An empirical study of the intention of vietnamese consummers to purchase luxury goods

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business




Truong Thi Xuan Thao


AN EMPIRICAL STUDY OF THE
INTENTION OF VIETNAMESE
CONSUMERS TO PURCHASE
LUXURY GOODS



MASTER OF BUSINESS (Honours)






Ho Chi Minh City – Year 2014
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business




Truong Thi Xuan Thao

AN EMPIRICAL STUDY OF THE
INTENTION OF VIETNAMESE
CONSUMERS TO PURCHASE
LUXURY GOODS

ID: 21110021

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. NGUYEN THI MAI TRANG





Ho Chi Minh City - Year 2014
ACKNOWLEDGEMENT
Firstly, I would like to express my gratefulness to my supervisor Dr. Nguyen Thi Mai
Trang for her professional guidance, intensive support, valuable suggestions, instructions and
encouragement during the time of doing my research.
I would like to express my deepest gratitude to Professor Nguyen Dong Phong,
Professor Nguyen Dinh Tho, Dr. Tran Ha Minh Quan for their valuable time as the members
of the proposal examination committee. Their comments and meaningful suggestions were
contributed significantly for my completion of this research.
My sincere thanks are given to all of my teachers at International Business School –
University of Economics Ho Chi Minh City for their teaching and guidance during my
Master course.

ABSTRACT
In recent years, the strong development of economy has increased significantly the
number of rich people in Vietnam. Higher disposal income together with economic
globalization leads to more concern to luxury products among Vietnamese people, especially
in Ho Chi Minh City. This trend opens many opportunities and challenges for international
luxury companies who plan to enter Vietnam’s market. In an effort to help luxury companies
have an overview about consumers’ behavior in such market, this study examines influencing
factors that affect Vietnamese consumers’ attitude towards purchasing luxury goods and their
purchase intent of luxury goods. Employing regression analyses, the research findings
indicate that brand consciousness, materialism, and the need for uniqueness have significant
impact on attitude towards purchasing luxury goods among Vietnamese consumers. In
addition, consumers’ purchasing intention of luxury goods is affected by their attitude
towards buying luxury goods. Practical and managerial implications are also further
discussed.
Keywords: luxury goods, attitude towards purchasing luxury goods, purchase intent






TABLE OF CONTENTS
ACKNOWLEDGEMENT
ABSTRACT

TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
CHAPTER 1: INTRODUCTION 1
1.1 Research background 1
1.2 Research gap 3
1.3 Research objectives 5
1.4 Research methodology and research scope 6
1.5 Research contribution 6
1.6 Research structure 7
CHAPTER 2: LITERATURE REVIEW 8
2.1 Luxury goods 8
2.2 Attitude towards purchasing luxury goods and purchase intent 9
2.3 Brand consciousness 11
2.4 Social influence 13
2.5 Materialism 15
2.6 The need for uniqueness 17
2.7 The conceptual model and hypotheses of the research 18

CHAPTER 3: RESEARCH METHODOLOGY 21
3.1 Sample 21
3.2 Data collection and procedure 22
3.3 Questionnaire design 25
3.4 Data analysis method 28
CHAPTER 4: DATA ANALYSIS AND RESULTS 30
4.1 Respondents’ demographics 30
4.2 Reliability Analysis 31
4.3 Exploratory Factor Analysis (EFA) 34
4.3.1 EFA for Independent variables 34
4.3.2 EFA for Dependent variables 36

4.4 Regression Analysis 37
4.4.1 Simple Regression Analysis 37
4.4.2 Multiple Regression Analysis 39
CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 47
5.1 Conclusion 47
5.2 Managerial Implications 48
5.3 Limitations and future research 52
REFERENCES 53
APPENDICES 59

LIST OF FIGURES
Figure 2.1: A theoretical model 19
Figure 3.1: Research Process 24
Figure E1: Histogram of Attitude 68
Figure E2: Normal Plot of Attitude 68
Figure E3: Scatter Plot of Attitude 69

