When Desire Outranges the Capability: A Study on the Double-Way Consumption Phenomena among Young Chinese Luxury Consumers


Abstract views: 41 / PDF downloads: 16

Authors

  • Yiran Jia Shanghai Jiao Tong University

DOI:

https://doi.org/10.5281/zenodo.12588187

Keywords:

Luxury consumer, Double-way consumption, Theory of planned behavior

Abstract

Young people are becoming the primary force in luxury goods purchases, with China on the verge of becoming the largest luxury market. However, not all young people have the financial capability to purchase luxury goods, leading to a phenomenon scholars term “double-way consumption.” Economically constrained Gen Z individuals limit their expenditures in other areas to afford luxury items. This study seeks to understand the motivations behind such consumer behavior through the theory of planned behavior (TPB). With rigorous participant selection, data from 385 valid responses are collected. The suitability of the overall model, along with the constructs’ reliability and validity, is confirmed through CFA. Hypotheses are tested using SEM. The study finds that all three factors in TPB positively influence intention, with perceived behavioral control having the most significant impact on purchase motivation. This non-motivational factor, reflecting the constraints of objective conditions, aligns with the study’s focus on the economic restrictions faced by participants when buying luxury goods. Future research should explore this group’s beliefs within the TPB framework. Conducting comparative group studies or using different factors to structure the research are also recommended directions.

References

Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In Action control: From cognition to behavior (pp. 11-39). Springer.

Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.

Ajzen, I. (2006). Constructing a theory of planned behavior questionnaire. In: Amherst, MA.

Aliyev, F., & Wagner, R. (2018). Cultural influence on luxury value perceptions: Collectivist vs. individualist luxury perceptions. Journal of International Consumer Marketing, 30(3), 158-172.

Bain&Company. (2021). 2021 Chinese Luxury Goods Market: Overall Vigorous Growth with High Initial Speed and Gradual Decline. https://www.bain.cn/pdfs/202202091213108562.pdf

BCG&Altagamma. (2018). Global Luxury Consumer Insights 2018. https://www.199it.com/archives/727188.html

Canguende-Valentim, C. F., & Vale, V. T. (2021). Examining the intention to purchase luxury goods based on the planned behaviour theory. Open Journal of Business and Management, 10(1), 192-210.

Chen, X. (2019). Analysis of the Current Situation and Development of China’s Luxury Goods Market. China Market(09), 130-131. https://doi.org/10.13939/j.cnki.zgsc.2019.09.130

Cheung, G. W., & Wang, C. (2017). Current approaches for assessing convergent and discriminant validity with SEM: Issues and solutions. Academy of management proceedings,

Cho, E., Kim-Vick, J., & Yu, U.-J. (2022). Unveiling motivation for luxury fashion purchase among Gen Z consumers: need for uniqueness versus bandwagon effect. International Journal of Fashion Design, Technology and Education, 15(1), 24-34.

Cornell, A. (2002). Cult of luxury: The new opiate of the masses. Australian Financial Review, 47, 32-52.

Cunningham, G. B., & Kwon, H. (2003). The theory of planned behaviour and intentions to attend a sport event. Sport Management Review, 6(2), 127-145.

de Araújo, C., & Loureiro, S. M. C. (2014). The effect of subjective norm, perceived control, attitude, and past experience on purchase intention of luxury clothes brands in Brazil. Tourism & Management Studies(SI), 103-110.

Eichhorn, B. R. (2014). Common method variance techniques. Cleveland State University, Department of Operations & Supply Chain Management. Cleveland, OH: SAS Institute Inc, 1(11).

Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research.

Gao, L., Norton, M. J., Zhang, Z. m., & Kin‐man To, C. (2009). Potential niche markets for luxury fashion goods in China. Journal of Fashion Marketing and Management: An International Journal, 13(4), 514-526.

Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of marketing research, 25(2), 186-192.

