Factors Influencing Consumer Purchasing Behavior Regarding

Luxury Brands

Vimalnath V

, Gururaj Phatak

, Pushpa Hongal

, Vishal Kumar R

, Varsha Agarwal

and Guruprasad Ramakrishna Naik

SRM Institute of Science and Technology, Vadapalani, Chennai, India

Kirloskar Institute of Management, Harihar Karnataka, India

Kousali Institute of Management Studies, Karnatak University, Dharwad, Karnataka, India

Firebird Institute of Research in Management, Coimbatore, Tamilnadu, India

Atlas SkillTech University, Mumbai, Maharashtra, India

Government College of Arts, Science and Commerce, Sanquelim, Goa, India

India

varsha.agarwal@atlasskilltechuniversity.edu.in, naikguruprasadramkrishna@gmail.com

Keywords: Consumer Buying Behavior, Quality, Materialism, Trust, Luxury Goods.

Abstract: The luxury market in India is undergoing rapid growth, driven by enriched earning salary and profits in both

urban and rural areas, a young demographic advantage, heightened visibility in retail, advertising, and greater

consumer exposure. Factors such as fashion, lifestyle, social value, and the willingness to spend are

influencing modern shoppers to purchase luxury brands to fulfil their psychological needs and boost their

self-esteem. Owning luxury merchandise has become a statement of one's essence. This research aimed to

delve into the complex dynamics of consumer purchasing behavior (CPB) in relation to luxury branded

products. The study utilized several factors, including Materialism, Price-Quality considerations, Social

Status aspirations, and Brand Trust, as independent variables, to examine their potential impact on the

dependent variable, Consumer Buying Behavior (CBB). Data were collected through a well-designed

structured questionnaire distributed to 180 respondents who displayed a specific interest in luxury fashion

clothing. The data collection process involved emailing the questionnaire to friends and colleagues, and the

responses were systematically gathered and analyzed using the statistical software SPSS. It is important to

note that the sample population of 180 respondents had limited diversity and may not fully represent the entire

population, indicating a scope for further improvement in future research endeavors.

1 INTRODUCTION

The complexities arising from varying individual

interpretations of luxury and external influences play

a pivotal role in defining luxury consumption and

shaping consumer psychology. These encounters

significantly influence consumers' desires for luxury

goods and services, as well as the types of luxury

signals they acquire, ultimately affecting their buying

behavior. The purchase of iconic and ephemeral

luxury items signifies high social status and creates

an impression that the buyer has acquired these

brands through their hard work, expecting to gain

esteem from onlookers (Dubois et al., 2021). This

study reveals that luxury items possess diverse and

hedonistic qualities, motivating consumers to acquire

them in order to uphold their societal standing and

make an impression on others. Globally, and

particularly in Asia, the consumption of luxury goods

has seen a significant increase (Wiedmann et al.,

2009). Indian consumers hold a perception that

encourages them to purchase luxury goods, which

they view as status symbols to display publicly and

enhance their social standing (Gokhale et al., 2021).

The luxury consumption tendency has remained

prosperous subsequently from the early 1990s, with

India's luxury market predicted to reach the US$200

billion mark by 2030, driven by several factors such

as the exponential growth of the ultra-rich, the

emergence of numerous entrepreneurs and unicorns,

the increasing financial strength of the middle class,

and the expanding influence of e-commerce in level

II and level III cities(Bain & Company, nd).

912

V, V., Phatak, G., Hongal, P., Kumar R, V., Agarwal, V. and Ramakrishna Naik, G.

Factors Inﬂuencing Consumer Purchasing Behavior Regarding Luxury Brands.

DOI: 10.5220/0012526600003792

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st Pamir Transboundary Conference for Sustainable Societies (PAMIR 2023), pages 912-916

ISBN: 978-989-758-687-3

Subsequently, the worldwide luxury goods business

is undergoing extensive development in India. The

luxury attire business has steadily enchanted the

consideration of promotion experts and practitioners

due to its remarkable growth trajectory. The allure of

a luxurious lifestyle and the aspiration to align with

Western standards have fueled the surge in the

consumption of luxury goods. This phenomenon is

particularly conspicuous among Indian consumers,

who are progressively diverting their expenditures

towards tangible material possessions and

experiencing a surge in materialistic inclinations

(Gokulkumari et al., 2023) .

