In real life most are searching for ways to pursue happiness through positive affirmation from others. This practice includes conspicuous luxury consumption in capitalist societies. Veblen Thorstein critically describes this construct as lavishing money on unnecessary evident goods as a means to gain social status and recognition from others (Veblen, 1899). Following Veblen, researchers have examined various antecedent and consequent factors of conspicuous luxury consumption behaviour from broad research streams such as power, social class, culture and materialism (e.g., Berger & Ward, 2010; Han, Nunes, & Drèze, 2010; Lee & Shrum, 2012; Rucker & Galinsky, 2008, 2009; Sivanathan & Pettit, 2010; Wang & Griskevicius, 2014).
Though research on conspicuous luxury consumption has received great attention over the past decade, and previous research discovered how various factors affect conspicuous luxury consumption, the ways in which core factors influence conspicuous luxury consumption are still not well understood. In this research, we revealed two important factors; self-focus versus other-focus and self-transformative versus self-expressive motivation.
In multiple experiments, the major dependent variable is the logo size of luxury brands, which is generally accepted to reflect the conspicuous consumption intentions of the purchaser. This research reveals the following two important findings. First, individuals have a greater desire for conspicuous luxury products when they focus more on others than themselves, because of brand logo visibility of luxury consumption. This is because focusing on others makes individuals more concerned about others’ opinions of them and social criticism (Fenigstein, Scheier, & Buss, 1975), thus leading individuals to gravitate towards the products that can guard against potential social criticism. This in turn, makes other-focused individuals place more value than self-focused individuals on conspicuous luxury products that have socially favourable indicators. Secondly, the current research shows that individuals who are motivated to transform themselves into the person they wish to be prefer conspicuous luxury products more than those who are motivated to express their actual selves. This is because conspicuous luxury products are highly associated with an ideal self.
The current research offers several important contributions. First, the studies reported here will enrich the extant conspicuous luxury consumption literature by unveiling the fundamental motivations lying behind the various factors that have been shown to influence conspicuous consumption in previous research (e.g., Lee & Shrum, 2012; Rucker & Galinsky, 2008, 2009). Second, the findings of this research highlight ways to attenuate conspicuous luxury consumption that affect the happiness of individuals; the self-focused and self-expression. Consequently, this research’s findings advance understanding of luxury consumption as most research has focused more on antecedents that increase conspicuous luxury consumption behaviour (e.g., Lee & Shrum, 2012; Sivanathan & Pettit, 2010; Wang & Griskevicius, 2014) than factors that decrease conspicuous luxury consumption behaviour (Stillman, Fincham, Vohs, Lambert, & Phillips, 2012).
The present research investigated whether stereotypes embedded within the luxury market (Han, Nunes, & Dreze, 2010) can undermine decision performance for lower-income consumers, who encounter negative stereotypes about their ability to make good luxury product decisions. Two studies tested the effect of stereotype salience (Shapiro & Neuberg, 2007; Steele, 1997) on lower-income consumers’ performance on a luxury good decision task. In Study 1, we manipulated the decision domain (luxury versus economy purchase) and found evidence of the predicted stereotype threat effect among lower-income consumers performing a luxury (but not economy) market decision task. In Study 2, we manipulated the extent to which the luxury market stereotype would be seen as an accurate reflection of actual income-based differences in the ability to make good luxury product decisions. We found that the gap in the decision task between lower- and higher- income consumers was attenuated when the stereotype had been portrayed as inaccurate. Together, these studies suggest that marketers and policy-makers should recognize this stereotype threat in the marketplace, which undermines the quality of important purchase decisions by lower-income consumers, and should implement interventions to protect their welfare.
This research examines how advertising message effectiveness differs depending on media types that provide fashion information among teenagers. Employing cloth consumption value and ‘fitness’ of fashion style, young people’s attitudes toward advertising and brand of fashion product were analyzed. Theoretical contribution and practical implication for fashion industry are discussed.
Introduction
Teenagers are an important consumer group in the clothing market, and the market size is expanding. They are more likely to absorb new information and respond to social influences, compared to other age groups. Thus, it is expected that teenagers are greatly influenced by the fashion information gained when making a purchase decision. In adolescence, the peer group is especially influential, as well as the media. Therefore, it is possible that their use of information source will differ from other groups.
The most popular medium for Korean teenagers in recent years is social media. A Social Network Service (SNS) is a web-based service that allows individuals to build social relationships, providing a place for users to exchange information and opinions by providing a platform for communication (Boyd & Ellison, 2007). As development of mobile Internet technology, smart phone or tablet PC is commonly used in Korea and SNS becomes vital way for communication for young people. Most of teenagers are using SNS daily and exchanging their opinion each other.
Recently, it attracts increasing attention for marketers to deliver advertising messages as a new marketing tool. Fashion companies widely employ SNS in their marketing activities to enhance brand images, retain customers (Cho & Park, 2012). SNS serves as a platform for “many-to-many” interactive communication, unlike traditional mass media for ‘one-to-many’ communication. Unlike traditional media, SNS has a wider influence on participants. Therefore, exactly the same message could be differently functioned by the advertising delivering system.
This study seeks to look at how message effectiveness differs depending on the type of media that provides fashion information. As mentioned earlier, social media has distinct characteristics from the traditional mass media. Thus, even when it is the same advertising information, its impact on the consumer can vary when transmitted through the mass media and through social media. In addition, social media is a collection of various social platforms that share specific properties rather than a single media. Thus, depending on the type of social media, the same ad information can also be expected to elicit differing responses from consumers. In this study, female youth were studied as subjects of research. The survey method was utilized. This will allow us to explore the impact of various media on female youth's response on fashion advertisement.
Understanding the sources of information important in youth will help develop effective clothing products marketing. The use of clothing sources varies depending on the group. Therefore, each vendor is expected to establish effective marketing methods through research on the use of the clothing information sources of the target audience.
Theoretical Background
Type of Media
In this study, type of advertising media was mainly categorized as follows: Social Network Service (SNS) and mass media. More specifically, SNS was reassigned into three by characteristics of service such as network-type, share-type, and blog-type (Chung & Lee, 2015). Overall, four types of media were analyzed in this study and each service was represented by Facebook, Instagram, Twitter, and magazine ad in the order named.
Social Desirability and SNS
Along the development of Internet based technology (IT), ways of advertising placement became diverse and moved focus on IT based service including SNS. Especially for young people, fashion industries are willing to catch their eyes on SNS. By the nature, young SNS users are eager to search, blog, and share what they have earned on SNS for various reasons. Sharing fashion information is very important for young female. Their expressions on SNS mean what they are; what I eat, wear and so on.
A fellow feeling, so called ‘we-ness’, is extremely essential for Korean young people. Looking alike does not only share collectivistic spirits, but also makes feel not fall behind the trendy style. Using SNS is one of the best ways of confirming their fellow feeling and at the same time it reduces peer pressure.
From the domain of fashion marketing, research on communication had been mostly focused on mass media, and research on SNS communication, sharing of consumption information among consumers had been insufficient (Jun & Park, 2013). Fashion companies are recently trying to utilize SNS as a new alternative to have efficient effects with little costs. The SNS communication effect plays a large role in the consumption of consumers and analyzes the influence of SNS on the responses of the customers. SNS has the characteristic in which recommendations of friends or reliable acquaintances based on trust are important (Jung & Cho, 2016).
Fashion Information Source and Clothing Consumption Value
Consumers’ choice of clothing is based on the information gained. Information provided by the media or other people's clothing is the main source of decision making. In this case, the media and the surrounding people will become sources of desirable fashion style. Earlier, Cox(1967) classified the type of information sources as marketer-driven sources, consumer-driven sources, and neutral sources. Several scholars classified information sources as personal and non-personal sources, and direct observations and experiences (Andreasen 1968, Sproles 1979). Park and Yoo(2000) classified consumers according to fashion lifestyles and analyzed the sources of information that each group utilized. Each group tended to use different types of fashion information sources. Fashion-following group and personality-oriented group utilized more media and personal information, such as print media and television, compared to pragmatism group and conformity group. Personality-oriented group tends to use more direct observation than other groups. Conformity group showed the least use of mass media, purchase experience, observation, and interpersonal information source. This result shows that the types and degree of information used varies depending on the consumer’s fashion lifestyle.
Research has found that clothing consumption value is one of the major variables which affect consumer’s use of information source. Among several classifications of consumption values, Sheth’s model is the most utilized model in Korea fashion academia (Han and Kim, 2002). Sheth et al. (1991) classified consumption values into functional value, social value, emotional value, epistemic values, and conditional value. Han and Kim (2002) classified consumer groups into 4 groups utilizing Sheth’s classification: the Conspicuous, the Epistemic, the Social/Conformitive, and the Indifferent. There were significant different among the four groups in information search process. The Conspicuous and the Epistemic more tend to search carefully the clothes inside the store or in the show window than other groups. The two group members answered that they make a decision based on my own tastes than the other groups.
Research Questions and Hypotheses
Based on the earlier discussion, we propose following research question and hypotheses.
Research Question 1: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their consumption value of clothing?
Hypothesis 1-1: Consumers in different consumption values groups will show different response to the same advertising message delivered through different channels. Specifically, social conformity group are more likely to show positive attitude toward advertising and brand presented on network-type SNS than advertising and brand presented on other platforms.
Hypothesis 1-2: The Expressive is more likely to show positive attitude toward advertising and brand presented on magazine than other groups are.
Research Question 2: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their age group?
Hypotheses 2-1: Young women will have better responses to SNS-based ads than magazine ads to older women.
Research Question 3: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their perception of ‘fitness’ of their desired fashion style?
Hypotheses 3-1: When they perceive the presented style on the ad does not fit to their desired fashion style, network-type SNS is more likely to get positive attitude from the social conformity group than from the other groups.
Methodology
This present study aims to investigate the effects of advertising message by operating delivering system on consumers’ attitude toward fashion advertising and purchase intentions. This research employed a 4 (consumption value of clothing: expressive, practical, unique, social/conformity) X 4 (Advertising media type: network-type SNS, share-type SNS, blog-type SNS, and magazine) X 2 (fashion style fitness: fit/not fit) between subjects factorial design. The survey was conducted on 200 more young females, aged 16 to 24.
Main Discussion Points
This study aims to investigate how a fashion product ad works depending on the type of media on which the fashion advertising presents. To do this, authors will compare the advertising effectiveness among magazine ad, Facebook (Network type SNS), Instagram (Share type SNS), and Twitter(blog type SNS).
First of all, we are going to examine how each advertising medium works depending on consumer’s consumption values, their age, and the perception of fitness of their desired fashion style. Based on the results, the theoretical contribution and practical implication will be discussed. This discussion will provide us deeper understanding on how fashion industry utilizes advertising media when female youth is a major target group
Effective branding strategy requires systematic management of brand identity and brand image. Brand identity refers to the company’s plan with regard to what associations consumers hold for the brand, whereas brand image refers to the associations consumers actually hold for the brand. According to Aaker (1996), brand identity consists of brand essence, core identity, and extended identity. Brand image, on the other hand, consists of attributes, benefits, and attitudes (Keller, 1993). Given the nature of brand identity and brand image, branding strategy aims to strengthen congruence, but lessen discrepancy among the components.
The strategy can be either manipulative or reflective, i.e., changing brand image to correspond with brand identity or changing brand identity to adopt brand image, respectively. Branding strategy of SPA (Specialty Store Retailer of Private Label Apparel: i.e., fast fashion) brands is not an exception. However, SPA brands are characterized as quick response production capabilities with enhanced design capabilities to produce "hot" products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand (Cachon & Swinney, 2011). Consequently, branding strategy of SPA brands is expected to be more reflective than manipulative.
The primary purpose of this study is to verify the expectation, analyzing the branding strategy of the big 3 SPA brands: ZARA, Uniqlo, and H&M. All being SPA brands, the big 3 brands still need to differentiate from the competitors. From the perspective of this study, the differentiation strategy is expected to be manifested in the components of brand image to reflect, i.e., more emphasis on the reflection of attributes, benefits, or attitudes. Accordingly, this study also examines how the details of branding strategy differ among the big 3 SPA brands in this regard.
This study focuses on the value of fashion social platform and investigates the relationships between knowledge sharing and customer value. The study examines the effects of social network attributes on knowledge sharing in social platforms and the effects of knowledge sharing on customer value in social platforms. In the context of a fashion social platform, this study clarifies the concept of customer value, the role of knowledge sharing, and the relationships between knowledge sharing and customer value. The study builds a theoretical model regarding fashion social platforms and customer value that offers implications for fashion management practitioners.
