Li, Weiran
(2022)
Differences in luxury value perceptions and purchase intentions among different generations of Chinese consumers.
[Dissertation (University of Nottingham only)]
Abstract
The personal luxury goods market in China is a large and promising one. As a result of the outbreak of the Covid-19 pandemic, the Chinese personal luxury goods market experienced two years of depression. At the start of 2022, the Chinese personal luxury market bottomed out and returned to pre-Pandemic Covid-19 sales levels. Some experts expect China's personal luxury market to become the world's largest dominant market by 2025. The Chinese luxury consumer is the absolute force behind this success. However, there are currently two research gaps in the study of Chinese luxury consumption. The first is the focus on Chinese millennial luxury consumers to the detriment of the youngest generation of consumers. The second is that research on Chinese generational consumers is based on Western generational divisions and does not differentiate generational consumers according to the Chinese context. Therefore, in order to remedy these shortcomings, this study names the two younger generations of Chinese luxury consumers as the emperor generation and the globalised generation respectively, taking the major events in Chinese history as the dividing point, not only studying the emperor generation but also providing a perspective on the consumption of the youngest leading consumer force, the globalised generation. In terms of the theoretical framework, this study combines the luxury value perception framework to explore how the two generations of Chinese luxury consumers understand the value of luxury in terms of three dimensions: social value, personal value, and functional value of luxury. Using generations as a mediator, the link between value perception and purchase intention is established. This study will not only test the applicability of luxury value perception theory in the Chinese market but also identify the drivers of purchasing behaviour of Chinese luxury consumers across generations.
This study was conducted as a quantitative study and survey, using a previous luxury value perception scale created as a questionnaire and posted on an online questionnaire platform to collect data. The data was collected from Chinese respondents who had previous experience in purchasing luxury goods, and 452 valid data were collected. Data analysis and testing of hypotheses were conducted through SPSS and AMOS software. To investigate the differences between the two generations in terms of both value perception and purchase intention, difference analysis and moderation effect tests were conducted.
Three conclusions were drawn from this study. Firstly, both the Chinese emperor generation and the globalised generation perceived the functional and social value of luxury goods, and neither experienced the personal value of luxury goods. Secondly, there is a positive relationship between the perceived value of luxury goods and purchase intention, with generations playing a moderating role in the relationship. The emperor generation perceives the value of luxury goods better than the globalised generation and values luxury goods more. Thirdly, the main factors driving Chinese luxury consumers' purchases include the conspicuousness of luxury goods, status symbols, uniqueness, and value for money.
In the future, luxury brand marketers in China should signal to consumers the social and functional value of luxury goods and avoid amplifying personal values. At the same time, at this stage luxury brands should target their marketing more toward the emperor generation. Finally, luxury brands need to develop marketing plans that incorporate the characteristics of different generations of consumers so as to meet the needs of their customers, increase customer stickiness and enhance the brand value.
Finally, there are limitations in data collection in this dissertation. Future research could expand the scope of respondents and focus on the influence of Chinese culture on the perception of luxury value.
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