The purpose of this paper is to conceptualize luxury customer value and empirically test the reliability and validity of the proposed structure of it. In addition, it aims to identify luxury customer value factors that influence brand relationship and behavioural intention.
A thorough literature study produces a comprehensive model of luxury consumer value. For an empirical test of the model, a web‐based on‐line survey is performed using a consumer sample in Korea. Statistical tests including CFA, second order factor analysis and structural model testing using covariance analysis are conducted.
The findings show that the luxury customer value represents a second‐order construct. The results provide satisfactory support for the four‐value structure model composed of utilitarian, hedonic, symbolic and economic values. Utilitarian value includes excellence and functional values, whereas hedonic value encompasses aesthetic, pleasure and experiential values. Symbolic value is reflected in self‐expressive and social values. Regarding the effect of luxury customer value on relationship quality, customers who perceive high symbolic, economic and functional values for luxury brands are more likely to develop a positive relationship with the brands.
In an attempt to confirm the luxury customer value structure in an emerging economy under a collective culture, this study expands previous studies on the conceptualization of luxury customer value. Through the empirical phase of the study, measures with both high reliability and validity for luxury customer value are produced, which will provide great benefits for further studies in the subject area. The association between customer value and brand relationship is examined.
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