Luxury Perception of Low and Middle Income Generation Z and Their Luxury Consumption Motivations
Keywords:Luxury consumption, Luxury Perception of Generation Z, Middle income Generation Z
Purpose: This study examined Generation Z with low and moderate income levels in terms of their perception of luxury, knowledge of luxurious products and motivation of consuming luxurious products.
Design/methodology/approach: The research was conducted in two stages: in-depth interviews and structured observations. Structured observations were carried out on 37 teenage participants at the ages of 17-21 (25 female and 12 male consumers). The data were collected between July and August 2020 in Turkey.
Findings: According to the results of the study, this generation’s perception of luxury is divided into three categories based on concept, service and product. Females perceive luxury as flamboyance, wealth and ability to get whatever is desired, while males consider the same concept as comfort, brand quality and products that are hard to get. The participants’ knowledge of luxurious brands generally covers inaccessible brands such as Rolex, Ferrari and Christian Dior and new luxurious brands Nike, Puma and Polo. Among the participants, 54.1% planned to buy luxurious products in the future. The main factors that drive them to buy luxurious products in the future were as follows: quality of product, comfort of product, durability of product, beauty of product, elegance of product, conspicuous consumption, self fulfilment, feeling good, power of desire, having social status and improvement in economic situation. The products they consider as luxurious and plan to buy included luxurious cars, houses, clothes, jewelry and travels.
Research limitations/implications: The limitation of the study is that it was a convenient sample. Therefore, the findings cannot be generalized.
Practical implications: Luxury product/service providers can market new luxury products/services that are more affordable to low and middle-income Generation Z.
Originality/value: Studies conducted in regard to the concept of luxury consumption and consumer perceptions have been mostly performed with participants with high income levels. This study tries to fill the gap in the literature by investigating the low and middle-income Generation Z. The main objective of this study was to examine the luxury-related attitudes and perceptions of Generation Z members who have been raised in families that have low and moderate income level, and their intentions of purchasing luxurious products/services.
Aksoy, T. (2017). Luxury Brands. 06 June 2017. https://www.Temelaksoy.Com/Luks-Markalar/
Amaldoss, W.; Jain, S. (2005). Conspicuous Consumption And Sophisticated Thinking. Management Science, 51(10), 1449-1466.
Bain & Company (2019). Personal Luxury Goods Market Grew By 4 Percent In 2019 To Reach €281 Billion
Bain & Company (2020). Global Personal Luxury Goods Market Set To Contract Between 20 - 35 Percent In 2020. (07 May 2020) https://www.Bain.Com/About/Media-Center/Press-Releases/2020/Spring-Luxury-Report/#:~:Text=The%20luxury%20market%20will%20face,For%20the%20market%20to%20recover.
Baudrillard, J. (2001). Baştan Çıkarma Üzerine, Ayşegül Sönmezay (Trans.), İstanbul: Ayrıntı Publications.
Cicornea, R.; Pop, M.D.; Băcilă, M.F., (Tirca) Drule, A. M. (2012a), ‘Was Luxury Little Researched? An Exploration Of Studies And Research Trends In The Area Of Marketing Of Luxury Goods, Before 2005. Management & Marketing, 10(2), 325-340.
Cicornea, R.; Pop, M.D.; Băcilă, M.F. (2012b). Segmenting Luxury Market Based On The Type Of The Luxury Consumed. Empirical Study On Young Female Luxury Consumers. International Journal Of Economic Practices And Theories, 2(3),143-152.
Danzinger, P.N. (2011). Putting The Luxe Back In Luxury. How New Consumer Values Are Defining The Way We Market Luxury. NY:Paramount Market Publishing, Inc.
Dubois, B.; Laurent, G.; Czellar, S. (2001). Consumer Rapport To Luxury: Analyzing Complex And Ambivalent Attitudes. Consumer Research Working Article, No. 736, HEC, Jouy-En-Josas, France.
Dubois, B. And Laurent, G. (1994). ‘Attitudes Toward The Concept Of Luxury: An Exploratory Analysis’, In Leong, S.M. And Cote, J.A. (Eds), Asia-Pacific Advances In Consumer Research, Provo, UT, 45, P. 273-278.
Eastman, J. K., & Liu, J. (2012). The Impact Of Generational Cohorts On Status Consumption: An Exploratory Look At Generational Cohort And Demographics On Status Consumption. Journal Of Consumer Marketing, 29 (2), 93-102.
Eastman, J. K., Shin, H., & Ruhland, K. (2020). The Picture Of Luxury: A Comprehensive Examination Of College Student Consumers' Relationship With Luxury Brands. Psychology & Marketing, 37(1), 56-73.
Francis, T., Hoefel, F. (2018). ‘True Gen’: Generation Z And Its Implications For Companies. Http://Innovationinsider.Com.Br/Wp-Content/Uploads/2019/05/Generation-Z-And-Its-Implication-For-Companies.Pdf
Franchetti, C. (2013). A Reconsideration Of Werner Sombart’s Luxury And Capitalism. International Review Of Social Sciences And Humanities. 5 (2), 135-139.
Han, Y.J., Nunes, J.C. And Drèze, X. (2010), “Signaling Status With Luxury Goods: The Role Of Brand Prominence”, Journal Of Marketing, 74 (4), 15-30.
Heine, K. (2012). ‘The Concept Of Luxury Brands’, In: Luxury Brand Management, No. 1, Ed. 2, ISSN: 2012, P. 2193-1208.