Brand threats are unexpected, widely spread negative brand occurrences that are manifest in various forms such as rumours (Einwiller et al., 2008), negative publicity (Ahluwalia et al., 2000), ethical scandals (Huber et al., 2010; Lisjak et al., 2012; Trump, 2014) and product failures (Dawar and Pillutla, 2000; Ahluwalia et al., 2001). They are quite common in the marketplace with adverse effects on brand reputations and brand equity (Duttta and Pullig, 2011) by thwarting consumers` expected benefits from the brand (Ahluwalia et al., 2000; Dawar and Pillutla, 2000; Dutta and Pullig, 2011).
Due to the frequency and seriousness of brand threats, academic interest in studying the effects of brand threats as well as predicting consumers responses has been rising in the past decade (Swaminathan et al., 2007; Cheng et al., 2012; Lisjak et al., 2012; Trump, 2014). Brand threat literature has evolved over the years from few case studies focusing on organizational response strategies to empirical work documenting cognitive and attitudinal responses by consumers to different types of threats. However, there are still a number of inconsistencies within this loose body of work that requires further research attention. The following section will highlight some of the most imminent controversies within the brand threat literature and thus paving the way for the current review paper to synthesize different streams of research and offer some conceptual clarity on brand threats.
First, with regards to the conceptualization of brand threats, there appears to be no broad agreement on a precise definition of what constitutes a threat at the brand level. Over the past few years, scholars have expressed this notion using words such as negative brand publicity (Ahluwalia et al., 2000;2001; Pullig et al., 2006), brand scandal (Roehm and Tybout, 2006), brand failure (Roehm and Brady, 2007; Cheng et al., 2012), brand-related crisis ( Dawar and Lei, 2009; Dutta and Pullig, 2011), brand misconduct (Huber et al., 2010) and brand transgression (Trump, 2014). While these definitions can be used interchangeably as they reflect the overall characteristic of brand threats; they draw upon different theoretical foundations. As a result, competing views and understandings of brand threats have materialised, resulting in perennial dissensus within the extant literature.
In addition, there is a debate in the literature with regards to the differential effects of brand threat types. The majority of prior research on brand threats has predominantly focused on two types of threat which is product–related brand threat (Ahluwalia et al., 2000; 2001; Cheng et al., 2012; Swaminathan et al., 2007) and values-related brand threats. Product-related threats usually involve defective or dangerous products and reduce a brand's perceived ability to deliver its functional benefits (Dawar and Pillutla, 2000; Pullig et al., 2006; Roehm and Brady, 2007; Dawar and Lei, 2009). Values-related threats, on the other hand can be defined as unexpected events that threaten a brand's perceived ability to deliver expressive or symbolic benefits (Dawar and Lei, 2009; Pullig et al., 2006). They do not involve the product but rather the social or ethical values of the brand (e.g., Pullig et al., 2006). Both types of threats have negative impact such as brand equity, satisfaction and choice likelihood (Dutta and Pullig, 2011), however existing work offer contradictory findings with regards to the degree of damage caused by either type of brand threat. While some studies implicate the product related threats are more damaging to the brand, other studies indicate that values related threats have more negative impact. For instance, product related threats have been reported to damage brand image and trust (Dawar and Pillutla, 2000), lead to consumer brand switching and consequently cause financial losses (Cleeren et al., 2008). On the other hand, Huber et al. (2010) report that a brand's moral threat can be more damaging for consumers` relationship quality with the brand as well as repurchase intention. In addition, Folkes and Kamins (1999) indicate that negative ethical information is perceived as more diagnostic than product attribute information. Additionally, Trump (2014) compared both types of threats (product vs. ethical) in the same study and reported that ethical-related brand threats can be more damaging than product-related threats. This in turn has contributed to growing inconsistencies within the brand threat literature and elaborated the need for more empirical work to reconcile these conflicting streams of research.
An additional layer of controversy within the brand threat literature pertains to the impact of consumer brand relationship in predicting consumer responses. The general assumption is that the stronger the relationship between the consumer and the brand, the more insulated the brand remains from the negative impact of brand threats, however research yield mixed results. While some studies indicate the positive role of strong consumer brand relationship in mitigating the negative impact of brand threats (Ahluwalia et al., 2000; 2001; Einwiller et al., 2006), studies by Roehm and Brady, (2007) and Cleeren et al., (2008) suggest that these positive impacts are only shortlived. While other researchers show that high quality brand relationship may actually result in more negative consumer responses following threat (Hubler et al., 2010).
Lastly, there has not been a unified conceptual framework to predict consumer responses to brand threat; different studies have used different theoretical underpinnings to examine the phenomenon reporting different results. Earlier studies on the subject were quite sparse, apart from a few attempts limited to case studies from public relations and publicity literature, there has been no systematic study of how consumers respond to brand threats (Ahluwaia et al., 2000). A common assumption in that literature was that brand threats in the form of negative publicity is considered more credible and influential than the brand`s marketing communications and therefore will always lead to serious adverse consequences (Bond and Kirshenbaum, 1998). Moreover, consumers were assumed to always respond in a uniform manner (Mgrconi, 1997; Pearson and Mitroff 1993). Although these studies have offered insights into how people process negative information and form evaluations, their findings were limited to experimental contexts in which subjects have to evaluate unfamiliar individuals.
Although, several theoretical models have been proposed to understand consumers' responses to different types of brand threats (Ahluwalia et al., 2000; Dawar and Pillutla, 2000; Dawar and Lei, 2009; Huber et al., 2010; Roehm and Tybout, 2006; Cleeren et al., 2008; Dutta and Pullig, 2011), the findings of these studies reported mixed findings. Additionally, this body of work failed to present a unifying theoretical framework that predicts how consumers respond to negative information about commercial brands that they are familiar with nor did they identify the factors that could moderate the response strategies (Ahluwalia et al., 2000).
Therefore, the current study seeks to review the existing literature on brand threats to propose an integrative classification framework that predicts consumer responses to different types of brand threats. Specifically, this review will offer four important contributions. Firstly, the review will offer a holistic conceptualization of brand threats and its different forms. Secondly, it will highlight existing studies that demonstrate consumer responses to brand threats and the important moderating factors captured in previous studies clustered around four main categories: corporate responses, threat-related characteristics, consumer characteristics, and consumerbrand relationships. Thirdly, the review will propose a theoretical framework and a number of propositions that predict the conditions under which consumers pursue specific responses to brand threat. The proposed framework will also identify a number of situational factors and individual traits that moderate may consumer responses. Lastly, the review will conclude by highlighting underdeveloped theoretical intersections pertaining to the long term effects of brand threats and suggesting potentially fruitful directions for future inquiry. The above contributions will integrate brand threat research in marketing and management theory within a single organizing framework. Moreover, by consolidating past results and setting the stage for further efforts, this review will seek to foster greater integration of fresh perspectives from other disciplines such as social psychology, sociology, consumer research and management to broaden the scope of research on band threat.
Luxury market is changing with new competitors to the market, more modest growth, and new types of customers (Kim and Ko 2012). To stay relevant, luxury houses need to develop experience-based marketing strategies that emphasise interactivity, connectivity and creativity (Atwal and Williams 2009). Subsequently, with the rise of digital marketing of luxury (Okonkwo 2009), consumers have been granted a more active role in the value co-creation of luxury brands. Indeed, adopting more inclusive and consumer-oriented marketing strategies has proven successful to iconic luxury brands such as Burberry (Phan, Thomas & Heine 2011), and Hermes (Robins 2016).
Previously, value co-creation has been studied from consumer perspective following resource-based view (Arnould, Price and Malshe 2006) and practice theory (Schau, Muniz, and Arnould 2009). However, in the field of luxury marketing, research on co-creation has been limited to one case study of value co-creation processes (Tynan, McKechnie & Chhuon 2010). In addition, no previous research exists on the role of space and spectacular environment in value co-creation in luxury. This article extends these streams of researchby analysing 42 narratives (Polkinghorne 1995) from consumers that have attended two branded exhibitions of Louis Vuitton: SERIES3 held in London in the fall 2015 and Volez, Voguez, Voyagez in Paris in Spring 2016.
In essence, luxury is about seduction; recreating a dream and providing meaningful, personal experiences for its consumers (Kapferer and Bastien 2009). Here, a branded exhibition provides a way to invite consumers to feel, see, and experience the brand in its full splendour. These encounters, in turn, transform the value-creation logic between the brand and the consumer from a one-way affair to a co-creational relation. This article demonstrates how exhibition context allows the consumer to participate in the value co-creation for Louis Vuitton, a prestigious luxury brand. Here, the brand provides a context and props for the consumer’s processes of value co-creation. This, in turn, then results into four types of value; utilitarian, experiential, relational, and symbolic.
The contribution of this study is three-fold. First, this study extends the literature on value co-creation (Arnould et al. 2006) by demonstrating the role of space in the process of value co-creation. Second, our results extend previous research on luxury (Tynan et al. 2010) by illustrating the value co-creation from consumer perspective. From managerial perspective, the results show how brand exhibitions may act as platforms for content creation and enable rich self-expression with the brand.
The conceptualisation of brand charisma is multi-disciplinary, using luxury branding context. This research adds value by making significant contributions by extending and building theory; holds managerial implications for policymakers and brand managers in shaping and communicating brand charisma; additionally to develop a research framework and scale to measure brand charisma.
Introduction
Charisma in grounded in anthropology and sociology; which has been divided into three key definitions. At the root of the sociological construct it is associated with a leader who generates extremes of loyalty and motivation among followers (Smothers 1993).The primary reason charisma is used, historically speaking, is to gain control over a group of people, and create a strong following (Weber 1946; Dow 1968; Smothers 1993). Research has demonstrated that charismatic leaders are more likely to effect and motivate individuals (followers) beyond expectations and command extremes of attachments (Bass 1985, 1988; Conger 1988; House et al 1988). This implies that charisma can inspire devotion to a leader that surpasses mere loyalty (Spencer 1973; Dow 1968); an irrational bond and inspiration between leader and follower (Marcus, 1961). As competition continues to grow within the luxury sector brand resonance is increasingly important as some of the effects include: higher loyalty to the brand, increased number of followers, ease to move consumers, development and diffusion of new products and greater consumer accommodation for the brand. In recent years, as brands try to become more ‘accessible’ to consumers and provide them with more brand experiences online we see the brand become diluted and evidence of brand fatigue set in (Business Insider 2015). Brand experience has been conceptualised as ‘sensations, feelings, cognitions, and behavioural responses evoked by brand related stimuli’ (Brakus et al 2009); which are often subjective and internal responses (Brakus et al 2009). Most experiences occur directly when consumers shop, buy, and consume products. Experiences can also occur indirectly—for example, when consumers are exposed to advertising and marketing communications, including Web sites. As a majority of luxury brand consumers are deemed to be loyal to the brand, it is important to capitalise on these followers (Levitt 1975) to further foster brand- follower- consumer engagement. Pastor et al (2007) were able to demonstrate that followers’ emotional responses have a significant influence on charismatic leaders; where followers experienced higher levels of arousal, they were more likely to rate leaders as charismatic.
Brands can have charisma through social construction, compelling emotional associations that build on imagery, symbolism and prestige. Thus, it leads to extraordinary levels of motivation and attachment- achieving brand resonance. Thus, followers and consumers will view the brand as being sacred, and imbued with deeply significant and metaphorical meaning (Smothers 1993). It is evident that brand charisma allows the brand to exercise control and influence over a following or group of consumers. As brand charisma serves as a motivational tool to inspire and communicate their brand vision to followers, it allows the charisma to remain unique and rare (only for those in the community). While the ability to attain this brand charisma is always kept out of reach for everyday consumers, in order to motivate them to perform and engage with the brand beyond expectation. From the followers perspective, charisma is used to communicate or signal to others their social belonging and identity to a particular community.
The presence therefore of brand charisma serves as a guide, or vision, of the brand that is aspirational and inspirational for the followers, with the promise of the ‘dream’ being attainable by belonging to this group. It is interesting, and pivotal to note that brand charisma is not like a normal brand- follower relationship, but rather a unique bond that is value laden, ongoing and influential on perceptions.
Some key characteristics have been used in forming a conceptual definition of brand charisma, form both the brand and follower perspective. These include “exercise diffuse and intense influence over the beliefs, values, behaviour and performance of others through own behaviour and example” (Dow 1969; House et al 1991; Shils 1965); “unique connection between leader and follower that can account for extraordinary performance and accomplishments of individuals, work groups, units and organisations” (Yammarino et al 1992; Bensman and Givant; Conger and Kanungo 1998); “transcendent from the ordinary” ; “the process is both parallel and analogous process…both change meaning and perceived value” (Weber 1922; 1966; Levitt 1975; Smothers 1993).