LIST OF TABLES
Table 3.1 Source of data collection 25
Table 3.2 Source of measurement scale 27
Table 4.1 Respondents’ characteristics 31
Table 4.2 Reliability test result 33
Table 4.3 KMO and Bartlett's Test of Independent Variables 34
Table 4.4 Rotated Component Matrix of Independent Variables 35
Table 4.5 KMO and Bartlett's Test of Dependent Variables 36
Table 4.6 Rotated Component Matrix of Dependent variables 37
Table 4.7 Model Summary of simple regression analysis 37
Table 4.8 ANOVA of simple regression analysis 38
Table 4.9 Coefficients of simple regression analysis 38
Table 4.10 Correlations matrix 41
Table 4.11 Model Summary of multiple regression analysis 42
Table 4.12 ANOVA of multiple regression analysis 42
Table 4.13 Coefficients of multiple regression analysis 43
Table 4.14 Summary of hypotheses testing result 46
Table D1: Total Variance Explained of Independent Variables 67
Table D2: Total Variance Explained of Dependent Variables 67
Table D3: Model Summary of multiple regression analysis 67
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CHAPTER 1: INTRODUCTION
1.1 Research background
For many years, people around the world have satisfied themselves with the
possession of beautiful and valuable products. As a result, luxury goods have become the hot
issue of many discussions and debates. Today, consumers have at higher discretionary
income than ever before. Income has increased throughout social classes, but dramatically in
the wealthiest groups (Husic & Cicic, 2009). Current consumers are willing to spend
significantly more amounts of money for luxury products.

Luxury products are known as the products that perceived premium quality, unique
style, designed by well-known luxury brands, and limited accessibility (Hung et al., 2011). In
recent years, luxury products have now become easily affordable to more consumers,
especially for consumers from the middle class who make more money than ever before
(Sun, 2011) and therefore luxury brands have the chance to develop and establish their brand-
name worldwide. Especially, the fast growth of economy in Asian countries has opened more
opportunities for consumers in those countries accessing luxury products. According to
Zhang and Kim (2013), Asia is starting to be recognized as a growing market in luxury sales
besides traditional markets such as Europe and the U.S. Increasing exposure to global media
and the popularization of Western lifestyles through local media seem to have increased the
desire for high-quality goods and services among consumers in emerging markets (Belk, as
cited in Shukla, 2012). Moreover, around 61 percent Asia-Pacific customers show their
willingness of spending their hard-earned money on luxury products, higher than any other
area in the world, according to the result of a survey done by Nielsen (Moodley, 2013). With
regard to luxury products and services, studying the consumers‟ attitude towards luxury
goods in emerging markets is particularly important due to the tremendous growth of luxury
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consumption among consumers in those markets. Researchers believe that the rapid
increasing of new rich consumers in emerging markets is one of the determinants that makes
these markets become attractive to luxury firms around the world (Shukla, 2012). China,
India, Malaysia, Thailand, and Turkey are out-standing representatives of emerging markets
in terms of luxury goods consumption (Shukla, 2012). Especially, China in recent time has
become one of the biggest luxury markets in Asia-Pacific region (Zhang & Kim, 2013).
Although Vietnam is not a potential market of luxury products like China is, many
luxury brands determine to choose Vietnam as destination for their market expansion
strategy. Most of well-known luxury brands worldwide such as Mercedes Benz, Apple,
particularly fashion luxury brands as Louis Vuitton, Hermes, Rolex, Calvin Klein, Christian
Dior…have already announced their entry in the Vietnam‟s market. There are some reasons
that make Vietnam be more attractive to luxury brands. According to a report of Lee (2012),
Vietnam has seen rapid aurbanisation, rising new wealth and higher disposable income

