Generation Z is reported to have a precocious positive attitude to luxury while, in contrast to previous generations, caring less about status and more about ethics. Therefore, we study the predictors of luxury brand perceptions (the BLI dimensions and brand ethicality) and brand attitude as a consequence of it. We test our model based on survey data on perceptions of three luxury car brands by a sample of 218 Gen Z consumers in Germany. Our findings show that only three of the six proposed antecedents significantly predict luxury brand perceptions. Further, they show that to appeal to Gen Z consumers, luxury brands should focus on conspicuousness, hedonism, quality and ethicality. Overall, our findings call for more research on the evolving nature of luxury perceptions with younger generations.

Counterfeit luxury is big business in China (Chen et al. 2018). The U.S. Chamber of Commerce estimates China to be the source of 86% of the world’s counterfeit luxury goods worth about $397bn (USCC 2016). Counterfeit luxury encompasses not only low quality replicas (Lai and Zaichkowsky 1999), but also high quality products that are appear almost identical to original brands. However, the price of high quality counterfeits amounts in many cases to only 10% of that of the originals (Geiger-Oneto et al. 2013). This makes high quality counterfeit luxury brands a major threat to established luxury brands. Luxury brand marketers, therefore, require a better understanding of what motivates target consumers to purchase either original or counterfeit luxury brands.

Inspired by the success of the Dove real beauty campaign, companies such as Amazon Fashion, Nike and Walmart have started to adopt authentic branding strategies, i.e., strategies based on the use of ordinary looking models to reflect real consumers in brand communications (e.g., Zombeck, 2015). Authentic branding is an alternative to the strategy of aspirational branding, where companies use “attractive” models to communicate that consuming their brands will bring consumers closer to an idealized view of themselves (e.g., being an attractive person like the models in the ads; D'Alessandro and Chitty, 2011). However, the body of evidence on their superiority over aspirational strategies is inconclusive. We expand knowledge on aspirational vs. authentic branding strategies by focusing on a new context of major economic importance for brand marketers, China, as well as by testing the moderating effect of a to date not considered contingency: local vs. foreign brand origin perceptions (i.e., low vs. high perceived brand foreignness). Data was gathered through an online survey of non-student consumers based in China recruited through Qualtrics online survey panels (n=623). Tests of reliability, convergent and discriminant validity of the measurement models deliver overall satisfactory results. R2 and Q2 values demonstrate that the tested models show good explanatory power and predictive relevance of emotional brand attachment (R2 = 0.699 to 0.759; Q2 = 0.527 to 0.696). Results support H1, as authentic branding has a positive effect on emotional brand attachment (β = 0. 293, p < 0.001), thus adding support to the efficacy of authentic branding strategies across West and East. Results also support H2, as aspirational branding has a positive effect on emotional brand attachment (β =0.598, p < 0.001). These findings support recent evidence from the UK and USA (e.g., Japutra et al., 2017) yet are out of line with recent studies in Switzerland and India, which fail to support this link (e.g., Malär et al., 2011). Results support H3, as aspirational branding has as stronger effect on EBA than authentic branding (t = 4.603, p < 0.001). Our findings question recent evidence suggesting a generic superiority of authentic over aspirational branding (e.g., Japutra et al., 2017). Results support H4, as for brands perceived as local, the effect of aspirational branding on EBA is significantly stronger than that of authentic branding (t= 4.125, p < 0.001). Thus, results support the notion that brands low on social signalling value, i.e., those perceived as local, can develop stronger attachment with consumers when they employ aspirational strategies. Finally, results do not support H5, as the data shows that for brands perceived as foreign, aspirational branding (β = 0.536, p < 0.001) still has a significantly stronger effect (t= 2.123, p < 0.05) on EBA than authentic branding (β =0.339, p < 0.001). In other words, brands perceived as foreign can still benefit from conveying aspiration over authenticity.

Research offers conflicting evidence with regard to the potential effectiveness of using authentic (focused on the actual self) versus aspirational branding (focused on the ideal self) strategies. This study extends previous research by modelling how four individual characteristics of value for cross-cultural market segmentation (an individual’s level of independence, interdependence, cosmopolitan orientation and local orientation) influence the actual and ideal self-congruity effects. The model is tested by using survey data from US (n=828) and Indian non-student consumers (n=824). Findings show that the actual self-congruity effect on brand attitude is stronger than the ideal self-congruity effect for interdependents and locals. Conversely, the ideal self-congruity effect on brand attitude is stronger than the actual self-congruity effect for independents and cosmopolitans. The study offers practitioners suggestions on the use of authentic versus aspirational branding strategies in their brand communications in order to elicit most positive brand attitude among consumers depending on their individual characteristics.

This study empirically investigates how four individual-level characteristics impact the effect of the four self-congruity types on brand attitude. A widely used practice among marketers focuses on communicating that using their brands will bring consumers closer to how they would like to see themselves, their ideal self-concept (e.g. being a slim person like the models in the ads), instead of how they actually see themselves, their actual self-concept. However, recent research shows that there is no “universality” of a superior self-congruity effect. Specifically, individual-level characteristics (e.g. self-esteem levels, product involvement levels) determine if actual or ideal self-congruity impact brand perceptions more strongly (Malär, Krohmer, Hoyer & Nyffenegger, 2011). This study extends that research by (a) considering all four self-congruity types (actual, ideal, social, and ideal social) and (b) four additional individual-level characteristics, which are valuable for segmenting consumer markets within and across countries. The four individual-level characteristics are a dominant independent self-construal, interdependent self-construal, cosmopolitan orientation and local orientation. Considering these individual-level characteristics offers marketers insights on which of the four self-concept types they should try to match with their brand communications when targeting these specific consumer groups. Survey data from a non-student sample was collected in the US. After performing data cleaning procedures, 800+ usable responses were analysed with the use of PLS-SEM (Lohmöller, 1989). The measurement models demonstrate satisfactory reliability, convergent and discriminant validity. Furthermore, the results suggest that the data is not compromised by non-response bias and common method variance. The structural models display satisfactory predictive capabilities of the four self-congruity types on brand attitude. The findings show that as expected an individual’s dominant independent self-construal, interdependent self-construal, cosmopolitan and local orientation impact which of the four self-congruity types has the strongest effect on brand attitude. For individuals with a dominant local orientation or interdependent self-construal, actual self-congruity has the strongest effect on brand attitude. For individuals with a dominant cosmopolitan orientation or independent self-construal, ideal self-congruity has the strongest effect on brand attitude. The findings of this study extend self-congruity theory by considering the effect of these four individual-level characteristics. Managerial implications are also presented.