Drawing from the above emerging characteristics, which is reflective of the literature, a tentative conceptual definition of brand charisma has been proposed below:
“The ability to articulate the brand vision, elicit a positive emotional response by its audience or followers that is characterised by extremes of motivational attachment”
Through a content analysis of luxury brands and a rigorous literature review, has identified ‘core’ and ‘supplementary’ characteristics for the presence of brand charisma, which is aimed to be further explored. The Core characteristics of brand charisma can be thought of as the source of the brands charismatic aura and this must be present for charismatic brands; while the supplementary characteristics are not crucial or inherent to every charismatic brand.
Research Gaps
Based on the extended literature review, the following key gaps have been identified:
1. To the best of my knowledge there has been no conceptualisation of brand charisma in marketing and branding (e.g. Smothers 1993; Dion and Arnould 2011)
a. Lack of working definition for brand charisma and lack of research framework and scale to measure brand charisma
2. Diminutive studies have used the concept of charisma in luxury branding or marketing
3. Assessing whether brand charisma should be implemented or is present across various ‘categories’ of luxury (e.g. inaccessible vs. affordableluxury)
4. Past studies have not addressed the influence of brand charisma on consumer emotions and perceptions (e.g. Dion and Arnould 2011)
Based on the above research gaps the following research questions have been developed:
RQ1: What is brand charisma?
RQ2: How does the presence of brand charisma influence brand resonance?
RQ3: Does the presence of brand charisma differ between affordable and inaccessible luxury?
RQ4: What are the emotional responses elicited by the presence of brand charisma?
Theoretical Framework and Hypotheses Development
Stimulus- Organism- Response (S-O-R) model is the underpinning theoretical framework for the proposed research (Mehrabian and Russell 1974). The S-O-R model has been widely used in retail environment (e.g. Buckley 1991; Chang et al. 2011) and to study different types of involvement (Arora 1982). Based on the S-O-R model, the stimulus is defined as any external stimuli that influence the internal states of an individual which consist of both environmental influence and marketing mix variable (Bagozzi 1978; Eroglu et al. 2003). In this proposed research the presence of brand charisma will serve as the external stimuli that influence consumers’ perception of luxury and brand affect. The perception of luxury is affected by brand related stimuli and imagery (Brakus et al 2009), which include but not limited to, elements such as; brand name, products sold and communications. Organism is defined as the internal emotional response which influences the relationship between external stimuli and the behavioural response (Bagozzi 1978). In this study, perception of luxury and brand affect will serve as the internal consumer responses (sensations, feelings and cognitions) which is degree to which a consumer is effected via the environment, being either direct or indirect, through the 5 senses (sensory appeal). In this study, the resulting response will be brand resonance, as this extends beyond loyalty and encapsulates a brand follower or consumer to willingly and proactively engage in word of mouth, have deep attachment or connection with the brand, feel proud of association with this brand and community followers (Keller 2001).
Supporting Theory
As brand charisma is a set of activities to capture the distinctive brand essence, which creates a strong sensory appeal compelling consumers to strongly advocate for the brand; we see the transfer of charisma onto the brand through concepts such as brand experience (consumer touchpoints) and brand resonance (brand- follower relationships). Thus, the Law of Contagion is the underpinning theory to support the effects of brand charisma (Frazer 1959, Mauss 1972; Tylor 1974). The Law of Contagion for the proposed research focuses on sympathetic magic, namely the effects of contagion, which deem that whatever is done to a material object will affect equally the person with whom the object was once in contact, whether it formed part of his body or not (Frazer 1889). This can be extended to brand activities such as communications, Furthermore, Spillover Effects, is the secondary effect
of brand charisma as we are assessing the ‘spillover’ of charisma onto the brand and the effects it will have on the proposed relationships (Simonin and Ruth 1998) between perception of luxury, brand affect and brand resonance.
Charismatic Leadership Theory (Weber [1922] 1978) has been deemed ‘transformational’, ‘visionary’ or ‘inspirational’ throughout the organisational literature (e.g. House 1977; Conger and Kanungo 1988). These theories focus on exceptional leaders who have extraordinary effects on their followers and larger social systems (Shamir et al 1993); hence leaders transform the needs, desires, values and aspirations of followers from self- interest to collective interest. This is demonstrated through brand communities, and kinship, as followers become highly committed to the leader’s mission and often perform above and beyond what is expected of them. Charismatic Leadership is further demonstrated through the strong relationship between follower and brand by; emotional and motivational arousal through brand behaviour, nonverbal communications, visionary and inspirational messages and ideological appeals. Therefore, in layman terms, the more charismatic brands are, the more likely they are to experience overall higher brand resonance.
Brand resonance is the outcome variable proposed for this research. Brand resonance aims to capitalise on previously acquired loyalty and equity (Huang et al 2014); thus brands add value to consumer goods by supplying meaning, and consumers like brands because they package meaning derived from interaction with the brand (Biel 1970). This can further be explained by an enduring sense of communal kinship and affiliation; which sees followers of the brand invest personal resources in order to stay connected (Keller 2001; Huang et al 2014). Social Identification Theory (Tafjel and Turner 1985) is used to support the outcome variable of brand resonance, as one of the primary drivers of brand resonance is that followers draw some association or similarity between themselves and the brand. Social Identification Theory is also closely linked to Charismatic Leadership Theory (Shamir et al 1993) (discussed below), as brand behaviours define the boundaries of the collectivity to emphasise its distinctiveness, prestige and competition with other groups. Such leader behaviour increases the salience of the collective identity in members’ self- concepts (Ashforth and Mael 1989); therefore, identification with the leader (brand) as it is perceived via a representative character (brand activities).
Based on the above, we postulate the following:
H1: High Presence of brand charisma will lead to high perception of luxury
H2: High perception of luxury will lead to high brand affect
H3: High presence of brand charisma will lead to high brand affect
H4: Perception of luxury mediates the relationship between presence of brand charisma and brand affect
H5: High presence of brand affect will lead to high brand resonance
Methodology
My research will encompass a mixed methods approach and be split into three predominant phases. The first being scale development, followed by stimulus development and finally the main study. The mixed method offers greater depth and breadth of understanding and corroboration (Johnson et al 2007) and is in line with the underlying pragmatist paradigm of this study (Johnson and Onwuegbzie 2004). A convenience sample will be used comprising of consumer panel data. The sampling frame will consist of everyday consumers, as these consumers need not be buyers of luxury brands.
Phase 1: Scale Development
The scale development phase will use methods by Churchill (1979) and Devillis (1991). The purification, CFA, EFA and validity will be undertaken to refine and test the scale. The approximate sample for this phase is approximately 200 respondents.
Phase 2: Stimulus Development
This phase will use expert panel to select the most appropriate charismatic brand and stimulus to use for this research. The potential brands of interest, thus far guided by literature, are; Hermes, Chanel, Dolce & Gabanna, Gucci, Louis Vuitton, Valentino and Oscar de la Renta. The sample size of the expert panel will comprise of approximately 15-30 respondents (Endacott et al 1999; Keeney et al 2010).
Phase 3: Main Study
This phase will comprise of the self-administered questionnaire, with all sclaes measured on a 7- pinot Likert scale. With the use of an embedded stimulus, using consumer panel data with the sample size of approximately 800. Validation study will be included using psycho-physiological equipment available in the School of Marketing to validate the brand charisma scale; and to test whether there is positive emotions elicited that can be attributed to the charisma of the brand. This sample will consist of approximately 120, in line with recommended JCR guidelines.
Significance
Theoretical Contributions
• Building and extending the current branding literature by conceptualising brand charisma, which has only been attempted in fragments throughout the literature.
•Developing a scale to measure brand charisma in a luxury context. Until now, a brand charisma scale demonstrating rigour and validation is lacking within the literature
• Empirically evaluating the developed brand charisma scale, validating the applicability and the moderating effects of brand charisma on the relationships between perception of luxury, brand experience and brand resonance.
Methodological Contributions
• This study will develop a brand charisma scale, employing psychometric properties to demonstrate reliability and validity.
• This scale will then be used to further develop a Brand Charisma Index
Managerial Contributions
This study aims to provide a blueprint for luxury brand managers, owners and policymakers on:
• How to use brand charisma to grow brand community, brand attachment and brand engagement; vis-a – vis the brand.
• Build stronger brands, that are resilient to market changes and fluctuation
• Segmentation process to identify consumers with high brand resonance
To identify what cues of brand charisma should be present for brand content and campaigns and how to augment these
• For inaccessible and affordable luxury offerings, identify whether the presence of brand charisma should be used for both.
Provide insights how the presence of brand charisma can impact and influence consumer’s perceptions and emotional responses.
Social media are increasingly becoming a strategic vehicle of modern companies’ way of communicating and interacting with consumers. Actually, social media marketing (SMM) has recently emerged as an effective two-way communication channel able to provide the sharing and exchange of information, ideas, and user-generated content in virtual environments. This is especially true for fashion brands, which are progressively creating interactive platforms such as online brand communities in order to enhance their consumer-based brand equity (CBE), interpreted as the consumers’ assessment of a company brand image, identity, and value. Scholars have widely analyzed the relationship between a company’s SMM and brand equity, thus finding a direct positive impact of the five main constructs depicting perceived SMM activities, namely entertainment, interaction, trendiness, customization, and word of mouth, on CBE. Despite this relevant scholarly interest, the consumer behavioral responses linking a company perceived SMM activities and CBE have been largely neglected. Actually, consumers’ benefits from virtual environments and online brand experience may represent significant elements marketing strategists should focus on in order to enhance a company’s brand equity. Building on the uses and gratifications theory and experiential marketing, we develop a conceptual model that unpacks such linkages, by relating SMM activities, perceived benefits of using social media, online brand experience, and CBE. Specifically, we interpret SMM activities as significant brand-related stimuli able to influence consumers’ cognitive, social interactive, personal interactive, and hedonic benefits, which in turn influence consumers’ sensory, affective, behavioral, and intellectual online experience. Moreover, we investigate the experiential responses of consumers that mostly affect a company’s brand equity, which finally impacts on consumers’ purchase intention of the fashion brand. The model is validated using structural equation modeling (SEM) on a sample of real users of online brand communities operating in the fashion industry. Our sample is composed of Millennials, which currently represent the most influential grown-digital generation of consumers. Overall, our findings shed light on consumers’ online behavioral and experiential responses to a company’s perceived SMM activities, thus proposing strategic implications for the management of brand online communities and suggesting interesting possibilities of future research on social media and fashion consumers.
Chinese economic develops fast and have became the second economic entity all around the world. The development of economic pushes the popularize of mobile clients. Accordingly, whenever and wherever the consumers are, they can acquire and share information about productions directly, e-word-of-mouth (eWOM) becomes one of the important part of online marketing. Customers prefer to trust opinion leaders and real users’ feedback rather than the advertisements which are made by companies. The choice preference of information source accelerate the development of social media.
The Word of Mouth Marketing Association, have grown rapidly and have advocated for the burgeoning new industry. (Robert V. et al., 2010) Marketers and sociologists have recognized the importance of the phenomenon of word of mouth, for more than half a century, proposing, for example, that WOM affects the majority of all purchase decisions (Brooks 1957; Dichter 1966).They find that the “friend who recommends a tried and trusted product” rather than the “salesman who tries to get rid of merchandise” (Dichter 1966, p. 165). Marketing scholars has evolved from a transaction orientation to one based on relationships (Vargo and Lusch 2004) Consumers are regarded as active coproducers of value and meaning, whose WOM use of marketing communications can be idiosyncratic, creative, and even resistant (Brown, Kozinets, and Sherry 2003; Kozinets 2001; Muñiz and Schau 2005; Thompson and Sinha 2008) Therefore, when the behavior is on/off, impact measured as probability of purchase can differ substantially from impact measured as attitude change (Robert East 2015).
This study will select significant respondents from Chinese social media users as sample. The WOM communication is send information to marketers from the market-based message interaction community ,gathering consumers with same interests. In this study, not only structural equation modeling (SEM) will be used to test research model. But also using the fuzzy-set Qualitative Comparative Analysis (fsQCA) and SPSS, the first method attempts to find a new configuration to verify the finding and the SPSS can be used to make reliability analysis and validity analysis. WOM of the research model will also be tested by fsQCA and SPSS to obtain the conclusion about what extent do two communication ways influence consumers’ purchase preference.
