KOREASCHOLAR

Introduction
Recently global luxury brands have put their effort into strengthening their businesses online. This can be seen as an effort to overcome their stagnant growth by focusing on steeply increasing online markets as their target. In the midst of global recession, online luxury brands have continued to show rapid growth each year. Bain & Company (2017) has forecasted offline growth of global luxury brands at the annual average growth of 2~3% by 2020 while the online markets would show the average growth of 15% annually by 2020. Moreover, due to the expansion of importers with official copyright to the online sales and stabilization of e-payment system, online markets have gained consumer trust leading to the increased rate of consumers purchasing luxury brand online more. McKinsey Consulting (2017) has forecasted online sales of luxury brand would reach up to 28% of the total sales by 2025. Reflecting such expectations, luxury brands are in the process of proposing multiple channels of online sales and communicating through Social Network Service (SNS) marketing as their core strategies. As consumer usage of SNS, such as Facebook, tweeter, or Instagram, have increased, so the value of consumer toward luxury brands has changed. Since the introduction of the standing characteristic of social media-communication to the luxury brand market, the luxury brands not only became a privilege of the high minority group but also became available for anyone to easily purchase with absolute information availability of price, quality, location, etc.
Theoretical Development
Consumers are using social media sites to search for information and deviating from traditional media (e.g., television, radio, and magazines) (Mangold and Faulds 2009). The emergence of social media has changed communication method from one-way communication to multi-dimensional, two-way, peer-to-peer communication (Berthon, Pitt, and Campbell 2008). Social media platforms offer a chance for brand to familiarized interact with consumers. Also, consumer can be interacted with another consumer through social media. The most important factor for luxury brands to establish an online business strategy is communication with their consumers. Luxury brands that are most accustomed to communicating with their limited consumers in their offline stores providing high quality services, it is inevitable for them to fear the lack of face-to-face interaction with their consumers in online markets. Social media began to serve the luxury brands as the alternative communication channel within the online markets. Moreover, social media has proven effective in drawing consumer’s voluntary Word of Mouth(WOM) since social media interaction is important motivation for consumer to creating user-generated contents (Daugherty al., 2008). The social media provides the consumers with a platform to meet and communicate with others with similar interests in specific brand goods and services that makes target marketing easier than before (Muntinga et al., 2011). Furthermore, the social media platforms provide the consumers with restriction-free comments on a certain brand to other interested parties, the users voluntarily taking the role of eWOM (Kim & Ko, 2012; Vollmer & Precourt, 2008). Luxury brands also seek to take this advantage of social media. The extent of spreading word of mouth is at the most viral through social media platforms, influencing the consumer’s purchasing behaviors to a great extent as proven in many previous researches (Lau and Ng 2001; Nabi and Hendriks 2003). Thus, the purpose of this study is to examine the impact of the consumer’s multidimensional value towards luxury brands on social media WOM intention and purchase intentions at the same time. Moreover, through extensive literature review with qualitative interview on consumers’ perceived value on luxury brand/product, consumer value dimensions on the luxury brands are categorized into six value factors (e.g. conspicuous value, status value, materialistic value, hedonic value, uniqueness seeking value, price-quality perceptions).
Research Design
The study conducted a thorough literature review and focus group interview to develop a comprehensive model of understanding the importance and dimensionality of customer value on luxury brand. After analyzing qualitative data on consumer value perception on luxury brands/product, online survey was performed using a customer sample in the United States. A web-based online survey was conducted using an online research panel service. After filtering and cleaning data collected, a final usable sample of 287 were analyzed to test hypothesized model. Measures for luxury brand on perceived values (including conspicuous value, status value, hedonic value, materialistic value, uniqueness seeking value, price-quality perceptions), social media word-of-mouth intention, and purchase intentions for luxury products were rated on a 7-point Likert scale ranging from strongly disagree to strongly agree.
Result and Conclusion
The result show that the relationship between conspicuous value, hedonic value, uniqueness and price-quality perceptions with social media WOM were found to be significant impact. However, social media WOM were not affected by status value and materialistic value of luxury brand. Conversely, status value and materialistic value had a considerable influence on purchase intention for luxury brand online. And social media word-of-mouth had a significant positive effect on consumer purchase intentions for luxury brand. In the era where digital importance is at its peak, the expansion of the luxury brands to online business has become requirements and not optional consequences. It is not easy for luxury brands with their unique styles and identity, as well as high brand awareness to settle in an online market where variety of lifestyles and cultures coexist. For this reason, the study on the multidimensional consumer value on luxury brands holds its contribution to the academia and industry practitioners. This study empirically examines the influence of consumers’ perceived multidimensional value on the luxury brands to WOM and purchase intentions through social media. This paper has revealed that the consumer’s WOM intention on luxury goods does not necessarily correlate with the purchase intention. However, the consumer who has developed WOM intention through social media has shown to possess positive influence on the purchase intention. This results also indicated the importance of the exposure of the unique luxury brand image by the luxury brand managers to the social media in order to generate voluntary consumer WOM. Furthermore, in order to increase their social status, the necessity of online consumer community for sharing their special experiences is ever more present. Such online consumer community would serve to expand the communication channel between the brand and the consumers, thus leading to increase intimacy between two parties. The study was carried out to the American consumers; following study should be carried out to Chinese consumers or developing countries where luxury brands are exposed to the rapidly growing luxury brand markets. Moreover, an in-depth study on strengthening effective marketing strategy by segmenting consumer value on luxury brands should be conducted consequently.

• Jungkun Park(Hanyang University, Republic of Korea)
• Sang-Lin Han(Hanyang University, Republic of Korea)
• Hyowon Hyun(Hanyang University, Republic of Korea)