender and PI with the help of 100
Chi-Square Tests
Table 4.16 Showing relationship in between Income and PI with the help of 103
Chi-Square Tests
Table 4.16 104
Gender * Do you buy Luxury Fashion Products Cross tabulation
Table 4.17 105
Income * Do you buy Luxury Fashion Products Cross tabulation

8
Table 4.18 KMO and Bartlett's Test to check correlation amongst variables 108

Table 4.19 Total Variance Explained with the help of Eigen Values 118

Table 4.20 Rotated Component Matrix was referred to determine which variable 124
lower down to which factor

9
LIST OF FIGURES
Figure 1 The most luxury brands 14-17

Figure 1.1 Various Brand Variable 19

Figure 4.1 Percentage of respondents by demographic characteristic 62


w.r.t Gender.
Figure 4.2 Percentage of respondents by demographic characteristic 64
w.r.t Age
Figure 4.3 Percentage of respondents by demographic characteristic 66
w.r.t Income
Figure 4.4 Percentage of respondents buy Luxury Fashion Brand 68
Products
Figure 4.5 Percentage of respondents possessing Luxury Fashion 70
Brand Products
Figure 4.6 Percentage of respondents how often do they purchase 72
luxury brand products
Figure Rational v/s Emotional Variables 98
4.14(b)

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EXECUTIVE SUMMARY

This study attempts to investigate Purchase Intentions of Consumers towards Selected

Luxury Fashion Products. Purchase intentions are one of the main concepts studied in the

marketing literature. The interest of marketing scholars on purchase intentions comes

from its relation to buying behavior. Purchase intention is the implied promise to ones

self to buy the product again whenever one makes next trip to the market (Fandos &

Flavian, 2006; Halim & Hameed, 2005). It has a substantial importance because the

companies want to increase the sale of specific product for the

purpose to maximize their profit. Purchase intention depicts the impression of

customer retention. There are certain functions of the brand, which have a strong

influence on the purchase intention of the customers i.e. brand image, product quality,

product knowledge, product involvement, product attributes and brand loyalty. This study

will show the purchase behavior of the customers that how general public attract to

make purchase of the branded product and also reveal the important aspects which are

quite necessary to capture the purchase intention of the customers.

This research helps to categorize that among these aspects which factors have significant

effect on the purchase intention of the patrons. In this wondrous world where penetration

in the market in the presence of competitors is very problematic and challenging, it is

very much important to determine the exact features, which the consumer wants. It will

help the marketers to focus on the features of the product that are significant and

are positively correlated with purchase intentions of the customers. The customer driven

approach is applied to find out the perception of users to have an exact idea about

preference and desires. Moreover, marketing managers are interested in consumer

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purchase intentions in order to forecast sales of existing and/or new products and

services. Purchase intentions data can assist managers in their marketing decisions related

top product demand (new and existing products), market segmentation and promotional

strategies.

This study also talks about Luxury and Luxury Brands. In regards to the research, it is

important to know individuals behavior towards purchasing luxury brand products. With

the clear differences between social classes the consumption of luxury was limited to the

elite classes. The nineteenth century marked the beginning of the luxury goods sector and

the start of many of the highly valuable luxury brands that we know today, e.g. Hermes,

Cartier and Louis Vuitton in France, Burberry in England and Bvlgari in Italy. During the

last decades, the luxury sector has undergone a large change. The high entry barrier that

the luxury sector guarded for centuries has been lowered driven by globalization and the

Internet. The democratization of luxury means that luxury goods or goods that

resemble luxury goods are now available to an increased number of consumers

(Okonkwo 2007, 226227). The 1990s was a decade of explosive global consumption of

modern luxury fashion goods. The management methods of luxury fashion brands were

affected by the rapid growth of LVMH (Louis Vuitton Met Hennessey), the first luxury

goods conglomerate with a portfolio of more than 50 brands including Louis Vuitton and

Christian Dior. LVMHs success led to the rise of a new luxury goods sub-sector and

other corporate brands. Brands like Zara from Spain and H&M from Sweden began to

produce catwalk-style fashion at low cost offering consumers of luxury fashion

alternatives at low prices. Nowadays, the luxury fashion sector is the fourth largest

revenue generator in France, and one of the most remarkable sectors in Italy, Spain, the

12
USA and the emerging markets of China, Russia and India. The luxury industry has

increased impressively having a huge growth in demand. The luxury consumer is

powerful. Consumers have much choice in products, shopping channels and pricing of

luxury goods. Todays companies are interested in individual customers and hope to

achieve profitable growth through larger share of each customers expenditure. They also

want to build higher customer loyalty. According to Kotler (2003, 26), many companies

are moving from the marketing concept to the customer concept.

However, this study is limited to the following luxury fashion products-watches, bags,

mobile phones and Perfumes. The study was carried out to know the various factors

influencing buying intentions of consumers towards Luxury fashion Products. This study

also examine the relationship of age, gender, income and other demographic factors with

purchasing intentions of consumers. A comparative analysis had been done to know the

rational and emotional buying behavior regarding luxury fashion products. This study

showed the impact of brand variables on purchasing intention of consumers w.r.t selected

luxury fashion products. To know all this several hypothesis testing had been done. As to

know whether there is significant difference or not in the importance respondents

attached to reasons for purchase of Luxury Products, to know if there is any relationship

exists between gender of respondents and purchase of Luxury Fashion Brand Products, to

know if there is Sufficient correlation exists among variables.

The structure of the methodology will consist of the following: firstly, the research

method will be discussed followed by an explanation to which method would be

appropriate to use in this study. Secondly, data that will be collected from both primary

and secondary sources is going to be explained. Thirdly, sampling will be discussed.

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Fourthly, the questionnaire design, which is considered a key role in gathering data for

results, will be approached. Next, ethical values will be taken into account. Finally, a

short summary will be noted at the end of the chapter.

As mentioned above, this study had been carried out in Pune Region. It describes the

results from a survey of 400 respondents at various areas of Pune like Koregaon Park,

Magarpatta, Aundh, Viman Nagar, Kalyani Nagar and Kondhwa. Convenience sampling

method was applied to distribute questionnaire.

In this study, the statistical data analyses in a form of IBM SPSS Software 20 with the

help of Microsoft Excel were conducted by applying a method of Frequency distribution

tables, Descriptive Statistics, Pie-chart and Bar-chart, Multiple Response Analysis Test,

Chi-square Test of Contingency, Friedman Chi-square Test and Exploratory Factor

Analysis. The combinations of qualitative and quantitative were used to aid the

explanation of the results. This work mainly focuses on reasons for purchasing luxury

brand products, sources of information, rational Vs emotional variables and various brand

variables which drives customer for purchasing luxury products.

Out of the 400 respondents surveyed it is clear that people buy luxury products

sometimes. Based on the Friedman Test it is concluded that there is significant difference

in the importance respondents attached to reasons for purchase of Luxury Products. One

interesting finding is that from the mean ranks table it can be seen that High Quality, Best

design and esteem of brand are the top three reasons for purchase of Luxury products and

show off, envy others with luxury brand products, so I want the same products that they

have and Representation of celebrities associates with luxury brand products influence

me into purchasing them are the bottom three reasons for purchasing luxury products.

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From the Source of Information for purchasing luxury products it can be seen that Online

Adds and Television are the top two sources of information for purchase of Luxury

products. An interesting observation can be seen that Media is the top most influencer for

purchase of Luxury product. Among all brand variables it can be seen that Brand Trust is

the top most brand variable drives you for purchase of Luxury products. Related to

occasion it is found that consumers buy luxury products at any point of time. Regarding

Rational and Emotional Variables, it can be seen that respondents purchase luxury

fashion brand products rationally.

From the Chi-square test it is concluded that there is relationship between income of

respondents and purchase of Luxury Fashion Brand Products, higher income group

people buy luxury fashion brand products. It is concluded that there is no relationship

between gender of respondents and purchase of Luxury Fashion Brand Products. Based

on factor analysis and reasons for purchasing luxury fashion brand products it can be

concluded that a luxury product buyer can be classified as Status Conscious, Brand

Conscious and Quality Conscious.

This study focuses on human subjects; therefore, attention on ethical values must be

provided. Additionally, as a result from the questionnaire to where data is gathered

respondents should not be at risks (Fowler, 2002). Secondly, the protections of comments

from the questionnaires, and individuals well being have been catered for. During the

statistical data analysis, all information that has been gathered will be combined so

respondents comments will remain confidential. In this study, data will not be altered, or

specifically selected for the result to look better because it is considered unethical and

bias due to using data to the advantage of the study. Finally, data that has been acquired

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should be analyzed based on the original design. Data that researcher think they are

interesting can only be suggested as a useful information for further research but not for

researchers own study (Jones, 2000). Additionally, care is taken during the analysis

stage, in the presentation of data, over minor details, to avoid respondents being

identifiable (Fowler, 2002).

This study will help the present Marketing Managers to better reposition their branding

and advertising strategy to capture the correct target market to boost the sales in times

where economy are at a challenge. With such study, the impact on online advertisement

is clearly an influential media to promote branding of products and variables that

influence buying decisions is surely a focus to ensure the Marketing Communications are

done correctly and effectively. Ensuring effective execution of strategy are by

understanding how variables such as brand image, reasons for purchasing luxury

products, perceived societal status and brand loyalty can influence consumer buying

intentions of luxury branded goods.

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CHAPTER-1
INTRODUCTION

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Chapter 1

Introduction

1.1 Overview

Luxury is a necessity that begins where necessity ends. Coco Chanel

During the early years, luxury products were considered a privilege to possess. As

explained by Nueno and Quelch (1998) the word luxury was applied to products that

were rare and scarce which were only presented to minor individuals. However, since

time has changed and the luxury goods market has grown considerably, luxury products

have been more affordable for middle class consumers. Additionally, the contribution of

the Industrial Revolution played a key role in bringing in more wealth, which made

luxury products more achievable for all consumers (Hauck & Stanforth, 2007). For

example, in the United Kingdom, middle class consumers have increased by 50%

towards the purchasing of luxury products (Keane & Mcmillan, 2004). However, it is still

unpredictable how middle class consumers determine what luxury products are (Hauck &

Stanforth, 2007). Silverstein and Fiske (2001) stated that the increases in luxury

purchases are influenced by social and business factors. In regards to the changes of the

luxury goods market, the definition of luxury was also redefined. Twitchell (2003, p.43)

explains that luxury is things you have that I think you shouldnt have. There are many

products that are considered as luxury, which makes the market size undeterminable. The

varieties of products include automobiles, food, jewellery, fashion, and accessories.

Frank (1999) noted that cars and homes are some of the emerging luxury features that are

consumed. Individuals are influenced according to the important events and

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moments that occur in their lifetime (Meredith and Schewe, 1994; Ryder, 1965). These

moments and events may include war, economy, superstars, icons and technology that

influences individuals perceptions and values. Additionally, the significant influence that

individuals will recall occurs between their adolescent and early adulthood years, that

they will never forget for the rest of their lives (Schuman & Scott, 1989). Researchers

have discovered that culture has been amongst one of the most popular categories in

influencing individuals perceptions (Hauck & Stanforth, 2007). In regards to the

research, it is important to include Western and Eastern countries to compare different

individuals behaviour towards purchasing luxury brand products. Thus, the United

Kingdom (UK) is included in this study is because it is a part of the Western culture,

which contains the highest amount of millionaires (47,000) that purchases luxury goods

(The Guardian, 2005). Eastern culture such as China is included since the country has a

mass population of 40 million Chinese consumers who purchases luxury brand products

(The Guardian, 2005). Additionally, this figure of consumers has been predicted to rise to

160 million between the next five years (Matheson, 2007). Thailand is also apart of this

study as it is a part of the Eastern culture. It is one of the developing and Newly

Industrializing Countries (NICs), which received considerable changes in culture,

lifestyle, and behaviour towards luxury consumption (Timmer, 1998). From the

perspective of marketers, in targeting individuals desires is a part of a valuable technique

(Noble & Schewe, 2003). Individuals influence from moments and events, should be

taken into consideration in developing luxury products. Defining luxury products, in

terms of the middle class consumers will gain marketers advantage in product

specification. Kemp (1998) explains that identifying products, which are luxurious,

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would help marketers to indicate the boundary in price setting (Kemp, 1998). Whenever

you switch on the television, or flip through the pages of magazines, you are bombarded

with celebrity news and reality shows that touch your inner needs to feel beautiful,

important and recognized. Those gorgeous people in advertisements tell you that their

lifestyle and material possessions like clothes and accessories can make you beautiful as

well, and help you to be part of their world. All you need to do is to buy the right fashion

goods by the right designers. Then you start to crave for the Louis Vuitton bag or the

Chanel glasses. Soon you are hooked by the luxury fashion fever called brand loyalty.

Fashion has always played a significant role in the history of the great civilizations.

Already in Egyptian, Greek and Roman Empires fashion was a key social element that

reflected the society through apparel, accessories and cosmetics. With the clear

differences between social classes the consumption of luxury was limited to the elite

classes. The nineteenth century marked the beginning of the luxury goods sector and the

start of many of the highly valuable luxury brands that we know today, e.g. Hermes,

Cartier and Louis Vuitton in France, Burberry in England and Bvlgari in Italy.

During the last decades, the luxury sector has undergone a large change. The high entry

barrier that the luxury sector guarded for centuries has been lowered driven by

globalization and the Internet. The democratization of luxury means that luxury goods

or goods that resemble luxury goods are now available to an increased number of

consumers (Okonkwo 2007, 226227). The 1990s was a decade of explosive global

consumption of modern luxury fashion goods. The management methods of luxury

fashion brands were affected by the rapid growth of LVMH (Louis Vuitton Met

Hennessey), the first luxury goods conglomerate with a portfolio of more than 50 brands

20
including Louis Vuitton and Christian Dior. LVMHs success led to the rise of a new

luxury goods sub-sector and other corporate brands. Brands like Zara from Spain and

H&M from Sweden began to produce catwalk-style fashion at low cost offering

consumers of luxury fashion alternatives at low prices. (See Appendix 2: The major

luxury fashion conglomerates.) Nowadays, the luxury fashion sector is the fourth largest

revenue generator in France, and one of the most remarkable sectors in Italy, Spain, the

USA and the emerging markets of China, Russia and India. The luxury industry has

increased impressively having a huge growth in demand. The luxury consumer is

powerful. Consumers have much choice in products, shopping channels and pricing of

luxury goods. Consumer behaviour is the keystone of marketing planning. In the late

1960s, consumer research was in its infancy. Many different, interdisciplinary

perspectives have influenced the study of consumer behaviour, and nowadays it is an

essential part of business marketing. Todays companies are interested in individual

customers and hope to achieve profitable growth through larger share of each customers

expenditure. They also want to build higher customer loyalty. According to Kotler (2003,

26), many companies are moving from the marketing concept to the customer concept.