We want to explore different results between opinion leaders and the real users in different communication ways. Based on the results we will give some implication to both marketing scholars and practitioners.
Social media marketing offers a vast array of opportunities for fashion brands to engage with their core customers and the broader digital audience. However, they still struggle with the question of which specific strategies can be successfully applied to enhance the effectiveness social media marketing (Rampton, 2014). This study investigates how a luxury brand’ social media brand page satisfaction and brand love are positively related to desired marketing outcomes (i.e., word-of-mouth and loyalty intentions toward the luxury brand). On the basis of Customer Value Theory (Sweeny & Soutar, 2001) and Brand Love Theory (Carroll & Ahuvia, 2006), this study developed and tested a dual impact model encompassing both brand page value (i.e., information, financial, brand interaction, social interaction, and entertainment value) and brand value (i.e., inner self-and social self-expressive value).
Usable responses from 290 U.S. consumers following at least one luxury brand on social media were used for data analysis. The results of structural equation modeling showed that information, brand interaction, and entertainment values were positively related to brand page satisfaction while financial and social interaction values were not. In addition, inner self-and social self-expressive brand values were positively related to brand love. In addition, brand page satisfaction was positively related to WOM intentions but was not related to loyalty intentions whereas brand love was positively related to both WOM and loyalty intentions. Furthermore, mediation analysis showed that brand page satisfaction fully mediated the influences of information, brand interaction, and entertainment values on WOM intentions. In addition, brand love fully mediated the influences of social self-expressive value on WOM and loyalty intentions.
Our study suggests that social media brand pages providing unique value propositions can reap benefits in terms of enhanced brand page satisfaction, highlighting the crucial role of “content excellence” in social media marketing (Holt, 2016). Our findings also show that brand followers tend to love a particular luxury brand when the brand helps express their self and when the symbolic meaning of the brand is integrated into their own self-identity. Thus, one of the roles of social media marketing is in elucidating brand followers how to express their inner states guided by the desire to signal their self-identity not to others but to themselves (Berger & Heath, 2017).
There has been an emerging interest in the effective luxury advertising, which has been conducted within and across national borders. Unlike earlier studies on luxury brands that focused on the behavior and opinions of luxury consumers (e.g., luxury motivations, value perceptions, etc.), this nascent stream of research queries an important role that advertising exerts on luxury consumers (Freire, 2014). Informed by these developments, our study examines how luxury brand marketers can design effective social media messages for their consumers. In particular, we draw on recent research in consumer psychology to shed new light on (1) how consumer feelings about the psychological distance of luxury consumption may influence their evaluation of different types of message appeals on social media and their intention to share these messages with others; and (2) we address how this process varies depending on (a) the perceived tie strength between consumers on social media, the functional attitudes of luxury brands, and across different cultural milieus.
consumption, has been attempted to replace with sharing economy which is consumer-to-consumer’s activity of obtaining, giving, or sharing the access to goods and services (Hamari et al., 2016). Research argued that the sharing economy develops based on information and communication technology (ICT) as it is an emerging economic-technological phenomenon, proliferation of using social networking site (SNS) (e.g. Instagram, Facebook, YouTube), and increased consumer awareness (Belk, 2014; Hamari et al., 2016). SNS refers to a digital environment that allows individual to create his/her space where sharing and constructing relationship with others are possible (Lin & Lu, 2011). Among the numbers of SNSs, Instagram is gaining notable attention as powerful marketing tool which may especially be important for fashion industry. Hutchins (2017) reported that number of its daily active users exceeds 400 million, and 90% of users are under 35 who may be familiar with the idea of the sharing economy. In terms of marketing, 53% of Instagram users are found to follow their favorite brands (Hutchins. 2017). According to Ryan and Deci (2000), consumer behavior of using information technology such as Instagram was influenced by extrinsic and intrinsic motivations. Although numerous researches have done with the sharing economy and SNS respectively, despite the recognized role of SNS in the sharing economy, comprehensive and empirical study of the sharing economy and SNS is very limited. Hence, the purpose of this research is to investigate consumer’s motivations to use Instagram for participating sharing economy by developing research framework based on the motivation theory (Ryan & Deci, 2000) perspective.
Sustainability is currently regarded as an imperative business goal by multiple stakeholders, comprising investors, customers, and policymakers (Nidumolu, Prahalad, & Rangaswami, 2009; Sheth, Sethia, & Srinivas, 2011). In particular, how effectively the fashion industry deals with the challenges of sustainability will define its success for eras to come.
This study focuses on how social power, parasocial interaction, and social capital work for purchase intention of sustainable fashion products in the fashion YouTube context. Specifically, the study investigates the effects of social power on parasocial interaction, the effects of parasocial interaction on social capital, and the effects of social capital on purchase intention for sustainable fashion products and the implications for sustainable fashion marketing and management.
Theoretical Framework
This study defines social power as types of power that can be employed to exert influence on others. The five social power bases (French & Raven, 1959) are discussed in terms of perceived influence: Expert power refers to someone who is perceived to be an expert, to have expert knowledge, or to possess special information. Legitimate power relates to someone who is perceived to have a legitimate right to impose behavioral requirements. Referent power is associated with someone who is personally identified. Reward power refers to someone who is perceived to have ability and coercive power to someone who is perceived to have the capability to confer punishment.
Parasocial interaction concerns the relationship between media personalities and media users (Frederick, Lim, Clavio, & Walsh, 2012; Horton & Wohl, 1956; Jin & Park, 2009). Parasocial interaction can be defined as “immediate, personal, and reciprocal, but these qualities are illusory and presumably not shared by the speaker” (Horton & Strauss, 1957, p. 580; Jin & Park, 2009). Parasocial interaction theory focuses on the way audiences interact, relate to, and develop relationships with a celebrity (Jin & Park, 2009; Lee & Watkins, 2016). Audiences create a strong bond and intimacy with a celebrity while viewing media channels such as TV programs and social interactive media where audiences feel closer to the celebrity (Kassing & Sanderson, 2009; Lee & Watkins, 2016).
Social capital refers to “the aggregate of the actual or potential resources linked to possession of a durable network of more or less institutionalized relationships” (Bourdieu, 1985, p. 248). Social capital involves the relationship between providing access to resources possessed by the associates and the nature and amount of those resources (Portes, 1998). Social capital can be clarified as an intangible force that helps to bind society together by transforming self-seeking individuals into members of a community with shared interests, shared assumptions about social relations, and a sense of the common good (Etzioni, 1996).
Sustainability refers to three dimensions: economic, environmental, and social (Sheth, Sethia, & Srinivas, 2011). Sustainability transforms into a triple bottom line responsibility, with the inference that assessment of business outcomes should be based not only on economic performance, but also on the environmental and social impact. Environmental and social demands from various stakeholders contribute to the pressure for businesses to reflect sustainability. Thus, sustainable marketing practices are defined from economic, environmental, and social perspectives. In this study, effective sustainability measurements involve purchase intention for sustainable products especially emphasizing environmental and social performance.
Focused on the effects of social power on parasocial interaction and the effects of parasocial interaction on social capital and purchase intention for sustainable products, this study tests the following hypotheses:
H1. Social power (expert, referent, legitimate, and reward) positively influences parasocial interaction.
H2. Parasocial interaction positively influences social capital (bonding and bridging).
H3. Social capital positively influences purchase intention for sustainable fashion products (environmentally and socially sustainable fashion products).
Methods
This study used a survey to investigate key questions about the associations among social power, parasocial interaction, social capital, and purchase intention for sustainable fashion products. A total of 230 fashion YouTube users recruited from South Korea participated in the survey. Of the 230 participants, 40 were men (17.4%) and 190 were women (82.6%), with ages ranging from 20 to 39 (mean = 29.43 years). The social power of the fashion YouTuber (e.g., vlogger) was measured through an existing social power scale including expert, referent, legitimate, and reward measures that elicited user responses to 14 items (Goodrich & Mangleburg, 2010). Parasocial interaction was measured on the basis of user responses to six items on an existing 5- point scale that assessed parasocial interaction (Jin & Park, 2009). This study measured social capital on a 5-point Likert scale (1 = strongly disagree; 5 = strongly agree), which was adapted from an existing Internet social capital scale (Williams, 2006). Purchase intention was measured using three 7-point semantic differential scales (likely/unlikely, probable/improbable, possible/impossible; MacKenzie, Lutz, & Belch, 1986) after informing participants that they might be purchasing environmentally and socially sustainable products.
Results
The overall goodness-of-fit for this measurement model was acceptable (Chi-square 1236.138, df = 680, p <0.001, chi/df=1.818, TLI = 0.900, CFI = 0.913, RMSEA = 0.060). The reliability coefficients of all 14 social power measures including expert, referent, legitimate, and reward were 0.871, 0.782, 0.657, and 0.865, respectively. The reliability coefficient of all six parasocial interaction measures was 0.873. The reliability coefficients of all social capital measures were 0.684 for bonding factors and 0.899 for bridging factors. The reliability coefficients of purchase intention of environmentally and socially sustainable product measures were 0.921 and 0.947, respectively. The coefficients indicate acceptable reliability of the measures.
This study used partial least squares (PLS) for structural equation modeling, which has good statistical power for samples. Social power, including referent (β = 0.018, p < 0.05) and reward (β = 0.359, p < 0.001), showed statistically positive effects on parasocial interaction. The results partially supported H1. Parasocial interaction showed statistically positive effects on social capital, the bonding factor (β = 0.578, p < 0.001), and the bridging factor (β = 0.651, p < 0.001). Thus, the results supported H2. For parasocial capital, bridging showed statistically positive effects on purchase intention of environmentally (β = 0.233, p < 0.01) and socially (β = 0.284, p < 0.01) sustainable products. Thus, the results partially supported H3 (see Table 1, Figure 1).
Discussion
This study contributes to clarifying the concept of social capital and determining the relationships between social capital and purchase intention for sustainable fashion products. This study contributes to the theoretical foundation and implications of social capital and sustainability. Specifically, social power, including referent and reward, positively influences parasocial interaction. Parasocial interaction has positive effects on social capital. In turn, social capital positively influences purchase intention for sustainable fashion products. This is the first study on the effects of social capital on purchase intention for sustainable fashion products in the fashion YouTube context. This study suggests that social capital is a strong influential variable for purchase intention regarding sustainable fashion products. Thus, fashion marketers should consider social capital management in the fashion YouTube context while tailoring their brand communications to enhance their sustainable marketing and management.
Initial situation and Problem Statement
The world faces extraordinary challenges relating to the environment and society. Rapidly increasing demand is colliding with declining resources, the awareness of the need for environmental and social sustainability has grown (Martin & Schouten, 2014, p. 20). Due to these facts collaborative consumption has emerged and has disrupted various established industries all over the world. People’s attitude towards ownership and the way societies consume are changing (Chen, 2009, p. 926).
Today, consumers are willing to pay for using or accessing a product rather than buying or owning it (Chen, 2009, p. 926). Gradually, consumers are turning their backs on the traditional consumer-oriented paradigm and over-consumption and are progressively looking for ways which downshift or simplify their lives (Albinsson, Wolf, & Kopf, 2010, p. 414).
Collaborative consumption is driven by a variety of factors including the global recession, anti-hyper-consumerism, cost-consciousness as well as awareness of the need for a waste-reducing and sustainable living (Gansky, 2010, p. 16). The main drivers are technological advances, such as the internet and social media, which allow new ways of accessing and sharing. By using information technology, products and services can be reused, distributed and shared at the right time and location to the right customer (Gansky, 2010, p. 16).
The most successful field of collaborative consumption is the one of tangible assets, such as clothing, which are not used to their full potential by their owners and can be therefore temporarily shared (Botsman & Rogers, 2010, p. XVI). Within the fashion industry many collaborative consumption concepts are developing and thriving (Pedersen & Netter, 2015, p. 259). Generation Y is interested in collaborative consumption and can identify with this phenomenon as it fits their increasingly ideological lifestyles (Höflehner, 2015). According to a study published by Mindshare in November 2015, 44 % of persons of Generation Y in Austria are aware of the prominent online collaborative consumption platforms and one out of ten has already participated in a fashion-sharing activity (Mindshare, 2015).
