Overall value assessment of luxury accessories brands: Antecedents and consequences from the perspectives of Gulf Arab tourists

Abstract

Marketing research indicates a robust industry for luxury brands with ever-increasing consumer demand. However, studies indicate no correlation between the booming luxury industry and the value of luxury as perceived by the consumers. Against the backdrop of growth in this industry and its contributions towards the economy of a nation, it is imperative to understand why consumers buy luxury accessories brands from an academic and managerial perspective. It is equally important to understand the reasons as to why consumers hold certain brands dear and how their perception of luxury affects their buying decisions. Previous market research done in this regard highlighted the need for luxury brand managers to adopt a focused approach when selling luxury goods. Consumers should be able to perceive certain value in the luxury accessories brand that justifies its high cost, especially during periods of economic recession. To obtain a quantifiable and sustainable competitive advantage, it is prudent for the luxury industry to investigate and analyse the consumer value of their products. Therefore, it is crucial to study the types of value required and their impact on consumer behaviour. To bridge this gap, the present study proposes generating an in-depth explanation of how consumers’ luxury value dimensions determine their overall luxury brand value in an accessories context. Subsequently, these influence their repurchase intention through direct and indirect routes, by establishing and testing an integrated model of the determinants and consequences of luxury accessories value from the perspective of Gulf Arab tourist. To meet the requirements of this research, a mixed methodology was deployed. This combined all quantitative and qualitative data, in a sequential manner, to deduce the results. An explorative qualitative phase was used at the preliminary level of research. This required various focus groups to set out the scope of the model and devise topics for the questionnaire. This was followed by a quantitative research phase that compiled and evaluated all data generated from the self-administered questionnaires. Hypothesis testing was estimated using Structural Equation Modelling (Smart Partial Least Square (PLS) v.3) on 397 Gulf Arab tourists who have an experience in luxury accessories. The results confirm that Gulf Arab tourists consider emotional, social, self-identity, relational and financial value when developing their overall value of luxury accessories. Effectively, this shapes their repurchase intention only indirectly through brand trust and preferences. The uniqueness of this research is elicited from being the first to use the theory of consumption values to construct a model that uncovers overall value for luxury accessories brands and tests its influence on repurchase intentions. This model develops the narrow view of consumption-value theory in terms of the value components that affect only consumption choice decisions. The research model cultivates this view by integrating a set of value components as a basis on which to explain consumer preferences and purchase decisions for luxury accessory brands. Thus, the theory of consumption values may go beyond choice decisions to include behavioural outcomes. In addition, this study reiterates the experimental view of consumption, as proposed by Holbrook and his colleagues. The study states that cognitive and affective components work in collaboration to determine the overall value of luxury accessories brands. The research provides supplementary data to the assumptions of the traditional rationality models. Combined with such models, this research intends to enhance the prediction of the value of consumer luxury accessories. Methodologically, the existing empirical research relies on small student samples, used conventionally in similar studies. Consequently, a significant number of respondents lacked the necessary purchase experience, essential for this research. However, the present research contributes by using actual consumers of luxury accessories brands; thereby, enhancing the validity of the empirical findings. Another significant contribution of this research is the use of a mixed-methods approach to understanding consumer behaviour. This allowed the researcher to obtain a better understanding of the Consumer Value theory within the context of luxury accessories, branding and endorsements. The qualitative and quantitative aspects of such consumer values have never been explored before. Therefore, this research anticipates providing a benchmark for all future research under the same topic. Pragmatically, regarding emotional, social, self-identity, relational and financial dimensions, marketers will be able to base their selling strategies based on this model. Furthermore, it facilitates the improvement of purchase value for their luxury accessories and help them target consumers in different market segments. Consumers may differ with respect to their perceived values for luxury commodities, but prefer a prticular luxury brand to satisfy their emotional and cognitive needs. This model is also useful from a market position, while enhancing the overall Marketing efficiency for luxury accessories. Alternatively, luxury accessories brand managers will be required to build strong brand value and a continual relationship with their consumers to prevent them from searching for and investing in alternate brands and substitutes; thereby encouraging cross-shopping.