Effects of brand attitude, perceived value, and social WOM on purchase intentions in luxury product marketing
-
DOIhttp://dx.doi.org/10.21511/im.18(3).2022.01
-
Article InfoVolume 18 2022, Issue #3, pp. 1-14
- Cited by
- 1215 Views
-
420 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
During the COVID-19 pandemic, there has been a significant change in customer behavior, including in the luxury product business. One crucial part of customer behavior is purchase intention. Understanding purchase intention is an essential basis for developing various marketing innovations. This study aimed to establish a model of the interaction of factors that influence purchase intention in luxury products today, especially in Indonesia. The study used a cross-sectional study approach. This study’s respondents were social media users who would buy luxury products. The research sample size was 381 users. The Lime Survey was applied to collect data and was accessed online. The questionnaire statement items used a Likert scale from 1 (Strongly Disagree) to 5 (Strongly Agree), including Perceived Value (9 items), Social WoM (3 items), Brand Attitude (3 items), and Purchase Intention (3 items). The model validation was analyzed using bootstrapping to process the Structural Equation Model (SEM) under Smart-PLS software. The analysis results show that the three variables simultaneously (R-square = 0.419) moderately can be used to explain Purchase Intention. However, the factors that affect Purchase Intention are only Perceived Value (p-value = 0.000) and Brand Attitude (p-value = 0.000), but not Social WoM (p-value = 0.203). This study concludes that marketing innovation is critical to focus on the prestige of luxury product users through perceived value and brand attitude. Information from other users is not reliable enough to build purchase intention because luxury product users tend not to trust products from other users. Still, they believe more in the perceived prestige.
Acknowledgments
Faculty of Economics and Business of Universitas Negeri Sebelas Maret facilitates using LIME Survey software for this research.
- Keywords
-
JEL Classification (Paper profile tab)M31, O33
-
References58
-
Tables8
-
Figures2
-
- Figure 1. Conceptual model
- Figure 2. SEM analysis result for hypothesis testing
-
- Table 1. Respondents criteria
- Table 2. Types and brands of products
- Table 3. Reliability and validity measurement
- Table 4. Discriminant validity
- Table 5. Outer weight
- Table 6. Variance inflated factor (VIF)
- Table 7. R-square
- Table 8. Hypothesis testing
-
- Abdi, H. (2020). Faktor Penyebab Globalisasi dan Dampaknya Bagi Masyarakat [Factors Causing Globalization and Its Impact on Society]. (In Indonesian).
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Andhika (2020). Strategi Memanfaatkan Gengsi untuk Meningkatkan Penjualan [Strategies to Utilize Prestige to Increase Sales]. (In Indonesian).
- Arruda Filho, E. J. M., Simões, J. D. S., & De Muylder, C. F. (2020). The low effect of perceived risk in the relation between hedonic values and purchase intention. Journal of Marketing Management, 36(1-2), 128-148.
- Badir, M., & Andjarwati, A. L. (2020). The Effect of E-WOM, Ease of Use and Trust on Purchase Decisions (Study on Tokopedia Application Users). Journal of Minds: Management of Ideas And Inspiration, 7(1), 39-52.
- Casaló, L. V., Flavián, C., & Ibáñez-Sánchez, S. (2020). Influencers on Instagram: Antecedents and consequences of opinion leadership. Journal of Business Research, 117, 510-519.
- Chang, Y., & Ko, Y. J. (2017). Consumers’ perceived post-purchase risk in luxury services. International Journal of Hospitality Management, 61, 94-106.
- Chevalier, J. A., & Mayzlin, D. (2006). The effect of word of mouth on sales: Online book reviews. Journal of Marketing Research, 43(3), 345-354.
- Chin, P. N., Isa, S. M., & Alodin, Y. (2020). The impact of endorser and brand credibility on consumers’ purchase intention: the mediating effect of attitude towards brand and brand credibility. Journal of Marketing Communications, 26(8), 896-912.
- Choi, Y. K., Seo, Y., & Yoon, S. (2017). E-WOM messaging on social media: social ties, temporal distance, and message concreteness. Internet Research, 27(3), 495-505.
- De Cannière, M. H., De Pelsmacker, P., & Geuens, M. (2010). Relationship quality and purchase intention and behavior: The moderating impact of relationship strength. Journal of Business and Psychology, 25(1), 87-98.
- Dwidienawati, D., Tjahjana, D., Abdinagoro, S. B., & Gandasari, D. (2020). Customer review or influencer endorsement: which one influences purchase intention more? Heliyon, 6(11), e05543.
- Gan, C., & Wang, W. (2017). The influence of perceived value on purchase intention in social commerce context. Internet Research, 27(4), 772-785.