In 2014, 8.5 billion euros were spent on clothing (Statista, 2016), whereas almost 60 % consisted of fast fashion items (Ökosoziales Forum, 2013). On average, a person has 90 clothing items in their wardrobe, and more than half, is not used at all any more. Moreover, the average item is worn for about a month before its usage drops significantly (Threadflip, 2014) or the item gets disposed of in spite of still being in good condition (Shephard & Pookulangara, 2014, p. 11). Online collaborative consumption for fashion can help expand products’ life-cycles, as unneeded or unwanted fashion items can be easily rented, lent, given or sold to other consumers by using various online platforms available (Fletcher & Grose, 2012, p. 88).
However, hardly any research was found that specifically focus on online collaborative consumption for Gen Y and examine the influencing factors
Research Aim and Research Methods
The aim of this study was to find out about the determinants influencing the intention to participate in online collaborative consumption for fashion items among Gen Y taking as an example young adults in Austria. Additionally, the factors, which can increase participation should be identified. In order to find out the influencing determinants, the Unified Theory of Acceptance and Use of Technology 2 of Venkatesh et al. (2012) will serve as the basis for the applied research construct. The following research questions are to be answered in this study:
RQ: Which factors have an influence on consumer's intention to participate in online collaborative consumption for fashion among Generation Y in Austria?
SubQ: Which measures help Generation Y in Austria to be more motivated to participate in online collaborative consumption for fashion?.
In order to be able to provide answers to the research questions a quantitative study in the form of an online questionnaire (n= 219) among respondents of Gen Y in Austria was carried out. A number of research hypotheses have been developed in order to identify a possible influence of several variables on the intention to participate in online collaborative consumption for fashion items, mainly focusing on the Theory of Planned Behaviour (Ajzen, 1991) and on the Theory of Acceptance and Use of Technology 2 of Venkatesh et al. (2012).
Theoretical Background
Theory of Planned Behaviour by Ajzen (1991)
The Theory of Planned Behaviour (TPB) was presented by Ajzen in 1991 as an extension of the Theory of Reasoned Action (TRA) by Ajzen and Fishbein, introduced in 1975 (Teo & Lee, 2010, p. 60).
Both models are part of the multiattribute models. The theory of reasoned action tries to offer an explanation for a performed behaviour. The idea behind the theory is that behaviour is performed due to an intention to perform that behaviour. The intention is influenced by the subjective norm and the attitude towards the behaviour. The TRA thereby attempts to predict the possibility of the occurrence of a specific behaviour (Schwenkert, 2006, p. 27). Although it can be said that no behaviour can be predicted with a 100% certainty there are several studies that unveil that the intention to perform a behaviour makes a significant contribution to the actual performance. The intention is the motivational factor behind the behaviour. It indicates “how hard people are willing to try, of how much of an effort they are planning to exert, in order to perform the behaviour” (Ajzen, 1991, p. 180).
The main variables of the model are the Subjective Norm and the Attitude towards the Behaviour. Subjective Norm (SN) can be described as the assumption of the individual that people important to the individual are expecting the behaviour to be performed. In other words, that people close to the individual think that the behaviour should be performed by him or her (Schwenkert, 2006, pp. 27-28; Teo & Lee, 2010, p. 61). This belief somehow conveys a sense of unconscious social pressure for the individual – the pressure to perform as the norm demands. Some researchers have found that the social norm does not have as much influence on the intention to perform a specific behaviour as originally assumed (Li, Mizerski, Lee & Liu, 2009, p. 233). It has been found that the culture also tends to have an impact on the influence of the Subjective Norm. People living in an individualistic culture have a tendency to be not as influenced by social pressure as people living in a collectivistic culture (Li et al., 2009, p. 234). This may result in the fact that in collectivistic cultures the opinion of the group is highly important and therefore often followed. In individualistic cultures people are not that influenced by others which may explain those differences in the impact of the Subjective Norm.
The TRA involves another variable – the Attitude towards the Behaviour (AtB). As the phrase already suggests, it does not describe the attitude towards an object, but the attitude towards the behaviour itself (Schwenkert, 2006, p. 27). The individual has a positive or negative feeling about the behaviour which influences the intention to perform it, is influenced. The attitude towards a specific behaviour is connected with one’s inner beliefs about the consequences of executing it. Therefore, also the possible consequences and outcomes of the behaviour are evaluated. If they are seen or predicted as positive the possibility of the intention to exert the behaviour is high, and so is the possibility of an actual performance (Li et al., 2009, p. 233; Teo & Lee, 2010, p. 61).
As the Theory of Planned Behaviour (TPB) is an extension of the TRA, there has been added another variable – the Perceived Behavioural Control (PBC). The PBC points out the “perceived ease or difficulty of performing the behaviour” (Li et al., 2009, p. 234). By adding this variable Ajzen tried to include the element of uncertainty and to increase the ability to predict the behaviour. Studies show that the accuracy of prediction is higher than with the TRA but still the cognitive processes are in the foreground (Kroeber-Riel & Gröppel-Klein, 2013, p. 236).
Unified Theory of Acceptance and Use of Technology by Venkatesh et al. (2012)
The original Unified Theory of Acceptance and Use of Technology (UTAUT) was constructed by Venkatesh et al. in 2003 after reviewing eight existing popular models for IT adoption. The eight models revised were The Model of PC Utilisation, Innovation Diffusion Theory, Social Cognitive Theory (SCT), Motivational Model (MM), Theory of Reasoned Action (TRA), Technology of Acceptance Model (TAM and TAM2), Theory of Planned Behaviour (TPB) and the Combined TAM/TPB (Venkatesh, Morris, Davis, & Davis, 2003, pp. 428-433).
The UTAUT was mainly created for IT corporate use. The extension, the UTAUT2, was developed in 2012 by Venkatesh et al. to make it applicable in consumer contexts and it is used to study new technology applications (Venkatesh, Thong, & Xu, 2012, p. 158). The UTAUT2 consists of seven variables that have an influence on Behavioural Intention. Behavioural Intention is a determinant for adoption of the Use Behaviour.
Variables that refer to an individual’s difference, namely age, gender and experience, are used to moderate various relationships within the model.
Performance Expectancy is the extent to which consumers gain benefits in their performance when using a technology. From reviewing the eight prior models, Venkatesh et al. (2003) have developed the construct Performance Expectancy, which pertains to Perceived Usefulness (TAM/TAM2), Outcome Expectations (SCT) and Extrinsic Motivation (MM), which refers to the behaviour that is driven by external rewards. According to Venkatesh et al. (2003) it is the strongest predictor of Behavioural Intention (Venkatesh, Morris, Davis, & Davis, 2003, p. 447).
Effort Expectancy is the “degree of ease associated with consumers’ use of technology” (Venkatesh, Thong, & Xu, 2012, p. 159). In general, the easier a technology it is to use in the adoption phase, the more positive the attitude towards said technology (ibid.).
Social Influence is defined as the degree to which consumers think it is important that others, such as family and friends, believe they should use a certain technology. This construct refers to the Subjective Norm in TRA and TBP. Prior research suggests that individuals, who are not well informed about the technology in question, are more likely to intend to use the technology, if other, well-informed, peers use said technology (Venkatesh, Morris, Davis, & Davis, 2003, p. 453).
Facilitating Conditions refer to the extent to which consumers “believe that an organisational and technical infrastructure exists to support use of the system” (Venkatesh, Morris, Davis, & Davis, 2003, p. 453).
Hedonic Motivation, or intrinsic motivation, refers as the enjoyment or pleasure derived from using a technology. It is shown to be an important factor in determining technology acceptance and use in consumer contexts (ibid.).
Price Value is an important value in a consumer use setting as the consumer usually pays for the technology application or the use of it. The Price Value is positive and adds to explaining the Behavioural Intention to use when the benefits of using the technology perceive to outweigh the costs (ibid.).
Finally, Habit is the degree to which people tend to behave automatically because of learning (Limayem, Hirt, & Cheung, 2007, p. 718).
Conclusions
Summary
The empirical study has shown that the factors Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Price Value and Sustainability have an influence on the Behavioural Intention to participate in online collaborative consumption for fashion.
Firstly, it has been hypothesized that Performance Expectancy has an influence on the intention to use online collaborative consumption for fashion. As it turns out, the results showed no significant difference. Therefore, consumers might find other ways of acquiring clothing more appropriate and better suited.
The second examined factor is Effort Expectancy, defined as how easy it is for consumers to use the technology. The results display that this factor shows a significant, positive influence on the intention to participate. This is in accordance with results of Venkatesh et al. (2012, p. 159), stating that the easier a technology is to use, the more likely is its adoption.
The third factor, Social Influence, explains whether consumers feel it is important that other people, such as family and friends, think they should use a technology. As it turns out, this variable is positively and highly significantly related to the adoption of online collaborative consumption for fashion. Prior research proposes that persons, who are less informed about the technology, are more likely to use it if other influential persons use said technology (Venkatesh, Morris, Davis, & Davis, 2003, p. 453).
Next, Facilitating Conditions were investigated as a potential factor influencing the intention to participate in online collaborative consumption for fashion. It was hypothesized that Facilitating Conditions, such as the access to a technological device with access to the Internet, have an influence on the adoption of online collaborative consumption. According to the results of the study, this variable has a highly significantly correlation to the outcome variable Behavioural Intention.
The results also show that Hedonic Motivation is significantly and positively related to the Behavioural Intention. Thus, utilitarian and hedonic components of online consumption need to be taken in consideration, as has been shown by previous research in the context of traditional online shopping (Childers, Carr, Peck, & Carson, 2001, p. 533).
The sixth investigated factor was Price Value, which is considered positive when the benefits of using the technology perceive to outweigh the costs. In this research, Price Value is a positive and highly significant predictor for the intention to use online collaborative consumption for fashion. Therefore, the outcomes of the study show that Price Value influences the intention to participate in online collaborative consumption for fashion.
The next two factors of the research model, Trust and Sustainability, played a tremendous role when discussing collaborative consumption and even are considered main principles of collaborative consumption in the literature. As expected, Sustainability showed a highly significant and positive impact on Behavioural Intention. As mentioned before, this predictor accounted for 28 % of the total contribution of the research model.
Trust did not significantly influence the adoption of online collaborative consumption for fashion. This result might be based on the fact that respondents feel insecure when interacting with strangers on the Internet in order to sell, buy or rent fashion items.
Managerial Implications
Several implications for retailers could be deduced from the results:
According to this study, especially the factors Hedonic Motivation and Sustainability account each for 28 % of explaining the contribution to Behavioural Intention to use online collaborative consumption for fashion.
Considering these insights, platforms dedicated to online collaborative consumption for fashion might put emphasis on these factors and increase their level of enjoyment and social interaction. For instance, platforms could boost these factors by including the usage of gamification. This way, the level of fun and pleasure for persons can be enhanced which in turn may lead to the adoption of online collaborative consumption behaviour. Additionally, in order to increase the social factor, online forums and discussion groups might not only help to express users’ experiences, reviews or interests, but also generate general social interaction, which is considered as very important for the participation in collaborative consumption.
Furthermore, the study has shown that two thirds of the sample would welcome the possibility of fast fashion retailers offering online collaborative consumption activities. Since there are still a limited number of persons aware of the phenomenon of collaborative consumption, the alternative of peer-to-peer exchange in collaboration with a prominent fast fashion retail chain would be a perfect alternative. Instead of being tied to relatively unknown platforms dedicated to collaborative consumption for fashion, persons would most certainly be more aware and more willing to participate in such practices, if a well-known, established retailer would allow collaborative activities.
Moreover, the aspect of sustainability seemed to be a crucial factor for the intention to use online collaborative consumption platforms for fashion. For this reason, platforms should communicate this aspect and publicise the fact that using collaborative consumption activities is an environmentally friendly,
To conclude with, more than half of respondents would need more information about the topic in order to participate. Existing online platforms should invest in effective communication strategies or inexpensive guerrilla campaigns in order to attract more users. As the results of this study show, if persons are better informed and more aware of this phenomenon and its advantages, the better are the chances for adoption of collaborative consumption for fashion.
Introduction
Social and environmental damage from unsustainable fashion manufacturing (Kang, Liu, & Kim, 2013) should be addressed using sustainability marketing communications (Lu, Bock, & Joseph, 2013). Millennials are both sustainability-conscious (Lu et al., 2013) and prevalent consumers of luxury (Giovannini, Xu, & Thomas, 2015). Perceptions of luxury products using recycled fabrics were found to be negative (Beckham & Voyer, 2014). Millennials purchasing sustainable luxury goods using recycled materials may be viewed as paradoxical due to mixing prestigious luxury with disposable recyclables.
Approach
Impression Formation Theory (Asch, 1946) was used to determine how brand characteristics merge into a sustainable luxury brand impression. This study proposed the following hypotheses.
