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.
Livestreaming commerce is a form of e-commerce that embedded real-time video presentation and social interaction. It provides immersive shopping experience reinforced by high levels of interactivity and instant bidirectional communication. China, as one of the biggest livestreaming markets, has reached 2.3 trillion (CNY) livestreaming commerce market value in 2022. In a 2020 survey, two-thirds of Chinese consumers experienced livestreaming shopping in the previous year. Accordingly, luxury brands, such as Chanel and Louis Vuitton have started to implement livestreaming commerce in China. However, for years, luxury brands have struggled with online commerce as it may impact upon perceptions of exclusivity and dilute brand value. Research on the efficacy of live commerce emerged in recent years and mostly focused on non-luxury brands. However, luxury brands cannot simply copy digital marketing strategies that proved to be effective for non-luxury brands. To date, limited academic attention has been devoted to the luxury commerce in a livestreaming context.
The social constructionist theory of art states that the value of art and luxury brand design is constructed by social interactions. It distinguishes between an independent "reality" and a socially constructed "reality," in which meanings can differ. However, research on luxury fashion brands mainly focuses on consumers' reality and rarely examines the topic through a social constructionist lens. This paper looks at the impact of worldwide luxury fashion "designers’ reality" on "consumers’ reality” when evaluating the brand. Three studies investigated how consumers and designers perceive premium and luxury brand design.
Research aim of this study was to understand consumers’ perceptions of upcycled luxury fashion using previous collections and remnant materials through a comparison with consumers’ perceptions of generic luxury fashion. Rarity would be a keyword for upcycled luxury fashion using previous collections. Besides, environmental consciousness is relatively less significant for upcycled luxury fashion.
This study assesses the interactive effect of shelf-based scarcity and shelf organisation on luxury purchases. Previous studies have addressed multiple factors surrounding shelf based scarcity (e.g. Parker and Lehmann 2011; Van Herpen et al 2014) however none has considered perceived luxuriousness as a potential explanation for the effects of shelf-based scarcity; nor have many studies used a luxury context. This study therefore examined whether product luxuriousness, product popularity, product supply and/or product quality serve as underlying mechanism of shelf-based sacristy effects. The study recruited 125 consumers and the experiment followed a mixed factorial design. The luxuriousness of the brand and the organisation of the shelf display were manipulated between subjects, whereas stock level was manipulated within subjects. Data collated consisted of both self-report and psycho-physiological methods (brainwave and facial expression) Low stock level was perceived to more tidy than medium and high stock level when the shelf display was disorganised; a significant interactive effect (Mlow = 4.06, Mmedium = 3.71 4.77, Mhigh = 2.86, ps = .025, p < .001). Significantly higher perceived product quality was reported for low stock product than high stock product (Mlow = 5.34, Mhigh = 4.79, p < .001), as participants’ perceived high stock to be restocked more frequently. Results of bootstrapping indicated that perceived luxuriousness was found to be the only significant partial mediator for the effect of stock level on approach motivation, further supported by brainwave and facial expression analysis (Indirect = .066, 95%CI = [.0043, .1362], p < .001).The direct effect of stock level remained significant after accounting for the indirect effect (Direct = .11, 95%CI = [.0117, .2091], p < .001). This study is the first to use psychophysiological methods to validate self-report findings and to examine perceived luxuriousness as a plausible explanation of the shelf-based sacristy effect.
