EXPLORING THE EFFECTIVENESS OF GUILT IN A LUXURY BRANDING CONTEXT

Michael Lwin,Ian Phau 글로벌지식마케팅경영학회 2015 Global Fashion Management Conference Vol.2015 No.06

Scholars have classified guilt as, anticipatory, reactive, and existential guilt. Past studies show that specific types of guilt appeals are more effective in advertising (e.g. Lindsey, 2005). However, researchers have mostly relied on the use of unified guilt to investigate advertising effectiveness. Thus the paper highlights the inherent need to investigate a specific type of guilt, namely anticipatory guilt in a luxury branding context. The paper will fill this gap by measuring consumer’s reactions to anticipatory guilt within two luxury product categories (non-durable and durable). The research is one of the first to explore anticipatory guilt in a luxury advertising context. Considering the importance of the guilt appeals in advertising, the paper provides a comparison of anticipatory guilt under three different conditions. Thus, it provides a greater understanding of an advertising tool for practitioners and scholars.

WHAT FACTORS DRIVE YOUNG CONSUMERS TO COMPULSIVELY PURCHASE LUXURY BRANDED PRODUCTS?

Michael Lwin,Ya Xiao 글로벌지식마케팅경영학회 2016 Global Marketing Conference Vol.2016 No.7

Scholars have described compulsive behaviour as “hyperstimulation, sometimes unintentional and repeated overindulgence despite negative consequences, deception and self-neglect” (Hartston 2012). Compulsive buying behaviour has become an addiction amongst many consumers and it has fuelled the growth of the retail market since the 1990’s (Neuner, Raab and Reisch 2005; Koran et al. 2006). The higher spending power of the middle-class consumer has led to a greater demand of luxury branded products so that consumers can attain a higher level of social class within the society. This study will explore the impact of emotional factors (self-esteem, FOMO, brand prestige, and brand consciousness) and rationale factors (product quality, price consciousness and sale proneness) on compulsive buyer’s purchase intention. This is the first study to explore the impact of emotional and rationale factors on compulsive buying behaviour in the luxury branded product category. The results show that young consumers with high compulsive buying tendencies are more heavily influenced by emotional factors. Therefore, retailers could target young consumers by focusing on brand prestige and the brand name.

CONCEPTUALISING THE THEORY OF EXCLUSIVITY

Michael Lwin,Xujia Wang 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

The luxury branding industry thrives on creating products and services that are exclusive in nature. To achieve this, brands often control for pricing, quality, quantity and availability to create a perception of exclusiveness. The literature showcases a handful of concepts to explain how marketers can create exclusive products and services. However, the literature does not give a theoretical foundation to the creation of the Theory of Exclusivity. This study is the first to address this issue. A number of theories and concepts in marketing, psychology, sociology and other fields of sciences have been reviewed to conceptualise the Theory of Exclusivity. The conceptualisation of this theory gives marketers a better understanding of how they can create exclusive brands.

CONCEPTUALIZING ‘COUNTRY-OF-INGREDIENT-AUTHENTICITY’ OF LUXURY BRANDS

Zahirah Zainol,Ian Phau,Isaac Cheah,Michael Lwin 글로벌지식마케팅경영학회 2015 Global Fashion Management Conference Vol.2015 No.06

The study investigates the influence of “country of ingredient authenticity” towards product and brand evaluations of luxury brands and ultimately how these constructs influence the willingness to buy and recommend luxury brands.

THE EFFECTIVENESS OF GUILT STATEMENTS IN FAIRTRADE PRODUCTS

Kevin Teah,Michael Lwin,Ian Phau 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

This paper presents how guilt statements can affect luxury Fairtrade chocolate products. Specifically, the study will examine how willingness to pay more can affect Fairtrade through guilt advertising. Fairtrade is a labelling certification aimed at helping farmers in marginalised countries (M?ndez et al., 2010). Huhmann and Brotherton (1997) explained that ‘informative statements’ can help evoke guilt and these statements are used on the packaging to investigate consumers’ perceptions of ad credibility, inferences of manipulative intent, guilt arousal, attitudes towards the ad, purchase intention and willingness to pay more for Fairtrade chocolate products. A combination of statements and logos were used as stimuli. The results of this study has shown that guilt statements may be too intense and may have caused inferences of manipulative intent in a Fairtrade context, resulting in lower purchase intention and willingness to pay more. This study is the first study to explore how guilt statements and logos influence consumers’ purchases for Fairtrade products. This study has managerial applications in developing marketing strategies to promote Fairtrade products and other charitable co-branding schemes.

THE ROLE OF LUXURY BRAND ATTACHMENT ON CONSUMER BRAND RELATIONSHIP

Anwar Sadat Shimul,Michael Lwin,Ian Phau 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