H1a: As compared to millennials exposed to a sustainable luxury brand description, those exposed to a luxury only brand description will have a higher level of luxury impression.
H1b: As compared to millennials exposed to a luxury only brand description, those exposed to a sustainable luxury brand description will have a higher level of sustainability impression.
H2: (a) Luxury brand impression and (b) sustainable brand impression will positively influence the attitude toward the luxury brand.
H3: Attitude toward the luxury brand will positively influence millennials’ purchase intention of its goods.
Method
Between-subjects experimental design was used to test the hypotheses. Two randomly assigned groups received an online survey via Amazon Mechanical Turk with either a luxury only (without the description of recycled materials) or a sustainable luxury brand (describing the use of recycled materials) description. The survey consisted of 5-point Likert-type scales measuring: brand impression (Aaker, 1997), brand attitude (Spears, & Singh, 2004), and willingness to buy luxury brand products (Dodds, Monroe, & Grewal, 1991). SPSS and MPlus were used to perform statistical analysis and multi-group SEM.
Results
A usable sample of 355 Millennial consumers was an average of 28 years of age (49% male and 51% female). The manipulation of brand description (luxury only and sustainable luxury) was successful. Reliability analysis revealed that all the variables had Cronbach’s α > .70 indicating an acceptable internal consistency. Hypotheses 1b, 2a, and 3 were supported, while hypotheses 1a and 2b were not supported.
Conclusion
The impression of luxury was the sole impression to significantly predict attitude towards the brand, and attitude positively influenced purchase intention for both brand descriptions. Luxury brands should consider using recycled materials and provide marketing communication that favors sustainable brand positioning.
The willingness to actively contribute to more sustainability bares important challenges for managers who must take strategic decisions. The literature about corporate social responsibility has developed in many directions, with often a divide in focus, between society (Acquier & Aggeri, 2015) or corporate sustainability and responsibility (Bansal & Song, 2017). The paper sits at the intersection of these fields by focusing on the question of ethical dilemmas. The objective is to approach the question of ethics in context, through the trade-offs that managers are facing when taking strategic decisions to build sustainable business models, to discuss the contours of the ethical competences at work.
The paper focuses on a specific context, the one of successful pure players of sustainability in the luxury fashion industry. It means first that we leave aside the question of organizational change to analyze the core dilemmas that even new actors that start from scratch must face. These pure players could also be named “social entrepreneurs” (Elkington & Hartigan, 2008) or “elegant disrupters” (Bendell & Thomas, 2013). Second, by focusing on luxury fashion we locate our analysis in an industry where the nature of the activity is both a source of salient controversies and of exemplary practices (Kapferer, 2010; Godart & Seong, 2014), two aspects that have the potential to make visible some dilemmas.
We focus on a small number of cases of organizations that we selected per criteria of similarities and differences, to allow for an inductive in-depth comparative case study (Yin, 2009). The four organizations are: a producer of yak products, a fur recycling company, a fur auction house and a digital platform for emerging designers. The cases are similar in that each organization is a successful promoter of sustainable practices. The four cases however differ in that each puts at the core of the business model different types of sustainability issues and is based at a different level of the value chain (sourcing, fabrication, intermediation and market access). Also, the four organizations differ in the degree to which they aim to disrupt existing practices in the luxury fashion industry.
Data were collected through a series of interviews and complementary press articles, websites and reports. Data analysis proceeds in two steps. We start by narrating each case through the voice of the organization, to describe and understand the rationale behind each business model. We then further our interpretation of the cases through a comparative analysis by systematically recording the tensions or contradictions. Each firm organizes the activity around key engaging choices that promote sustainability but do not lift some inbuilt dilemmas–labelled as: sustainability vs. luxury fashion, sustainability vs. sustainability, and sustainability today vs. tomorrow. The paper highlights how innovative players can openly discuss some dilemmas, approaching sustainability as a story they care about but also as a debate. Yet, the paper also points to the fact that some dilemmas may remain harder to reflect upon, especially the ones that can counter in the long-run the objectives that were at the base of the business. Some questions as the one of growth, in time and scale, might push far the reflexive ability but it is also where ethical competences might be the most needed.
This study examines how advertising can be used by premium private labels to develop perceived luxuriousness and, in turn, purchase intention. The findings suggest perceived image and quality relative to regular private labels and a leading national brand as well as store-brand image congruity as key factors and support the store-type effect.
Introduction
Private labels (PLs) are receiving increased attention in line with their significant growth (Schnittka, 2015). Braak, Geyskens, and Dekimpe (2014) pointed out the evolving trend of more PLs offering high quality at a high price in comparison to their low-quality, low-price heritage. Among multiple tiers of PLs, PPLs exclusively aim at a premium tier of the market and try to offer the value comparable to that of top-tier NBs (Jost 2014). Acknowledging differentiated natures of PPLs, this paper analyzes what advertising strategies make consumers perceive a PPL to be luxurious and in turn, increase purchase intention. Cue utilization theory and categorization theory are used as a basis for hypotheses. Our research is an effort to shed light on adequate design of the advertising message for the successful introduction of a PPL.
Theoretical Background
Premium Private Label and Perceived Luxuriousness
For a PPL, being able to offer outstanding value as compared to top-tier NBs is a critical issue (Geyskens, Gielens & Gijsbrechts 2010). To investigate whether a PPL is successfully positioned, we suggest the construct of perceived luxuriousness as a key variable. We define a brand's luxuriousness as its ability to satisfy multifaceted needs of consumers with its products which is not limited to functional needs (Lee, Ko, Kee & Kim, 2015), through five value dimensions (Vigneron & Johnson, 2004). Consequently, we employ the brand luxury index (BLI) to measure perceived luxuriousness (Vigneron & Johnson, 2004).
Cue Utilization Theory
According to cue utilization theory, when making purchases, consumers use diverse extrinsic and intrinsic cues, and make the assumption that such cues will help them make the most reasonable purchase decision (Richardson, Dick & Jain, 1994). Referring to cues, consumers decide to buy the product only if it is perceived as a better choice than the alternatives in terms of overall value that it conveys. These cues are often displayed and reinforced via advertising (Yi, 1993).
Categorization Theory
According to categorization theory, when exposed to advertising messages for a new brand, consumers are expected to call up information available in memory that is classified into categories (Carrillat, Harris, & Lafferty, 2010). Punj & Moon (2002) demonstrated that a successful strategy for new brands is to associate itself with a successful existing brand to be included in the consideration set while differentiating itself from other brands.
Hypotheses Development
Image Similarity
Perceived similarity between brands and products has been discussed at various levels and scopes. It has been illustrated that shared physical attributes (Aaker & Keller, 1990) and shared abstract image (Park, Milberg & Lawson, 1991) between product lines moderate the probability of being perceived as similar by consumers. Considering the disparate positions between PPLs and RPLs, we suggested that RPLs are useful as a disparate option that may in turn emphasize the premium position of a PPL (Palmeira & Thomas, 2011).
H1a. Image similarity between a PPL and a RPL, as reinforced by advertising, will have a negative effect on the perceived luxuriousness of the PPL.
If a PPL can associate itself with the experiential value of a high-positioned NB, it is more likely that the PPL will be perceived as luxurious by signaling comparability (Sayman et al., 2002).
H1b. Image similarity between a PPL and a NB, as reinforced by advertising, will have a positive effect on the perceived luxuriousness of the PPL.
If the different positions of a RPL and a PPL are not perceived by consumers, consumers might judge the PPL as simply a similar but expensive option and would not be willing to purchase it (Huang & Huddleston, 2009).
H2a. Image similarity between a PPL and a RPL, as reinforced by advertising, will have a negative effect on the purchase intention for the PPL.
Closer associations between a PPL and a top-tier NB built through advertising lead to enhanced familiarity with the PPL and perceptions of reduced risks (Erdem, Zhao & Valenzuela, 2004).
H2b. Image similarity between a PPL and a NB, as reinforced by advertising, will have a positive effect on the purchase intention for the PPL.
Quality Superiority
Perceived quality is defined by Aaker (1991) as: “the customer’s perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives”. Consumers’ abstract beliefs regarding the product’s quality can be deduced from “credence quality attributes” (Ophuis & Trijp, 1995). The quality of products is evaluated relatively, compared with alternatives. Nueno and Quelch, (1998) pointed out that there are a few characteristics shared by premium brands, and excellent quality is one of them.
H3a. Quality superiority of a PPL compared to RPL, as reinforced by advertising, will have a positive effect on the perceived luxuriousness of PPL.
H3b. Quality superiority of a PPL compared to NB, as reinforced by advertising, will have a positive effect on the perceived luxuriousness of PPL.
According to Sethuraman, Tellis, and Briesch (2011), consumer perceptions of quality of a PL are evaluated based on quality differentials and play a dominant role when consumers make purchase decisions. Indeed, the perceived quality differential between a PL and a NB has been found to influence the share of the PL (Erdem et al., 2004).
H4a. Quality superiority of a PPL compared to a RPL, as reinforced by advertising, will have a positive effect on the purchase intention of the PPL.
H4b. Quality superiority of a PPL compared to a NB, as reinforced by advertising, will have a positive effect on the purchase intention of the PPL.
Image Congruity between a Store and a PPL
At the individual level, a generalized store image is determined by each consumer’s beliefs about retailer-specific attributes (Lee & Hyman, 2008). If the positive store image can be transferred through a number of positive associations between the store image and a PL, it will help consumers evaluate a newly encountered PL more favorably (Collins-Dodd & Lindley, 2003). As Dubois, Laurent, and Czellar (2001) demonstrated, consistent value shared between a parent brand and an extension will further strengthen the luxurious position.
H5a. Image congruity between a store and a PPL will have a positive effect on the perceived luxuriousness of the PPL.
Furthermore, with congruity consumers will see a brand which maintains the standards and preserve its essence as authentic and are likely to form positive responses toward a brand (Choi, Ko, Kim & Mattila, 2015). Lee and Hyman (2008) illustrated that the congruity between beliefs about a store and a PL would lead to a relatively favorable attitude toward a PL product.
H5b. Image congruity between a store and a PPL will have a positive effect on the purchase intention of the PPL.
Perceived Luxuriousness and Purchase Intention
Sethuraman et al. (2011) illustrated that both quality and non-quality values matter in purchase decisions of a PL. For a PPL aiming at signaling an outstanding position, representations of added value are critical to form purchase intentions (Fionda & Moore, 2008). Thus:
H6. Perceived luxuriousness of a PPL will have a positive effect on the purchase intention of the PPL.
Store type Effect
Consumers evaluate retailers differently and their subjective evaluation of the retailer is also expected to affect evaluations of products sold in the retailer (Grace and O’cass, 2005; Pappu and Quester 2008). The more upscale image and positioning of department stores are regarded to allow products they sell to be perceived as luxurious through more diverse appeals. In turn, purchase intentions are to be facilitated with ease, relatively.
Proposition 1: According to store type, relative perception of luxuriousness of a PPL will be different.
Proposition 2: According to store type, relative purchase intention of a PPL will be different.
Methods
Experiments were conducted among undergraduate-level students (aged 20-29) at a large Korean university, as they have relatively common traits and increasing experience with private labels (Trendmonitor, 2015). A total of 339 self-administered questionnaires were distributed, out of which 324 were used for analysis: 166 for department stores, 158 for hypermarkets. A purchase scenario of a cashmere sweater as well as an advertisement of the PPL sweater with information about each brand’s product (i.e. the material, the manufacturer, the distributor, and the advertisement) was given. For robust results, the experiment was conducted via two media types, online and paper.
Analysis and Results
Structural Model Testing
We used structural equation modeling (AMOS 21) to test the proposed theoretical framework and propositions (see Figure 1). All estimates indicate an acceptable fit.
Individual Hypothesis Testing
The results indicate that image similarity between a PPL and a RPL negatively influences the perceived luxuriousness of the PPL (supporting H1a), but image similarity between the PPL and a NB positively influences the perceived luxuriousness of the PPL (supporting H1b). Although image similarity between a PPL and a RPL has no direct influence on the purchase intention of the PPL (H2a is rejected), image similarity between the PPL and a NB positively influences the perceived luxuriousness of the PPL (supporting H2b).
Quality superiority of the PPL compared to the RPL positively influences both the perceived luxuriousness and purchase intention of the PPL (supporting both H3a and H4a), but quality superiority of the PPL compared to the NB does not have a significant effect (H3b and H4b are rejected).
Congruity between the PPL and store is found to influence the perceived luxuriousness of the PPL (supporting H5a) but has no direct influence on the purchase intention (H5b is rejected). Meanwhile, the hypothesized effect of the perceived luxuriousness of PPL on purchase intention is supported (H6).