Jain, V. & Patel K. (2013). Marketing Luxury Cars In India. Ware Exclusive, January, 2013, 1-8.
Jain, V., Vatsa, R., Jagani, K. (2014). Exploring Generation Z’s Purchase Behavior Towards Luxury Apparel:
A Conceptual Framework. Romanian Journal Of Marketing. 2, 18-29.
Jonathan S. Vickers And Franck Renand, ‘The Marketing Of Luxury Goods: An Exploratory Study-Three Conceptual Dimensions’, Market Rev. 3(4), 2003. P.459–78 4
Juodžbalis, A., Radzevičius, M. (2016). The Profile Of Generation Z Customer Towards Luxury Fashion Brands: Case Study Of Asian Countries. 12th International Prof. V. Gronskas Scientific Conference “Economy Development: Theory And Practice. 95-101.
Kapferer, J.-N. (1997). ‘Managing Luxury Brands’, Journal Of Brand Management, Vol. 4, No. 4, Pp. 251-260).
Kapferer, J.-N. (1998). Why Are We Seduced By Luxury Brands?, Journal Of Brand Management, 6 (1), Pp. 44-49.
Kuo, C., Nagasawa, S. (2020). Deciphering Luxury Consumption Behavior From Knowledge Perspectives. Journal Of Business And Management, 26 (1), March 2020, 1-21.
Matter Of Form Group (2020). The Luxury Report: The State Of The Industry In 2020 And Beyond. Https://Matterofform.Com/The-Luxury-Report/
Mckinsey & Company (2011). Understanding China‘S Growing Love For Luxury, Shanghai.
Mercan, N. (2016). The Construction Of Different Consumption Habits Of X, Y And Z Generation Women In The Postmodern World. KADEM Kadın Araştırmaları Dergisi. June 2016, 2(1), 59-70.
Mohanram, A. P. (2012). How Teenagers Influence Their Parents To Purchase A Computer – An Empirical Analysis. Zenith International Journal Of Business Economics & Management Research, 2, 98-116.
Nueno, J. L., & Quelch, J. A. (1998). The Mass Marketing Of Luxury. Business Horizons, 41, 61– 68.
O‟Cass, A,; Mcewen, H. (2006). Exploring Consumer Status And Conspicuous Consumption. Journal Of Consumer Behaviour, 4 (1), 25-39.
Nwankwo, S.; Hamelin, N.; Khaled, M. (2014). ‘Consumer Values, Motivation And Purchase İntention For Luxury Goods’, Journal Of Retailing And Consumer Services, 21, P. 735–744.
Özkan, M., Solmaz, B. (2017). Generation Z - The Global Market’s New Consumers- And Their Consumption Habits: Generation Z Consumption Scale. European Journal Of Multidisciplinary Studies. 2(5), 150-157.
Ramos, A. (2011). Luxury, Crisis And Consumption: Sir James Steuart And The Eighteenth-Century Luxury Debate. History Of Economics Review HER. 53, 55- 72.
Reyneke, M. (2011). Luxury As The Opposite Of Vulgarity: A Trio Of Perspectives On Luxury Brands. Lulea Technology University Http://Pure.Ltu.Se/Portal/Files/32832335/Mignon_Reyneke.Komplett.Pdf
Okonkwo, U. (2007). What’s In A Name? The History Of Luxury Fashion Branding. In Luxury Fashion Branding. Palgrave Macmillan, London.
Schaffert, S.; Bry, F.; Baumeister, J.; Kiesel, M. (2008). Semantic Wikis. IEEE Software, 25 (4), 8-11.
Sombart W. (1998). Love Is Luxury And Capitalism. (Translated By: Necati Aça). Ankara: Science And Art Publications.
Truong Y.; Simmons G.; Mccoll R.; Kitchen P. (2008). Status And Conspicuousness – Are They Related? Strategic Marketing Implications For Luxury Brands. Journal Of Strategic Marketing, 16 (3) July, 189-203.
Veblen, T. (1899) The Theory Of The Leisure Class, 1st Edition, Macmillan, New York, NY.
Vigneron, F., Johnson, L.W. (1999.) A Review And A Conceptual Framework Of Prestige-Seeking Consumer Behavior. Academy Of Marketing Science Review,19(1).
Vigneron F., Johnson L. W. (2004). Measuring Perceptions Of Brand Luxury. Journal Of Brand Management. 11 (6), 484-506.
Yanık, O. (October, 2011). Lüks Markalara Dair Taze Gerçekler. The Brand Age, 64-67.
Yıldız, S. (2017). Sosyal Bilimlerde Örnekleme Sorunu: Nicel Ve Nitel Paradigmalardan Örnekleme Kuramına Bütüncül Bir Bakış. Kesit Akademi Dergisi (The Journal Of Kesit Academy) 3(11), Aralık, S. 421-442.
Yu, W„ Chan, P. Y„ & Choi, K. (2002). Relationship Between Teenager’s Self-Monitoring And Buying Behavior. Research Journal Of Textile And Apparel, 7, 53-59.
Winter, D., (2011). Consumers Redefine Luxury. Ward’s Dealer Business, 45 (6), 48.
Zhang, B., Kim, J. H. (2013). Luxury Fashion Consumption In China: Factors Affecting Attitude And Purchase Intent. Journal Of Retailing And Consumer Services. 20 (2013) 68–79.
How to Cite
Copyright (c) 2020 International Journal of Social, Political and Economic Research
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.