among population. Those are significant advantages together with the perception of luxury
goods as the driving factor in the “tangibalisation of success” that make Vietnam become a
hot destination for the luxury market (Lee, 2012). The desire of showing success and wealth
is generally driven by a small of group of rich people, as well as younger population in
Vietnam who are trying to make a social recognition through what they wear outside. Hence,
using luxury products will be the best way to help Vietnamese people fulfill such desire. This
trend has already supported by a research of Nguyen and Tambyah (2011). In their research,
they argue that in Vietnam the consumption of luxury goods, brands, and symbols that are
associated with status has rooted in hearts and minds of a large part of Vietnamese
population, and the trend is becoming widespread (Nguyen & Tambyah, 2011). Especially,
under the impact of economic integration between Vietnam and other parts of the world,
many foreign luxury brands officially broaden their business to Vietnam. As a result, people
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can access branded products more easily than ever before. Hence, luxury consumption is
more and more popular particularly in big cities such as Ho Chi Minh City or Ha Noi. Luxury
product categories, including fashion goods, technology goods, and cars, are most loved
items in Vietnam. For instance, in recent years Vietnamese consumers show much concern to
a smartphone – iPhone, a product of luxury brand Apple. There are many reasons for
Vietnamese consumers to prefer iPhone to other kinds of smartphone. According to Dam
(2013), beside out-standing features of iPhone, Vietnamese people believe that using iPhone
brings them the feeling of success and higher social status and being admired by others which
they cannot feel when using other phones.
1.2 Research gap
Purchasing luxury goods in Vietnam can be seen through some official statistic
numbers of government. According to a report of Ministry of Industry and Trade of The
Socialist Republic of Vietnam (2013), in the first six months of 2013, the import turnover of
luxury products is approximate 2.9 billion USD, increase 16.8% more than the same period,
most of which are wine, tobacco, jewelry, and mobile phones. Mr. Matthaes – Managing
director of Taylor Nelson Sofres states that the tendency towards consuming luxury items in
population will be higher in next years (Matthaes, 2009). Especially, a recent survey of

29,000 people across 58 countries done by Nielsen shows that Vietnam is in top-three
countries that most likely to use luxury goods with 56% of Vietnamese consumers answer
that they are willing to pay more money for owning luxury products (Moodley, 2013).
Moreover, Vietnam is expected to share common characteristics such as large population,
rapid increase of wealthy people with higher discretionary income with China – the biggest
luxury market in Asia. Hence, Vietnam possesses many advantages to be an ideal destination
of international luxury brands in near future. However, to be successful in Vietnamese
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market, such advantages are only necessary but not sufficient conditions. It requires luxury
firms to do deliberately and deeply studies to find out what factors stimulate using luxury
items of consumers. In order to further understand the consumers‟ purchase intent of luxury
products; it is helpful to know how they perceive or their attitude towards purchasing luxury
products. Stated differently, the key factors associated with consumers‟ attitude towards
purchasing luxury goods need to be examined. This way, international luxury brands can
enhance their understanding and knowledge of consumer behavior towards luxury items
which are critical for planning a long term strategy to win the Vietnam‟s luxury market.
In the literature, a number of studies about luxury goods (Husic & Cicic, 2009;
Amatulli & Guido, 2011; Kogler, 2006) have been conducted up to now. However, most
studies restricted themselves to identify the factors that directly affect luxury purchase intent
of consumers. There is little research developed for examining the determinants of
consumers‟ attitude towards purchasing luxury goods that exposes much effect on purchase
behavior of consumers. In addition, very few scholars do the research about this issue in Asia
- a non-traditional market of luxury products. To the best of our knowledge, only the studies
of Zhang and Kim (2013), Jeon et al. (2008), and Hung et al. (2011) have ascertained which
factors that the consumers‟ attitude towards purchasing luxury goods depends on in Asia‟s
luxury market. More specifically, the research‟s findings of Zhang and Kim (2013) show that
brand consciousness and materialism impact significantly on consumers‟ attitude towards
purchasing luxury goods in China. On the other hand, the research‟s findings of Hung et al.
(2011) and Jeon et al. (2008) have proved that social influence and the need of uniqueness
respectively are also the determinants of consumers‟ attitude towards purchasing luxury