Proposition Testing
The data for each store type, department store (n =166) and hypermarket (n=158), was analyzed separately via multi-group analysis to assess store type effects on the modeled relationships.
The findings for department stores indicate that the effects of image similarity between a PPL and a RPL on perceived luxuriousness, image similarity between the PPL and a NB on the purchase intention, quality superiority of the PPL compared to the RPL on the perceived luxuriousness as well as the purchase intention, and image congruity between the PPL and the store on the perceived luxuriousness are significant. Meanwhile, the findings for hypermarkets represent that the effects of image similarity between the PPL and NB on perceived luxuriousness and quality superiority of the PPL compared to the RPL on the perceived luxuriousness of the PPL are significant. For both store types, overall perceived luxuriousness turned out to be positively related to purchase intention.
Conclusion
The findings of this study have implications for a PPL aiming at positioning itself in consumers’ minds as luxurious, vis-à-vis a RPL and a NB. In regard to the perceived brand images, using advertising, efforts to differentiate a PPL from a RPL and to equate a PPL with the top-tier NB appears to be a reasonable strategy. Moreover, using advertising to emphasize superior quality compared to the RPL is likely to be effective whereas to compare it to a NB will not. Also, image congruity between a store and a PPL would allow the PPL to be perceived as luxurious as it aims to be. Furthermore, the results lead to a rationale for disparate strategies between two store types. As a follow-up study, we are planning to examine how direct manipulation of the comparative advertising messages influences consumers’ perceived luxuriousness and purchase intentions of a PPL.
Have you ever seen images of an elegant woman dressed in period clothes, threatening to stab another woman through the neck; a model facing a leopard behind a mannequin hand; or a lady using a hook to fish a purse out of a pool, while a seemingly dead man is floating in the water? The descriptions of these scenes might sound dark and absurd, and provoke disgust or displeasure; but the fact is, these images have been used in real advertisements for prestigious fashion brands such as Gucci and Dolce & Gabbana, and were featured heavily in various fashion magazines. Recently, advertisers have sought to differentiate their products by using grotesque imagery in their ads as a strategy to get consumers’ attention and stimulate their curiosity. Although growing attention is being paid to ads that are not conventionally ‘pretty’, very little research has tried to empirically document the effect of grotesque imagery on the persuasiveness of luxury brand advertising, or unveil the psychological mechanism underlying the effect. The purpose of this research is to investigate how grotesque imagery used for luxury products appeal to consumers, and why the ads affect the consumers’ behavior. We empirically demonstrated that the grotesque imagery used to promote luxury products enhances consumers’ purchase intention because it facilitates consumers to better experience the brand by transporting them to the narratives that are portrayed in the ads. This process occurs because a correspondence between grotesque imagery and luxury branding generates the fit effect, which leads to fluent processing and feel right experience, and in turn induces engagement to the ad.
Grotesque Advertisement
Grotesque was the word indicating the style of ancient decoration that depicted fantastic combinations of human and animal forms, interwoven with strange fruits and flowers. The Cambridge Dictionary of English now defines grotesque as a general adjective that describes anything “very strange and unpleasant, especially in a ridiculous or slightly frightening way.” Evolutionary psychology provides us a hint for the reason why emotionally provocative and fear-evoking grotesque imagery captures consumers’ attention. The faster attention to negative stimuli than to positive stimuli is an automatic tendency developed as means of evolutionary adaptedness for survival because negative stimuli signal danger and cause alert to prompt defensive reaction (Ohman, Flykt and Esteves, 2001; Schoemaker 1996; Tan 2008). Another explanation for grotesque imagery’s attention grabbing power arises from our complex emotional system—i.e. human enjoys fearful horror or heartbreakingly sad films, because such negative emotions often stem from a challenging situation filled with risks, threats, and tension and generate an active interest in it (Bartsch, Apple and Stroach 2010; Oliver 1993; Tan 2008). Frightening, disgusting, or tragic emotions are mixed with a relief that comes after a perception of reality. Because human has an ability to distinguish their real life and the situation in the film or drama, we feel interests while being frightened or disgusted or heart-broken with pleasurable enjoyment (Tan 2008).
Prior research by Phillips and McQuarrie (2010) brought to light the concept of grotesque in the context of fashion marketing. They described grotesque imagery using words with common etymological meanings—bizarre, surreal, deviant, absurd, discrepant, peculiar, and odd—and suggested that it could lead viewers to engage in the ad through transportation or immersion to the story world of the ad. Through the narrative transportation, grotesque imagery persuades consumers to better experience the brand featured in the ad. Based on their conceptualization of grotesque and its persuasive power, we empirically test whether grotesque imagery used in an ad might work as a strong trigger of fantasy, stimulating viewers to be transported into the narrative depicted in the ad image.
Transportation
Transportation is defined as ‘a convergent process where all mental systems and capacities become focused on events occurring in the narrative’ (Green and Block 2000, p. 701); it represents the extent of absorption into the narrative flow of the story as it unfolds. Transportation occurs whenever the consumer experiences a feeling of entering a world brought to mind by the story, because of their empathy for the story characters and imagination of the story narratives (Van Laer et al. 2014). Previous research suggests that transportation induces favorable attitudes toward the related product (Escalas 2004), and enhances the persuasiveness of advertising messages through the connection between the self and the ad content (Escalas 2004).
Fit Between Grotesque Imagery and Luxury Branding
The effect of fit, which means a relevant and logical connection between ad contents, has been widely studied in advertising and marketing literature. Fit messages are readily accessible, and processed through simple cognitive information processes. Macinnis and Park (1991) argue that the fit effect is caused by consumers’ perception of the stimuli in ads as a whole, rather than distinct individual elements. The processing of fit (vs nonfat) messages is easier, so more fluent (Lee and Aaker 2004; Labroo and Lee 2006), and fluent processing of fit messages offer a feel right experience (Camacho, Higgins, and Luger 2003; Lee, Keller, and Sternthal 2009). This subjective experience of feeling right increases engagement (Lee, Keller, and Sternthal 2009), willingness to pay, favorability of brand attitudes, and brand choice (Lee and Higgins 2009).
In this research, we posit that persuasive effect of grotesque ads is more likely to occur when grotesque imagery is used for advertising luxury brands. Previous research explained the motivations to purchase luxury brands as scarcity, uniqueness, distance, high price (Dion and Arnould 2011; Dubois and Duquensne, 1993), and signaling of social status (Belk 1988; Zhou and Belk 2004; Han, Nunes, and Drèze 2010), which intersect with the characteristics of grotesque. People purchase luxury goods because they are relatively exclusive and limited, providing the consumer with more emotional distance from mass produced products (Hansen and Wänke 2011). In addition, positioning a brand using mythical and abstract concepts is known to be more effective in building strong prestigious brands (Arsel and Craig 2011). Because grotesque is perceived to be distant from reality, incongruent, and discrepant, these characteristics of luxury branding could overlap with that of grotesque.
Furthermore, support for our prediction of a fit between grotesque imagery and luxury branding can be found in some other common features of both. Dion and Arnould (2011) argue that luxury brands possess hedonic appeals based on multisensorial pleasure, artistic aura, and charismatic stories which transport consumers into the magical world of the luxury brand. In support, Kim, Lloyd and Cervellon (2015) found that luxury brand advertising stimulates fantasy, and this is one of the dominant themes through which consumers were engaged with the brand. They showed that being part of the narratives in the ads, participants experienced escaping from their everyday lives, traveling around the fantasy world, and feeling that their myth, fantasies or dreams become real. As luxury brand advertising has a power to transport consumers into fantasy, grotesque imagery also carries consumers away into magical world through narrative transportation (Phillips and McQuarrie 2010).
Hypotheses
In light of the prior research, we posit that when grotesque imagery is used in ads for luxury brands, the fit generates feel right experience and easy and fluent processing of messages, because grotesque imagery and luxury brand advertising commonly have a power to transport viewers to fantasy world distant from reality.
In addition, previous research has suggested positive downstream effects for transportation to enhanced brand experience. As the level of experience is enhanced, familiarity and satisfaction with the brand are heightened as well (Ha and Perks 2005). A deeper level of brand experience generates brand trust and accelerates loyalty to brands (Lglesias, Singh, and Batista-Goguet 2011). Thus, we propose the following hypotheses:
H1: Luxury brand advertising with grotesque imagery will facilitate transportation, which will in turn enrich brand experience and increase purchase intention of the featured product.
H2: There will be a perceived fit between grotesque imagery and luxury branding.
H3: The fit between grotesque imagery and luxury branding will enrich brand experience which in turn enhance purchase intention.
Study 1
The goal of Study 1 was to show that a grotesque ad is perceived to be better-matched with brands described as prestigious.
Stimuli. We designed two versions of a print advertisement for a fictitious fashion brand to manipulate grotesque (vs. non-grotesque) ad style. We created the ad by modifying the content from an existing Jimmy Choo advertisement. The print ad featured a man, a girl, a car, and a handbag placed in the middle of a desert. In the grotesque imagery condition, the girl is placed in the truck of a car, appearing dead since the man sitting next to her is holding a shovel that he seemingly used to dig a hole in the ground to bury her. In the non-grotesque imagery condition, we replaced the shovel to a cane. In the prestige condition, we introduced the brand as one with a prestigious image similar to those of Louis Vuitton and Hermes. In the non-prestige condition, the brand was described as having a brand image similar to Zara and H&M.
Procedure. 171 undergraduates (average age = 22.8 years; 171 females) participated in the study for a course credit. Participants were informed that they would be asked to complete an ad evaluation study, and were randomly assigned to be presented with one of the four print ads featuring a handbag. Participants were asked to indicate how likely they would be to purchase the handbag product (1 = very unlikely; 7 = very likely), and how well-matched the ad is to the product and the brand image on two items (‘the ad goes nicely together with the handbag’ ‘the ad looks well-matched with the image of the brand’; 1 = not at all ~ 7 = very much). Then, they completed two item transportation measures (‘While I was looking at the ad, I could easily picture the events in it taking place,’ ‘I had a vivid image of the man sitting next to the woman’; 1 = strongly disagree ~ 5 = strongly agree) adapted from Green and Brock (2000). Next, participants responded to twelve items of brand experience measure from Jos ̆ko Brakus, Schmitt, and Zarantonello (2009) (e.g. ‘This brand results in bodily experiences’, ‘This brand stimulates my curiosity and problem solving’; 1 = strongly disagree ~ 7 = strongly agree). They also rated how grotesque the ad was on seven items (‘bizarre,’ ‘surreal,’ ‘deviant,’ ‘absurd,’ ‘peculiar,’ ‘odd’, ‘discrepant’; 1 = not at all ~ 7 = very much). To rule out an affective account for participants’ evaluation, we assessed participants’ mood (1 = negative mood, bad mood, sad, irritated ~ 7 = positive mood, good mood, happy, relaxed) and their arousal (1 = not at all aroused ~ 7 = very aroused).
Results: Perceived fit. The two perceived fit items were averaged to form a fit index. A two (ad style: grotesque vs. non-grotesque) by two (brand reputation: prestige vs. non-prestige) between-subjects ANOVA revealed a significant ad style by brand reputation interaction effect (F(1, 167) = 5.69, p = .018). Planned contrasts indicated that, in the grotesque imagery condition, participants rated the ad as more well-matched when the product was described as a prestigious brand (M = 4.14) than when it was a non-prestigious brand (M = 3.53; F(1, 167) = 4.15, p = .043). In contrast, in the non-grotesque imagery condition, participants rated the ad as less well-matched when it was described as a prestigious brand (M = 3.60) rather than non-prestigious brand (M = 4.00), but the effect was not significant (F(1, 167) = 1.79, p = .183). Because the perceived fit results confirmed that participants rated the ad as more well-matched when the product was described as a prestigious brand, we created an imagery fit variable coding the well-matched conditions (grotesque imagery for prestige brand and non-grotesque imagery for non-prestige brand) to be 1, and the less well-matched conditions (grotesque imagery for non-prestige brand and non-grotesque imagery for prestige brand) to be 0. As predicted, an ANOVA revealed that the well-matched conditions showed higher perceived fit (F(1, 169) = 5.79, p = .017), such that those in the matched condition (M = 4.07) rated higher on perceived fit than those in the mismatched condition (M = 3.57).
