{"id":350,"date":"2015-04-01T21:12:17","date_gmt":"2015-04-01T21:12:17","guid":{"rendered":"http:\/\/blogs.stthom.edu\/cameron\/?p=350"},"modified":"2017-04-13T20:54:17","modified_gmt":"2017-04-13T20:54:17","slug":"summary-brief-exploring-the-role-of-relationship-context-in-consumer-brand-preference-of-luxury-consumption","status":"publish","type":"post","link":"https:\/\/blogs.stthom.edu\/cameron\/summary-brief-exploring-the-role-of-relationship-context-in-consumer-brand-preference-of-luxury-consumption\/","title":{"rendered":"Summary Brief Exploring the Role of Relationship Context in Consumer Brand Preference of Luxury Consumption"},"content":{"rendered":"

By Shuoyang Zhang–<\/strong><\/p>\n

Introduction<\/strong><\/p>\n

The growth in global income, middle class consumption, and continuous urbanization has led to the increase in international luxury consumption (Albany 2014). Moreover, today\u2019s luxury consumers are more sophisticated and require higher skilled services and unique product designs. It is very important to understand luxury consumption and the factors involved in the process.<\/p>\n

Previous studies have indicated a variety of factors that affect consumer behavior in the domain of high-end brand products. For example, Han, Nunes, and Dreze (2010) examined the role of brand prominence in luxury consumption and identified the difference between quiet and loud brand logos. They found that wealthy consumers prefer loud and prominent brand if they need the association with their peers and want to differentiate with other social groups. Some ultra-wealthy people prefer to use quiet logo for luxury products if they want to associate with their friends but do not intent to distinguish with other social group levels. Apparently, social influence is a critical aspect in luxury consumption. However, very little has been done to investigate the role of relational context involved in the process. This research examines how people consume high-end products in different relational contexts.<\/p>\n

Specifically, this research explores how consumers choose luxury products and brand logos when meeting with people with whom they have different relationships (e.g., close friends and casual acquaintances) with. Our research questions include: Does one tend to choose high-end brand vs. low-end brand depending on the relationships they have with the people they are meeting with? Does relationship context matter when it comes to choosing loud vs. quiet brand logo? At this exploratory stage, we conducted literature review and in-depth interviews in a local mall, and found some preliminary evidence of the role of relationship contexts in consumer brand preference of luxury consumption.<\/p>\n

\u00a0Method and Results<\/strong><\/p>\n

Due to the exploratory nature of the study, we conducted semi-structured in-depth interviews in a local mall. The focus of interest is on female consumers and premium handbags, which takes account the largest percentage of luxury consumption. The interviewees who wore luxury handbags were chosen randomly in the mall and their age range is from 20s to 40s. The participants\u2019 occupations included executive administrator, small restaurant owner, student, and nurse. The individual interview took about 15-30 minutes and participants were rewarded with a $5 Starbucks gift card.<\/p>\n

Generally, participants like popular high-end handbag brands, such as Louis Vuitton, Prada, Dior, Michael Kors, Marc Jacobs, and Ivanka Trump. The majority of participants prefer medium to small, and even inside, logos on their premium handbags. We identified some important factors that influence consumer handbag selections from these interviews, including their styles, outfits, the purpose of events, and time of going out. For example, participants usually choose cross-body bag if they go to a bar at night. This is because they want to be convenient and enjoy the events, rather than holding a tote, which offers more space for carrying working stuff at daytime.<\/p>\n

People select quiet logo handbags mostly because of their physical functions, outfit match and styles, being humble, and the value of their cost. Luxury handbag consumers need to show up with sophisticated patterns of “less flashy and tacky.” For instance, trendy luxury consumers concentrate more on the styles than on the visible handbag logos. Relationships are reported to contribute a minor role in handbag choices for most participants, who do not usually differentiate handbag logos when they meet with close friends or strangers.<\/p>\n

A small number of participants reported their conscious effort of trying to distinguish their handbag choices when they meet with different people. These participants tend to choose a loud logo on their totes when they go with strangers and casual acquaintances, because they want to show the best of the premium products, to establish a social status, and to define their characteristics in meetings with new people. For close friends, these participants prefer quiet handbag logos and focus on their styles and outfits. According to these participants, close friends understand each other and they always want to be themselves on fashion styles with close friends, rather than showing off with loud logos.<\/p>\n

Conclusion <\/strong><\/p>\n

Luxury brand consumption is a social behavior that is embedded in the consumer\u2019s network of friends and acquaintances, even when one may not be fully aware of it. This research helps to understand how consumers choose conspicuous products and the level of logo prominence, specifically luxury handbags, when they meet their close friends vs. casual acquaintances. We have found some preliminary evidence that people tend to use loud logo when they meet with acquaintances in order to make an impression for high status and tend to use quiet logo when they meet with close friends. However, to understand how people choose handbags among many brand names, other factors should also be considered, such as price range, product design and color, personal styles, and so on. Further investigation is needed in order to make any generalization and to test the additional factors. We plan to conduct experiments and present stimuli in order to establish the causal effects between relationship closeness and luxury brand preference. It would also be interesting to conduct a cross-culture study and compare the pattern in collective vs. individualist cultures, as people from different cultures tend to have different relational orientation.<\/p>\n

Relationship context is especially important at today\u2019s social media marketing platform since consumers are connected more than ever before. This research has essential implications for marketing managers and advertisers. For example, marketing manager may develop deferent campaigns for different consumer networks based on their relationship closeness. Advertisers will also need to keep into consideration when it comes to print ads and TV commercials the relationship context the focal brands are being consumed.<\/p>\n

\u00a0<\/strong><\/p>\n

Shouyang Zhang, Ph.D.<\/a><\/p>\n

Assistant Professor of Management & Marketing, Cameron School of Business<\/p>\n

University of St. Thomas<\/p>\n

See more posts by this author<\/a><\/p>\n

Co-authored by Hang Phan – UST MS Finance Candidate<\/em><\/strong><\/p>\n