Introduction
In the last decade, the concepts of responsible or sustainable luxury (Vigneron & Johnson 2004; Bendell & Kleanthous, 2007; Kapferer, 2010; Janssen, Vanhamme, Lindgreen & Lefebvre, 2014) and digital or online luxury (Kim & Ko, 2010; 2012; Okonkwo, 2005; 2009; 2010; Mosca, Civera & Casalegno, 2018) have started receiving considerable attention, as separate areas of study. Scholarship shows that communicating CSR is more and more of a strategic decision (Sen & Bhattacharya, 2001) that needs to balance promises and performances of social instances (de Ven, 2008; Pomering & Donilcar, 2009; Hur, Kim & Woo, 2014;) and to impact on the audience positively through content, placement and motives of CSR messages (Jahdi & Acikdilli, 2009; Du, Bhattacharya, & Sen, 2010). Furthermore, with the explosion of digital contents and use, communicating CSR is even more challenging and firms increase their exposure to judgments of their real conduct (Christodoulides, Jevons & Blackshaw, 2011). Luxury players make an interesting case of investigation for the digital CSR communication, as they are peculiar both in the use of the online and in the implementation and communication of CSR (Vigneron & Johnson 2004; Bendell & Kleanthous, 2007; Kapferer and Bastien, 2009; Janssen et al., 2014). Despite some exploratory researches underline that luxury consumers are not so likely to see consistency between luxury and CSR (Davies et al., 2012) and yet, the communication of those activities can turn their perception negatively (Torelli et al., 2012), latest findings from empirical studies on luxury consumers show a growing interest in the communication of sustainability on the online (Janssen et al., 2014). However, few studies consider how consumers react and modify their perception in regard to CSR messages spread online, within luxury markets. This research has twofold aims. Firstly, it investigates the state of the art of leading international luxury players‟ CSR digital communication through the application of a theoretical framework developed by the authors for qualitative analysis of digital CSR communication contents, placement and purpose. Secondly, it explores luxury consumers‟ perception over specific digital CSR communications in order to verify whether and if there is consistency between CSR digital communication and consumers‟ reactions within luxury markets as well as underline emerging peculiarities in the way CSR is – and is expected to be – communicated online by luxury players.
Theoretical development
Creating experiences on the online became the imperative for luxury players (Okonkwo, 2010). This need is strengthened by luxury consumers, who are more willing to take part in the process of sharing brands‟ values through the online platforms, in a challenging multi-channel logic (Rifkin, 2000; Mosca et al., 2013). Luxury players seem to strive more than others to modify and integrate their products offer and communication on the online, because they have to adapt to a “pop” culture without losing their unique character and exclusivity (Aiello & Donvito, 2005) that can be, as some scholars suggest, identified with certain characteristics of sustainability and social responsibility (Janssen et al., 2014). The main contribution of this study is to allow a convergence between “responsible luxury” and “online luxury” by advancing the theoretical understanding of digital CSR communication within luxury markets, in terms of peculiarities, customers‟ perceptions and effectiveness.
Research Design
The study makes use of a theoretical framework for qualitative evaluation of web CSR communication previously developed by the authors, that is, in the context of the present research, enriched to include a qualitative investigation of all digital CSR messages (including web and social media). Firstly, the study applies the framework to 100 International luxury brands (representative of the principal luxury fashion-related personal products categories) selected from luxury reports by Deloitte, Reputation Institute and Interbrand in order to qualitative evaluate contents, placement and purposes of digital CSR messages. The qualitative evaluation is developed by the authors through the identification of KPIs reflecting the themes emerged in the framework, analysis of their frequency and Chi square test. Secondly, the study involves 400 luxury consumers within mature markets, who are tested around their perception of digital CSR communication of luxury players. The investigation over their reactions and perception of digital CSR messages is conducted through an online questionnaire and several focus groups. Statistical regression model, t-stat and comparison among the responses provided by consumers through the survey are conducted to analyse responses and match the data.
Results and Conclusion
Results show the that majority of the investigated players are extensively considering CSR as a core digital strategy, pointing out the growing communication of luxury goods that increased sustainability and social responsibility throughout the whole supply chain. The investigation on customers‟ perception outlines some discrepancies between players‟ communication and customers‟ reactions, showing several cases of misjudgements. On the one hand, some players fails in achieving customers‟ expectations and the actual raking of their digital CSR communication does not match the level of given perception. On the other hand, some digital CSR communications succeeds in creating positive overreactions, despite having previously evaluated as the minimum requirement as for CSR implementation and communication. Accordingly, some suggestions to managers are developed, not just around the three considered attributes of digital CSR communication (content, placement and purposes) but also around the context of buying behaviours linked to the core business and the brand values, which can be, somehow, strongly associated with sustainability and social responsibility. In particular, it emerges that luxury digital CSR communication is expected to be an integrated strategy between online and offline channels, focused upon facts, numbers, performances and results of CSR that should show high coherency with the luxury core business.