Gil, L. A., Kwon, K.-N., Good, L. K., & Johnson, L. W. (2012). Impact of self on attitudes toward luxury brands among teens. Journal of Business Research, 65(10), 1425-1433.

Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis: A global perspective (Vol. 7). In: Upper Saddle River, NJ: Pearson.

Harman, H. H. (1976). Modern factor analysis. University of Chicago press.

Hu, L. t., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: a multidisciplinary journal, 6(1), 1-55.

Jain, S. (2020). Assessing the moderating effect of subjective norm on luxury purchase intention: A study of Gen Y consumers in India. International Journal of Retail & Distribution Management, 48(5), 517-536.

Jain, S., & Khan, M. N. (2017). Measuring the impact of beliefs on luxury buying behavior in an emerging market: Empirical evidence from India. Journal of Fashion Marketing and Management: An International Journal, 21(3), 341-360.

Jain, V., Vatsa, R., & Jagani, K. V. (2014). Exploring generation Z's purchase behavior towards luxury apparel: A conceptual framework. Romanian Journal of Marketing(2), 18.

Leslie, L. L. (1972). Are high response rates essential to valid surveys? Social Science Research, 1(3), 323-334.

Li, G., Li, G., & Kambele, Z. (2012). Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10), 1516-1522.

Li, X., & Zhou, M. (2014). The Social Value Realization of Consumption in Transnational Space: A Case Study of Fuzhounese Immigrants’ Double-way Consumption in the United States (Vol. 29). https://doi.org/10.19934/j.cnki.shxyj.2014.02.003

Luo, F., & Xie, H. (2015). Analysis of Dual Consumption Behavior of Migrant Workers: Based on Investigation and Analysis in Hubei Province (Vol. ). https://kns.cnki.net/kcms2/article/abstract?v=8C_-cGYG31Fvif-TPepm_WEIBfFuBvGeSlpDgLw3Ww9qMEapRUmZel0jBH-PrLq8JPpxHKl0p_eu2rns0CbXoRujbhDDbmcdTSPv8Oi5iHjBRQ1zB_WBfPGzOx4tK159tMcZ1fIV64RGDiiEchp3QA==&uniplatform=NZKPT&language=CHS

Muça, S., & Zeqiri, J. (2020). Purchase intention of customers towards luxury brands in North Macedonia: theory of planned behaviour approach. International Journal of Islamic Marketing and Branding, 5(2), 99-113.

Nazir, O., & Islam, J. U. (2020). Effect of CSR activities on meaningfulness, compassion, and employee engagement: A sense-making theoretical approach. International Journal of Hospitality Management, 90, 102630.

Ngai, J., & Cho, E. (2012). The young luxury consumers in China. Young Consumers, 13(3), 255-266.

Nwankwo, S., Hamelin, N., & Khaled, M. (2014). Consumer values, motivation and purchase intention for luxury goods. Journal of retailing and consumer services, 21(5), 735-744.

Peterson, R. A., & Kim, Y. (2013). On the relationship between coefficient alpha and composite reliability. Journal of applied psychology, 98(1), 194.

Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.

Report, A. G. (2013). American Generations: Who They Are and How They Live. https://www.newstrategist.com/series/american­generations­series/

Semuel, H., & Sampurno, F. (2019). Lifestyle, Motivation & purchase intension of luxury bag with Instagram facility as moderation on millennial generation. Proceeding of the 4th international conference on accounting, management and economics, ICAME,

Sharma, P., Pradhan, S., & Srivastava, A. (2021). Understanding the luxury purchase intentions of young consumers: a qualitative analysis. Asia-Pacific Journal of Business Administration, 13(4), 452-476.

Simge, A. (2020). Luxury Perception of Low and Middle Income Generation Z and Their Luxury Consumption Motivations. International Journal of Social, Political and Economic Research, 7(4), 939-959.

Singh, A. P., & Dangmei, J. (2016). Understanding the generation Z: the future workforce. South-Asian journal of multidisciplinary studies, 3(3), 1-5.

Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations: Volume One. In. London: printed for W. Strahan; and T. Cadell, 1776.

Suhr, D. D. (2006). Exploratory or confirmatory factor analysis?

Thach, L., Riewe, S., & Camillo, A. (2020). Generational cohort theory and wine: analyzing how gen Z differs from other American wine consuming generations. International Journal of Wine Business Research, 33(1), 1-27.

Thorstein, V. (1912). The theory of the leisure class: An economic study of institutions. BW Huebsch.

Tulgan, B. (2013). Meet Generation Z: The second generation within the giant" Millennial" cohort. Rainmaker Thinking, 125(1), 1-13.

Vigneron, F., & Johnson, L. W. (2004). Measuring perceptions of brand luxury. Journal of brand management, 11(6), 484-506.

Wang, N. (2005). Sociological Analysis of Double-way Consumption Behavior. https://kns.cnki.net/kcms2/article/abstract?v=8C_-cGYG31EYAoEugj4NKHUe9aGGF0DCydmCA5QeR_VXEiAa8xbJyRYZ_2oWdzsIGHNHvcsioUbv4floP277Md0igg5HDtuqyJryot3zFbttdCgUI0Gi7YXYXRavU1sbiTH5irDhrQI=&uniplatform=NZKPT&language=CHS

Wang, N., & Yan, X. (2011). Double-way Consumption and Dual Identity: A Qualitative Study on the Body Consumption of Female Migrant Workers in J Industrial Zone, Guangzhou. https://doi.org/10.13858/j.cnki.cn32-1312/c.2011.04.033

Wang, Y., Sun, S., & Song, Y. (2011). Chinese luxury consumers: Motivation, attitude and behavior. Journal of Promotion Management, 17(3), 345-359.

Wantara, P. (2022). The Theory Of Planned Behavior: Consumer Behavior On Luxury Fashion Goods In Indonesian Context. Review of Business. Accounting, & Finance, 2(2), 141-152.

Wood, S. (2013). Generation Z as consumers: trends and innovation. Institute for Emerging Issues: NC State University, 119(9), 7767-7779.

Wu, J. (2013). Double-way Consumption Phenomenon from the Perspective of Efficient Consumption. https://kns.cnki.net/kcms2/article/abstract?v=8C_-cGYG31FUylggpRQAiHXSDTr_VE8Tl_74kAd63amakYjQ0EZ5nv17v_92EyPtBj_4APbF7xMJi_qS9xBile6fHHJHYGmyUPWW2tXDUPDTA3JXPPza-yTLesW0ZUc1vTL54tI_7pg=&uniplatform=NZKPT&language=CHS

Zhan, L., & He, Y. (2012). Understanding luxury consumption in China: Consumer perceptions of best-known brands. Journal of Business Research, 65(10), 1452-1460.

Zhang, B., & Kim, J.-H. (2013). Luxury fashion consumption in China: Factors affecting attitude and purchase intent. Journal of retailing and consumer services, 20(1), 68-79.

Zhang, L., & Cude, B. J. (2018). Chinese consumers’ purchase intentions for luxury clothing: A comparison between luxury consumers and non-luxury consumers. Journal of International Consumer Marketing, 30(5), 336-349.

Zhang, L., Cude, B. J., & Zhao, H. (2020). Determinants of Chinese consumers’ purchase intentions for luxury goods. International Journal of Market Research, 62(3), 369-385.

Zhang, L., & Zhao, H. (2019). Personal value vs. luxury value: what are Chinese luxury consumers shopping for when buying luxury fashion goods? Journal of retailing and consumer services, 51, 62-71.

Downloads

Published

2024-06-15

How to Cite

Jia, Y. (2024). When Desire Outranges the Capability: A Study on the Double-Way Consumption Phenomena among Young Chinese Luxury Consumers. International Journal of Social, Political and Economic Research, 11(2), 148–164. https://doi.org/10.5281/zenodo.12588187

Issue

Section

Articles