Consumer buying traits in the luxury brand

industry, particularly in clothing, are often influenced

by market trends and the emulation of famous

personalities from around the world. Some consumers

are drawn to these brands for the prestige they offer,

while others are captivated by their designs, styles,

and the quality of materials used. Price frequently

inaugurates a regular and plays a central role in

defining a luxury product, with quality being a

prominent distinguishing feature. Materialism grips a

momentous place in the significances of this cohort

of shoppers, as it not only serves the snob effect but

also enhances their social status.

2 LITERATURE REVIEW

The rapid evolution of emerging technologies and

changing social landscapes are causing shifts in

consumer desires, inspirations, and behaviors within

the global luxury industry. Advances in international

logistics and the prevalence of e-commerce platforms

have made it easier for consumers to purchase goods

online, providing luxury brands with unprecedented

accessibility to consumers with just a click(Jain,

2020). In a study employing an evolutionary

theoretical approach to predict consumer behavior,

the researchers considered various factors, including

risk inclination, competition, luxury depletion, self-

control, sequential favorites, and relationships in the

context of consumer behaviors(Durante, 2019). They

also explored current inclinations and developments

in the mindset of luxury depletion, investigative new

drivers, forms, and magnitudes of luxury

consumption, particularly the interplay of tensions

that influence consumers' perceptions of luxury and

their future consumption (Shrivastava et al., 2023).

The research identified a favorable influence of

hedonistic motivations on consumers' choices to

purchase luxury brands. This underscores the notion

that luxury products go beyond addressing merely

practical needs but also cater to consumers' desire for

sensory and emotional gratification. The study

underscores the significant role played by hedonic

motivations in shaping consumers' perceptions of

luxury companies, underscoring the significance of

the sentimental and sensory pleasure associated with

luxury brands. Furthermore, the study revealed that

consumers with a greater interest in trendy apparel

tend to have a more favorable view of luxury

businesses, emphasizing the role of fashion

consciousness in luxury consumption (William,

2022).

Another aspect explored in the research was the

perception of Indian luxury buyers regarding the

value of a brand and how this perception influences

their purchase intentions. The study established a

positive relationship between consumers' actual

purchases of luxury products and their intentions to

buy, underlining the impact of past buying behavior

on future buying intentions (Nagpal and Ravindra,

2017). A distinctive aspect of this study centered on

delving into the concept of "brand affection" toward

luxury brands in the Indian market. This quantitative

investigation sought to elucidate the intricacies

surrounding consumers' emotional attachment to

luxury products and employed correlation analysis as

the primary analytical technique. (Syed et al., 2022).

The Indian luxury apparel market is booming,

with consumers increasingly drawn to high-end

brands and products. This trend is being driven by a

number of factors, including a desire to lead a

luxurious lifestyle, identify with Western

counterparts, and shift their spending habits toward

material goods. Materialism is also on the rise in

India, and consumers are more likely to purchase

luxury goods as a way to express their success and

social status.

The growth of the Indian luxury apparel market is

also being fueled by a growing middle class, rising

disposable incomes, and increased exposure to luxury

brands. The market is expected to continue to grow in

the coming years, as these factors continue to drive

consumer demand. In short, Indian consumers are

increasingly buying luxury apparel because they want

to look and feel their best, they want to be associated

with high-end brands, and they have the money to do

it. (Abbas et al., 2023).

The research utilizing event-related potentials

delved into the underlying social motivations of

consumers when it comes to acquiring premium

products, drawing insights from the framework of

functional theories of attitudes .It revealed how

consumers' preferences and brain activity are

influenced when exposed to fake and real luxury

products with or without visible logos. The study

emphasized the role of brand authenticity in meeting

consumers' social objectives (Shahid et al., 2021).

Another research effort concentrated on millennials'

purchasing behavior of luxury brands, particularly the

Factors Inﬂuencing Consumer Purchasing Behavior Regarding Luxury Brands

913

influence of purchasing power and social media

interaction. Consumerism emerged as a significant

factor influencing millennials' favorable sentiments

toward luxury companies, with an emphasis on

materialism and hedonic appeals. The study noted

that luxury managers must consider the desire for

individuality when marketing to millennials (Nagpal

et al.,2020).