Introduction
This paper investigates the implementation possibilities of the Industry 4.0 systems within the production of fashion luxury goods by collecting the opinion of the managers and the perception of the potential customers. The results indicate that technologies 4.0 can be implemented within luxury fashion production without affecting the quality of the finished product. However customers are negatively prevented against them. Therefore, giving the present situation of the fashion industry, now more demanding than ever, it would be appropriate to implement such systems without disclosing it to customers.
Theoretical development
With this research we aim to demonstrate that in the world of luxury fashion production there is room, if not the need, to implement the technologies of the Industry 4.0 without affecting the quality of the final product. We believe it is crucial that the luxury environment starts to seriously consider the Industry 4.0 as the former, in recent years, has become ever more challenging. Since luxury has become more accessible to masses, customers are no longer content just by getting the product, they often want it before the general public has it or fully customized to distinguish themselves. This implies a reduction of production times together with multiple rearrangements of the entire production process. Which is why we need to start thinking about Luxury and Industry 4.0. The concept of Industry 4.0 started developing with the exponential involvement of technological means during production processes of any kind. The term describes the model of the “smart” factory of the future where computer-driven systems “monitor physical processes, create a virtual copy of the physical world and make decentralized decisions” based on self-organization mechanisms (Smith, 2016). The goal of the industry 4.0 is to reach a deeper interconnection and cooperation between the available resources and the final customer; it’s a multiple layer engagement composed by complex machines, people, products, information within the production sight and all along the value chain (Tolio, 2016). The implementation of such systems allows achieving better levels of efficiency and contributes to increase the competitive advantage; it is a revolution that involves a company at all levels from the production centers to human resources. Although luxury fashion is a quite peculiar industry, all its processes are still very much cyclical and could benefit from the help of such implementations. The main technologies that are often quoted as being at the core of the Industry 4.0 are IoT (Internet of Things), big data, additive manufacturing, 3D printing, augmented reality and new generation robots. All this may seem too futuristic for an industry such as luxury that has always been associated with craftsmanship. When defining luxury in fact, one of the qualities attributed to this kind of products is the “strong connection with the past proven by the tradition handed down over time” (Dubois, 2001); a description that can be taken quite literally as the heritage of the brand is built upon the traditions passed on by the different artisans who crafted the product. But if we fraction the production process and analyze it in depth, we will see that it is cyclical, and that some of its parts may benefit from such technologies that would make it leaner without affecting the quality of the end product. An example of this can be seen in the laser cutting machines for leather. A robot can cut the elements required to compose a bag in a few minutes, while it would take up to half an hour to do it by hand. Even if mechanically cut though, the bag will still need to be assembled by a highly skilled artisan to become the exceptional quality product that customers expect to see in stores. Many are afraid that technological implementations will lead to the disappearance of the artisanal component failing to understand that the Industry 4.0 is not about complete automation but rather about human-machine interaction. Talking about production we will refer to the process in its integrity, from the sketches to the products in the stores.
Research design
The research was conducted using semi-structured interviews to questiont professionals who work in different stages of luxury fashion production for different companies. All the interviewees were chosen among the industry biggest players: LVMH, Kering, Richemont, Hermès, Chanel and others. To establish the sample of interviewees we divided the production process into four main phases and then identified at least one professional to question for each one of them.
The subdivision we applied was the following:
⦁ Phase 1 - Creation & Design
⦁ Phase 2 - Production & Merchandising
⦁ Phase 3 - Retail & Marketing
⦁ Phase 4 - Supply Chain & Distribution
Each interviewee was asked a set of specific questions related to the complexities of their job and the problems encountered while doing it (Appendix 1). Among the sample there were two professionals that did not belong to the production process but that we deemed necessary to involve to have a more complete outcome. One is a Professor of Fashion design at the Politecnico of Milan, the other is a Strategic Planning Analyst who works for Lectra, one of the biggest companies producing technologies for fashion. In order to investigate the perception of the customers we distributed a multiple choice survey to a heterogeneous sample of 200 people. Among the questions asked one was strictly related to the use of technology while the others regarded arguments, related to its utilization, that emerged while interviewing the professionals. Despite not being directly on the use of technology, we deemed the other queries important to evaluate if the problems emerged from the interviews were relevant also from a customer point of view. The questions submitted via survey were the followings:
1) On a scale of 1 to 4, (1= low interest, 4=high interest) how interested are you in luxury goods?