goods in emerging markets and Korea‟s market. Those are the markets that possess many
similar traits to Vietnam‟s market. Therefore, this study aims to test the influences of brand
consciousness, materialism, social influence, and the need of uniqueness on consumers‟
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attitude towards purchasing luxury goods in Vietnam. Moreover, the motivation of this study
also derives from the lack of studies in terms of luxury goods in Vietnam. The reason for that
scarcity is that luxury products just have got the concerns of Vietnamese people in recent
years, since Vietnam moves from poor to developing country – a milestone that marks the
improvement of disposal income among the population. There are very few studies, for
example, the research of Nguyen and Tambyah (2011) about antecedents and consequences
of status consumption in Vietnam; or Vietnamese consumers‟ perception of luxury scooter
(Thuy, 2008). These studies, however, focus on other aspects of luxury goods. Thus, in order
to fulfill such gap this study aims to investigate whether brand consciousness, materialism,
social influence, and the need of uniqueness influence on consumers‟ attitude towards
purchasing luxury goods in the context of Vietnam.
1.3 Research objectives
The overall objective of this study is to examine some factors influencing the
intention to purchase luxury goods. Specifically, it investigates:
- The relationship between brand consciousness and consumers' attitude towards
purchasing luxury goods.
- The relationship between social influence and consumers' attitude towards purchasing
luxury goods.
- The relationship between materialism and consumers' attitude towards purchasing
luxury goods.
- The relationship between the need for uniqueness and consumers' attitude towards
purchasing luxury goods.
- And finally, the relationship between attitude towards purchasing luxury goods and
intention to purchase luxury goods.
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1.4 Research methodology and research scope

This study uses questionnaire to collect data. The survey questionnaire is originally
developed in English and then translated into Vietnamese. In-depth interviews are then
conducted with eight people in order to modify the Vietnamese version of the questionnaire
before the survey is implemented in mass. The next step is analyzing the collected data. The
data of this research is processed using SPSS software with three main stages. First,
Cronbach‟s Alpha is used to test the reliability of the measurement scale. Then, the validity
of the measurement scale will be checked by Exploratory Factor Analysis (EFA). Finally,
simple regression and multiple regression are employed as the main method for investigating
the relationships among factors in the research model.
Ho Chi Minh City has been chosen to conduct the survey for this study since it is one
of the biggest cities in Vietnam and most of international brands centralize here. Moreover,
Ho Chi Minh City is also one of the wealthiest cities in Vietnam, so people who live here will
have higher chance to consume luxury goods, which are usually quite expensive.
Respondents of this study are people who live in Ho Chi Minh City and know about luxury
goods.
1.5 Research contribution
Based on findings in the end of this research, we hope to provide practical
contributions to luxury industry, particularly to international luxury brand companies who
have the intention to expand their business to Vietnam, especially enter Ho Chi Minh City
market. Obviously, expansion to a new market always accompanies with great opportunities
as well as considerable challenges. Hence, it is essential for managers of luxury companies to
find out effective strategies that can maximize opportunities and minimize obstacles. This
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study with deep understanding of consumers‟ intent to buy luxury goods can help the luxury
firms‟ managers have a higher chance to be successful in Ho Chi Minh City market. In
summary, the findings of this study would be useful for luxury brand marketers who want to
penetrate the business in Ho Chi Minh City and who have already developed in the market
and want to maintain the loyalty of their customers.
1.6 Research structure
This study is organized into five chapters. It starts with the introduction chapter which

presents an outline of this research. This chapter includes background of the research,
motivation for doing research, and research objectives. Besides, the significance that this
study contributes to management practice as well as scope of the research and methodology
of data analysis are also mentioned in the first chapter. Chapter two reviews and synthesizes
the theories in the literature of seven concepts, including luxury goods, brand consciousness,
social influence, materialism, the need for uniqueness, attitude towards purchasing luxury
goods, and purchase intent. This chapter also describes research model and proposed
hypotheses. Chapter three introduces research methodology used to empirically test the
research model. Chapter four presents the results of data analysis. The final chapter discusses
summarily the study‟s core findings, suggests some recomendations for business strategy of
international luxury companies based on findings and finally points out some limitations of
the research.