In a study focusing on young Chinese consumers'

purchase of high-end luxury cosmetics, the

researchers found that factors such as product

involvement, perceived quality, individual branding,

and monthly branding had a significant impact on

consumer attitudes and intentions, beyond mere brand

awareness. This study provided valuable insights for

the development of effective marketing strategies for

high-end cosmetics (Kostritsa et al., 2020). The

researchers also conducted a study on the antecedents

of luxury car purchases, considering factors such as

price, style features, fuel efficiency, social value,

safety, and brand, along with their impact on purchase

intentions. The study highlighted the importance of

these factors in influencing the buying intent of

luxury cars, emphasizing the need for marketers to

align their products with consumers' social goals (Tao

et al., 2022).

Another study examined the factors influencing

consumer buying behavior towards reasonably priced

luxury brands in India. The research explored how

consumers' desire for up-to-date fashion trends and

the impact of reduced purchasing power influenced

their consumption choices. It emphasized the

importance of monitoring consumer experiences with

affordable luxury brand offerings and the socio-

psychological aspects affecting consumer behavior

(Rajput et al., 2021). The study investigated the

relationship between attribute materialism and

customers' intents to buy sustainable luxury goods,

revealing that sub-traits like “possessiveness, lack of

generosity, and envy” were positively correlated with

such intentions. However, consumer attitude showed

a negative correlation with purchasing intentions for

sustainable luxury products, providing insights into

the factors influencing Indian luxury shoppers'

decisions (Burnasheva et al., 2019).

Moreover, the exploration observed the relations

between “cultural orientations, materialism, status

purchasing, and the bandwagon effect on intentions

to acquire luxury goods”. The study found that

individualist societies tend to be more materialistic

than collectivist ones. However, in India, where

collectivism and interdependence are prominent,

materialism's relationship with purchase intentions

for luxury products was not significant, emphasizing

the role of social factors in shaping consumer

behavior (Bhattacharya et al., 2023). The study on

millennials' attitudes and purchase intentions

regarding luxury fashion brands introduced the

balancing hypothesis, which suggests that the

development of positive attitudes and purchase

intentions is influenced by the balance or imbalance

between certain factors. This extended the

understanding of the equilibrium theory's

applicability to decision-making about luxury fashion

products (Zhang et al., 2019).

3 RESEARCH GAP

The existing body of literature reveals a notable

research gap in the context of the luxury footwear

market in India. While there is a growing interest in

this market, there remains a substantial lack of

comprehensive research examining the various

factors that influence consumers' decision-making

when it comes to purchasing luxury footwear. Prior

studies have principally relied on qualitative methods,

such as “interviews and focus groups” and have not

delved deeply into the intricacies of CBB, particularly

regarding the impact of social status and materialism

on customer preferences and behaviors related to

luxury footwear in India (Bhattacharya et al., 2023).

Furthermore, most of the earlier research has barely

concentrated on precise characteristics of luxury

footwear CCB , such as the influence of brand image

or price, failing to provide a comprehensive

understanding of the multitude of variables that affect

CCB in this domain. Therefore, there is a pressing

need for a quantitative research study in this area, one

that encompasses multiple premium brands, in order

to thoroughly explore and analyze the diverse factors

that shape customer purchasing behavior for luxury

footwear in India (Gokhale et al., 2021), (Kumari et

al., 2023). In light of this research gap, the study's

objectives and hypotheses have been formulated to

address the following key aspects:

3.1 Objectives of the Study

• To investigate how price, materialism, brand

trust, and social status influence consumer buying

behavior (CBB)

3.2 Hypothesis of the Study

• Quality has a substantial impact on consumer

buying behavior (CBB).

• • Materialism plays a significant role in

influencing CBB.

• • Brand trust and experience exert a notable

influence on CBB.

PAMIR 2023 - The First Pamir Transboundary Conference for Sustainable Societies- | PAMIR

914

• • Social status is a significant determinant of

consumer buying behavior (CBB).

4 RESEARCH METHODOLOGY

This study employs a descriptive research approach,

which aims to provide a precise and systematic

description of a specific population, situation, or

phenomenon. The research process follows a

carefully designed step-by-step procedure,

commencing with data collection and progressing to

the development of a conceptual model. To collect

primary data, a series of structured questionnaires

were crafted, utilizing a Likert scale. Additionally,

secondary data sources, including papers, journals,

and articles, were consulted to enhance the research's

background knowledge. The study has sample size of

185 respondents who had experience with luxury

clothing brands. Statistical analysis was conducted

using IBM SPSS 24 software.

4.1 Data Analysis and Interpretation

Table 1: Reliability.