2) How much worth is being able to buy a luxury good before it is on sale in stores? (1= not worth, 4= very worth)
3) Would you think of higher quality a bag completely handcrafted rather than the very same bag produced also by using industrial processes?
4) Would you attribute a higher value to a luxury product conceived to be respectful for the environment?
The survey ended up highlighting that customers have a negative bias towards the exploitation of such systems within the production of luxury goods. In fact they attribute a higher value to completely handcrafted products, without considering the possibility that the latters may have more defects. The methodology used was successful in helping us understanding the opinion of the management along with the perceptions of the customers. Moreover, through the interviews we were able to highlight practical daily problems encountered by people directly involved in the production process.
Results and conclusion
We used the problems that arose as bases to begin thinking what could be concretely implemented, in which phase and with what goal. We started by focusing our attention on five points that currently challenge production and could be exploited as opportunities for the implementation of specific technology. Nevertheless, we also highlighted three main limits that might prevent the application of said technology. The opportunities of implementation were the following: Production times - Representing one of the biggest problems in the industry, we believe that technology could come to the rescue especially in the first two stages of the process. For example, the use of 3D printing to produce some prototypes or certain components that could be useful for reducing time and costs. Another example is Modaris 3D, a new generation software that allows you to digitize the pattern allowing you to see it in 3D. Exploiting this software would allow to predict the potential problems of the prototype before even crafting it and would help save a lot of time and resources. Not to mention that digitized patterns can be archived and easily reused later. Moreover, the exploitation of the new generation robots to pre-cut certain components would once again allow a shorter production time and reduce costs. Couterfeiting - Another implementation opportunity is represented by counterfeiting. Now that online commerce is booming, the fake industry is at its peak and people find it difficult to distinguish between what is real and what is not. IoT technologies could help immensely with this problem. One of the interviewees working in the distribution phase told us that today when the products are shipped, in order to track them down and recognize them from counterfeits, companies install into their pockets RFID chips, small chips similar to those of credit cards. Their limitation though is that they can be traced or recognized only if scanned. The use of IoT technologies on this type of device (for example, providing the same type of support with a GPS) would allow them to be interactive and serve their purpose even better when the products are shipped all over the world. Sustainability - In recent years the problem of sustainability has become increasingly relevant, to the point that some luxury empires have been built on it, as in the case of Stella McCartney. To pay more attention to the environmental cause, fashion houses could start by wasting less resources. One way to do this could be to use software to optimize pattern placements on fabrics or on leather. Human supervision would still be required, as some pieces need to be cut from specific parts of the leather but it would certainly help in making some useful proposals. Internal communication – Internal communication is a problem at all levels of the production process. It can be an issue especially when it comes to communicating the intentions of the design team to the production and controlling the stock level in real time. In the first case, to solve the problem, we could consider the implementation of a software like PLM (Product Life Management). This type of program helps to follow the transformation from sketches to prototypes to products, providing detailed information on everything that is present on the garment, specifying consumption and costs of materials. With regard to the inventory control problem, we could again use the help of the IoT. Inventory control is a problem both in terms of raw materials (for all those houses that produce prototypes internally) and finished products. In the first case a potential solution could be to label the raw materials with magnetic labels that would allow to see immediately when the components leave the stock. In the second case, as previously mentioned, supplying the finished products with IoT chips would help to locate them and know how many are in stock. Demand forecast – Another major help that industry 4.0 could bring to fashion production is the exploitation of big data to forecast the demand. Nowadays in fact, the constant and hardly predictable changes in fashion heavily affect a demand that already has few reference standards. When it comes to forecast, several factors have an impact on it: trends, social medias, consumption habits etc. The most unpredictable of these factors is probably represented by the social media as clients may cause a peek in demand after seeing a celebrity or an influencer wearing a specific product. Giving all this, it's evident how the more variables we are able to consider when doing forecasts, the better the chances of predicting a scenario close to reality and Big Data would allow to do so. As previously mentioned we also highlighted some limits that could prevent implementation: Costs - The more significant limit when talking about this kind of technology is related to costs. It is important to consider both the ones needed to purchase the technology as well as the ones to train the employees in order to make the implementation possible. As we all know technology is extremely expensive, and in a certain way a form of luxury itself, often being just for few. The size of the brand would modulate of course the amount of the investment in it. Client perception & adverse attitude – The survey pointed out that clients are negatively biased towards technology and, if informed that the product has been realized with the help of technological means, may attribute to it a lower value. What it's necessary to keep in mind though, is that, when taking a survey, you are in front of a screen and not in front of the products. I believe in fact that if a "blind" test was conducted presenting two products of which one completely handcrafted and the other realized by artisans who exploited technological means as well, no one would be able to tell the difference. Training of employees - Another big challenge in the implementation of such systems is the training of the employees. Implementing these technologies for some employees may mean learning again how to do their job with the help of a computer. Being an environment where youngsters are outscored due to the lack of experience, this may represent a problem. In conclusion our research proved that there is indeed room to implement the 4.0 systems as the issues emerged can be partially, if not completely, solved by introducing these technologies making the process leaner and more efficient. Nevertheless, giving the fact that customers are negatively biased towards their use, it would be appropriate avoiding to disclose the information with them.