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CHAPTER 2: LITERATURE REVIEW
This chapter mainly introduces the theories, which are proposed by many scholars in
academic field, relate to each of factors in the model and research model of the study. First,
luxury goods concept is introduced to clarify specifically about luxury definition, its
attributes and its symbolic values. Second, the related theories of each construct, including
brand consciousness, social influence, materialism, the need for uniqueness, and attitudes
towards purchasing luxury goods are discussed respectively. Finally, research model is
proposed, simultaneously, its constructs and relationship hypothesized among these
constructs are also discussed.
2.1 Luxury goods
Todays, through media communications, luxury goods become more popular to
consumers when there are many and many people can afford to buy a luxury product. The
difference between this kind of goods and other kinds of commodities is that luxury goods
are often very expensive, perceived premium quality and produced with limited quantities,

such as Rolex watches, Louis Vuitton handbags, Banana shirts, Gianni Versaci suits, and
Lexus cars.
According to Wiedmann et al. (2007), the concept of luxury refers to the highest level
of prestigious brands including several physical and psychological values. Luxury goods or
status goods are considered as goods for which the mere use or display of a specific branded
product brings prestige on the owner, separate from any functional utility (Grossman &
Shapiro, as cited in Husic & Cicic, 2009). Beside, Dubois and Paternault define luxury goods
are the goods that possess a list of following attributes including high quality, beauty,
sensuality, exclusivity, expensive price, and uniqueness ( as cited in Berthon et al., 2009).
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With the difference in definition between scholars, it proves that the concept of luxury is
difficult to define. The reason is that perception of luxury is much affected by social context
which depends on cultural evolution (Nueno & Quelch, as cited in Amatulli & Guido, 2011).
Thus, luxury concept is changeable, vary, and extremely subjective.
In the world that rich people are growing rapidly and money no longer can make them
different from the others, owning luxury goods will be an effective way to show one‟s
wealth. Luxury products possess a desirability that goes beyond their functional utility and
bring to consumers a high status feeling through ownership. One of the main reasons that
motivates consumers to buy luxury brand items is that luxury goods help them to satisfy their
material as well as socio-psychological needs better than regular goods (Vigneron & Johnson,
1999; Wiedmann et al., 2007). In addition, consumers are willing to pay lots of money for
unique attributes which only can be found in luxury products including high quality,
craftsmanship, recognisability, exclusivity and reputation (Zhang & Kim, 2013). Consumers‟
purchasing luxury goods also ties to a set of social aspects including displaying status,
success, distinction. Zhang and Kim (2013) point out that luxury has its essential role of
reconstructing social stratification. That is, people consider luxury goods as a key
communication means to define themselves in society.
2.2 Attitude towards purchasing luxury goods and purchase intent
In marketing area, attitude of customers is one of the most important indicators for
marketers to achieve consumer insight. The concept of attitude is understood as a general