Factor α

Trust .756

SS .868

Materialism .859

PQ .785

CBB .870

The αvalues for all five components are robust,

ranging from 0.759 to 0.856. These values affirm the

precision and reliability of the research instrument used

to measure these factors.

Table 2: Model Summary.

R R2 Adj

Std Error

.689 .458 .398 .648

Table 3: Annova.

Sum of

Squares

Df Mean

Square

F Sig

14.89 4 4.405 7.28 .000

CBB serves as the dependent variable, while the

independent variables include trust, SS, materialism, and

PQ. The model fit summary, these independent factors

collectively explain 45% of the variance in the dependent

variable, as denoted by the modified R2 of 0.458. It is worth

noting that the remaining 59% of the variation in consumer

purchasing patterns is likely influenced by additional

variables that were not incorporated into the model.

5 FINDINGS & CONCLUSIONS

The study revealed that when selecting luxury Indian

clothing brands, consumers place significant

emphasis on several factors. These include trust in the

brand, the MA, of the product, their SS, within their

peer group, as well as the PQ of the product. This

relationship was confirmed through regression

analysis. The conclusions of this study provided

valued intuitions for managers of luxury clothing

brands, shedding light on the key elements consumers

consider when intending to purchase a luxury

product. By focusing on the primary variables

identified in this analysis, businesses can formulate

“marketing strategies that resonate with their target

audience, ultimately leading to increased sales”.

Nonetheless, it is crucial to recognize the study's

constraints. The sample size could be large for

generalizability. Furthermore, the study's limited

array of clothing brands for consumer selection may

influence the breadth of the results. Finally, it's worth

noting that other pertinent variables, not incorporated

in the analysis, could exist, given that the study

primarily focused on examining the correlation

between a select set of independent variables and

CBB.

REFERENCES

David Dubois, SungJin Jung and Nailya Ordabayeva

(2021). The psychology of luxury consumption.

Current Opinion in Psychology Volume 39, 82–87.

ISSN 2352-250X,

https://doi.org/10.1016/j.copsyc.2020.07.011.

Wiedmann, K. P., Hennigs, N., & Siebels, A. (2009).

Value‐based segmentation of luxury consumption

behavior. Psychology & Marketing, 26(7), 625-651.

Gokhale, Aishwarya & Veluchamy, Ramar & Veluchamy,

Ramar & Mishra, Abinash. (2021). Factors Influencing

Purchase Decision And Consumer Behavior In Luxury

Cars. 11. 176-186.

Bain & Company report -

https://retail.economictimes.indiatimes.com/blog/india

n-luxury-market-in-2023-and-beyond/97915880

G. Gokulkumari, M. Ravichand, P. Nagpal and R. Vij,

"Analyze the political preference of a common man by

using data mining and machine learning," 2023

International Conference on Computer Communication

Factors Inﬂuencing Consumer Purchasing Behavior Regarding Luxury Brands

915

and Informatics (ICCCI), Coimbatore, India, 2023, pp.

1-5, doi: 10.1109/ICCCI56745.2023.10128472.

Jain, Sheetal. (2020). Role of conspicuous value in luxury

purchase intention. Marketing Intelligence & Planning.

ahead-of-print. 10.1108/MIP-03-2020-0102.

Kristina M Durante, V. G. (2019). Evolution and consumer

behavior. Current Opinion in Psychology, 10, 27-32.

Anurag Shrivastava, S. J. Suji Prasad, Ajay Reddy Yeruva,

P. Mani, Pooja Nagpal & Abhay Chaturvedi (2023):

IoT Based RFID Attendance Monitoring System of

Students using Arduino ESP8266 & Adafruit.io on

Defined Area, Cybernetics and Systems, DOI:

10.1080/01969722.2023.2166243

P. William, A. Shrivastava, H. Chauhan, P. Nagpal, V. K.

T. N and P. Singh, "Framework for Intelligent Smart

City Deployment via Artificial Intelligence Software

Networking," 2022 3rd International Conference on

Intelligent Engineering and Management (ICIEM),

2022, pp. 455-460, doi:

10.1109/ICIEM54221.2022.9853119

Pooja Nagpal & Ravindra. H.V. (2017). Make in India and

Skill India- A hand in glove scheme of GOI to

transform Indian Economy. Acme Intellects.

International Journal of Research in Management,

Social Sciences & technology, 20 (20). 1-14. ISSN -

2320- 2939, Online ISSN 2320-2793.