Southeast Asia is one of the key regions that luxury fashion brands should not ignore.

Thailand, Singapore, Malaysia, Indonesia, and the Philippines are niche markets with

rising standard of living. (Chada and Husband, 2006) Certainly, Thailand is part of this

phenomenon since the country emerged as an economic tiger in the late 1980s. The

growth of upper and middle-class has contributed to the increase in consumption rates of

luxury fashion brands. It shows a newfound status. (Chada and Husband, 2006)

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Moreover, the government of Thailand tries to promote its capital city Bangkok as a

regional fashion hub and shopping paradise for luxury goods. (CBS, 2010)

The long-term recession in Europe and small population growth rate in Europe has forced

many European luxury brands to expand their business to Asian consumers who regard

Western luxury brands as a symbol of good taste. (Nueno and Quelch, 1998) Luxury

brands are a modern set of symbols that Asians are wearing to redefine their identity and

social position (Chada and Husband, 2006). Thailand became a hot spot for this market.

(CBS, 2010) Despite the economic crisis, the luxury market is not severely affected, on

the other hand, people feel burdened with too many belongings. (ITN, 2010)

In Thailand, people always appreciate the fine stuff which has matured over generation.

Right now, luxury fashion brand culture does not only appeal to the high class people but

also to the middle-class and low class people. Consequently, the metropolis of Bangkok

becomes a venue for many luxury brands to open flagship stores. (Chada and Husband,

2006) In addition, there is a lot of luxury malls in Bangkok such as Siam Paragon,

Gaysorn Plaza, The Emporium, Central World, The Erawan Boutique Mall, and The

Peninsula Plaza. All these malls are complete with facilities.

The consumer behavior of Thai female students particularly in Bangkok is definitely

influenced by the commercialization and globalization. This can be seen in the changes in

social value, economy, and culture. People adapt more on foreign cultures. Shopping and

Fashion are playing major roles in young womens lifestyle. Thai female students in the

present days are more fashion conscious and they are influenced by the media.

(Suadmalai,2006) Luxury fashion products are purchased more for face reason.

(Schutte and Ciarlante, 1998) Realizing this trend, luxury brand marketers are developing

22
strategies to attract Thai female students. One strategies being used luxury brands in

Thailand is hiring celebrities to promote their brand. (Chada and Husband, 2006)

Globalization has catalyzed the growth of fashion industry and the marketplace

attractions have driven the cultural attributes of consumers significantly across various

consumer segments. Shifts in the cultural values, consumer preferences, and purchase

intentions towards designer products is arguably the most critical issue faced by the

marketing managers today. Many researchers argue that increasing globalization is

reducing the homogeneity of consumer behaviors within countries, while increasing

communalities across countries (Cleveland and Laroche, 2007). Most firms

manufacturing designer apparel are trying to bridge intercultural differences and building

cultural consonance across consumer segments on a variety of contexts that stimulates

interest in fashion apparel. Customer centric market strategy developed on self-esteem

attributes of consumer is used by the firms to enhance purchase intentions towards

fashion apparel (Horowitz, 2009).

Powerful market stimulants such as fashion shows on television, fashion advertisements,

in-store displays, and fashion events in the urban shopping malls have influenced the

transnational cosmopolitanism among consumers. Such interactive marketing strategies

of fashion apparel have shown convergence of traditional and modern values and lifestyle

to develop a homogeneous global consumer culture. The conventional method of using

societal icons as the cultural drivers have now been replaced by global fashion players

with flagship brands as a basis for product position and market segmentation. It is found

that multi-channel systems of brand building and differentiation influence the consumers

towards fashion apparel and need is created at local levels supportive of, and constituted

23
by, cultural industries. The Italian city of Milan shows how the city has became a

destination brand; where different various channels are being negotiated and integrate

service fashion and design branding strategies (Jasson and Power, 2010).

Globalization and increasing competition, and short product life cycles in fashion

retailing cultivate asymmetric consumer behavior and pose a number of marketing

challenges for retail firms in Mexico. In order to survive in this industry, it is vital for

manufacturers and retailers to develop and leverage core marketing capabilities. This

study examines the effectiveness of different fashion marketing strategies and analysis of

the consumer behavior in a cross-section of demographic settings in reference to fashion

apparel retailing. This paper also discusses the marketing competencies of fashion

apparel brands and retailers in reference to brand image, promotions, and external-market

knowledge. The study examines the determinants of consumer behavior and their impact

on purchase intentions towards fashion apparel.

Consumer market for fashion apparel has become more diverse by designer brands, store

brands, personalization, advertising, and ethnicity in the global marketplace. If

manufacturers and retailers of fashion apparel can identify the target consumers'

preferences, they may be better able to attract and maintain their target consumer group.

However, little research has been conducted to investigate the factors influencing the

apparel shopping behaviors among Hispanic consumers. Thus, the purpose of the present

study is to investigate the attributes of shopping designer apparel among consumers in

Mexico.

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1.2 The concept of luxury

It is not so easy to define the word luxury. What is luxury for someone is just ordinary

for others. In economic terms, luxury objects can be said to be those whose price/quality

relationship is the highest on the market. Quality means their measurable, tangible

functions of an object. Jean-Nol Kapferer criticizes this definition by saying that what

accounts, indeed, is not the absolute price, but the price differential between luxury

products and products with comparable functions (Kapferer 1999, 77). The strictly

economic perspective does not help differentiate the upper-range brand from the luxury

brand. He states that upper-range products could be defined as tangibles associated with a

specific product category, while luxury products are intangibles associated with values

and ethics. (Kapferer 1999, 78.) Kapferer uses etymology to clarify the concept. Luxury

comes from lux that means light in Latin. Luxury glitters. Like light, luxury is

enlightening. Luxury is visible; others must see it, by the consumer and. Luxury defines

beauty. There are two things relating to luxury: the monetary capacity to pay the price of

quality and a propensity to appreciate the objects artistic, creative and sensuous

dimensions something beyond mere practicality. Luxury items provide extra pleasure

and flatter at the senses. Kapferer states that sociology and history can help clarify the

concept, too. Luxury brands are exemplifying the signs and attitudes of the former

aristocracy: a restricted group bonds together and distances itself from the rest of society

in terms of price and preferences. (Kapferer 1999, 7879.) The Oxford Advanced

Learner's Dictionary defines luxury as the enjoyment of special and expensive things,

particularly food and drink, clothes and surroundings, as a pleasure or an advantage that

25
you do not often have and as a thing that is expensive and enjoyable but not essential.

Luxury products include both goods and services.

LUXURY AND PRESTIGE GOODS

1. Fashion

a. Clothing and apparel

designer fashion (haute couture)

ready-to-wear clothing (prt--porter)

sportswear

b. Leather goods and accessories

bags and wallets

shoes

belts

luggage

2. Perfumes and cosmetics

3. Watches and jewelry

4. Eyewear

sunglasses and prescription glasses

5. Wines and spirits

6. Automobiles

Today, the twenty first century, luxury consumption has become so popular (Kapferer

and Bastien, 2009) despite the fact that there is a relatively small number of companies

selling luxury products. (Uche Okwonko, 2007) Everyone aspire for luxury, particularly

26
in fashion. In fact, there has been many luxury brands established in the world over the

past centuries regardless of, such as, the industrial revolution period, the first and second

world wars, or democratization. Until now, the period of globalization offers many

sources of luxury. This is driven by the development of industries, economy, new trades,

increase in spending, and even communication. For example, there are some popular

Japanese luxury brands in European countries, there are Asians addicted to European

Luxury brands, and there are European luxury brands that use Chinese silk as raw

materials in productions. (Kapferer and Bastien, 2009) Consequently, people all over the

world are familiar with the word luxury fashion brands.

Obviously, the social stratification is gradually vanishing in the present days. But people

still tend to distinguish the class in society by the leader in society and rich people always

want to have and show off their extravagant life. Since luxury is the symbol of good taste

and wealth, there is no doubt why everyone wants to have it.

Although, the luxury industry is somehow small in terms of number of companies in this

world compared to other industries, luxury fashion industry has been a multi-billion

dollar industry in the world. It plays a remarkable role in the economy, and influences the

modern society. To add on this aspect, Chadha and Husband (2006) said that the

democratization of luxury brands during 90s made the door of exclusivity open to

ordinary people. And, luxury is everywhere today (Kapferer and Bastien, 2009).

Luxury means, the state of great comfort and extravagant living or an inessential but

desirable item. (Oxford, 2009) Actually, the word Luxury is not the same with

everyone and some people do not exactly interpret this word like that in the dictionary.

They feel that its beyond that and the definition seems to be hard to fathom. If ever, it

27
would be a never ending discussion. Kapferer and Bastien (2009) said that the concept of

luxury is very old as the age of humanity.

Luxury is very selective and exclusive which there is almost the only brand in its product

category. The sense of being sophisticated and having a good taste are based on this

definition. The unique attribute of each product category belongs to one brand or it is

called the icon. Only one brand specializes in one product category, for example,

Brioni for mens suits, Herms for leather bags, Valentino for womens dress, and

Guerlain for cosmetics. (Chevalier and Mazzalovo, 2008) Those examples have very long

history and background as well.

Actually, it is true that luxury and expensive products must have high quality and

durable. The history and reputation of the brand are factors in considering luxury. The

statement about luxury is very selective and exclusive and almost only one brand

dominates in one product category. But, it cannot be completely valid in the situation

today.

On the other hand, according to Dr. Yuwa Hedrick-Wong, Economic Advisor,

Asia/Pacific MasterCard Worldwide (2007), luxury is a brand of goods/service with

exclusive/selective distribution; usually higher than the average price of goods/service in

the same category; typically have higher quality/design; while commanding a strong

appeal to the desire and aspirations of its potential customers... (Wong, 2007)

Another group of people think that expensive goods are always good and credible.

Although, sometimes, the quality of expensive goods is not that good but people still buy

it because its aspirational. According to Kapferer and Bastien (2009), the luxury goods

are not perfect, but an affecting goods. It is the price, not the product that is sold to the

28
customer. At this point, people want to own luxury goods just because it is expensive.

They are not concerned much about quality. Sometimes they are not very happy with the

function of the purchased

1.3 Luxury brands

In this chapter the author looks at brands, because you cannot talk about luxury goods

without talking about brand names. By the definition of the American Marketing

Association, a brand is a name, term, sign, symbol, or design or a combination of them,

intended to identify goods or services of one seller or groups of sellers and to

differentiate them from those of competitors (Kotler 2003, 418). The brand identifies the

origin of an item. It has the key credibility factor: offers a guarantee, a source of

confidence and is a sign of power, expertise and ethics. It is the mark on the product, but

it is also the overall value conveyed with promises of tangible and intangible satisfaction.

(Kapferer 2001, 3, 1011.) As Okonkwo (2007, 45) says, developing and effectively

managing a luxury brand is a long process; there are few existing brands that can claim

true luxury status. Interbrand is a global branding consultancy. It releases an annual

ranking of the best global brands by value, known as "The Best Global Brands." In 2010,

Interbrand placed a brand value of 21,860$m on Louis Vuitton making it the most

valuable brand in the luxury goods industry and the sixteenth most valuable brand in any

product category in the world. FIGURE 1 represents the most valuable luxury brands in

the world in 2010.

29
LUXURY BRAND

MERCEDES-BENZ LOUIS VUITTION

GUCCI ARMANI

FERRARI PORCHES

BURBERRY COACH

30
ZARA DIESEL

VERSACE PRADA

CALVIN KLEIN CHANEL

RALPH LAUREN HUGO BOSS

31
D&G GIVENCHY

GUESS DKNY

CHRISTIAN DIOR ESBADA

HERMES ELIZABETH ARDEN

32
TISSOT KENNETH COLE

RADO JAGUAR

CARTIER ROLLS ROYCE

Source: Website of the Various Organizations

Figure 1: The most luxury brands (Interbrand 2010)

33
1.4 Brand Variables

Branding

Branding may also provide a source of differentiation for other reasons. The pace of

todays technology change has made it difficult to differentiate purely on physical

attributes. Consider the various brands of televisions, video, cassette recorders and

personal computers. It is ironic that in such technologically sophisticated products, the

similarity between different brands is not unlike the similarity between various brands of

gasoline. They have become commodity items (Kohli & Thakor, 1997).

Today brands play an integral part in marketing strategy in capturing consumer attention.

This is because brands have become an important marketing component to the

manufacturer and a rich source of information for consumer. For the manufacturer,

brands provide a means of identifications for ease of handling and tracing, a means of

legal protection of unique features and of endowing products with unique associations.

Furthermore, brands signal quality levels to consumer and can be effectively used to gain

competitive advantage, derive satisfaction from product consumption and secure financial

returns. To the consumer, a brand identifies the source of the product, which in turn,

assigns responsibility to the product maker and provides a promise or bond with the

maker of the product (Keller et al., 2008).

34
Brand Loyalty

Brand trust

Brand Variable Brand Attachment

Brand Attitude

Core Brand Images

Source: Own Analysis

Figure1.1: Various Brand Variables

Brand attitude

In dual mode persuasion process, Attitude towards the advertisement and brand cognition

directly impact on attitude towards the brand. Teng et al. (2007) revealed that abundant

studies expressed that advertisement is evaluated by the impact of ad context. Formation

of responses that are cognitive gives back a necessary process directing to account

change in the attitude. Porter (1974) said that by activation of the feelings may not only

be occur speedily but also may lead to believe processing that is following in order or

succession. Porter (1974) forbade that advertisement should not be presented in

hollowness and competes against other advertisements so in this context a consumers

35
perception in general of other advertisements may have impact on his or her attitude

leading to the focused advertisement. Teng et al. (2007) concluded that a customer

attitude leading to a focused brand not only is dependent on his cognition of brand, but

also dependent on his perceptions of brand in a competition. As a result researches extend

to one more factor i.e. attitude towards advertisement and attitude towards the brand

interaction to purchasing behaviour or intention leading towards the brand. Consumers

very often embed information in advertisements into easy presentations throughout the

globe. The reactions to advertisements are not as such valid. However the models like

attitude, embedded information, and other such models perhaps lend better possibilities to

form brand attitude (Bagozzi and Recall,1983). Bagozzi and Recall (1983)

operationalized definition of brand attitude as consumer attitudes in a un dimensional

sense as the sum of the products of beliefs times evaluations, it may be fruitful to

examine attitudes as multidimensional constructs consisting of networks of

interconnected beliefs and evaluations. According to Batey (2008) brand attitudes are a

function of the belief that consumers have with regard to a brand and the degree to which

the brand possesses certain attributes or benefits and consumers evaluative judgment of

those believe (i.e., how desirable it is that the brand possesses these salient attributes or

benefits). Brand attitudes can be seen as consumers affective response to a brand.