assessment of consumer about quality of a product or service after experiencing. Consumers‟
attitude is the consumer„s feeling including good or bad, endorsement or preference towards
product attributes, which is considered as the criteria that consumers refer to make purchasing
decisions (Hanzaee & Jalalian, 2012). Stated differently, consumers‟ attitude explains how
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people‟s feeling and evaluation lead to attitudes and how their attitudes form to actions and
impact on their intentions to perform behaviors (Vallerand et al., 1992). According to
Fishbein and Ajzen (as cited in Hanzaee & Jalalian, 2012) attitude possesses several
attributes:
 Attitudes are not inbuilt; they are formed after real experiences
 Attitudes can be established through the observed stimulus factors and a sequence of
repetitive behaviours.
 Attitudes hold objective reference which relates to some object person, or issue. In
regard to this trait, they are different from motives or personality traits which reflect
subjective reference.
 Once established, attitudes are usually permanent and remain unchanged under
regular conditions.
 From operational point of view, attitudes reflects responses that relevant with a
specific object situation.
Attitude towards implementing a behavior is considered as an assessment of the level
that a person likes or dislikes to perform the behavior (Finlay et al., 2002). The theory of
reasoned action (TRA) that proposed by Fishbein and Ajzen explains the relation of intention
and attitude of individual‟s behaviors (Fishbein & Ajzen, as cited in Sun et al., 2013). This
theory mentions that intention of performing behavior would be affected by “Attitude” and
“Subjective Norm.” Thus, the more positive the attitude of an individual toward behavior is,
the higher intention of behavior will be, vice versa (Sun et al., 2013). Hence, in the regard to
consumer‟s decision-making process, it can conclude that attitude is a direct indicator that
can predict the behavioral intention and actual buying behavior. In many empirical studies,
this positive relationship between attitude and purchase intention has been supported through
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different kinds of product and service categories (Zhang & Kim, 2013). It can be inferred for
the case of luxury goods. When consumers‟ attitude towards purchasing luxury goods is
positive, their buying intentions are also positive. Thus, the following hypothesis is
developed:
Hypothesis 1: Attitude towards purchasing luxury goods is positively related to
purchase intent of luxury goods.
2.3 Brand consciousness
Consuming luxury brand products is considered as an effective way in enhancing
identity, a sense of success and identification for consumers. As Husic and Cicic (2009) argue
luxury brand products are part of a new social protocol where one‟s identity and self-esteem
are evaluated by the visible brands that person wears outside. The importance of brand name
in consumer‟s decision making is always supported in practice. Consumers often confuse
price, quality and brand and use brand as a quality indicator (Husic & Cicic, 2009). When
making buying decision in unclear situation, people believe that well-known brands are better
than less well-known brands, thus brand name becomes one of the most exact signals that
help consumers make the right purchasing decision. In comparison with brand name, brand
consciousness is not only an awareness or interest toward brand names. According to Rausch
(2002) “It is the understanding that brand names, in general, have personal relevance or value
in that they serve as a signal of functional or symbolic value” (p. 55). In the literature, brand
consciousness is defined as the psychological preference towards famous brand-name goods
(Sproles & Kendall, as cited in Zhang & Kim, 2013). Brand-name products are endorsed to
consumers by its prestige value. Consumers who value prestige are willing to pay higher
prices for products that they perceive as highly prestigious symbols (Deeter-Schmelz et al.,
2000). A higher price can make a product seem more valuable to consumers because the price
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can signalize prestige value of the product (Zhang & Kim, 2013). Consumers with high level
of brand consciousness will expect that brands symbolize their status and wealth and
therefore are hunting for luxurious and famous brand-name products (Liao & Wang, 2009).
In practice, Zhang and Kim (2013) point out that brand consciousness is the most crucial
variable in relation to prestige shopping. With the significance of brand consciousness in

consumer‟s perception, luxury producers nowadays pay more attention to enhancing the
value of their brand. They add a completely new dimension to their product; it is not only the
unique design or high quality material that was crucial, it was the image, lifestyle and
symbolic value that the brand brings to their customers.
Although the product category plays a considerable role that affects purchase
intention, whatever their origin and price, brand name always has a certain strength. When
products assocciate with a brand name they will share a symbolic meaning and a core of
values expressing the feature of that brand (Nia & Zaichkowsky, 2000). Therefore,
consumer‟s purchase behavior is sometimes determined by intangible values that the product
brings to the owner. For instance, the product of Rolex, people choose to buy a Rolex watch
not only because outstanding quality but also the Rolex brand name and symbolic values it
stands for: charming look, sophisticated design, and professional style. Luxury items,
therefore, are bought for what they symbol for, beyond what they are. When consumers
purchase or expose the desire to own a specific brand, it means they are showing a wish to be
joined in the group of people perceived to consume that brand (Husic & Cicic, 2009).
Consumers with preferences for high prestige should prefer brands that improve their own
actual or desired prestigious self-image, and communicate this self-image to other individuals
seen as sharing this image (Husic & Cicic, 2009). Based on above arguments, we propose the
following hypothesis:
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Hypothesis 2: Brand consciousness is positively related to attitude towards
purchasing luxury goods.
2.4 Social influence
Social influence is not a new concept in the literature. It is popular especially in
psychology scientific field. Social influence is understood as the way that other people
influence one‟s beliefs, feelings and behaviour (Mason et al., as cited in Suki, 2013). In other
words, social influence explains how actions and thoughts of a person are impacted by others.
It is the result of the interacting process between people in social life. More generally, other
aspects of social psychology including social learning, relationship building and maintaining,
attitude and imitation, group decision making, intergroup interaction, and bargaining and