Transportation. Participants’ ratings on the two transportation items were averaged to form transportation scores. A two way ANOVA revealed a significant ad style (grotesque vs. control) by brand reputation (prestige vs. non-prestige) interaction effect on transportation (F(1, 167) = 4.35, p = .039). Planned contrasts indicated that, in the grotesque condition, participants reported higher transportation scores when the product was described as a prestigious brand (M = 3.22) than a non-prestigious brand (M = 2.78; F(1, 167) = 4.28, p = .040). In contrast, in the non-grotesque condition, participants reported lower transportation scores when it was described as a prestigious brand (M = 2.62) rather than a non-prestigious brand (M = 2.81), but the effect was not significant (F(1, 167) = .78, p = .378).
Mediation Effect of Transportation on Brand Experience. Participants’ ratings on the brand experience scale were averaged to form brand experience scores. A series of regressions showed that the ad style by brand reputation interaction activated transportation (β = .632, p = .034), which then yielded greater brand experience (β = .360, p <.001). The bootstrap procedure for a conditional mediation model (PROCESS Model 7; Hayes 2013) using 5,000 samples revealed a significant conditional indirect effect of grotesque imagery on brand experience through activation of transportation when the product was described as a prestigious brand (95% CI [.067, .390]). This conditional indirect effect was not significant when the product was described as a non-prestigious brand (95% CI [–.189, .138]).
Multiple Mediation Effect. Our prediction was that grotesque imagery used in luxury brand advertising would lead to higher perceived fit, which facilitates narrative transportation and in turn enhances brand experience leading to greater purchase intention. Multiple mediation analyses using PROCESS Model 6 (Hayes 2013) with 5,000 resamples confirmed that the perceived fit → transportation → brand experience path mediated the effect of imagery fit on purchase intention. The imagery fit variable was created as a binary variable (1 = grotesque imagery for prestige brand or non-grotesque imagery for non-prestige brand; 0 = otherwise). First, the path from imagery fit to perceived fit was significant and positive ( = .504, p = .017), as was the path from perceived fit to transportation ( = .149, p = .007), the path from transportation to brand experience ( = .326, p < .001), and the path from brand experience to purchase intention ( = .344, p = .014). The 95% CI of the bootstrap procedure ([.001, .030]) confirmed that the indirect effect of imagery fit on purchase intention through the three mediators—perceived fit, transportation and brand experience—was significant.
Study 2
The objective of Study 2 was to test the robustness of the mediating role of transportation for the effect of grotesque imagery fit with luxury brand. In addition, we checked whether the grotesque manipulation affected the extent to which participants perceived the brand as luxurious.
Stimuli. Two versions of print advertisement were created to manipulate grotesque (vs. non-grotesque) ad style by modifying an existing Dolce & Gabbana ad campaign. The print ad featured two women, a man, and handbags placed on the floor of a classically decorated room. In the grotesque imagery condition, one of the girls wearing a ball gown is holding a knife and seemingly about to stab another girl. In the non-grotesque imagery condition, we replaced the knife with a bottle of perfume. All participants were provided with the print ad that contained a cover story about the ad evaluation task, describing the brand as either a prestigious brand that is similar to Louis Vuitton and Hermes or a brand with an image that is similar to Zara and H&M.
Procedure. 165 undergraduate students (average age = 23.8; 66 females) were randomly assigned to one of the four experimental conditions. Participants were first asked to indicate how likely they would be to purchase the featured handbags (1 = very unlikely; 7 = very likely). Then, they responded to two transportation items (‘I wanted to learn how the story in the ad ended’, ‘The story in the ad affected me emotionally’, ‘I found myself thinking of ways the story in the ad could have turned out differently’; 1 = not at all ~ 5 = very much). Next, participants responded to the same twelve-item brand experience scale, seven item grotesque measure, four mood items, and an arousal item used in Study 1. In study 2, they were also asked to rate their impression of the product as luxurious, prestigious, and high class (1 = not at all; 7 = very much).
Results. The grotesque manipulation did not affect the extent to which participants perceived the brand as luxurious, and when the product was described as a prestigious brand, participants in the grotesque condition reported higher transportation scores than those in the non-grotesque condition. Multiple mediation analyses reconfirmed that the transportation → brand experience path mediated the effect of imagery fit on purchase intention.
General Discussion
Through two studies, we demonstrated that grotesque ads can be effective in persuading consumers to purchase luxury fashion items. We found that grotesque ads trigger transportation when the brand is described as prestigious, enriching brand experience, and in turn heightening consumers’ purchase intention.
As a contemporary, postmodern marketing strategy, digital storytelling is the virtual means by which a story can be organized. Less traditional than a conventional beginning, middle, and end narrative, the genre suggests that individuals connect the dots of a story by comparing their reading with others. This research examines Christian Dior’s Secret Garden IV campaign film as it is broadcasted on YouTube for six weeks and diffused through Instagram. Through a grounded theory approach we measure and analyze audience engagement and key themes expressed through user-generated content on YouTube and Instagram. Manual coding and three computer-aided text analysis programs are used to analyze the data and triangulate results. This research contributes to the literature on consumer engagement in digital storytelling, online brand communities, and celebrity endorsement.
Introduction
Digital technologies have improved the aesthetics of content creation, enabling brands to develop deeper levels of engagement with consumers through social channels (Merrilees, 2016). Every day hundreds of millions of hours of video are consumed on YouTube and the number of high performing channels has been increasing by 50% per year (YouTube, 2017). Instagram’s monthly active users have grown from 300 million in December 2014 to 600 million in December 2016 (Statista, 2017). Within the social media sphere, commercial and individual users connect through multiple platforms and devices to share ideas and information without the constraint of time and space (Gruzd & Wellman, 2014). The digitization of visual culture provides users with so much content that it may even result in information overload (Babin et al., 2017). This research focuses on the fashion sector and social media platforms that cater specifically to visual imagery and video content. The logic is twofold: the fashion industry is inherently visual and research on a study of eighty-three fashion brands indicates a shift from traditional advertising to video products, especially on social media (L2 Inc., 2016).
We examine elements of French luxury goods company, Christian Dior’s Secret Garden omni-channel marketing campaign. As a collection of short films shown on YouTube and in other media, the campaign had four annual installments beginning in 2012. The Secret Garden series explores the brand’s past and present within the context of the 21st century Palace of Versailles. Our focus is on Secret Garden IV, launched in May 2015, featuring singer/songwriter Rihanna as the protagonist. Dior’s portrayal of Versailles throughout the Secret Garden series reflects undertones of its monarchial heritage and its high fashion prestige. In Secret Garden IV, there is a juxtaposition to this theme when Rihanna’s subculture persona and celebrity status (Fleetwood, 2012) presents a misalignment between luxury ideals and Rihanna’s position in popular culture. Table 1 provides an overview of the history of the campaign.
This research measures and analyzes audience engagement and key themes expressed through users’ comments on YouTube and Instagram for the pre-launch and launch of the Secret Garden IV campaign. Through a grounded theory approach we identify, analyze, and validate keywords and group them into themes utilizing both manual coding and computer-aided text analysis (Lai & To, 2015). We utilize three software programs (Tableau, NVivo 11, and Leximancer) to triangulate results. The scholarly literature on fashion luxury goods is scant and this methodological approach is sound (Neuendorf, 2017).
Five recent scholarly articles on luxury fashion goods and social media were identified. One relates to storytelling and is visually-focused (Megehee & Spake, 2012); three develop models (Kim & Ko, 2010; Kim & Ko, 2012; Brogi et al., 2013); and one uses the case study approach (Phan et al., 2011). This research fills both a theoretical and a methodological gap. We examine a digital storytelling campaign across social media platforms with the prospect of new theoretical insights. According to Snelson (2016) there is scant social media research on YouTube and Instagram and social media research using a grounded theory approach is also limited.
Theoretical background
Digital Storytelling
Digital storytelling uses technology as an extension of oral and written stories “…to solidify our cultures and share knowledge for the future” (Irwin, 2014, p. 40), placing engagement with digital media as an extension of the self. People naturally think in narratives and stories, rather than arguments and paradigms (Megehee & Spake, 2012) and may use digital storytelling to order otherwise disconnected experiences into interrelated, meaningful episodes (Vannini, 2012). By connecting the dots of a story on social media users have the opportunity to formulate meanings of their own and build interpretations by comparing their “reading” with that of others. Social media has empowered the consumer by enabling communication that is multi-way, multi-directional, and led by the consumer (Tuten & Solomon, 2015).
The fashion film on the internet has been viewed as “a genre that is not is not simply a tool to stimulate consumption, but is something that is set to change our notion of fashion as a moment in time” (Khan, 2012, p. 236). In her review, “100 Years of the Fashion Film,” Marketa Uhlirova posits that contemporary technologies aimed at a film’s “potential to promote fashion” turned into “the medium’s ability to recast consumption as seductive visual entertainment,” devaluing a fashion film’s potential for not only entertainment and visual pleasure, but also for experimentation and innovation (Uhlirova, 2013, p. 140; p. 153).
Online Brand Communities
As a hub of value creation in the consumer marketplace, brand communities are an enthusiastic, passionate group of customers who express similar commitment towards a brand or product and may not be geographically bound (Muniz Jr. & O’Guinn, 2001; McAlexander et al., 2002). In brand communities created by marketers, organizations may stimulate engagement, brand loyalty and the expression of positive emotions and trust (Bagozzi & Dholakia, 2006; Jung et al., 2014).
Customer engagement behaviour pertains to a variety of online and offline behaviours (e.g. word of mouth, blogging, customer reviews) that are not transactional, but can be measured (Verhoef et al., 2010). Although positive word of mouth and brand advocacy are not guaranteed, an organization’s most engaged social customers have the potential to communicate messages that are perceived as more credible than those generated by the organization (Kozinets et al., 2010). A high level of engagement may be described as delight or joy. Engagement requires strong emotional and relational bonds (commitment and trust), and may transform customers into loyal “fans” or co-creators of value (Hawkins & Davis, 2012). A study of customer engagement behaviour in a social media environment is complex because engagement behaviour in different channels may vary considerably, with a different effect on value creation or purchase intent. For example, if a customer tweets on a mobile device his/her engagement and purchase intent may differ from engagement and purchase intent as a result of interaction with a video or blog (Libai et al., 2010).
Celebrity Endorsement
A celebrity endorsement is defined as “an agreement between an individual who enjoys public recognition (a celebrity) and an entity (e.g., a brand) to use the celebrity for the purpose of promoting the entity” (Bergkvist & Zhou, 2016). Celebrity endorsements previously were associated primarily with consumer goods and services advertised through traditional media, such as print and television. More recently, these endorsements encompass any mode of communication as well as business-to-business goods and services. This update is significant considering the addition of advertising on the Internet, in social media, “stealth marketing” on TV talk shows (Kaikati & Kaikati, 2004) and red carpet appearances (Carroll, 2009).
Theories related to celebrity persuasion that have application to the fashion industry have examined the way consumers process information from marketing communications and relate it to their self-concept (Carroll, 2009). To the consumer, the celebrity represents a meaning, based on the recognition s/he has received in the symbolic environment and his/her persona. This meaning is transferred to the product when the celebrity is seen in the marketing communication. In the final stage, the meaning moves from the product to the consumer, who transfers the meaning into his/her notion of the self-concept (Carroll, 2009). This transference effect benefits the brand (Tuten & Solomon, 2015) and the consumer who may use products to reveal their self-concept to others (Babin, et al., 2017), especially in high involvement consumption situations (Ahuvia, 2005).
Method
Sample
Instagram and YouTube data were collected using Netlytic (Gruzd, 2016) for the period May 14 – June 24, 2015 for the purpose of capturing data before and after the official release of the film (May 18, 2015). A total of 8,986 records (uncleansed) are in the Instagram (#SecretGarden4 and @Dior) database and 426 records (uncleansed) in the YouTube database. Multiple URLs were used for YouTube because there were four previews, and short and long versions of the film.
Procedures
The data was cleansed (236 YouTube posts; 6,763 Instagram posts). To measure sentiment and engagement, a text analysis was performed using an adaptation of Dann’s Twitter (2010) classification. Through a grounded theory approach (Lai & To, 2015) key words, concepts and themes were identified and triangulated using Tableau, NVivo 11, and Leximancer software programs.
Concluding Remarks
As a multi-year campaign, Dior’s Secret Garden was meticulously crafted to project an understanding of Dior’s brand image and to create an air of anticipation for consumers. Within the context of digital storytelling we delve deeply into how the last installment of this campaign resonated with consumers who watched the film on social media and responded to Dior’s Instagram initiatives. Through our mixed methods research approach, we develop theoretical and methodological contributions that benefit academics and fashion marketers.