Attitudes toward a brand are determined in large part by more rational and functional

elements where consumers are likely to be more able to verbalize their attitudes and their

reason for them.

36
Brand attachment

Aspects of public interactions include sensation for other people. On the other hand trust

is a vital result of these interactions. In earlier researches in psychology as well as in

marketing, it is concluded as vital element for the close interactions. Trust on the brand is

impact based, that refers to a touch, which is the result of public interaction associated

with brand (Esch et al., 2006). Thus in the model satisfaction for the brand is included in

addition trust is also added on the brand to testify rational and affective results. Since

interactions are relationship over time. Therefore one more construct has been included

that indicates this interdependence: attachment towards the brand. Only if a brands

outcome is a satisfied customer and is trusted by the customer then there will be

attachment that can be observable (Berry, 2000). Secondly the attachment towards the

brand makes interaction and specifies the brand powerfully express an outcome in

advance that how often brand was bought in the past and will be bought in the future.

Brand plays an extra ordinary role in companies related to services because brands, which

are strong, increase the pace of customers trust of the purchase that is invisible (Berry,

2000). Binninger (2008) suggested that earlier in 1990s customers loyalty is marked as a

main concept against in association with many others that consists of commitment,

satisfaction, identification, trust and the relationship with or attitude leading to brand.

Trust of the customer and satisfaction with a retailer mediates the impact of trust in brand

and satisfaction on consumer intentions to repurchase (Zboja and Voorhees, 2006).

Sirdesh mukh et al. (2002) declared trust of the customer as a vital and necessary

construct in developing customer relationships stronger and achieve sustainable share in

the market. Few segments related to consumers are interested in store brands where as

37
customers that are satisfied marked as loyal (Martenson, 2007). Delgado-Ballester and

Munuera-Aleman (2005) declared trust associated from past experience becomes the part

for current purchase and terms the customers as loyal which further intact the brand

equity. Esch et al. (2006) defined operationally as Brand attachment is a longer lasting,

commitment inducing bond between the brand and the consumer.

Core brand image

In the perspective of core brand image and in the context of extension of a brand one

obvious issue is the strength of a brand, which is vital part when extending the brand

process. Older studies ended that the strength of the brand is perceived both as

objectively or subjectively. Shwu-lng and Chen-Lien (2009) said that market share,

channel stronghold, distribution, and promotional and advertising costs are pointing out

objectively. He further explained that overall assessment of the consumers to the brand,

which are on the top normally, produces more publicity and share in the market so as a

result the consumers perceive these brands as superior. Shwu-lng and Chen-Lien (2009)

portrayed researches on a larger scale suggesting the major components of core-brand

image are awareness for the brand and preference for the brand. The two components of

core brand image; awareness for the brand and preference for the brand has an impact on

core-brand image and is positively associated with the attitude of the core-brand (Shwu-

lng and Chen-Lien, 2009). Moreover for the effective branding, relevance and awareness

both are vital (Sevier, 2001). Bogart and Lehman (1973) explained that brand awareness

came into being from the big consists of dissimilar parts and dependent upon extension to

different fields of advertised messages. Moore and Steve, (2000) described that fashion

38
brand expansion into global market has achieved success in space of brand image and

awareness. Furthermore attributes (the thing which exists and can be distinguished from

each other) that are rational might be in true sense viewed as causes to the image of the

brand rather saying than the image itself. (Da Silva and Alwi, 2006). Take a closer look

at the brand; it represents the ability of producing synergy effect of complete efforts of

the marketing that inserts and stretch the existence of an image in the minds of consumer,

and add a helping hand to the firms success with the help of stronger cash flows and

higher values in terms of the shareholders (Wong and Merrilees, 1998). Atmosphere and

quality of the store positively impacts the perception of quality of private label brands.

Contrary to it, the similarity among national brand and image of the store shows negative

impact on the quality of private label brands (Vahie and Paswan, 2006). Roberts and

Dowling (2002) explained operational definition as The corporate brand is a valuable

intangible asset, that is difficult to imitate, and which may help to achieve sustained

superior financial performance.

Table 1: Conceptions of Brand image

Source Main Meaning Conceptions of Brand image

Park (1986) Functional, symbolic and Brand image is not a simple

experience image phenomenon of

understanding, affected by

communication activity of

the company. This is a

consumers understanding

39
of a complete brand set,

developed by a company.

Keller (1998) Conception Brand conception,

reflecting associations of a

consumers conscious.

Aaker (2002) Associations How is a brand conceived

by a consumer

Source: Janonis, and Virvilaite, 2007:79

Brand Associations

Brand associations take up many forms from concrete to abstract, from the conscious to

the unconscious, the direct to indirect. Direct associations are those that occur directly

between two elements without the need or presence of a third, intermediary element

while indirect associations are what lead to associative chains, where elements are linked

together thorough one or more intermediary elements. Brand associations are categorized

into three significant groupings, which are attributes, benefits and attitudes (Batey, 2008).

Attributes, as described by Batey (2008) may be product-related such as physical

composition of a product and those elements, such as ingredients and design features,

which affect product performance or non-product-related such as extrinsic attributes that

do not have a direct bearing on product performance, though they mane be very

important in the purchasing decision. Utilitarian considerations such as functional

benefits and product-related attributes constitute the more concrete and pragmatic

meanings of a brand. Non-product-related attributes and elements that are not factual,

40
objective or instrumental underpin the more symbolic meanings of the brand. Products

and product-related attribute formed the basis for categorization in the consumer

behaviour, particularly given that most brands were mono brands that is, based on

single products or product types with specific attributes. Benefits describe how a brand

can solve a problem or offer an opportunity to the consumer or how it can make a

consumers life easier, more fun, more enjoyable or more meaningful. The differentiating

benefits that motivate brand purchase may be functional (as a result of on or more

product attributes and the functional utility they buy.

1.5 Purchase Intentions

Purchase intention is the implied promise to ones self to buy the product again whenever

one makes next trip to the market (Fandos & Flavian, 2006; Halim & Hameed, 2005). It

has a substantial importance because the companies want to increase the sale of specific

product for the purpose to maximize their profit. Purchase intention depicts the

impression of customer retention. There are certain functions of the brand, which have

a strong influence on the purchase intention of the customers i.e. brand image, product

quality, product knowledge, product involvement, product attributes and brand loyalty.

This study will show the purchase behavior of the customers that how general public

attract to make purchase of the branded product and also reveal the important aspects

which are quite necessary to capture the purchase intention of the customers. This

research helps to categorize that among these aspects which factors have significant

effect on the purchase intention of the patrons. In this wondrous world where penetration

in the market in the presence of competitors is very problematic and challenging, it is

41
very much important to determine the exact features, which the consumer wants. It will

help the marketers to focus on the features of the product that are significant and

are positively correlated with purchase intentions of the customers. The customer driven

approach is applied to find out the perception of users to have an exact idea about

preference and desires.

Purchase intentions are one of the main concepts studied in the marketing literature. The

interest of marketing scholars on purchase intentions comes from its relation to buying

behaviour. Several studies have reported a positive correlation between purchase

intentions and purchase behaviour (Morwitz and Schmittlein, 1992; Morwitz et al.,

1996). Moreover, marketing managers are interested in consumer purchase intentions in

order to forecast sales of existing and/or new products and services. Purchase intentions

data can assist managers in their marketing decisions related top roduct demand (new and

existing products), market segmentation and promotional strategies. Studies have

reported an indirect effect of values (Pitts and Woodside, 1984) and involvement

(Swinyard, 1993), and a direct effect of consumer satisfaction (Reichheld and Teal, 1996;

Zeithaml et al. , 1996; McQuitty et al. , 2000) on purchase intentions. There is a debated

issue on the relation between perceived quality and purchase intentions. Some scholars

have found a direct relationship between perceived quality and purchase intentions

(Carman, 1990; Boulding et al. , 1993; Parasuraman et al. , 1996), whereas some others

have reported an indirect relation mediated by satisfaction (Cronin and Taylor, 1992;

Sweeny et al. , 1999). Despite its importance, purchase intentions have not been

explained well in marketing provide), sensorial (physical experience of a brand and

derive from its sensorial properties looks, taste, smell, texture and so forth), expressive

42
(allowing the consumer to express certain values, contributing to a sense of identity) or

emotive (positive feelings created in consumers when buying or using a brand often have

a symbolic dimension and respond to profound human needs such as the need to be cared

for or the need to give and receive love). Strong brands often deliver a combination of

those benefits type (Batey, 2008).

43
CHAPTER-2
REVIEW OF LITERATURE

44
Chapter 2

Literature Review

2.1 Duboiss, Laurents and Czellars researches

As Radn (2010, 1718) says, Dubois and Kapferer were among the first to recognize the

importance of luxury products and brands in academic literature. They were also the first

to try to characterize them. These contributions to the field of luxury research are the

most significant among a growing but still relatively small-scale academic research

within the field of luxury brands. There is little systematic research on luxury. In this

chapter the most important luxury researches will be explored. Perhaps the most

interesting thing in Bernard Duboiss and Gilles Laurents (1995) research concerning

luxury possessions and practices is their theoretical starting point based on earlier

findings. Previously, it had been possible to identify two major consumer segments in the

market for luxury goods. First, the Excluded, who, in most countries, comprised a vast

majority of the population, without access to luxury, and secondly, the Affluent (well-

to-do) who could be sub-segmented into two groups: Old money and the Nouveaux

Riches. Then it, however, appeared that a major part of the market consisted of

Excursionists, a third group of consumers who, in certain product categories such as

perfumes, could account for more than three purchases out of four. In opposition to the

Excluded, for whom the world of luxury was, at best, a dream, Excursionists did have

access to luxury items.

But in contrast to the Affluent, for whom luxury, according to Dubois and Laurent, was

an "art de vivre", their acquisition and consumption of luxury items was intermittent,

often linked to exceptional situations or circumstances. The purpose of this research was

45
to develop an empirical scale to measure to which degree a person is immersed in luxury.

Dubois and Laurent (1994) explored the meanings attached to the word "luxury" using a

two-step survey methodology. A professional psychologist conducted first, in-depth

interviews with sixteen consumers having very different occupations, both males and

females of 17 to 70 years of age. The interviews were done on a faceto-face basis and

taped. The researchers found out that luxury items provoked many ambivalent feelings

and reactions: luxury products were desirable at a daydreaming level, contemplated at a

distance. But when thinking of buying them, guilt feelings awoke. One could say that

many negative feelings were attached to "others' luxury", while the positive opinions

were kept for "my" luxury. Then, on the basis of the results, a battery of attitudinal items

was developed and administered to a sample of 440 French consumers. In order to

improve the understanding of the attitudinal structure, correlation and principal

component analyses were performed. The researchers also used factor analysis in their

research. Dubois, Laurent and Sandor Czellar (2001) published a consumer report

analyzing complex and ambivalent attitudes to luxury. Again they conducted two studies.

The first study was a consumer-based exploratory analysis with usual qualitative

interviewing methods. From the comments offered by the respondents on characteristics

of luxury, six facets emerged to define the cognitive domain of content: excellent quality:

exceptional ingredients, delicacy, expertise, craftsmanship very high price: expensive,

elite and premium pricing scarcity and uniqueness: restricted distribution, limited

number, tailor-made aesthetics and polysensuality: piece of art, beauty and dream

ancestral heritage and personal history: long history, tradition, pass-on to Generations

super fluousness or uselessness: non-functional.

46
Their main objective in the second study was to assess the great diversity of luxury

attitudes in a quantitative way. They therefore collected data in twenty different

developed countries in a Western cultural context, located on four continents. The final

sample comprised 1848 subjects (39.4 % female mean age 26.5). This study was based

on a large-case survey using items derived from the first study. All items were asked

using a 5 point agrees-disagrees Likert format.

Dubois and Czellar (2002) have also explored the relationship between the concepts of

"luxury" and "prestige" as applied to brands by means of an interpretative analysis of in-

depth consumer interviews. The results indicated that prestige can be achieved

independently of luxury in many categories. At a symbolic level, consumers can interpret

luxury as the symbol of brand prestige.

2.2 Silversteins researches

Michael Silverstein and Neil Fiske conducted, with the help of the research team of The

Boston Consulting Group, an extensive survey of American consumers product choices

and the way how companies create new luxury brands that appeal to the mass-market

consumer. The results were published in their book Trading Up in 2003. Their research

can be regarded as a sociological study and as a business strategy. Much of their

information was gathered from public sources, e.g. US Census Bureau data, Health and

Labor Statistics, companies news and annual reports. In 2002, the researchers conducted

a quantitative survey of American households, in partnership with a leading marketing

research firm Harris Interactive. They polled 2333 adults using Internet surveys asking

questions about luxury shopping. The data was analyzed using a variety of statistical

47
techniques. In 2003, they did another survey polling 2105 consumers. The results were

consistent with those of the first survey. The quantitative surveys raised many questions

about consumer motivations, and to gain further information the researchers interviewed

thirty respondents that had participated in their survey. (Silverstein & Fiske 2008, 276

279.)

According to Silversteins researches, there is no typical new luxury spender although

consumers have some common features. They are very selective buyers: They carefully

and deliberately trade up to premium goods in specific categories while paying less or

trading down in many, or most, others (Silverstein & Fiske 2008, 1516). Many of them

are single working people in their twenties. As an example Silverstein mentions a 22-

year-old single woman working as a business professional. She buys Coach handbags and

premium wines and visits gourmet food shops but her shampoo is from a cheap

drugstore. (Silverstein & Fiske 2008, 16.) Other important traders up are empty nesters:

married couples, widows or widowers with good incomes having no children at home any

more. Divorced women were the top traders up. Dual-income couples with no kids

(DINKs) and dual-income couples with kids (DIWKs) are also new luxury buyers as they

afford to buy premium goods that make their lives easier and less stressful. (Silverstein &

Fiske 2008, 1617.) In general, women are the dominant new luxury consumers in

America. Most American women participate in the workforce. Nowadays, they are less

likely to get married or do so later in their lives. Young, single and workingwomen have

a high influence on the new luxury market both as consumers and tastemakers. As their

prime categories of new luxury goods, Silverstein mentions fashion, food and beverages,

cars, furniture, pet food and travel. This same trend is also seen in Japan. Young, single

48
and workingwomen who live at home with their parents and have very low living

expenses have helped make Louis Vuitton the most successful luxury brand.

