Hedonic Value and Collaborative Luxury Consumption: A Moderated Mediation Model

Abstract

In the recent past, attitude towards consumption has shifted with the development of sharing and renting models as new ways of consumption. This study used the theory of reasoned action to identify the role of hedonic value, attitude, subjective norm and perceived risks in influencing purchase intention in collaborative consumption for luxury fashion, as opposed to possessing goods. Data were collected from two high-end malls in Dubai ( n = 202) using a random sampling method. Before hypothesis testing, confirmatory factor analysis was done in AMOS 25. To examine mediation and moderation effects among constructs, the SPSS PROCESS Macro was used. The results of the study reveal that the two mediating variables, attitude towards luxury goods in collaborative consumption and subjective norm, strengthen the link between hedonic value and purchase intention for collaborative consumption of luxury goods. Further, the results of moderated mediation reveal that the perceived risk negatively affects the relationship between hedonic value and purchase intention and the relationship between subjective norm and purchase intention. As collaborative consumption is in the nascent stages in Dubai, United Arab Emirates, there is a need for marketers to carefully design their current strategies to reduce the risk associated with luxury rental goods and enhance consumer reassurance for increasing hedonic value.