negotiation are considered as other forms of social influence (Mason et al., 2007). In addition,
according to Chow et al. (2012) social influence includes the influence of media, parents, and
peers. Social influence, in some researches, is assumed as a cause that leads to the
individual‟s responses and attitudes toward brands selection. Consumers have the tendency of
purchasing products based on the values that goods bring to them and to other people in their
social reference groups (Leigh & Gabel, as cited in Shukla, 2010). It is because people
usually tend to make themselves associate with the current social group that they belong to.
Moreover, consumers‟ behaviour also depends on the pressures of social norms and the
requirements of socialization process which come from family and other reference groups
(Shukla, 2010). That great impact of social influence on consumers‟ purchase decision also
has been proved by many researchers in academic field (Chow et al., 2012). For instance,
Jamil and Wong (2010) argue that the intention to buy a brand is affected not only by
consumer‟s attitude towards that brand but also by the influence of social norms and other
people‟s expectations. Moreover, Schiffman et al. (as cited in Suki, 2013) emphasize that
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although the influences of social groups, culture and subculture are not clear, they are
considered as the most important determinants that are internalized and impact the way
consumers value and accept the products.
The level in which consumers are impacted by social influence in their attitude is
determined by their susceptibility to such influence. From this point of view, social influence
affects the demand to identify or improve personal image in the others‟ opinion through the
possession and use of products and brands, the willingness to conform to the expectations of
others regarding purchase decisions, and the tendency to learn about products by observing
others or seeking information from others (Bearden et al., 1989). Conceptually, this means
certain products and brands are used to provide entry into certain groups. It would appear that
the need to identify with, or enhance one‟s image in the opinion of significant others operates
closely with both status consumption and conspicuous consumption. Consumers may be
susceptible to social influence through observation, awareness or anticipation of decisions
made by others in terms of buying luxury products. Especially, when a luxury item helps it
possessor be admired by other people, it will raise the motivation of luxury goods purchasing

in consumers. The relationship between social influence and luxury goods purchasing has
been already proved in marketing literature. Many scholars such as Vigneron and Johnson
(1999), Wiedmann et al. (2007) mention and empirically test the effect of social influence on
consumers‟ luxury brand purchase intention in their studies. According to Tsai, the
motivation of owning luxury brands of socially oriented consumers is aim to display their
status and success to their targeted social groups (as cited in Hung et al., 2011). With above
arguments, the following hypothesis is proposed:
Hypothesis 3: Social influence is positively related to attitude towards purchasing
luxury goods.
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2.5 Materialism
Belk defines materialism as „„the importance a consumer attaches to worldly
possessions‟‟ (1985, p. 265) and considers it as a group of related traits, attitudes, and values
that focus on possessions as well as a guide that affects one‟s choice of goods and events
(Zhang & Kim, 2013). Richins and Dawson (1992, p. 307) define materialism as „„the
importance a person places on possessions and their acquisition as a necessary or desirable
form of conduct to reach desired end states, including happiness.‟‟ Materialism is also
considered as „„a set of attitudes which regard possessions as symbols of success, where
possessions occupy a central part of life, which include holding the belief that more
possessions lead to more happiness‟‟ (Chan & Prendergast, 2007, p. 214). In his study, Belk
(1985) also argues such possessions are placed in the central of a person‟s life and are
assumed as the source that causes satisfaction and dissatisfaction.
Goldsmith et al. (2012) argue that the rapid development of media and by other
socialization process on buying, owning, and possessing materials goods, is the main
motivation lead to materialism. Moreover, due to the effect of a globalized consumption trend
that is the result of international companies‟ global marketing efforts, people all over the
world are increasingly showing their concern to material lifestyle and valuing luxury brands
that best symbolize their wealth (Solomon, as cited in Jeon et al., 2008). Self-identity theory
shows that the possession of material goods as a practical way to build and present one‟s
identities (Goldsmith et al., 2012). Previous scholars emphasize that materialists are self-