Respondents were also asked how buying luxury goods make them feel. Four emotional

spaces were found (Silverstein & Fiske 2008, 35):

Taking care of me

Connecting

Questing

Individual style.

The emotional spaces are closely related without any strict boundaries between them.

Taking care of me

For many American consumers the most important reason to buy new luxury goods is the

Taking care of me emotions they arouse. Chocolate, ice cream, coffee, home-theatre

equipment, appliances, furniture, bedding etc. give emotional uplift, stress reduction,

comfort, pampering and rest. When women have some moments for themselves, they

want to make the most of them, maybe have an aqua therapy bath or restaurant dining.

Men retreat into a room equipped with a personal computer or a home theatre.

(Silverstein & Fiske 2008, 3537.)

Because these goods or activities are so personal, people sometimes think they are selfish

when indulging in them and feel guilty, especially working mothers. People live in an

uncertain world with fears of terrorism, war and other conflicts, but by using Silversteins

(2008, 41) words:

But even in the face of uncertaintyespecially in the face of uncertainty Americans dont

want to spend their money on bland, emotionally empty goods. They want to spend on

49
items that bring emotional engagement, from spirits to nice sheets. Why not? As Frances

put it, Theres a part of me that feels like, Spend some money. Have some fun! Youre

going to die tomorrow.

Connecting

New luxury goods are instrumental in helping to make connections and keep them strong.

For many singles, dating is a serious marketing exercise. Goods can be used to send

prospective partners signals to show who you are and what you are looking for. Goods

tell about taste, knowledge, achievements and values. After a romantic breakup goods

can bring solace, reward or revenge. In many families when family members cannot

spend much time together, goods can act as compensations or substitutes for the lost

moments. (Silverstein & Fiske 2008, 4144.) New luxury goods also give consumers a

way to make affiliations and to join the club. People buy premium goods to show that

they belong to the ranks of successful people. (Silverstein & Fiske 2008, 4445.)

Questing

According to Silverstein (2008, 45), questing is about venturing out into the world,

experiencing new things and pushing back personal limits. Travelling is the most

popular way to add adventure and exoticism to life. Travel is not anymore only a rest and

getaway but also acquiring new skills and memorable experiences.

Individual style

Brands are important when creating an individual style, especially when talking about

shoes, clothing, watches, fashion accessories, spirits and cars. Brands send messages to

friends, lovers and potential employers about who a person is or would like to be. Not

only the brand names but the specific attributes which stick with the brands are important

50
to new luxury consumers. Goods can be a nonverbal method of self-expression and social

dialogue. The home is an important expression of individual style and a place for status

purchasing, too. (Silverstein & Fiske 2008, 4851.)

Silversteins and Fiskes research was meant to make a tool to help consumers and

creators of new luxury understand the key impulses behind most purchases. According to

Silverstein (2008, 248), the four emotional spaces they identified in the United States also

drive European consumers, but with some nuances. Europeans are more focused on

authenticity than US consumers and care a lot about the origin of their goods. They are

also more focused on individual style than Americans. Especially in France the

genuineness of premium goods is important. Babette Leforestier (Silverstein & Fiske

2008, 248) from a French research firm says that the claim of authenticity is one of the

major trends in consumption and the ingredients strengthen the image of these products

as genuine. In addition to the well-known premium global brands, many new luxury

brands have emerged in France. Also in Europe women have increased their influence

and roles in the economy and workplace, the average household size is decreasing and

the number of single women has increased as well as the number of divorces. Europeans,

just like Americans, are stressed by fast-paced lives. (Silverstein & Fiske 2008, 247.)

2.3 Other researches

Table 2: Past Studies Conducted on Consumer Purchase Intentions towards Luxury

Brand Fashion Products

Title Author Source, Year Key Findings

Consumer Behaviour patterns in luxury market

Perception of Kaufmann, H.R., European J. Cross- *Russian luxury

51
luxury: Vrontis, D., Cultural consumption differs

Idiosyncratic Manakova, Y. Competence and from that of Western

Russian consumer Management, Vol. societies; not deeply

culture and 2, 2012 specified; *Two groups

Identity of consumers: real

connoisseurs (value of

quality, exclusiveness)

and status lookers (show

off in the society)

Limitations: lack of

broader exploration,

further relation on

factors as loyalty or

country of origin.

Fashion and Andreeva A., Brand *No culture of luxury

demonstrative Marmi E. Management 02 consumption in Russia,

behaviour in (63), 2012 adaptation to the

Russia Western lifestyle;

*Segmentation on upper

and upper middle class

consumers with their

consumer behaviour

52
differentiation *The

purchase of goods, the

price of which

corresponds to the

quality

Marketing of luxury goods

Marketing of Andreeva A., Publishing House *Characteristics of

luxury, modern Bogomolova N. of St. Petersburg. Luxury products;

strategies University Press, *Motives for luxury

2008 consumption; *6Ps of

Luxury Marketing

description: people,

product, passion,

pleasure, purpose, price;

*Theory of hedonic

consumption(emotions

and pleasure);

Contributing Miller, K. W., & Journal of *Brand innovation,

clarity by Mills, M. K. Business Research, which includes

examining brand 65(10), 1471 uniqueness,

luxury in the 1479, 2012 creativeness, originality,

53
fashion market expressiveness and

imagination, seems to

affect brand luxury;

*Brand leadership has a

reasonably strong direct

effect on brand luxury

assessments;

* Path in the Brand

Luxury Model is

innovation leadership

brand luxury user-

imagery fit value

willingness to pay a

premium;

The Marketing of Vickers, J. S., & The Marketing *Luxury goods can be

Luxury Goods Renand, F. Review, No. 3, differentiated from

459-478, 2003 normal or 'non' luxury

goods by the extent to

which they exhibit a

distinctive mix of

dimensions:

functionalism,

54
experientialism and

symbolic interactionism;

* The symbols

displayed by luxury

products have a major

influence on the choice

of one product

compared to another;

Luxury Consumption Behaviour

A review and a Vigneron, F., Academy of *Hedonic (positive

conceptual Johnson, L. Marketing emotions) and

framework of Science Review, perfectionist (quality&

prestige-seeking Vol. 1, 1999 design) luxury purchase

consumer motivations;

behaviour *Prestige values:

conspicuous, unique,

social, emotional,

quality;

Status brands: OCass, A. & Journal of Product *Consumers evaluate a

examining the Frost, H. and Brand brands image in terms

effects of non- Management, of its

55
product related Vol. 11, No. 2, symbolicmeaning

brand associations 2002 *By symbols individuals

on status and communicate meaning

conspicuous about themselves to

consumption their reference groups,

desire of status;

Luxury Husic, M., & Journal of Fashion *Consumers perceive

consumption Cicic, M. Marketing and quality as a brand

factors Management, determinant; *Snob

13(2), 231245, effect: consumers buy

2009 the expensive products

to distinguish

themselves;

*Rare products indicate

prestige and respect;*

Sub categories: old

aristocracy and new

money;

To be or not to be? Benita Patel The Swedish *Consumers of luxury

- A study of School of Textiles, brands perceive the

Luxury Report No. service they receive as

Consumption 2010.13.10, 2010 an added value, highly

56
appreciate it; *Young

consumers tend to mix

luxury fashion with fast

fashion, whereas older

once are stick only to

luxury;

Brand and country- Godey, B., Journal of *Intercultural analysis

of origin effect on Pederzoli, D., Business Research, of brand effect and Coo

consumers Aiello, G., 65(10), 1461 effect on the luxury

decision to Donvito, R., Chan, 1470, 2012 purchasing decision

purchase luxury P., Oh, (China, France, Italy,

products H., Weitz, B Russia, Japan and the

USA)

*Criteria governing the

decision to purchase

luxury goods

worldwide: design,

brand, guarantee;

*Russian consumers

attach more specific

significance to design

and Coo;

57
Intrinsic Truong, Y., & Journal of *The findings confirm

motivations, self- McColl, R Retailing and that intrinsically

esteem, and luxury Consumer motivated consumers of

Goods Services, 18(6), luxury goods tend to

consumption 555561, 2011 look at the actual quality

of the product and its

ability to provide self-

directed pleasure;

*The relationship

between self-esteem and

self- directed pleasure

proves to be very

salient; an individual

can maintain or boost

self-esteem by

purchasing luxury

goods;

Luxury in emerging countries

Logic of Luxury in Som, Ashok Vikalpa: The *By 2015 BRIC

Emerging Markets Journal for countries will have 36

Decision Makers. per cent of the global

58
Vol. 36 luxury market;

Issue 1, p75-77, *Challenges in BRIC

2011 countries: education and

knowledge about

luxury; the size and

population of countries;

distribution (not many

exclusively luxury

destinations can be

found); *Consumer

expectations are very

varied in BRIC

countries: in Russia

consumers expect

luxury products to have

a balance between

tradition, modesty and

wealth; Russians like to

show off that they can

spend a huge amount of

money for a valuable

product; *Russia has

knowledgeexperience

59
inpotential for

consumption is in

Moscow and St.

Petersburg;

Luxury in Stphane Truchi IfopLive Journal *In Russia luxury is

emerging countries (19), 2010 motivated by pleasure

and the quest for social

distinction; *Country-

specific aspects: ability

to mirror symbols of

pleasure and sensuality

inherent to the Russian

spirit; to integrate local

elements in the

communication of

international brands;

Source: Referred various journals and research papers

The motivation to consume for the sake of consuming was first discussed by the social

analyst Thorstein Veblen (18571929). He claimed that a major role of products was to

be used to inspire envy in others through display of wealth or power. He created the term

conspicuous consumption to refer to peoples desire to show their ability to afford

60
luxury goods. For him the process of conspicuous consumption was most evident among

the leisure class, people for whom productive work was taboo. (Solomon et al. 2002,

395396.) Anita Radon (2010) made her study of luxury brands online, using the Internet

and websites. She collected her empirical material through e-mail interviews, instant

messaging or live chat and visual data presentation.

61
CHAPTER-3
OBJECTIVES OF THE STUDY
AND RESEARCH
METHODOLOGY

62
Chapter 3

Research Methodology

3.1 Research Questions

The purposes of this study to know the purchasing intentions of consumers regarding

luxury fashion brand products. In evaluating the statement, this study attempts to answer

the following questions:

Why do the buyers buy Luxury Fashion Brand Products?

What is the gender distribution of Luxury Fashion Products buyers?

What is the income distribution of Luxury Fashion Products buyers?

What sources of information do they seek?

What is the impact of brand variable on purchase decision?

Which income group normally buys luxury fashion brand products?

Is luxury buyers gender specific?

What is the relationship between gender of respondents and purchase of Luxury

Fashion Brand Products?

What is the relationship between income of respondents and purchase of Luxury

Fashion Brand Products?

What is the difference in the importance respondents attached to reasons for

purchase of Luxury Products?

63
3.2 Research Objectives

To study various factors influencing buying intentions of consumers towards

Luxury fashion Products (Products taken are Mobile Phones, Watches, Perfumes,

Bags).

To study the factors w.r.t age, gender, income and other demographic factors.

To examine reference group influence on purchasing intentions of consumers.

To study rational and emotional buying behavior regarding luxury fashion

products in different areas of Pune Region.

To study the impact of brand variables on purchasing intention of consumers w.r.t

selected luxury fashion products.

To provide necessary suggestions to Brand Marketers.

The study is limited to the following luxury fashion products-watches, bags, mobile

phones and Perfumes and to the city of Pune

3.3 Hypothesis

H01: There is no difference in the importance respondents attached to reasons for

purchase of Luxury Products.

H11: There is significant difference in the importance respondents attached to reasons for

purchase of Luxury Products.

H02: There is no relationship between gender of respondents and purchase of Luxury

Fashion Brand Products.

H12: There is a significant relationship between gender of respondents and purchase of

Luxury Fashion Brand Products.

64
H03: There is no relationship between income of respondents and purchase of Luxury

Fashion Brand Products.

H13: There is a significant relationship between income of respondents and purchase of

Luxury Fashion Brand Products.

Ho4: No Sufficient correlation exists among variables.

H14: Sufficient correlations exist among variables.

3.4 Research methodology

3.4.1 Introduction

The methodology section cannot be overlooked, as it is considered important to apply a

suitable method to achieve the research objective. Additionally, the significance of using

the correct method also generates a more accurate result (Silverman, 1993). Therefore,

this investigation has been taken towards selecting an appropriate approach in regards of

the research question. In this chapter, the structure of the methodology will consist of the

following: firstly, the research method will be discussed followed by an explanation to

which method would be appropriate to use in this study. Secondly, data that will be

collected from both primary and secondary sources is going to be explained. Thirdly,

sampling will be discussed. Fourthly, the questionnaire design, which is considered a key

role in gathering data for results, will be approached. Next, ethical values will be taken

into account. Finally, a short summary will be noted at the end of the chapter.

65
3.4.2 Method Selection

Howard (1985) explains that in applying a particular method towards research does not

tests how useful its techniques are, but just relates the strengths and limitations that have

been used. There are two options in regards to research method. These methods are

quantitative and qualitative, which will be defined below.

3.4.3 Comparing Quantitative and Qualitative Methods

The quantitative approach uses numerical values in explaining research and problem

solving. The importance of quantitative research will be focusing on the collection of

numerical, statistical analysis, and the results of the data (Curwin & Slater, 2002).

However, there has been criticism towards quantitative methods. Qualitative researchers

explain that the use of quantitative data alone may ignore the social and cultural variables

of the information acquired (Silverman, 2000). For example, Kirk and Miller (1986)

stated that attitude cannot be simply explained using researches of series of numerical

analytical assumptions. Qualitative can generally be defined as a multi method, which

includes naturalistic and interpretive approaches to research (Denzin & Lincoln, 1998).

This means that qualitative researchers study things in their natural settings, attempting

to makes sense of, or interpret, phenomena in terms of meanings people bring to them

(Denzin & Lincoln, 1998, p.3). The materials that are used for qualitative methods

include: personal experiences, life story, interviews, observation, interaction, and visual

texts. The data for qualitative methods are usually descriptive moments, meanings, and

complications from individuals experiences.

