Assessing the moderating effect of subjective norm on luxury purchase intention: a study of Gen Y consumers in India

Abstract

PurposeAlthough Generation Y consumers contribute significantly to the luxury market, still there is a limited amount of research conducted to explain their luxury consumption behavior, particularly in context of emerging markets like India. The main objectives of this study are to understand the key factors that affect luxury purchase intentions of Generation Y consumers using the theory of planned behavior (TPB) and to examine the moderating effect of subjective norm on other TPB variables, namely, attitude and perceived behavioral control.Design/methodology/approachPurposive sampling method was used to collect data from Generation Y luxury fashion consumers in New Delhi, India. Confirmatory factor analysis and structural equation modeling was employed to analyze the data.FindingsThe findings of this study revealed subjective norm and perceived behavioral control were positively related to luxury purchase intentions. Further, subjective norm was found to moderate the relationship between attitude and luxury purchase intentions.Originality/valueThis study will help consumer behavior researchers and practitioners to understand the core reason behind luxury purchase intentions of Generation Y consumers in India. It will enable luxury brand companies to create suitable marketing strategies which align with the mindset of this new demographic segment.

Role of conspicuous value in luxury purchase intention

“…This study aims to bridge this gap. Prior studies have found attitude and subjective norm to be significantly related with luxury purchase intention (Jain, 2020; Summers et al , 2006). Therefore, these variables are chosen as mediators for this study.…”

“…They have high disposable income (Deloitte, 2018) and therefore, this group is considered as the major force behind luxury market growth in India. However, very few studies have been conducted to understand Gen Y consumers' luxury purchase behavior in Indian market context (Jain, 2019, 2020). This study tries to bridge this lacuna in the literature.…”

“…Further, various studies in the past have confirmed that conspicuous value has been the major predictor of luxury purchase intention particularly in collectivistic societies like India (Jain, 2019; Eng and Bogeart, 2010). Numerous authors have found attitude toward luxury goods and subjective norm as important factors leading to consumers' luxury purchase intention (Ling, 2009; Jain, 2020). However, to the authors' best knowledge, so far no study has been conducted to understand the indirect relationship between conspicuous value and luxury purchase intention via attitude and subjective norms.…”

Does social influence turn pessimistic consumers green?

“…In addition, a few studies have considered social influence as a moderator (Sawang et al, 2014; Wan et al, 2018). For example, Jain (2020) argued that, if social influence is favorable to purchase behavior, attitude predictive capability increases. Similarly, Wan et al (2018) suggested that social influence positively moderates the influence of consumers' attitude on their intention to use green space in Hong Kong.…”

Luxury rental purchase intention among millennials—A cross‐national study

“…Lately, academic discussions have majorly concentrated on the brand‐new luxury goods (Jain, 2020; Turunen & Leipämaa‐Leskinen, 2015) and have neglected mainly the discussions around rented fashion luxury products. The luxury fashion rental consumption has emerged but is still largely ignored.…”