- Ghozali, I., & Latan, H. (2015). Partial Least Squares. Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 3 [Partial Least Squares: Concepts, Techniques and Applications Using the SmartPLS Program 3]. (In Indonesian). Semarang: Badan Penerbit UNDIP.
- Hair, J. F. J., Black, W. C., Babin, B. J., Anderson, R. E., Tatham, L., & Ronald. (2010). Multivariate Data Analysis: A Global Perspective. Pearson.
- Hartono, J. (2011). Konsep dan aplikasi structural equation modeling berbasis Varian Dalam penelitian bisnis [The concept and application of variance-based structural equation modeling in business research]. (In Indonesian). Yogyakarta: UPP STIM YKPN.
- Highland, C. (2021). How is the Luxury Goods Market Looking After the Pandemic?.
- Hsu, C. Y., Huang, Y. W., & Chuang, S. H. (2017, July). Examining the relationships among electronic word of mouth, perceived value and risk, and consumer purchase intention. In International Conference on Innovative Mobile and Internet Services in Ubiquitous Computing (pp. 795-801). Cham: Springer.
- Huang, L. C., Gao, M., & Hsu, P. F. (2019). A study on the effect of brand image on perceived value and repurchase intention in ecotourism industry. Ekoloji, 28(107), 283-287.
- Hung, K. P., Chen, A. H., Peng, N., Hackley, C., Tiwsakul, R. A., & Chou, C. L. (2011). Antecedents of luxury brand purchase intention. Journal of Product & Brand Management, 20(6), 457-467.
- Iman, M. (2020). Pengguna Instagram di Indonesia Didominasi Wanita dan Generasi Milenial [Instagram users in Indonesia are dominated by women and the millennial generation]. (In Indonesian).
- Jain, S., & Mishra, S. (2018). Effect of value perceptions on luxury purchase intentions: an Indian market perspective. The International Review of Retail, Distribution and Consumer Research, 28(4), 414-435.
- Kapferer, J. N. (1997). Managing luxury brands. Journal of Brand Management, 4(4), 251-259.
- Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury branding. In Advances in luxury brand management (pp. 179-198). Palgrave Macmillan, Cham.
- Koransindo. (2020). Barang Branded Laris Manis [Selling Branded Goods]. (In Indonesian).
- Kudeshia, C., & Kumar, A. (2017). Social eWOM: does it affect the brand attitude and purchase intention of brands? Management Research Review, 40(3), 310-330.
- Lacroix, C., & Jolibert, A. (2017). Mediational role of perceived personal legacy value between consumer agentic generativity and attitudes/buying intentions toward luxury brands. Journal of Business Research, 77, 203-211.
- Lee, E. B., Lee, S. G., & Yang, C. G. (2017). The influences of advertisement attitude and brand attitude on purchase intention of smartphone advertising. Industrial Management & Data Systems. 117(6),1011-1036.
- Li, G., & Kambele, Z. (2012). Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10), 1516-1522.
- Liao, S. H., Hu, D. C., Chung, Y. C., & Huang, A. P. (2021). Risk and opportunity for online purchase intention – A moderated mediation model investigation. Telematics and Informatics, 62, 101621.
- Liu, M. T., Wong, I. A., Tseng, T. H., Chang, A. W. Y., & Phau, I. (2017). Applying consumer-based brand equity in luxury hotel branding. Journal of Business Research, 81, 192-202.
- Loureiro, S. M. C., Jiménez-Barreto, J., & Romero, J. (2020). Enhancing brand coolness through perceived luxury values: Insight from luxury fashion brands. Journal of Retailing and Consumer Services, 57, 102211.
- Martín-Consuegra, D., Faraoni, M., Díaz, E., & Ranfagni, S. (2018). Exploring relationships among brand credibility, purchase intention and social media for fashion brands: A conditional mediation model. Journal of Global Fashion Marketing, 9 (3), 237-251.
- Mayr, T., & Zins, A. H. (2012). Extensions on the conceptualization of customer perceived value: insights from the airline industry. International Journal of Culture, Tourism and Hospitality Research, 6(4), 356-376.
- McClure, C., & Seock, Y. K. (2020). The role of involvement: Investigating the effect of brand’s social media pages on consumer purchase intention. Journal of Retailing and Consumer Services, 53, 101975.
- Medina-Molina, C., Rey-Moreno, M., & Periáñez-Cristóbal, R. (2021). Analysis of the moderating effect of front-of-pack labelling on the relation between brand attitude and purchasing intention. Journal of Business Research, 122, 304-310.
- Mukerjee, K. (2018). The impact of brand experience, service quality and perceived value on word of mouth of retail bank customers: Investigating the mediating effect of loyalty. Journal of Financial Services Marketing, 23 (1), 12-24.