This study aims to explore purchase intentions of consumers towards purchasing luxury

fashion brand products. Since there have been a large number of young, middle age and

66
old consumers purchasing luxury brand products, the method of quantitative research is;

therefore, more suitable to help collecting data from large sample sizes.

The approach to the research question has been applied with the mix method strategy,

which is a combination of both quantitative and qualitative data . Using this method for

research heads the data towards a direction of analysis, and resolving a problem.

Although these data have been collected in single studies, they will be combined in the

mix method process. Quantitative data consists of closed end information that includes

numerical figures. The study has collected quantitative data by applying closed-end

questions towards a questionnaire. Analysis of the information that is collected could be

used for research questions or to test hypothesis. Qualitative data includes open-ended

information. Gathering qualitative data is also applied in the questionnaire. The reason

that qualitative questions are included in this part is because respondents are able to give

in depth answer of their personal views, and own opinion of their thoughts and behavior

towards luxury brand products. The use of the mix method approach that uses both

qualitative and quantitative data is because once these two types of data is combined it

provides a better understanding of the data rather than if they are explained individually.

Additionally, the combination of these two data is able to bring balance for the weakness

of individual method that is applied (qualitative or quantitative) alone. The purpose of

using both types of data collection is because; for example, quantitative (numerical

figures) could be expanded on and explained further by qualitative (words) resulting in a

more in depth explanation of the analyzed gathering of information and vice versa.

Additionally, by mixing both qualitative and quantitative data would also be able to

answer questions that words or numbers are not able to explain alone. The benefit of

67
using the mix method approach is because it is able to address complex questions, and by

gathering both forms of data enables all audiences to understand the information. Mix

method is also a neutral approach to research so that if audiences prefers one type of data

to another, they are able to relate to the result in one form or another.

3.4.4 Data Collection

There are many forms of data collection mail, internet, data base, questionnaires,

interviews, and etc, which are all related to research. However, there are conditions to

which specific data collection method should be approached (Fowler, 2002). Dependent

on the way the data will be used, will affect how the data will be collected (Waters,

1994). In this section, data collection is divided into two parts: primary and secondary

data collection.

3.4.4.1 Primary Data

Gathering information from consumers of luxury brand products through face-to-face

questionnaires was used in collecting primary data. The advantage of data collection from

consumers by using face-to-face questionnaire is that it is possible to correct any

misunderstanding of the questions that is being asked, and any missing information that

has not been filled in. Questionnaires will be distributed to respondents and collected all

the necessary information required for the study.

3.4.4.2 Secondary Data

Secondary data is collected from mainly journals, articles, and books. Previous researches

from various authors were found from databases that include Emerald, Proquest, EBSCO,

and etc. These sources of data provided useful background information on the luxury

fashion brands and luxury goods market, as well as indicating investigations that had

68
already been taken place. Additionally, previous research identified areas of studies that

have not been explored before. Secondary data provided relevant information that is used

in designing the survey questions and identifying the problems that has occurred

rendering significant outcome.

3.4.5 Statistical Data Analysis

Once all primary data is gathered from the online questionnaire, they will then be

analyzed by using a statistical method. Thomas et al. (1997) explain that the raw data,

which is analyzed in the correct method, would produce useful information, which will

aid the decision-making process or gain competitive advantage in organization. In this

study, the statistical data analyses in a form of IBM SPSS Software 20 with the help of

Microsoft Excel were conducted by applying Descriptive Statistics, Multiple Response

Analysis Test, Chi-square Test of Contingency, Friedman Chi-square Test and

Exploratory Factor Analysis. As a result, the data that has been analyzed will be

presented in the form of cross tables, figures, pie charts and bar-charts.

3.4.6 Sampling

The sampling method represents a larger group of population. In usual, situations

questionnaires will use samples rather than populations because it is impractical to obtain

data from an entire population (Waters, 1994). A reliable sample is a copy of the larger

population, but in smaller size (Fink, 2003). In other words, data are collected from a

representative sample of items or people, and these are used to infer characteristics about

all items or people (Waters, 1994, p. 79).

Sampling Frame: Areas covered in Pune Region (Koregaon Park, Viman Nagar, Kalyani

Nagar, Magarpatta, Kondhwa, and Aundh)

69
Sample Size: 400

(Koregaon Park=100, Viman Nagar=50, Kalyani Nagar=50, Magarpatta=100,

Kondhwa=50, Aundh=50)

Sample size was determined using mean method. Since most variables that are measured

using Interval Scale.

Formula:

n= z2 X s2

e2

where n= sample size

z= standard score associated with chosen level of confidence, 95% in this case

Hence z=1.96 (derived from normal distribution)

S=variation in the data

E=tolerable error (10%)

S was computed as a ratio of range/six standard deviation

Range=7-1=6

Derived from the 7 point scale used for measuring variables.

Hence s=6/6=1

Therefore n= (1.96)2 X (1)2

(0.10)2

= 3.84
0.01
=384

Thus the sample size rounded off to 400

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Sampling: The current study utilizes a non-probability sampling techniques that is

convenience sampling.

3.4.7 Questionnaire Design

Curwin and Slater (2002) explain that it is irrelevant how well investigations have

gathered data or how methods have been applied. If the questions that are used in the

survey are bias, the results in the questionnaire will lose significant value. Within the

questionnaire, the majority of the data that will be gathered are quantitative in a form of

closed questions with support of data that are qualitative consisting of open questions.

The reason why a few qualitative questions are attached is the qualitative questions

involve more attention and thinking for participants. Additionally, interpretation of

results from numerous qualitative data is more complex and consumes more time than

quantitative data. Since there is limited number of time in conducting this research, lots

of the qualitative data might not be valuable. The questionnaire design is composed of

three parts (as shown in appendix 1). Part one consisting of quantitative questions

contains personal details of respondents including: age, gender, and income.

Additionally, the question of how often do respondents purchase luxury items indicates

the personal frequency of purchasing luxury items. Personal details are required for

general background of respondents who purchase luxury brand products. Part two also

consists of quantitative questions that are comprised of questions, which requires rating

from 1 to 7 (1= strongly agree, 2=partially agree 3=agree, 4= neutral, 5= disagree, 6=

partially disagree and 7=strongly disagree) on their answers. These types of questions are

also related to ordinal data; for example, questions are categorized and ranked on scales,

whereby respondents are required to rate their decisions (Waters, 1994). In this part

71
requires responses from individuals in what influences them into purchasing luxury brand

products. The flow of the questionnaire moves from topic to topic that involves questions

that are directed towards source of information, influencer influences for purchasing

luxury fashion brand products, time period for purchasing luxury products in order to

avoid any radical jumps between topics that will disorientate respondents (Cuwin &

Slater, 2002, pp.58). Qualitative questions are included in part three. These open

questions require answers where respondents are allowed to elaborate using words and

expressions of how they feel (Fink, 2003).

3.4.8 Chapter Summary

In this study, a selection of mixed methods, which is a combination of quantitative and

qualitative research, was conducted to examine, firstly, how reasons for purchasing

luxury brands products.

Secondly, various source of information and brand variables which drives the consumer

for purchasing luxury products. The survey in the form of questionnaire composed of 13

close questions and one open question with a help of sampling method was use to

collect raw data. The raw data were obtained from students who age less than 25,

between 26-35, 36-45 and above 45 years old. Then, the use of IBM SPSS Software 20

along with Microsoft Excel analyzed all data that met the sampling criteria. Analysis

obtained from conducting Descriptive Statistics, Multiple Response Analysis Test, Chi-

square Test of Contingency, Friedman Chi-square Test and Exploratory Factor Analysis

will be presented in a form of cross tables and various figures which will be further

discussed in the next chapter in more detail.

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3.5 Limitations of the study

Even though results of this study are based on the past researches in an area of Purchase

intentions of consumers towards luxury fashion brands products, appropriate

interpretation of the results are needed in order to avoid misconception. This study focus

on Pune region. Areas covered under Pune are Koregaon Park, Magarpatta, Aundh,

Viman Nagar, Kalyani Nagar and Kondhwa. As this study employed convenience

sampling which is a type of non- probability sampling method. This method does not

ensure that each unit will has an equal chance of being selected as in probability

sampling; therefore, such samples are vulnerable to selection biases.

Since a limited amount of time is a constraint in this study, only a small sampling size of

400 respondents can be obtained. However, a clearer view of purchasing intentions of

consumers towards products known as luxury would be more reliable if large numbers of

participants are taken into account, which would generate lower risk for external validity.

73
3.6 Ethical Awareness

This study focuses on human subjects; therefore, attention on ethical values must be

provided. Additionally, as a result from the questionnaire to where data is gathered

respondents should not be at risks (Fowler, 2002). As obliged by the Belmont Report,

conducted by the National Commission (1979) for the Protection of Human Subjects of

Biomedical and Behavioral Research, this study has taken precautions over ethical

principles.

Firstly, the respect for individuals has been taken into account. In regards to the

questionnaire part one, details of individuals names have not been recorded, therefore

respondents remaining anonymous. Secondly, the protections of comments from the

questionnaires, and individuals well being have been catered for. During the statistical

data analysis, all information that has been gathered will be combined so respondents

comments will remain confidential. In this study, data will not be altered, or specifically

selected for the result to look better because it is considered unethical and bias due to

using data to the advantage of the study. Finally, data that has been acquired should be

analyzed based on the original design. Data that researcher think they are interesting can

only be suggested as a useful information for further research but not for researchers

own study (Jones, 2000). Additionally, care is taken during the analysis stage, in the

presentation of data, over minor details, to avoid respondents being identifiable (Fowler,

2002).

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3.7 Significance of the Study

This study is to explore the relations between variables that influence the purchasing

decision of consumer on luxury brand. Understanding of variables such as reasons for

buying luxury products, quality and societal status will be able to help further understand

how these variables affect the decision making of consumer.

This study will help the present Marketing Managers to better reposition their branding

and advertising strategy to capture the correct target market to boost the sales in times

where economy are at a challenge.

With such study, the impact on online advertisement is clearly an influential media to

promote branding of products and variables that influence buying decisions is surely a

focus to ensure the Marketing Communications are done correctly and effectively.

Ensuring effective execution of strategy are by understanding how variables such as

brand image, reasons for purchasing luxury products, perceived societal status and brand

loyalty can influence consumer buying intentions of luxury branded goods.

75
CHAPTER-4
DATA ANALYSIS

76
Chapter 4
Data Analysis
This chapter presents the data analysis based on the 400 questionnaires

distributed in order to answer the research questions. According to the

objectives of the study and the questionnaire designed, the results of data

will be analyzed in two main sections; Quantitative Results and Qualitative

Results.

Statistical Data Analysis using IBM SPSS Software 20.

1. Gender wise distribution of respondents

Gender

N Valid 400

Missing 0

Table 4.1: Frequency and percentage of respondents by demographic characteristic w.r.t


Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 290 72.5 72.5 72.5

female 110 27.5 27.5 100.0

Total 400 100.0 100.0

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Figure 4.1: Percentage of respondents by demographic characteristic w.r.t Gender.

The above frequency table and pie chart shows frequency distribution for gender of

respondents. Out of 400 respondents surveyed, 290(72.5%) were men and 110(27.5%)

were women. Most respondents in the survey were men

78
2. Age

Age

N Valid 400

Missing 0

Table 4.2: Frequency and percentage of respondents by demographic characteristic w.r.t Age

Cumulative

Frequency Percent Valid Percent Percent

Valid less than 25 63 15.8 15.8 15.8

26 to 35 248 62.0 62.0 77.8

36 to 45 83 20.8 20.8 98.5

above 45 6 1.5 1.5 100.0

Total 400 100.0 100.0

79
Figure 4.2: Percentage of respondents by demographic characteristic w.r.t Age

The above frequency table and bar chart shows frequency distribution for age of

respondents. Out of 400 respondents surveyed, respondent groups aged between 26 and

35years were 248(62.0%) followed by age groups between 36 and 45 years were

83(20.8%) followed by age groups less than 25 years were 63(15.8%) followed by age

group above 45 years were 6(1.5%). Most respondents in the survey fall in the age group

between 26 and 35 years.

80
3. Income

Income

N Valid 400

Missing 0

Table 4.3: Frequency and percentage of respondents by demographic characteristic w.r.t Income

Cumulative

Frequency Percent Valid Percent Percent

Valid less than 5 Lakhs 21 5.3 5.3 5.3

6 to 12 lakhs 127 31.8 31.8 37.0

13 to 18 lakhs 176 44.0 44.0 81.0

above 18 lakhs 76 19.0 19.0 100.0

Total 400 100.0 100.0

81
Figure 4.3: Percentage of respondents by demographic characteristic w.r.t Income

The above frequency table and bar chart shows frequency distribution for income of

respondents. Out of 400 respondents surveyed, about 176(44.0%) had an annual income

ranging between 13 to 18 lakhs followed by 127 (31.8%) had an annual income in

between 6 to 12 lakhs followed by 76(19.0%) had an annual income above 18 lakhs

followed by 21(5.3%) had an annual income of less than 5 lakhs.

Most respondents in the surveyed had an annual income ranging between 13 to 18 lakhs.

82
4. Do you buy Luxury Fashion

Products

N Valid 400

Missing 0

Table 4.4: Frequency and percentage of respondents buy Luxury Fashion Brand Products

Frequency Percent Valid Percent Cumulative Percent

Valid yes 367 91.8 91.8 91.8

no 33 8.3 8.3 100.0

Total 400 100.0 100.0

83
Figure 4.4: Percentage of respondents buy Luxury Fashion Brand Products

The above frequency table and pie chart shows frequency distribution for buying luxury

products. Out of 400 respondents surveyed, 367(91.75%) buy luxury products and

33(8.3%) does not go for luxury products.

84
5. Do you posses any luxury goods

N Valid 400

Missing 0

Table 4.5: Frequency and percentage of respondents possessing Luxury Fashion Brand

Products

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 373 93.3 93.3 93.3

No 27 6.8 6.8 100.0

Total 400 100.0 100.0

85
Figure 4.5: Percentage of respondents possessing Luxury Fashion Brand Products

The above frequency table and pie chart shows frequency distribution for respondents

possessing luxury products. Out of 400 respondents surveyed, 373 (93.25%) possessing

luxury products and 27(6.75%) does not possessing luxury products.

86
6. How often do you purchase luxury brand products

N Valid 400

Missing 0

Table 4.6: Frequency and percentage of respondents how often do they purchase luxury

brand products?