Introduction
Smartwatches are mini devices that are worn like standard watches, which allow installation and use of mobile apps enabling connectivity and interactivity (Chuah et al., 2016). Park et al. (2016) regard smartwatches as multi-category products and are considered to be the first commercialized wearable technology for consumers (Jung et al., 2016). Wearable technologies refer to high-tech devices that are integrated into clothing, accessories or the human body to provide personalized functions to users, regardless of the types of usage (Choi and Kim, 2016). Thus, the smartwatch is recognised as an important and pioneering sub-category of broader smart-fashion. Wearable technology has become more readily available and widespread in the market. A recent industry report (IDC, 2017) indicates that worldwide shipments of wearable devices are expected to increase by 132% from 102.4 million units to 237.5 million units between 2016 and 2021, driven by the proliferation of new and various types of smartwatches. In the past, high-tech and fashion were considered as two separate industries. However, recent years have witnessed a trend towards fashion and high-tech collaborations (Zimmermann, 2016). For example, “Hermès Apple watch” and “Louis Vuitton Tambour Horizon” (O‟Connor, 2017). Millennial consumers are often perceived as the first high-tech generation. This young generation is increasingly attracted by the innovativeness of smartwatches (Shotter and Bradshaw, 2014). According to PwC (2016), millennials are more likely to use smartwatches than older generations. Gartner‟s (2017) research also highlights that millennials represent the largest user group of wearable technologies. Considering the increasing magnitude of millennials‟ interest in luxury wearables, this study takes factors affecting millennial consumers‟ new technology acceptance, and luxury consumption into account. Despite increasing attention from industry, scholarly research on wearable technology has been limited to technological uses. Extant studies are focused in the fields of information systems, computers in human behaviour (Chuah et al., 2016) or electronic textiles (Berzowska, 2005). They concentrate on how these devices might be utilized for healthcare and safety monitoring, fitness or biometric purposes (Choi & Kim, 2016). Academic research to date therefore tends to be more technology rather than consumer driven (Choi and Kim, 2016). As discussed, although the fashion and technology industries are converging (Zimmermann, 2016), most existing research into smartwatch adoption (Choi & Kim, 2016; Chuah et al., 2016; Kim & Shin, 2016) utilizes standard or fitness-centric smartwatches as the research objects. Researchers generally fail to see smartwatches as a hybrid of high-tech wearable and luxury products. The Technology Acceptance Model (TAM) (Davis, 1986) is a frequently cited model in predicting consumers‟ intentions to adopt an emerging technology. It depicts that perceived usefulness and perceived ease of use are two critical variables influencing users‟ beliefs, attitudes and intentions to embrace a new information system (Legris et al., 2003). An extension of TAM, TAM 2 (Venkatesh and Davis, 2000) denotes the influence of subjective norm on behavioural intentions. In this model, technology adoption is regarded as a process of social influence. TAM has been extensively applied to explain consumer acceptance of e-commerce (Pavlou, 2003), mobile payment (Schierz et al., 2010), smart glasses (Raushnabel and Ro, 2016), mobile learning systems (Park et al., 2012) and standard smartwatches launched by IT brands (Kim and Shin, 2015; Choi an Kim, 2016). Yet, despite considerable research on the application of TAM, studies incorporating TAM 2 to explain consumers‟ perceptions, attitudes and intentions towards using luxury fashion wearables is still scarce. While Choi and Kim (2016) provide a first step towards understanding consumers‟ perceptions of smartwatches, the authors consider only the functional (perceived usefulness and ease of use) and personal (need for uniqueness and vanity) variables. The influences of other factors like emotional and social factors are neglected. Within the context of consumer behaviour, watches are consumed primarily for aesthetic appeal, as well as providing a means for constructing one‟s self-identity. Thus, psychological and social motivations may also be considered