- Nam, K., Baker, J., Ahmad, N., & Goo, J. (2020). Determinants of writing positive and negative electronic word-of-mouth: Empirical evidence for two types of expectation confirmation. Decision Support Systems, 129, 113168.
- Park, J., Hyun, H., & Thavisay, T. (2021). A study of antecedents and outcomes of social media WOM towards luxury brand purchase intention. Journal of Retailing and Consumer Services, 58, 102272.
- Petravičiūtė, K., Šeinauskiené, B., Rūtelionė, A., & Krukowski, K. (2021). Linking luxury brand perceived value, brand attachment, and purchase intention: the role of consumer vanity. Sustainability, 13(12), 6912.
- Pradhan, D., Duraipandian, I., & Sethi, D. (2016). Celebrity endorsement: How celebrity–brand–user personality congruence affects brand attitude and purchase intention. Journal of Marketing Communications, 22(5), 456-473.
- Rouibah, K., Al-Qirim, N., Hwang, Y., & Pouri, S. G. (2021). The Determinants of eWoM in Social Commerce: The Role of Perceived Value, Perceived Enjoyment, Trust, Risks, and Satisfaction. Journal of Global Information Management (JGIM), 29(3), 75-102.
- Salehzadeh, R., & Pool, J. K. (2017). Brand attitude and perceived value and purchase intention toward global luxury brands. Journal of International Consumer Marketing, 29(2), 74-82.
- Salem, S., & Chaichi, K. (2018). Investigating causes and consequences of purchase intention of luxury fashion. Management Science Letters, 8(12), 1259-1272.
- Shaikh, A. A., Karjaluoto, H., & Häkkinen, J. (2018). Understanding moderating effects in increasing share-of-wallet and word-of-mouth: A case study of Lidl grocery retailers. Journal of Retailing and Consumer Services, 44, 45-53.
- Shukla, P., & Purani, K. (2012). Comparing the importance of luxury value perceptions in cross-national contexts. Journal of Business Research, 65(10), 1417-1424.
- Shukla, P., Rosendo-Rios, V., & Khalifa, D. (2022). Is luxury democratization impactful? Its moderating effect between value perceptions and consumer purchase intentions. Journal of Business Research, 139, 782-793.
- Siqueira Jr, J. R., Peña, N. G., ter Horst, E., & Molina, G. (2019). Spreading the word: How customer experience in a traditional retail setting influences consumer traditional and electronic word-of-mouth intention. Electronic Commerce Research and Applications, 37, 100870.
- Soehandoko, JG (2021). Masa Pandemi, Transaksi di LazMall Tetap Meningkat [During the Pandemic, Transactions at LazMall Keep Increasing]. (In Indonesian).
- Tien, D. H., Rivas, A. A. A., & Liao, Y. K. (2019). Examining the influence of customer-to-customer electronic word-of-mouth on purchase intention in social networking sites. Asia Pacific Management Review, 24(3), 238-249.
- Tjhin, V. U., & Aini, S. R. N. (2019). The relationships among community experience, community commitment, brand attitude, and purchase intention in social media. International Journal of Information Management, 49, 475-488.
- Wang, J. J., Wang, L. Y., & Wang, M. M. (2018). Understanding the effects of eWOM social ties on purchase intentions: A moderated mediation investigation. Electronic Commerce Research and Applications, 28, 54-62.
- Wen, J., & Huang, S. S. (2021). The effects of fashion lifestyle, perceived value of luxury consumption, and tourist–destination identification on visit intention: A study of Chinese cigar aficionados. Journal of Destination Marketing & Management, 22, 100664.
- Wiedmann, K. P., Hennigs, N., & Siebels, A. (2009). Value-based segmentation of luxury consumption behavior. Psychology & Marketing, 26(7), 625-651.
- Yan, Q., Wu, S., Wang, L., Wu, P., Chen, H., & Wei, G. (2016). E-WOM from e-commerce websites and social media: Which will consumers adopt?. Electronic Commerce Research and Applications, 17, 62-73.
- Yang, J., Ma, J., Arnold, M., & Nuttavuthisit, K. (2018). Global identity, perceptions of luxury value and consumer purchase intention: a cross-cultural examination. Journal of Consumer Marketing, 35(5), 533-542.
- Yusuf, A. S., & Busalim, A. H. (2018). Influence of e-WOM engagement on consumer purchase intention in social commerce. Journal of Services Marketing, 32(4), 493-504.
- Zhang, J. Q., Craciun, G., & Shin, D. (2010). When does electronic word-of-mouth matter? A study of consumer product reviews. Journal of Business Research, 63(12), 1336-1341.