Cumulative

Frequency Percent Valid Percent Percent

Valid Often 151 37.8 37.8 37.8

sometimes 210 52.5 52.5 90.3

seldom 39 9.8 9.8 100.0

Total 400 100.0 100.0

87
Figure 4.6: Percentage of respondents how often do they purchase luxury brand products

The above frequency table and pie chart shows frequency distribution for frequency of

luxury product purchase. Out of 400 respondents surveyed, 210 (52.50%) purchase

luxury products sometimes followed by 151 (37.75%) buy luxury products often

followed by 39(9.8%) buy luxury products seldom.

88
Descriptive Statistics

Table 4.7: Mean and Standard Deviation of respondents for variable influencing purchase

of luxury products.

Descriptive Statistics

N Mean Std. Deviation Skewness

Statistic Statistic Statistic Statistic

High Quality 400 1.80 1.202 1.480

Best Design and Aesthetic 400 2.07 1.207 1.357

To fit in with friends 400 2.86 1.576 .650

Esteem of brand 400 2.57 1.427 .844

Follow the trend 400 2.84 1.333 .324

Value for money 400 2.62 1.409 .919

Brand name 400 2.50 1.328 .593

Show off 400 4.16 1.955 -.207

Differentiate myself 400 3.65 1.765 .131

Upper class status 400 3.49 1.712 .291

Envy others 400 3.97 1.931 .067

89
Representation of celebrity 400 3.62 1.734 .094

Valid N (list wise) 400

Descriptive Statistics

Skewness Kurtosis

Std. Error Statistic Std. Error

High Quality .122 1.851 .243

Best Design and Aesthetic .122 2.742 .243

To fit in with friends .122 .117 .243

Esteem of brand .122 .896 .243

Follow the trend .122 -.025 .243

Value for money .122 .923 .243

Brand name .122 .311 .243

Show off .122 -.905 .243

Differentiate myself .122 -.904 .243

90
Upper class status .122 -.582 .243

Envy others .122 -1.008 .243

Representation of celebrity .122 -.870 .243

Valid N (list wise)

The above table shows descriptive statistics for variable influencing purchase of luxury

products. Respondents were offered with 12 commonly observed reasons behind

purchase of luxury products and were asked to rate each reason on the basis of

importance they attach to these reasons while purchasing luxury products.

The scale used was a 7-point Likert Scale as mentioned below:-

Strongly agree =1

Partially agree=2

Agree=3

Neutral=4

Disagree=5

Partially disagree=6

Strongly disagree=7

91
Mean and standard deviation values for all variables are as follows, it can be concluded

that high quality ( mean=1.8, s.d=1.2), best design (mean=2.07, s.d=1.2), brand name(

mean=2.5, s.d=1.3) are the top three reasons for purchase of Luxury Products whereas

show off( mean=4.1, s.d=1.9), envy others with luxury Brand products, so I want the

same products that they have( mean=3.9, s.d=1.9), to differentiate myself from others(

mean=3.65, s.d=1.7) are the bottom three reasons for purchasing luxury products.

Based on the mean and standard deviation values it can be concluded that High Quality,

Best design and aesthetic and Esteem of brand are the three top reasons for purchasing

luxury products and Show off, Envy others with luxury brand products, so I want the

same products that they have and differentiate myself from others are the bottom three

reasons for purchasing luxury products.

Friedman Test

A Friedman Chi square test was conducted to see if there is a difference in the

importance respondents attached to the various reasons to purchase of luxury

products.

Statistical Test: Friedman Chi-square test

Variables and Measurement: Respondents were offered with 12 commonly observed

reasons behind purchase of luxury products and were asked to rate each reason on the

basis of importance they attach to these reasons while purchasing luxury products.

92
12 Variables are:

(a) High Quality

(b) Best Design & Aesthetic

(c) To fit in with Friends

(d) Esteem of Brand

(e) Follow the Trend

(f) Value for Money

(g) Brand Name

(h) Show Off

(i) To differentiate myself from others

(j) Want others to view me as an upper class status

(k) Envy others with luxury brand products, so I want the same products that they

have

(l) Representation of celebrities associates with luxury brand products influence me

into purchasing them.

The scale used was a 7-point Likert Scale as mentioned below:-

(Strongly agree=1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially

disagree=6, Strongly disagree=7)

93
Hypothesis-I

H0: There is no difference in the importance respondents attached to reasons for

purchase of Luxury Products.

H1: There is significant difference in the importance respondents attached to

reasons for purchase of Luxury Products.

Level of Significance:

= 0.05

Test Statistics

N 400

Chi-square 1161.798

Df 11

Asymp. Sig. .000

94
OBSERVATION

X2 (11)= 1161.798

P value=0.000

N=400

Conclusion

Since P value (0.000) is less than level of significance (0.05) the null hypothesis is

rejected. Therefore it is concluded that there is significant difference in the

importance respondents attached to reasons for purchase of Luxury Products.

In order to identify where the difference lies we refer to Ranks Table.

Table 4.8: Showing difference in the importance attached to reasons

with the help of Ranks Table.

Mean Rank

High Quality 3.78

Best Design & Aesthetic 4.42

To fit in with friends 6.01

Esteem of brand 5.23

Follow the trend 6.22

95
Value for money 5.79

Brand name 5.27

show off 9.11

Differentiate myself 7.95

Upper class status 7.59

Envy others 8.64

Representation of celebrity 8.00

Note: Labels of Likert scale were coded as below:-

(Strongly agree=1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially

disagree=6, Strongly disagree=7)

It is interesting to know that a favorable response was given a lower code. Hence a mean

rank of smaller value indicates more importance. From the mean ranks table it can be

seen that High Quality, Best design and esteem of brand are the top three reasons for

purchase of Luxury products and show off, envy others with luxury brand products,

so I want the same products that they have and Representation of celebrities

associates with luxury brand products influence me into purchasing them are the

bottom three reasons for purchasing luxury products.

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Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Reasons for purchasing 399 99.8% 1 .3% 400 100.0%

luxury products

a. Dichotomy group tabulated at value 1.

Table 4.9: Reasons for purchasing luxury products( Multiple Response Options)

Responses

N Percent Percent of Cases

Reasons for purchasing High Quality 308 24.3% 77.2%

luxury products
Best Design and 249 19.7% 62.4%

Aesthetic

To fit in with friends 68 5.4% 17.0%

97
Esteem of brand 72 5.7% 18.0%

Follow the trend 85 6.7% 21.3%

Value for money 197 15.6% 49.4%

Brand name 164 13.0% 41.1%

show off 27 2.1% 6.8%

Differentiate myself 30 2.4% 7.5%

Upper class status 46 3.6% 11.5%

Envy others 9 .7% 2.3%

Representation of 11 .9% 2.8%

celebrity

Total 1266 100.0% 317.3%

a. Dichotomy group tabulated at value 1.

The above table 4.9 shows multiple reason analysis for reasons for purchase of luxury

products. Each reason was measured using a two point scale.

1=Yes

0=No

98
a) High Quality

b) Best Design & Aesthetic

c) To fit in with Friends

d) Esteem of Brand

e) Follow the Trend

f) Value for Money

g) Brand Name

h) Show Off

i) To differentiate myself from others

j) Want others to view me as an upper class status

k) Envy others with luxury brand products, so I want the same products that they

have

l) Representation of celebrities associates with luxury brand products influence me

into purchasing them.

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 1266 YES response 308(24.3%) accounted for High Quality, 249(19.7%)

accounted for Best Design, 197(15.6%) accounted for Value for Money, 164(13.0%)

accounted for Brand Name, 85(6.7%) accounted for Follow the Trend, 72(5.7%)

accounted for Esteem of Brand, 68(5.4%) accounted for to fit in with friends, 46(3.6%)

accounted for Want others to view me as an upper class status, 30(2.4%) accounted for to

differentiate myself from others, 27(2.1%) accounted for Show Off, 11(0.9%) accounted

for Representation of celebrities associates with luxury brand products influence me into

99
purchasing them, 9(0.7%) accounted for Envy others with luxury brand products, so I

want the same products that they have.

From the table 4.9 we conclude that reasons for purchasing luxury products it can be seen

that High Quality, Best design and value for money are the top three reasons for purchase

of Luxury products and show off, envy others with luxury brand products, so I want the

same products that they have and Representation of celebrities associates with luxury

brand products influence me into purchasing them are the bottom three reasons for

purchasing luxury products.

Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Source of 400 100.0% 0 .0% 400 100.0%

Information

a. Dichotomy group tabulated at value 1.

100
Table 4.10: Frequencies of Source of Information about luxury fashion products

Responses

N Percent Percent of Cases

Source of TV 199 21.2% 49.8%

Informationa
Online Add 235 25.0% 58.8%

Face book 90 9.6% 22.5%

News paper 73 7.8% 18.3%

Fashion 175 18.6% 43.8%

Magazine

Friends 119 12.7% 29.8%

Videos 48 5.1% 12.0%

Total 939 100.0% 234.8%

a. Dichotomy group tabulated at value 1.

The above table 4.10 shows multiple reason analysis for source of information about

luxury products. Each reason was measured using a two point scale.

1=Yes

0=No

101
a) High Quality

b) Best Design & Aesthetic

c) To fit in with Friends

d) Esteem of Brand

e) Follow the Trend

f) Value for Money

g) Brand Name

h) Show Off

i) To differentiate myself from others

j) Want others to view me as an upper class status

k) Envy others with luxury brand products, so I want the same products that they

have

l) Representation of celebrities associates with luxury brand products influence me

into purchasing them.

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 939, YES response 235(25.0%) accounted for Online Adds, 199(21.2%)

accounted for Television, 175(18.6%) accounted for Fashion Magazine, 119(12.7%)

accounted for Friends, 90(9.6%) accounted for Face book, 73(7.8%) accounted for

Newspaper, 48(5.1%) accounted for Videos.

From the table 4.10 we conclude that Source of Information for purchasing luxury

products it can be seen that Online Adds and Television are the top two sources of

102
information for purchase of Luxury products and Newspaper and Videos are the bottom

two sources of information for purchasing luxury products.

Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Influencers For 400 100.0% 0 .0% 400 100.0%

Purchase of Luxury

Productsa

a. Dichotomy group tabulated at value 1.

Table 4.11: Frequencies of Influencers For Purchase of Luxury Products

Responses

N Percent Percent of Cases

Influencers For Friends 120 24.8% 30.0%

Purchase of Luxury Influence

Productsa
Ask a relative 40 8.3% 10.0%

103
Colleague 54 11.2% 13.5%

Media 164 34.0% 41.0%

No Influence 105 21.7% 26.3%

Total 483 100.0% 120.8%

a. Dichotomy group tabulated at value 1.

The above table 4.11 shows multiple reason analysis for Influencers for purchase luxury

products. Each reason was measured using a two point scale.

1=Yes

0=No

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 483 YES response 164 (34.0%) accounted for Media Influence, 105

(21.7%) accounted for No influence, 120(24.8%) accounted for Friends Influence,

54(11.2%) accounted for Colleague, 40(8.3%) accounted for Relatives.

From the table11 we conclude that Influencers influence for purchasing luxury products

it can be seen that Media is the top most influencer for purchase of Luxury products and

Colleague is the bottom influencer for purchasing luxury products.

104
Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Brand Variable Drives 400 100.0% 0 .0% 400 100.0%

You To Purchase

Luxury Productsa

a. Dichotomy group tabulated at value 1.

Table 4.12: Brand Variable Drives you to purchase Luxury Products

Responses

N Percent Percent of Cases

Brand Variable Drives Core Brand 124 18.5% 31.0%

You To Purchase Image

Luxury Productsa
Brand Attitude 133 19.8% 33.3%

Brand attachment 72 10.7% 18.0%

Brand Trust 196 29.2% 49.0%

105
Brand Loyalty 146 21.8% 36.5%

Total 671 100.0% 167.8%

a. Dichotomy group tabulated at value 1.

The above table 4.12 shows multiple reason analysis for Influencers for purchase luxury

products. Each reason was measured using a two point scale.

1=Yes

0=No

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 671 YES response 196 (29.2%) accounted for Brand Trust, 146 (21.8%)

accounted for Brand Loyalty, 133 (19.8%) accounted for Brand Attitude, 72(10.7%)

accounted for Core Brand Image, 40(8.3%) accounted for Brand Attachment.

From the table 12 we conclude that Brand variables drives you for purchasing luxury

products it can be seen that Brand Trust is the top most brand variable drives you for

purchase of Luxury products and Brand Attachment is the bottom brand variable which

drives you for purchasing luxury products.

106
Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Purchase Occasiona 400 100.0% 0 .0% 400 100.0%

a. Dichotomy group tabulated at value 1.

Table 4.13: Purchase Occasion

Responses

N Percent Percent of Cases

Purchase Occasiona Festive 101 20.3% 25.3%

Offers

Seasonal 148 29.7% 37.0%

Special 88 17.7% 22.0%

At any point 161 32.3% 40.3%

Total 498 100.0% 124.5%

107
Table 4.13: Purchase Occasion

Responses

N Percent Percent of Cases

Purchase Occasiona Festive 101 20.3% 25.3%

Offers

Seasonal 148 29.7% 37.0%

Special 88 17.7% 22.0%

At any point 161 32.3% 40.3%

Total 498 100.0% 124.5%

a. Dichotomy group tabulated at value 1.

The above table 4.13 shows multiple reason analysis for Influencers for purchase

luxury products. Each reason was measured using a two point scale.

1=Yes

0=No

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

108
Out of the total 498 YES response 161 (32.3%) accounted for at any point of time, 148

(29.7%) accounted for Seasonal, 101 (20.3%) accounted for Festive Offers, 88(17.7%)

accounted for Special Offers.

From the table 4.13 we conclude that Purchase Occasions for purchasing luxury products

it can be seen that people purchase luxury products at any point of time is the top most

reason and Special Offer is the bottom reason for purchasing luxury products.

Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Rational Variablesa 383 95.8% 17 4.3% 400 100.0%

a. Dichotomy group tabulated at value 1.

Table 4.14: List of Rational Variables which influence consumer to buy Luxury

Products

Responses
Percent of

N Percent Cases

109
Rational Variablesa You Compare the 134 25.4% 35.0%

feature

Compare of price 133 25.2% 34.7%

Online survey 210 39.8% 54.8%

Search local shop 51 9.7% 13.3%

Total 528 100.0% 137.9%

a. Dichotomy group tabulated at value 1.

The above table 4.14 shows multiple reason analysis for Influencers for purchase luxury

products. Each reason was measured using a two point scale.