as antecedents to luxury fashion smartwatch adoption. In addition, luxury fashion wearable technology products embrace both high-tech functionality and fashionable design. These smartwatches are marketed as luxurious accessories, rather than solely functional digital devices, as self-expressive use of them has become more commonplace (Mintel, 2016). Furthermore, millennial consumers generally consume luxury for social-oriented purposes (Eastman & Liu, 2012). Hence, values that drive millennial consumers‟ luxury consumption, along with factors proposed in TAM 2, are perceived to play a critical role in affecting the adoption of these smart accessories. The premise of this paper is based on Wiedmann et al.‟s (2007) model of luxury values, employing individual values (self-identity and perceived hedonism), social value (perceived conspicuousness) and functional values (perceived usefulness and perceived quality) to investigate the key factors affecting luxury fashion smartwatch adoption. The Theory of Reasoned Action (TRA) (Ajzen and Fishbein, 1975) provides a framework for understanding consciously intended consumer behaviour (Yousafzai et al., 2010). It posits that the impact of consumer attitudes and subjective norms on actual behaviour are mediated by behavioural intentions, which is considered the most powerful predictor of human behaviour (Ajzen and Fishbein, 2005). In TRA, the roles of personal and social factors in forming behavioural intentions are considered. This attitude-intention-behaviour association has been extensively validated in various contexts like ethical consumption (Paul et al., 2016), Green Information Technology (Mishra et al., 2014) and online banking (Yousafzai et al., 2010). Yet, nascent research exists on the attitude-intention link in luxury fashion smartwatch adoption.
Purpose
In order to address the research gaps elucidated, this study aims to examine the relationships between key value propositions of luxury fashion smartwatches, consumer attitudes and their purchase intentions, and to explore millennial consumers‟ overall perceptions of using these luxury wearable technologies. Specifically, this study critically reviews and links the theories of technology adoption and luxury consumer behaviour to investigate and explore consumer behaviour towards luxury fashion smartwatches in order to offer compelling academic and managerial implications.
Design/Methodology/Approach
A conceptual framework (see Figure 1) was developed grounded in luxury consumption, technology acceptance and consumer behaviour literature, from which 9 research hypotheses and 3 research questions ensued. The model posits that millennial consumers develop attitudes and purchase intentions towards luxury fashion smartwatches in 3 stages. In line with the tri-component attitude model (Fishbein and Ajzen, 1975), consumers learn about luxury fashion smartwatches at the first phase (cognition). The second phase (affective) involves the formation of consumers‟ attitudes towards using luxury fashion smartwatches. At the final phase (conation), consumers develop intentions to buy consistent with their overall evaluations. Drawing on the TRA, relationship between consumer attitudes and purchase behaviour in terms of learning, feeling and doing (Solomon et al., 2010) is depicted. To offer a detailed understanding, mixed methods were employed (Creswell, 2014). An online self-administrated questionnaire was conducted and 230 valid samples were collected. The sample profile were millennial consumers, born between 1980 and 2000 (Young and Hinesly, 2012), who have seen or tried any luxury fashion smartwatch. This study recognizes millennial consumers as the research subject because this generation is described as the next prominent consumers of global luxury and are the largest user group of wearable devices (Higgins et al., 2016; Gartners, 2017). The proposed hypotheses were tested using SPSS 23.0 and subject to 5- statistical tests: reliability, descriptive statistics, factor analysis, correlation analysis and multiple linear regression. In addition, two face-to-face semi-structured focus-group discussions with 10 participants were conducted aiming to better understand the millennial consumer perceptions of using luxury fashion smartwatches. Quantitative content analysis and thematic analysis were employed to produce a more organized and comprehensive summary of the qualitative data.