F. A. Syed, N. Bargavi, A. Sharma, A. Mishra, P. Nagpal

and A. Srivastava, "Recent Management Trends

Involved With the Internet of Things in Indian

Automotive Components Manufacturing Industries,"

2022 5th International Conference on Contemporary

Computing and Informatics (IC3I), Uttar Pradesh,

India, 14-16 December 2022, pp. 1035-1041, doi:

10.1109/IC3I56241.2022.10072565.

S. H. Abbas, S. Sanyal, P. Nagpal, J. Panduro-Ramirez, R.

Singh and S. Pundir. (2023). "An Investigation on a

Blockchain Technology in Smart Certification Model

for Higher Education," 10th International Conference

on Computing for Sustainable Global Development

(INDIACom), New Delhi, India from 15-17 March

2023, pp. 1277-1281.

Shahid, Shadma & Islam, Jamid & Farooqi, Rahela &

Thomas, George. (2021). Affordable luxury

consumption: An emerging market’s perspective.

International Journal of Emerging Markets. ahead-of-

print. 10.1108/IJOEM-01-2021-0144.

Pooja Nagpal., Kiran Kumar., A. C. & Ravindra., H.

V.(2020) .Perceived Organizational Support and

Employee Engagement. Test Engineering and

Management, 83, the Mattingley Publishing Co., Inc.,

900-904. ISSN: 0193-4120.

Kostritsa, Maria & Liebl, Hildegard & Beinhauer, Rupert

& Turčínková, Jana. (2020). Consumer Brand Love for

Luxury Brands in India. Acta Universitatis Agriculturae

et Silviculturae Mendelianae Brunensis. 68. 189-197.

10.11118/actaun202068010189.

Tao H, Sun X, Liu X, Tian J and Zhang D (2022) The

Impact of Consumer Purchase Behavior Changes on the

Business Model Design of Consumer Services

Companies Over the Course of COVID-19. Front.

Psychol. 13:818845. doi: 10.3389/fpsyg.2022.818845

N Rajput, G Das, K Shivam, CK Nayak, K Gaurav, P

Nagpal (2021), An inclusive systematic investigation of

human resource management practice in harnessing

human capital. Materials Today: Proceedings, 2021,

ISSN 2214-7853,

https://doi.org/10.1016/j.matpr.2021.07.362.

Zhang W, Jin J, Wang A, Ma Q, Yu H. (2019) Consumers'

Implicit Motivation Of Purchasing Luxury Brands: An

EEG Study. Psychology Research and Behavior

Management, 12, 913-929.

Pooja Nagpal., (2022). Organizational Commitment as an

Outcome of Employee Engagement: A Social

Exchange Perceptive using a SEM Model. International

Journal of Biology Pharmacy and Allied Science.

January, Special Issue, 2022, 11(1): 72-86.

https://doi.org/10.31032/IJBPAS/2022/11.1.1008.

Burnasheva, Regina & Gusuh, Yong & Villalobos-Moron,

Katherine. (2019). Factors Affecting Millennials'

Attitudes toward Luxury Fashion Brands: A Cross-

Cultural Study. International Business Research. 12.

10.5539/ibr.v12n6p69.

R. Bhattacharya, Kafila, S. H. Krishna, B. Haralayya, P.

Nagpal and Chitsimran, "Modified Grey Wolf

Optimizer with Sparse Autoencoder for Financial Crisis

Prediction in Small Marginal Firms," 2023 Second

International Conference on Electronics and Renewable

Systems (ICEARS), Tuticorin, India, from 2-4 March

2023, pp. 907-913, doi:

10.1109/ICEARS56392.2023.10085618.

Gokhale, Aishwarya & Veluchamy, Ramar & Veluchamy,

Ramar & Mishra, Abinash. (2021). Factors Influencing

Purchase Decision And Consumer Behavior In Luxury

Cars. 11. 176-186.

BK Kumari, VM Sundari, C Praseeda, P Nagpal, J EP, S

Awasthi (2023), Analytics-Based Performance

Influential Factors Prediction for Sustainable Growth of

Organization, Employee Psychological Engagement,

Work Satisfaction, Training and Development. Journal

for ReAttach Therapy and Developmental Diversities 6

(8s), 76-82

PAMIR 2023 - The First Pamir Transboundary Conference for Sustainable Societies- | PAMIR

916