1=Yes

0=No

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 528 YES response 210 (39.8%) accounted for Online Survey, 134

(25.4%) accounted for comparison of features with other brand, 133 (25.2%) accounted

for comparison of price, 51(9.7%) accounted for Search local shops to get best deals.

From the table 4.14 we conclude that Rational variables for purchasing luxury products

it can be seen that Online survey is the top most reason and search local shops to get best

deal is the bottom rational variable for purchasing luxury products.

110
Case Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Emotional Variablesa 42 10.5% 358 89.5% 400 100.0%

a. Dichotomy group tabulated at value 1.

Table 4.14(a) List of Emotional Variables which influence consumer to buy Luxury

Products

Responses

N Percent Percent of Cases

Emotional Variablesa Do not bother 11 23.4% 26.2%

Known ones 28 59.6% 66.7%

Family 8 17.0% 19.0%

likings

Total 47 100.0% 111.9%

111
Table 4.14(a) List of Emotional Variables which influence consumer to buy Luxury

Products

Responses

N Percent Percent of Cases

Emotional Variablesa Do not bother 11 23.4% 26.2%

Known ones 28 59.6% 66.7%

Family 8 17.0% 19.0%

likings

Total 47 100.0% 111.9%

a. Dichotomy group tabulated at value

The above table 4.14(a) shows multiple reason analysis for Influencers for purchase

luxury products. Each reason was measured using a two point scale.

1=Yes

0=No

Responses were analyzed using Multiple Response Option in IBM SPSS Software

20.

Out of the total 47 YES response 28 (59.6%) accounted for purchased the product from

your known ones, 11 (23.4%) accounted for they do not bother to compare its features &

112
price with other Brand, 8 (17.0%) accounted for they buy the products because your

family liked it, irrespective of all other reasons.

From the table 4.14(a) we conclude that Emotional variables for purchasing luxury

products it can be seen that purchased the product from your known ones is the top most

reason and buy the products because your family liked it, irrespective of all other reasons

is the bottom emotional variable for purchasing luxury products.

Statistics

Rational v/s Emotional

N Valid 400

Missing 0

Table 4.14(b) Comparative analysis in between Rational v/s

Emotional

Cumulative

Frequency Percent Valid Percent Percent

Valid rational 352 88.0 88.0 88.0

emotional 48 12.0 12.0 100.0

Total 400 100.0 100.0

113
Figure 4.14(b): Rational vs Emotional

As per the above pie-chart, 352(88.0%) respondents purchase luxury fashion brand

products rationally, 48(12.0%) respondents said that they purchase luxury brand products

emotionally.

Conclusion: Respondents were asked to tell about their feelings after purchasing luxury

products:--

114
Good Quality, Felt Happy after purchasing luxury products, felt a brand name is attached

to you on which you can trust, felt better, felt awesome, felt like my standard is raised,

look like an upper class status, felt better in the society, it makes me feel comfort and the

quality we get help us to buy more products, luxury brands gives an overall satisfaction.

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender * Do you buy 400 100.0% 0 .0% 400 100.0%

Luxuxy Fashion

Products

Hypothesis-II

Purpose: To study if there is any relationship between gender of respondents and

purchase of Luxury Fashion Brand Products.

Statistical Test: Chi-Square test of contingency

115
Variables and Measurement: Both the variables gender and purchase of Luxury

Fashion Brand Products where nominally scaled variables with two response options.

(1=Yes, 0=No)

Null Hypothesis H0: There is no relationship between gender of respondents and

purchase of Luxury Fashion Brand Products.

Alternate Hypothesis H1: There is a significant relationship between gender of

respondents and purchase of Luxury Fashion Brand Products.

Level of Significance:

=0.05

Table 4.15: Chi-Square Tests

Asymp. Sig. Exact Sig. (2- Exact Sig. (1-

Value df (2-sided) sided) sided)

Pearson Chi-Square 1.566a 1 .211

Continuity Correctionb 1.098 1 .295

Likelihood Ratio 1.693 1 .193

Fisher's Exact Test .308 .146

116
Linear-by-Linear 1.562 1 .211

Association

N of Valid Cases 400

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.08.

b. Computed only for a 2x2 table

Observation:

X2(1)=1.5666

P value=0.211(two-tailed), 0.10(one -tailed)

Since P value (0.10) is more than level of significance, the null hypothesis is retained.

Hence it is concluded that there is no relationship between gender of respondents and

purchase of Luxury Fashion Brand Products.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

117
Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Income * Do you buy 400 100.0% 0 .0% 400 100.0%

Luxury Fashion

Products

Hypothesis-III

Purpose: To study if there is any relationship between income of respondents and

purchase of Luxury Fashion Brand Products.

Statistical Test: Chi-Square test of contingency

Variables and Measurement: Both the variables income and purchase of Luxury

Fashion Brand Products where nominally scaled variables with two response options.

(1=Yes, 0=No)

Null Hypothesis H0: There is no relationship between income of respondents and

purchase of Luxury Fashion Brand Products.

Alternate Hypothesis: There is a significant relationship between income of respondents

and purchase of Luxury Fashion Brand Products.

118
Level of Significance:

=0.05

Table 4.16: Chi-Square Tests

Asymp. Sig. (2-

Value Df sided)

Pearson Chi-Square 28.402a 3 .000

Likelihood Ratio 31.622 3 .000

Linear-by-Linear Association 22.588 1 .000

N of Valid Cases 400

a. 1 cells (12.5%) have expected count less than 5. The minimum expected

count is 1.73.

Observation:

X2(3) =28.40

P value=0.000

Since P value (0.000) is less than level of significance, the null hypothesis is rejected.

Hence it is concluded that there is relationship between income of respondents and

purchase of Luxury Fashion Brand Products.

To study the nature of relationship we refer to cross tabulation.

119
Table 4.16: Gender * Do you buy Luxury Fashion Products Cross tabulation

Do you buy Luxury Fashion

Products

yes No Total

Gender Male Count 263 27 290

Expected Count 266.1 23.9 290.0

% within 90.7% 9.3% 100.0%

Gender

female Count 104 6 110

Expected Count 100.9 9.1 110.0

% within 94.5% 5.5% 100.0%

Gender

Total Count 367 33 400

Expected Count 367.0 33.0 400.0

% within 91.8% 8.3% 100.0%

Gender

120
Table 4.17: Income * Do you buy Luxury Fashion Products Cross tabulation

Do you buy Luxury Fashion

Products

Yes No Total

Income less than 5 Lakhs Count 18 3 21

Expected Count 19.3 1.7 21.0

% within 85.7% 14.3% 100.0%

Income

6 to 12 lakhs Count 104 23 127

Expected Count 116.5 10.5 127.0

% within 81.9% 18.1% 100.0%

Income

13 to 18 lakhs Count 169 7 176

Expected Count 161.5 14.5 176.0

% within 96.0% 4.0% 100.0%

Income

above 18 lakhs Count 76 0 76

121
Expected Count 69.7 6.3 76.0

% within 100.0% .0% 100.0%

Income

Total Count 367 33 400

Expected Count 367.0 33.0 400.0

% within 91.8% 8.3% 100.0%

Income

From the cross tabulation table (Table 4.16 and 4.17) it can be seen that out of the 400

respondents, 367(91.8%) said they purchase luxury fashion brand products. Out of the

367 respondents who said they purchase luxury fashion brand products 46% were

between the income groups 13-18 lakhs followed by 20% in the income above 18 lakhs

followed by 28% were between the income group 6-12 lakhs. Only 4% with their income

less than 5 lakhs.

Conclusion: Hence it is concluded that higher income group people buy luxury

fashion brand products.

122
Hypothesis: IV

Factor Analysis

An exploratory factor analysis of 12 reasons for purchasing luxury products:

a) High Quality

b) Best Design & Aesthetic

c) To fit in with Friends

d) Esteem of Brand

e) Follow the Trend

f) Value for Money

g) Brand Name

h) Show Off

i) To differentiate myself from others

j) Want others to view me as an upper class status

k) Envy others with luxury brand products, so I want the same products that they

have

l) Representation of celebrities associates with luxury brand products influence me

into purchasing them

was performed on the data collected from 400 sample size.

Ho: No Sufficient correlation exists among variables.

H1: Sufficient correlations exist among variables.

123
The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was 0.812 indicated

that correlation between variables identified were suitable for principal component

analysis (Factor Analysis).

The Bartletts test of sphericity was significant P=0.000 indicating sufficient co

relationship between variables.

Table 4.18: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .826

Bartlett's Test of Sphericity Approx. Chi-Square 1809.140

Df 66

Sig. .000

Correlation Matrixa

High Best Design To fit in with

Quality & Aesthetic friends

Correlation High Quality 1.000 .539 .096

Best Design & .539 1.000 .194

Aesthetic

To fit in with friends .096 .194 1.000

124
Esteem of brand .107 .248 .423

Follow the trend .070 .085 .404

Value for money .049 .140 .300

Brand name -.047 .059 .239

show off .057 -.097 .288

Differentiate myself -.020 .033 .329

Upper class status .024 .047 .535

Envy others .072 -.010 .397

Representation of .081 -.028 .400

celebrity

Sig. (1- High Quality .000 .027

tailed)
Best Design & .000 .000

Aesthetic

To fit in with friends .027 .000

Esteem of brand .016 .000 .000

Follow the trend .081 .044 .000

125
Value for money .165 .003 .000

Brand name .174 .121 .000

show off .126 .026 .000

Differentiate myself .346 .255 .000

Upper class status .314 .174 .000

Envy others .077 .424 .000

Representation of .052 .292 .000

celebrity

a. Determinant = .010

Correlation Matrixa

Esteem of Follow the Value for

brand trend money

Correlation High Quality .107 .070 .049

Best Design & .248 .085 .140

Aesthetic

To fit in with friends .423 .404 .300

126
Esteem of brand 1.000 .332 .354

Follow the trend .332 1.000 .229

Value for money .354 .229 1.000

Brand name .435 .297 .372

show off .390 .409 .082

Differentiate myself .318 .507 .056

Upper class status .315 .431 .291

Envy others .430 .429 .298

Representation of .308 .415 .133

celebrity

Sig. (1- High Quality .016 .081 .165

tailed)
Best Design & .000 .044 .003

Aesthetic

To fit in with friends .000 .000 .000

Esteem of brand .000 .000

Follow the trend .000 .000

127
Value for money .000 .000

Brand name .000 .000 .000

show off .000 .000 .051

Differentiate myself .000 .000 .131

Upper class status .000 .000 .000

Envy others .000 .000 .000

Representation of .000 .000 .004

celebrity

a. Determinant = .010

Correlation Matrixa

Differentiate Upper class

Brand name show off myself status

Correlation High Quality -.047 .057 -.020 .024

Best Design & .059 -.097 .033 .047

Aesthic

To fit in with friends .239 .288 .329 .535

128
Esteem of brand .435 .390 .318 .315

Follow the trend .297 .409 .507 .431

Value for money .372 .082 .056 .291

Brand name 1.000 .379 .314 .296

show off .379 1.000 .539 .424

Differentiate myself .314 .539 1.000 .417

Upper class status .296 .424 .417 1.000

Envy others .369 .549 .522 .610

Representation of .306 .596 .542 .590

celebrity

Sig. (1- High Quality .174 .126 .346 .314

tailed)
Best Design & .121 .026 .255 .174

Aesthetic

To fit in with friends .000 .000 .000 .000

Esteem of brand .000 .000 .000 .000

Follow the trend .000 .000 .000 .000

129
Value for money .000 .051 .131 .000

Brand name .000 .000 .000

show off .000 .000 .000

Differentiate myself .000 .000 .000

Upper class status .000 .000 .000

Envy others .000 .000 .000 .000

Representation of .000 .000 .000 .000

celebrity

a. Determinant = .010

Correlation Matrixa

Representatio

Envy others n of celebrity

Correlation High Quality .072 .081

Best Design & -.010 -.028

Aesthetic

To fit in with friends .397 .400

130
Esteem of brand .430 .308

Follow the trend .429 .415

Value for money .298 .133

Brand name .369 .306

show off .549 .596

Differentiate myself .522 .542

Upper class status .610 .590

Envy others 1.000 .701

Representation of .701 1.000

celebrity

Sig. (1- High Quality .077 .052

tailed)
Best Design & .424 .292

Aesthetic

To fit in with friends .000 .000

Esteem of brand .000 .000

Follow the trend .000 .000

131
Value for money .000 .004

Brand name .000 .000

show off .000 .000

Differentiate myself .000 .000

Upper class status .000 .000

Envy others .000

Representation of .000

celebrity

a. Determinant = .010

Communalities

Initial Extraction

High Quality 1.000 .762

Best Design & 1.000 .781

Aesthetic

To fit in with friends 1.000 .462

Esteem of brand 1.000 .556

132
Follow the trend 1.000 .451

Value for money 1.000 .706

Brand name 1.000 .537

show off 1.000 .617

Differentiate myself 1.000 .604

Upper class status 1.000 .561

Envy others 1.000 .680

Representation of 1.000 .723

celebrity

Extraction Method: Principal Component

Analysis.

Total variance explained table (4.19)

The total variance explained table shows that three factors have Eigen values >1

cumulatively accounting for 62.01% of variance.

The scree plot which is a graphical representation of Eigen values and factors suggested

three factors to be retained. Although the point of inflection was slightly below the point

of inflection.

133
Table 4.19:Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

% of Cumulative % of Cumulative

Total Variance % Total Variance %

1 4.575 38.129 38.129 4.575 38.129 38.129

2 1.670 13.917 52.046 1.670 13.917 52.046

3 1.196 9.965 62.011 1.196 9.965 62.011

4 .878 7.313 69.323

5 .740 6.169 75.492

dim
6 .630 5.251 80.743
ensi
7 .522 4.348 85.091
on0

8 .480 3.999 89.090

9 .399 3.326 92.416

10 .351 2.924 95.341

11 .307 2.555 97.896

12 .252 2.104 100.000

134
Table 4.19:Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

% of Cumulative % of Cumulative

Total Variance % Total Variance %

1 4.575 38.129 38.129 4.575 38.129 38.129

2 1.670 13.917 52.046 1.670 13.917 52.046

3 1.196 9.965 62.011 1.196 9.965 62.011

4 .878 7.313 69.323

5 .740 6.169 75.492

dim
6 .630 5.251 80.743
ensi
7 .522 4.348 85.091
on0

8 .480 3.999 89.090

9 .399 3.326 92.416

10 .351 2.924 95.341

11 .307 2.555 97.896

12 .252 2.104 100.000

Extraction Method: Principal Component Analysis.