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Findings
The findings indicate that functional, individual and social factors influence millennial consumers‟ adoption intention of luxury fashion smartwatches. Empirical results reveal that perceived hedonism and usefulness are the most important factors that motivate adoption intentions, followed by subjective norm and perceived conspicuousness, indicating luxury fashion smartwatches are perceived as both an IT device and luxury fashion accessory. Other factors that might affect adoption are also discussed. A positive association between attitudes towards using luxury fashion smartwatches and purchase intentions is identified.
Implications
This study addresses a scholarly research gap by examining factors affecting attitudes and intentions towards using luxury fashion smartwatches, from millennial consumers‟ perspectives. It also offers strategic recommendations for luxury fashion brands in launching and growing luxury wearable opportunities specifically aimed at millennial consumers – a substantial and strategic segment for luxury brands. Research limitations and directions for future research are further elucidated.
Originality and Value
Given extant research on luxury fashion smartwatches is limited, this study contributes to this unique research stream by exploring millennial consumers‟ perceptions towards using these new generation smartwatches. To the authors‟ knowledge, this study is the first to investigate the application of TAM 2 in examining luxury fashion smartwatch adoption, and subjective norms has been proven as one of the most important factors.
Despite the positive outcomes of brand-consumer interactions on social media documented in the literature, an important question still remains: Are active brand-consumer interactions always beneficial to luxury fashion brands? This study argues that such interactions may undermine the core perceptions of the brands by making consumers feel too close to the brands. Drawing upon construal level theory of psychological distance, the purpose of this study is to examine the negative effects of brand-consumer interactions on perceptions of luxury fashion brands (i.e., social perception, uniqueness perception, quality perception) in a social media context. Two experimental studies were conducted. The purpose of Study 1 was to test the hypothesis that luxury brands, compared to mainstream brands, will be perceived as more psychologically distant and abstract. Study 1 used a 2 (brand category: luxury vs. mainstream) x 2 (brand replicates) mixed-model design in which the brand category was a between-subject factor and the brand replicates were a within-subject factor. Fifty-nine subjects recruited from Amazon MTurk participated in the study. The results of Study 1 revealed that luxury brands are inherently psychologically distant than mainstream brands. The purpose of Study 2 was to test the impact of brand-consumer interactions (i.e., high vs. low) and the mediating role of psychological distance on the three perceptions of luxury brands (i.e., social perception, uniqueness perception, quality perception) on social media. A single factor between-subjects design was used, and a total of 74 participants were recruited from Amazon MTurk. To manipulate the level of consumer-brand interaction (high vs. low), two versions of a luxury brand’s mock Facebook pages were created. For the high interaction condition, the brand responded to consumers’ posts in a friendly way and displayed the images of user photos. For the low interaction condition, the brand did not respond to consumers’ posts and displayed no images of users. As predicted, the results showed that participants indicated lower brand perceptions when the brand’s social media page displayed a high level of interactions than a low level of interactions. Moreover, formality, a measure of psychological distance, partially mediated the relationship between brand-consumer interactions and all the three brand perceptions. The findings of this study provide empirical evidence that active consumer-brand interactions on social media do not necessarily benefit luxury fashion brands, rather they can damage consumer perceptions of the brands. This study provides important implications that luxury fashion brands should maintain a sacred distance on social media; otherwise it will undermine important perceptions of the brands such as status signaling, exclusivity, and quality.
Consumers nowadays are looking for luxury brands that are able to fulfil their values. Luxury fashion marketers have spent enormously on advertising and adopted sex appeal extensively as their major selling technique. Little empirical evidence, however, has been presented with regards to the effectiveness of using sex appeal in luxury fashion advertising. Consumer responses to sex appeal in luxury brand advertisements are also poorly understood and under-investigated. The massive use of sex appeal in luxury brand advertising suggests the strong need for empirical research to determine the relationship between sex appeal and perceived luxury values. Based on the luxury value framework and adopting a quasi-experimental design, this study examines the influence of sex appeal in advertising on the relationships between attitude towards the advertisement and luxury value perceptions. Results show that the increase of sex appeal level increases the favourability of the advertisement which results in significant changes in luxury value perceptions. The influence of gender is found to be prominent in this study, which highlights the importance of gender consideration when adopting sex appeal strategy for any luxury brand advertising. Implications for luxury brand marketers and advertisers are discussed.