Abstract

The Prestige Cosmetics & Fragrances segment dominates the luxury consumer goods market, which has grown considerably over the past decade. According to the Coco Chanel quote, «Luxury is a necessity that begins where necessity ends». Luxurious goods were once considered a luxury reserved for a select few. «Luxury» was used to describe uncommon and limited-supply items which were only available to a select group of people. As time has progressed, luxury goods have become more accessible to middle-class consumers as the luxury market has grown. A total of more than 1.2 trillion euros was spent on the luxury market in 2018. Because of the increasing purchasing power of today’s consumers and the large size of the global luxury market, understanding this consumer group is critical to a company’s success in enhancing its business success in the luxury perfume market. Developing effective plans to meet and exceed consumer expectations is essential for companies in the luxury industry. A luxury brand has distinct characteristics that make it stand out from the rest. This study examined these and other theories focusing on five factors influencing consumers’ purchase intention of luxury branded perfumes. The five factors above are perceived uniqueness, brand image, quality, price, and status. This study aims to shed light on the factors influencing the desire to purchase high-end branded perfumes. More specifically, it aims to discover the root causes of the phenomenon of buying luxury branded perfumes and the primary determinants of luxury-goods consumption. A survey was used to gather data, and structural equation modeling with partial least squares was used to analyse the framework. Because of the findings, four variables (brand image, quality, price, and status) were found to have a positive relationship with purchase intention. The results also show that perceived uniqueness does not significantly impact the desire to purchase luxury perfumes. Marketers and managers could use the results of this study to understand luxury consumer behaviours better and develop marketing strategies that would help their products succeed in the luxury market.

Keywords: luxury branded perfumes, purchase intention, brand image, quality, price, status, perceived uniqueness.

JEL Classification: D11, L66.

Cite as: Krishnan, C., Agarwal, N., & Gupta, S (2022). Factors Influencing Consumer Purchase Intention of Luxury Branded Perfumes Marketing and Management of Innovations, 3, 190-199. https://doi.org/10.21272/mmi.2022.3-17

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Aaker, D. A. (1996). Measuring brand equity across products and markets. California management review, 38(3). [Google Scholar]
2. Amatulli, C., & Guido, G. (2011). Determinants of purchasing intention for fashion luxury goods in the Italian market: A laddering approach. Journal of Fashion Marketing and Management: An International Journal. [Google Scholar] [CrossRef]
3. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. PsycholoBulletinlletin, 103(3), 411. [Google Scholar]
4. Bagozzi, R. P., Baumgartner, J., & Yi, Y. (1989). An investigation into the role of intentions as mediators of the attitude-behavior relationship. Journal of EcoPsychologyhology, 10(1), 35-62. [Google Scholar] [CrossRef]
5. Baron, R. M., & Kenny, D. A. (1986)moderator-mediatordiator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
6. Biau, D. J., Jolles, B. M., & Porcher, R. (2010). P value and the theory of hypothesis testing: an explanation for new researchers. Clinical Orthopaedics and Related Research®, 468(3), 885-892. [Google Scholar] [CrossRef]
7. Boguslaw, S. (2015). Prediconsumer’ssumers purchase intention toward luxury fashion brands by applying several personality traits (Master’s thesis, University of Twente).
8. Cheng, S. I., Fu, H. H., & Tu, L. C. (2011). Examining customer purchase intentions for counterfeit products based on a modified theory of planned behavior. International Journal of Humanities and Social Science, 1(10), 278-284. [Google Scholar]
9. D’Arpizio, C., Levato, F., & de Montgolfi, J. (2015). Luxury goods worldwide market study, fall–winter 2015. Retrieved from [Link]
10. D’Arpizio, C., Levato, F., Prete, F., Del Fabbro, E., & de Montgolfi, J. (2018). Luxury goods worldwide market study, fall–winter 2018. Retrieved from [Link]
11. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. [Google Scholar] [CrossRef]
12. Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. [Google Scholar]
13. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th Edition). NJ: Prentice Hall.
14. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks: Sage
15. Heine, K. (2012). The concept of luxury brands. Luxury brand management, 1(2), 193-208. [Google Scholar]
16. Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2-20. [Google Scholar]
17. Kapferer, J. N. (2009). Kapferer’s Brand-Identity Prism Model. European Institute for Brand Management, 24, 2014. [Google Scholar]
18. Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brands: Recent research issues and contributions. Journal of Business Research, 65(10), 1395-1398.
19. Kotler, P. (2010). Principles of marketing: a South Asian perspective, 13/E. Pearson Education India. [Google Scholar]
20. Lee, M. Y., Kim, Y. K., Pelton, L., Knight, D., & Forney, J. (2008). Factors affecting Mexican college students’ purchase intention toward a US apparel brand. Journal of Fashion Marketing and Management, 12(3), 294. [Google Scholar] [CrossRef]
21. Lomax, R. G. (2018). Structural equation modeling: Multisample covariance and mean structures. In The reviewer’s guide to quantitative methods in the social sciences (pp. 457-466). Routledge. [Google Scholar]
22. Qazzafi, S. H. E. I. K. H. (2019). Consumer buying decision process toward products. International Journal of Scientific Research and Engineering Development, 2(5), 130-134. . [Google Scholar]
23. Ringle, C., Da Silva, D., & Bido, D. (2015). Structural equation modeling with the SmartPLS. Brazilian Journal Of Marketing, 13(2). [Google Scholar]
24. Sander, T., & Teh, P. L. (2014). SmartPLS for the human resources field to evaluate a model. [Google Scholar]
25. Scholz, L. (2014). Brand management and marketing of luxury goods. Anchor Academic Publishing (aap_verlag). [Google Scholar]
26. Stankevich, A. (2017). Explaining the consumer decision-making process: Critical literature review. Journal of international business research and marketing, 2(6), 7-14. [Google Scholar]
27. Tooraj, S., Khadijeh, G. T., & Asieh, N. (2011). The effective factors related with feelings, brand perception and purchase decision under a model. African Journal of Business Management, 5(30), 12025-12030. [Google Scholar]
28. Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of marketing, 52(3), 2-22. . [Google Scholar]
29. Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning. [Google Scholar]