135
Total Variance Explained

Component Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 3.780 31.496 31.496

2 2.047 17.057 48.553

3 1.615 13.457 62.011

dim
6
ensi
7
on0

10

11

12

136
Total Variance Explained

Component Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 3.780 31.496 31.496

2 2.047 17.057 48.553

3 1.615 13.457 62.011

dim
6
ensi
7
on0

10

11

12

Extraction Method: Principal Component Analysis.

137
Figure 4.7 : Scree Plot

Component Matrixa

Component

1 2 3

Envy others .812

138
Representation of .775

celebrity

Upper class status .746

show off .712

Differentiate myself .696

Follow the trend .667

To fit in with friends .641

Esteem of brand .629

Brand name .566 -.465

Best Design & .856

Aesthetic

High Quality .730 .466

Value for money .409 -.663

Extraction Method: Principal Component Analysis.

a. 3 components extracted.

Component Transformation Matrix

139
Component 1 2 3

1 .868 .487 .103


dim

ensi 2 -.291 .328 .899

on0
3 .404 -.810 .426

Extraction Method: Principal Component

Analysis.

Rotation Method: Varimax with Kaiser

Normalization.

The factor rotation technique used was Varimax. The rotation component matrix was

referred to determine which variable lower down to which factors.

Table 4.20: Rotated Component Matrixa

Component

1 2 3

Representation of .846

celebrity

show off .777

Differentiate myself .776

140
Envy others .770

Upper class status .676

Follow the trend .610

To fit in with friends .441

Value for money .839

Brand name .659

Esteem of brand .627

High Quality .866

Best Design & .860

Aesthetic

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.

From the Rotated Component Matrix (Table 4.20) it can be seen that Representation of

celebrities associates with luxury brand products influence me into purchasing them,

Show Off, Envy others with luxury brand products, so I want the same products that

they have, To differentiate myself from others, Want others to view me as an upper

class status, Follow the Trend have high loadings on factor 1.Thus Factor 1 can be

named as Status Conscious.

141
Similarly To fit in with Friends, Esteem of Brand, Value for Money, Brand

Name have high loadings on factor 2. Thus Factor 2 can be named as Brand Conscious.

Similarly High Quality, Best Design & Aesthetic have high loadings on factor 3.

Thus Factor 3 can be named as Quality Conscious.

Conclusion: Based on factor analysis and reasons for purchasing luxury fashion

brand products it can be concluded that a luxury product buyer can be classified as

Status Conscious, Brand Conscious and Quality Conscious.

142
CHAPTER-5
FINDINGS AND CONCLUSION

143
Chapter 5
Findings and Conclusion

Findings
Based on the 400 questionnaires distributed, the various findings are mentioned below:

The frequency distribution for gender of respondents showed that most respondents in the

survey were men. Most respondents in the survey fall in the age group between 26 and 35

years. Most respondents in the surveyed had an annual income ranging between 13 to 18

lakhs.

In descriptive statistics for variable influencing purchase of luxury products. Respondents

were offered with 12 commonly observed reasons behind purchase of luxury products

and were asked to rate each reason on the basis of importance they attach to these reasons

while purchasing luxury products. The scale used was a 7-point Likert Scale as

mentioned below:-

(Strongly agree =1, Partially agree=2, Agree=3, Neutral=4, Disagree=5, Partially

disagree=6, Strongly disagree=7)

Based on the mean and standard deviation values it can be concluded that High Quality,

Best design and aesthetic and Esteem of brand are the three top reasons for purchasing

luxury products and Show off, Envy others with luxury brand products, so I want the

same products that they have and differentiate myself from others are the bottom three

reasons for purchasing luxury products.

In Friedman Chi square test was conducted to see if there is a difference in the

importance respondents attached to the various reasons to purchase of luxury products.

Respondents were offered with 12 commonly observed reasons behind purchase of

144
luxury products and were asked to rate each reason on the basis of importance they attach

to these reasons while purchasing luxury products.

Variables are:

(High Quality, Best Design & Aesthetic , To fit in with Friends, Esteem of Brand ,

Follow the Trend , Value for Money, Brand Name, Show Off , To differentiate myself

from others, Want others to view me as an upper class status, Envy others with luxury

brand products, so I want the same products that they have , Representation of celebrities

associates with luxury brand products influence me into purchasing them)

Therefore it is found that there is significant difference in the importance respondents

attached to reasons for purchase of Luxury Products.

Out of the 400 respondents surveyed it is clear that people buy luxury products

sometimes. Based on the Friedman Test it is concluded that there is significant difference

in the importance respondents attached to reasons for purchase of Luxury Products.

One interesting finding is that from the mean ranks table it can be seen that High Quality,

Best design and esteem of brand are the top three reasons for purchase of Luxury

products and show off, envy others with luxury brand products, so I want the same

products that they have and Representation of celebrities associates with luxury brand

products influence me into purchasing them are the bottom three reasons for purchasing

luxury products.

From the Source of Information for purchasing luxury products it can be seen that Online

Adds and Television are the top two sources of information for purchase of Luxury

products. An interesting observation can be seen that Media is the top most influencer for

purchase of Luxury product.

145
From the table11 we found that Influencers influence for purchasing luxury products it

can be seen that Media is the top most influencer for purchase of Luxury products and

Colleague is the bottom influencer for purchasing luxury products.

From the Purchase Occasions table for purchasing luxury products it can be seen that

people purchase luxury products at any point of time is the top most reason and Special

Offer is the bottom reason for purchasing luxury products.

Among all brand variables it can be seen that Brand Trust is the top most brand variable

drives you for purchase of Luxury products. Related to occasion it is found that

consumers buy luxury products at any point of time.

Regarding Rational and Emotional Variables, it can be seen that respondents purchase

luxury fashion brand products rationally. Respondents answered on how they felt when

they bought luxury products, some of the answers are as Good Quality, Felt Happy after

purchasing luxury products, felt a brand name is attached to you on which you can trust,

felt better, felt awesome, felt like my standard is raised, look like an upper class status,

felt better in the society, it makes me feel comfort and the quality we get help us to buy

more products, luxury brands gives an overall satisfaction.

From the Chi-square test it is concluded that there is relationship between income of

respondents and purchase of Luxury Fashion Brand Products, higher income group

people buy luxury fashion brand products. It is concluded that there is no relationship

between gender of respondents and purchase of Luxury Fashion Brand Products.

From the Rotated Component Matrix it can be seen that Representation of celebrities

associates with luxury brand products influence me into purchasing them, Show Off,

Envy others with luxury brand products, so I want the same products that they have,

146
To differentiate myself from others, Want others to view me as an upper class status,

Follow the Trend have high loadings on factor 1.Thus Factor 1 can be named as Status

Conscious.

Similarly To fit in with Friends, Esteem of Brand, Value for Money, Brand

Name have high loadings on factor 2. Thus Factor 2 can be named as Brand Conscious.

Similarly High Quality, Best Design & Aesthetic have high loadings on factor 3.

Thus Factor 3 can be named as Quality Conscious.

Final from the data analysis and factor analysis it was concluded that reasons for

purchasing luxury products it can be seen that High Quality, Best design and value for

money are the top three reasons for purchase of Luxury products and show off, envy

others with luxury brand products, so I want the same products that they have and

Representation of celebrities associates with luxury brand products influence me into

purchasing them are the bottom three reasons for purchasing luxury products and a

luxury product buyer can be classified as Status Conscious, Brand Conscious and Quality

Conscious.

147
Conclusion

Based on the findings a number of conclusions are generated as follow:

From the study it is clear that higher income group people buy luxury fashion brand

products. Based on the results it is concluded that High Quality, Best design and aesthetic

and esteem of brand are the top three reasons for purchase of Luxury products and show

off, envy others with luxury brand products, so I want the same products that they have

and Representation of celebrities associates with luxury brand products influence me into

purchasing them are the bottom three reasons for purchasing luxury products.

From the study it is concluded that Media is the top most influencer for purchase of

Luxury products and Brand Trust is the top most brand variable drives customer for

purchase of Luxury products and Online Adds is the top most Source of Information for

purchasing luxury products. People generally go for online survey to buy luxury

products.

Based on the Friedman Test it is concluded that there is significant difference in the

importance respondents attached to reasons for purchase of Luxury Products.

Regarding Rational and Emotional Variables, it can be concluded that respondents

purchase luxury fashion brand products rationally. Respondents answered on how they

felt when they bought luxury products, some of the answers are as Good Quality, Felt

Happy after purchasing luxury products, felt a brand name is attached to you on which

you can trust, felt better, felt awesome, felt like my standard is raised, look like an upper

class status, felt better in the society, it makes me feel comfort and the quality we get help

us to buy more products, luxury brands gives an overall satisfaction.

148
It is also concluded that there is no relationship between gender of respondents and

purchase of Luxury Fashion Brand Products.

In summary, it was concluded that reasons for purchasing luxury products it can be seen

that High Quality, Best design and value for money are the top three reasons for purchase

of Luxury products and show off, envy others with luxury brand products, so I want the

same products that they have and Representation of celebrities associates with luxury

brand products influence me into purchasing them are the bottom three reasons for

purchasing luxury products and a luxury product buyer can be classified as Status

Conscious, Brand Conscious and Quality Conscious.

149
CHAPTER-6
SUGGESTIONS AND RECOMMENDATIONS

150
Chapter 6
Suggestions and Recommendations
It is considered a priority for marketers to know the reasons behind the purchasing

intentions of consumers towards luxury fashion products.

From this study it is clear that consumer purchase luxury products due to its high quality

and best design. Research has also indicated that consumers consider quality as a high

priority when purchasing luxury brand products. Marketers could use this finding towards

improving products. Products that show more quality could be beneficial to consumers.

Marketers should also design such strategies so that consumers also consider other

variables as shown in this study for purchasing luxury products.

Another interesting discovery that has been found in this research is that the majority of

consumers purchase luxury brand products to fit in with friends. Marketers should

consider the idea of identifying which luxury products has been consumed the most by

consumers, which will then be able to accumulate other consumers alike into purchase

similar products.

Marketers should also note that, the use of the media has a mass influence on consumers,

so they should give more advertisement on Television and put some more pop ups on

Face book regarding luxury products for maximum efficiency in attracting consumers.

Research has also indicated that consumers have their high trust on Brands. Marketers

could use this finding and make the consumer more comfortable and build the brand

Loyalty towards luxury fashion brand products.

151
CHAPTER-7
ANNEXURE

152
APPENDIX-1
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153
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162
APPENDIX-I

163
Questionnaire
A Study on Purchase Intentions of Consumers towards Selected Luxury Fashion Products

with special reference to Pune Region.

Im Rimpy Goyal, Student of D.Y.Patil University studying M.Phil. in department of

Business Management. This questionnaire is about fashion luxury products in your mind,

Luxury can be defined as something adding to pleasure or comfort but not absolutely

necessary; an indulgence in something that provides pleasure, satisfaction, or ease

(Merriam Webster Dictionary 2004). Luxury can be in forms of Watches (Armani,

Kenneth Cole, Rolex, Rado Tag-Heuer, Tissot etc.), Bags (Louis Vuitton, Coach, Gucci,

Prada, etc.), Mobile Phone (Apple, Nexus, Samsung, Sony, etc.), and Perfumes (Chanel,

Victoria secret, Bvlgari, Ferrari & Hugo Boss etc.). If you have purchased products that

have been included above, Please answer all questions as completely as possible, as each

one will contribute to the final analysis.

The information used by me in this study will be highly confidential and used only for

statistical purpose and it will not be disclosed anywhere.

Name: Rimpy Goyal Contact: Email ID:

Address:

164
1. Gender
Male Female

2. Age (in Years)


Less than 25 26 35 36 45 Above 45

3. Income (in lakhs)


Less than 5 6 12 13 18 Above 18

4. Do you buy luxury fashion branded products, such as Versace,


Armani, Gucci, Chanel, Prada, Calvin Klein, Hugo Boss, Christian Dior,
Ralph Lauren, Hermes, Giorgio Armani, DKNY, Tommy Hilfiger, Louis
Vuitton, Escada, Givenchy, Elizabeth Arden, Diesel, Benetton, Guess,
Coach, etc.?
Yes No

5. Do you possess any luxury good?


Yes No

6. How often do you purchase luxury brand products?


Often Sometimes Seldom

7. Reasons for buying purchase luxury products (You are required to


rate each of the following statements on a scale arranging from 1 to 7
where 1 indicates Strongly agree and 7 indicates strongly disagree and 4
indicates that you are Neither agree nor disagree)?
Strongly Partially Agree Neutral Disagree Partially
Strongly
Agree Agree Disagree
Disagree

High Quality

165
Best Design & Aesthetic

To fit in with Friends

Esteem of Brand

Follow the Trend

Value for Money

Brand Name

Show Off

To differentiate myself
From others

Want others to view me


As an upper class status

Envy others with luxury


Brand products, so I want
The same products that
They have
Representation of celebrities
Associates with luxury brand
Products influence me into
Purchasing them

8. Reasons for buying purchase luxury products


High Quality Best Design & To fit in with Esteem of Brand
Aesthetic Friends

Follow the Trend Value for Money Brand Name Show Off

To differentiate Want others to Envy others with Representation


myself from view me as an luxury brand of celebrities
others upper class products, so I associates with
status want the same luxury brand
products that products
they have influence me into
purchasing them

166
9. What is the source of information about luxury fashion products for
you?
Television Online Adds Facebook/Twitter Newspaper

Fashion Friends Videos Others__________


Magazine

10. Name the factor which influenced you in the purchase of luxury
fashion products?
Friend influence Ask a relative for Ask Media
on me to make advice Colleague/mates significantly
purchase for advice influence me to
make purchase

No influence

11. While purchasing luxury fashion products, which Brand Variable


drives you most to purchase
Core Brand Brand Attitude Brand Brand trust
Images Attachment

Brand Loyalty

12. When do you prefer the most to buy luxury fashion products?
Festive Offers Seasonal Offers Special Day Offers At any point of
time

13. What are the ways through which you buy luxury fashion products
(rational variables)?
You Compare Comparison of You do Online Search local
the feature with Price Survey shops to get best
other Brand deals

167
OR

What are the ways through which you buy luxury fashion products
(Emotional variables)?
You do not You purchased You buy the
bother to the product from products bcoz
compare its your known ones your family liked
features & price it, irrespective of
with other Brand all other reasons

What do you feel when buying luxury fashion brands? Why?

Thank you very much for taking the time to complete this survey. Your feedback
is valued and very much appreciated!

168