This study aims to investigate the role of luxury brand attachment on consumer brand relationship by examining the relationship with trust, commitment, satisfaction and loyalty. This also examines the interrelationships among trust, commitment, satisfaction and loyalty from luxury branding context which provides a good number of theoretical and practical implications. Introduction The global luxury market exceeded $1 trillion in the year 2015 with a 5% annual growth (Bain & Co., 2015). However, industry experts predict that the luxury industry will face challenges in upcoming year primarily due to the economic instability and turmoil in the global foreign exchange market (Robert, 2015). Therefore, the luxury brand executives should carefully target their future consumer segment to sustain the current growth (Luxury Society, 2015). Earlier studies demonstrate that consumers seek various types of emotional benefits from luxury brands such as status seeking (Nelissen & Meijers, 2011), hedonic pleasure (Tsai, 2005), feeling good (Aaker, 1999), pleasurable experience (Atwal & Williams, 2009), mental peace (Silverstein & Fiske, 2003), and impressing others (Wiedmann, Hennigs, & Siebels, 2009). Moreover, these emotional benefits create a comprehensive and memorable experience in terms of ownership and consumption of luxury brands (Choo et al., 2012). Therefore, luxury brand marketers should emphasize more on emotional attachment for building a long term and sustainable customer relationship (Orth et al., 2010). Research Gap Existing literature on consumer-brand relationship mostly considers cross-cultural issues (Chang & Chieng, 2006), reviving brand loyalty (Fournier, 1997), consumer attitude (Aggarwal, 2004), satisfaction (Sung & Choi, 2006), self-brand connection (Cheng et al., 2012), trust-based commitment (Hess & Story, 1995) and such other dimensions on brand evaluation (e.g. Swaminathan et al., 2007). Few studies have considered luxury products (Hodge et al., 2015) and the role of emotional aspects (Hwang & Kandampully, 2012) in the consumer-brand relationship. Still, there is a lack of empirical support for understanding the role of luxury brand attachment into the construct. This research will attempt to fulfil these research gaps. Conceptual Model and Hypotheses Psychological theories explain attachment as the tie between a person and an object or any other components (Bowlby, 1979; Hazan & Shaver, 1994). Brand attachment is defined as a long-term and commitment oriented tie between the consumer and the brand (Esch et al., 2006). The conceptualization of luxury brand demonstrates that the inherent traits of luxury brands are distinctiveness, high transaction value, superior quality, inimitability, and craftsmanship; and luxury brand consumption is mostly emotion laden (Nueno & Quelch, 1998). Based on the existing attachment concepts and theories, we define luxury brand attachment as the emotional bond that connects a consumer with a specific brand and develops deep feelings toward the brand. Several past studies have found that brand attachment reinforces brand trust and there is a positive relationship between brand attachment and trust (e.g. Belaid & Behi, 2011). In addition, Esch et al. (2006) argue that brand satisfaction and brand attachment are interrelated and satisfaction results long-term consumer-brand relationships (Gladstein, 1984). Moreover, strong commitment from the consumers has been identified as a critical factor of long lasting brand relationship (Li et al., 2014; Sung and Choi, 2010). Further, Thomson et al. (2005) find that brand attachment creates behavioural loyalty for which consumers are also willing to pay higher prices. Expecting similar relationship from luxury branding context, we propose that H1: The higher the luxury brand attachment, the greater the consumers trust in that brand. H2: The higher the luxury brand attachment, the greater the consumer satisfaction for that brand. H3: The higher the luxury brand attachment, the greater the consumer commitment to that brand. H4: Higher luxury brand attachment leads to higher behavioural loyalty to that brand. Scholars explain that satisfaction is an essential element of brand loyalty and both the constructs are positively related (e.g. Agustin and Singh, 2005). Past researches find that highly satisfied consumers demonstrate repeat purchases (e.g. Bennett et al, 2005). Past studies also show that trust toward the brand results brand loyalty and strengthen the relationship (Bansal et al., 2014; Belaid & Behi, 2011). Fournier (1997) identify brand trust as the key determinant of brand loyalty. Thus, we propose that H5: Higher satisfaction to the luxury brand leads to higher behavioural loyalty to that brand. H6: Higher trust to the luxury brand leads to higher behavioural loyalty to that brand. Ganesan (1994) argue that a satisfied customer develop trust toward a specific brand. In support of this, Belaid & Behi (2011) state that if a brand becomes successful in fulfilling the promise with consistence performance, the consumer will have satisfaction and positive feeling about the brand. In addition, the authors find a positive relationship between brand commitment and behavioural loyalty. Expecting similar relationship from luxury branding context, we propose that H7: The higher the trust in luxury brand, the more customer satisfaction in that brand. H8: Higher commitment to the luxury brand leads to higher behavioural loyalty to that brand. Summary of the hypothesised relationships are illustrated in Figure 1. Methodology The simple random sampling will ensure proper representation of the target population and eliminate the sampling bias (Cook & Campbell, 1979; Zikmund, 2002). The sample population will be 300 young Australian consumers aged between 20-30 years. Previous studies have found that there is a growth in luxury brand purchase by individuals in younger age groups e.g. 20 – 30 (Hung et al., 2011). Therefore, this is representative of the possible drift in the ages of consumers in the market for luxury brand purchase (Han et al., 2010). A consumer panel from Qualtrics database will be used and the sample frame consists of consumers who have higher brand likeability (Martin & Stewart, 2001). Established scales will be used to measure the constructs. All items will be measured on a seven-point Likert scale with 1 representing “strongly disagree” and 7 representing “strongly agree”. Research Significance This would be the very first study to investigate the role of luxury brand attachment in consumer brand relationship. This research will provide meaningful insights for the brand managers, brand strategists and advertising managers. This research will assist luxury brand managers in allocation of resources for the action plans that will ensure a stronger tie with the consumers in a cost efficient way. For brand managers luxury brand attachment may help them with segmentation process and well as providing direction on improving attachment to the consumers to influence trust, commitment, satisfaction, and loyalty.