Abstract
A study on Chinese women's consuming behavior toward purchasing luxury
fashion goods
Luxury fashion is a booming industry that has expanded globally, it has seen a
steady growth over the past 16 years (Kim et al 2012) and it is commonly believed to be
one of the most appealing and profitable industries in the world. Undoubtedly, luxury
fashion is a critical part of modern fashion world and luxury fashion branding is a timely
and important topic (Emond 2009; Ko and Megehee 2012). The study of luxury
consumption is not a new phenomenan, but for some countries like China, luxury market
is still growing and many new brands are entering the market. Mckinsey Insights of
China mentioned that Chinese luxury consumption is projected to grow 18% annually
from 2010 to 2015, by which time accounting for over 20% of the global luxury
market.During my stay in china, I’ve noticed how obssessed Chinese people are with
luxurious brands. With China’s booming economy, China in no time would become the
first largest luxury market. The international luxury brands must be running a great profit
with China’s large population and their positive attitude towards consuming luxury
goods.
The objective of this research is to examine the factors that affect Chinese women
purchase intention towards luxury goods consumption. To examine these factors, Cultural
influences such as Conformity Face Consumption, Uncertainty avoidance, Collectivism,
Power distance and Status consumption. Personal Values such as Materialism,
Conformity and Uniqueness will be used. Another obective of this dissertation is to
identify the most effective strategies for marketers to better penetrate the Chinese market.
Many marketers recognise the need to understand the unique aspects of each country with
which they hope to do business with, in order to tailor their products and marketing
strategy appropriately (Solomon, 1999). Solomon has also stated the importance of
culture in understanding consumer behavior by stating: “ Consumption choices simply
cannot be understood without considering the cultural context in which they are made.
Culture is the “lens” through which people view products.” (p.495)
The methodological approach employed in this dissertation was descriptive and
quantitative method.Data was gathered via a survey. Survey questionnaires was
distributed to sample groups through an online website. A total of 113 respondents did
successfully finish the survey. The variables used in this study are cultural influence,
personal values and purchase intention. Results from the study were analyzed using
SPSS.
The empirical study results revealed that Personal Values, which are Materialism,
Conformity and Uniqueness, have the strongest influence on Chinese female purchase
intention of luxury goods. Results also show that Cultural influences such as Power
distance, Status consumption and Conformity face consumption have a heavy influence
as well on Chinese female purchase intention of luxury goods. However Uncertainty
Avoidance and Collectivism do not have a positive influence on Chinese female purchase
intention of luxury goods.
KEYWORDS:
Chinese women, luxury fashion goods, Purchase intention, Cultural influence,
Personal value.