centered, self-indulgent, and considered possessions of luxury products and money as
indicators of happiness and success (Zhang & Kim, 2013; Richins & Dawson, 1992). Beside,
Fournier and Richins report that status display and self-identity are two important motivations
for material-oriented people in order to show their desire towards status-oriented possessions
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(as cited in Jeon et al., 2008). Materialists are believed that they put more concerns to their
possession and acquisition than most other things in life (Richins & Dawson, 1992). They
also express a strong tendency to judge people by the number and value of their material
goods. It is proved that highly materialistic individuals concern more to external cues,
preferring those possessions that are shown in public places (Zhang & Kim, 2013).
Furthermore, materialistic consumers believe that material possession is an effective way of
communication to show others the type of people they think they are (Belk, 1985).
Researchers recognize that materialism is quite popular personality among consumers all
over the world (Belk et al., as cited in Shukla, 2012). Wong and Ahuvia (as cited in Jeon et
al., 2008) in their study, they realize that consumers in Asian express more concerns to the
meaning of luxury consumption than consumers in Western. Especially, in some emerging
markets as China, Thailand, where people are affected strongly by collectivism style,
materialism has a big impact on brand choice of consumers. More specifically, Sharma
assumes that materialistic consumers in emerging markets place more emphasis on luxury
goods because they believe using luxury brands may help them achieve a greater social status
(as cited in Shukla, 2012). The fast growing need for possessions leads to highly appreciating
the role of materialism in consumers; as a result, consumption of luxury goods rises
relevantly (Liao & Wang, 2009). Based on discussion about materialism of previous
researches, this study explores whether materialism positively influences attitude towards
buying luxury items:
Hypothesis 4: Materialism is positively related to attitude towards purchasing luxury
goods.
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2.6 The need for uniqueness
According to Shukla (2012) consumer consumption is much influenced by the need

for uniqueness. The impact of need for uniqueness on consumer behavior is supported in
many academic studies. Ruvio (2008) states that people react emotionally and behaviorally in
order to increase a certain level of uniqueness when they want to be different. Using material
possessions is a mean for individuals to avoid similarity and to express their uniqueness
without encountering extreme social reactions for being different from social norms (Snyder,
as cited in Ruvio, 2008). Such desire can be achieved through possession of distinguishing or
personalized labels, special items, or unique products. With regard to consumer buying
behavior, Tian et al. (2001, p. 52) define the need for uniqueness as “the trait of pursuing
differentness relative to others through the acquisition, utilization, and disposition of
consumer goods for the purpose of developing and enhancing one‟s self-image and social
image”. They emphasize that the higher level of uniqueness a product possesses, the more
valuable such product is perceived (Shukla, 2012). Hence, such product can much improve
an individual‟s position in the social hierarchy. Consumers seek to differentiate themselves
from others and perfect their social image through utilizing the symbolic meanings of the
products they buy, hence they concern much about product categories, brands, designs, and
styles aim to satisfy the needs for uniqueness (Jeon et al., 2008). There are some reasons that
explain why using luxury products can help consumers fulfill their needs of uniqueness. For
one thing, uniqueness is an attribute of luxury products. Thus, acquisition of luxury goods
can express the purpose of the owners is differentiating themselves from others and
enhancing their personal identity. Stated differently, consumers who want to emphasize their
personal identity love to purchase luxury items. That is also the motivation for most of luxury
brands in the world trying to enhance the brands by promising customers the scarcity value of
their products because many people perceive that luxury products are not easily possessed by