Luxury Perception of Low and Middle Income Generation Z and Their Luxury Consumption Motivations
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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.
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