This study aims to examine the impact of endorser ethnicity and portrayal on consumers’ attitude toward luxury ad and brand. In addition, the moderating role of individual’s appearance self-esteem is examined. In the ads of luxury brands in China, it is common to have two types of endorser ethnicity (i.e., international vs. local) and two types of endorser portrayal (i.e., sexy vs. smart). Endorser ethnicity in an ad may influence consumers’ self-referencing behavior which refers to an individual’s tendency to encode communication information differently depending on the level on which the self is implicated in the information (Rogers et al., 1997). Asian consumers’ self-reference level is found to be higher when they are exposed to ads featuring an Asian model than a Western model (Martin et al., 2004). In other words, if an international luxury brand adopts a localization advertising strategy in China by using a Chinese endorser, the local consumers are more likely to generate a higher level of self-reference.

This study examines consumer reaction to different luxury advertising information (promotion-focus vs. prevention-focus). Studies examine the relationship between consumers’ face concern and individual regulatory focus, and explore the relationship between face concern and luxury advertising type with a 2 (face concerns) × 2 (advertising information) experiment design.

This study aims to investigate the effect of word-of-mouth on the purchase of genuine and counterfeit luxury brands. It also examines the roles of attitude functions and social norm in the relationship between word-of-mouth communication and consumers’ luxury brand evaluation. A 2 (information source: advertising vs. word-of-mouth) × 2 (luxury brand: genunie vs. counterfeit) between-subjects experimental design was used to collect the data. A total of 153 adult consumers from Shanghai, China were recruited and randomly assigned to one of the four experimental conditions. Prior to the conduction of the actual experiment, a pretest of 30 respondents was conducted to determine the brands and scenarios selected for the experiments. Attitude function (social-adjustive function or value-expressive function) is measured by a self-monitoring scale. Social norm, luxury brand evaluations on genuine and counterfeit luxury brands were measured. MANOVA and ANOVA were performed to examine the proposed hypotheses. Results indicated that purchase intention for counterfeit luxury brand was moderated by subjective norm. Word-of-mouth increased the subjective norm related to the disapproval of counterfeits, compared to traditional advertising. Subjective norm was found to strongly influence consumers’ counterfeit luxury brand evaluation. The relationship between subjective norm and counterfeit consumption was positively significant. The moderating effects of self-monitoring and subjective norm on consumers’ evaluations and consumption for counterfeit luxury brands were found to significant. In short, the findings support the proposed hypotheses and showed that positive word-of-mouth was an efficient way to enhance consumers’ purchase intentions for genuine luxury brands, and also an effective means to decrease purchase intentions for counterfeit luxury brands. The results reveal that social-adjustive function and value-expressive function served by luxury brand consumption can be increased by positive word-of-mouth. Furthermore, higher levels of social-adjustive function and value-expressive function served by publicly consumed product (vs. privately consumed product) are found, indicating that product categories also affect the attitude functions served by luxury brand consumption. Managerial recommendations are provided to the marketing managers for luxury brands.