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Prior research has found that consumers’ purchasing behavior varies amongst consumers of different cultures. The purpose of this paper is to examine the behavior of consumers of luxury products by investigating the relationships between their collective-oriented values (pertaining to religion, family, and community), and their materialism or materialistic orientation, resulting in them using such products to signal their social status to others, and whether they are getting satisfaction from using such products, in an effort to understand how the behaviors vary between Malaysian and Saudi Arabian consumers.

Data were collected by a questionnaire survey where 1,388 self-administered questionnaires were collected from Baby boomers, Generations X and Y respondents in two major cities: Kuala Lumpur, Malaysia and Jeddah, Saudi Arabia. The data were analyzed using structural equation modeling. The authors also assessed the structure and reliability of the constructs developed for this research as well as tested some hypotheses regarding their interrelationships, across the two different cities/cultures.

Findings demonstrate the complexity of cultures and lifestyles of consumers and societies. For Saudi consumers, their materialistic tendency is significantly influenced by their religious, family values (inverse relationship), and community values, whereas for the Malaysian consumers, this tendency was only significantly influenced by their family values. For the Saudis, there were strong positive relationships between materialistic values and product status signaling and between product status signaling and product satisfaction, whereas for the Malaysians, both relationships were also positive but only moderate in strength. Overall, the results show that the Malaysians were more materialistic than the Saudis. But, since the Saudis have higher income, they are in a better position to fulfill their materialistic desire than their Malaysian counterparts.

The convenience sampling used for the study is the main limitation. Another limitation of this study is that it was done in only one major city in each of the two countries.

Consumers from the two cultures/cities do use luxury products to signal their status in the society, despite their different cultures and country income levels and that the consumption of those products gave both of them satisfaction. Hence, as a practical implication, international marketers of luxury products and services could and should continue to market their products and services in these two countries. However, they need to understand that the factors that influence the consumers’ materialism are different between the two cultures/cities and hence their marketing strategies need to take this into consideration.

All the issues discussed in this study have not been previously empirically investigated and compared in two different developing countries – Saudi Arabia, a mono-cultural and high-income country) and Malaysia (a multi-cultural and upper middle income country) despite their rapid growth rates and economic importance.

The purpose of this paper is to examine customer attitudes toward purchasing counterfeit luxury products (ATPCLP) in two cities in two different countries (Saudi Arabia and Malaysia) by testing the relationships between the various reasons for purchasing those products: social status insecurity, status consumption and value consciousness.

Questionnaires were distributed conveniently to urban customers in Kuala Lumpur, Malaysia and Jeddah, Saudi Arabia. Altogether 658 useable questionnaires were collected and analyzed using descriptive statistics, general linear model of univariate analysis of variance and structural equation modeling.

Quality, price, popularity and status signaling represent the main motivating factors for their brand choices of counterfeit luxury products among the two country groups of customers. As expected, customers' social status insecurity influences their ATPCLP, but not their status consumption. However, status consumption does positively moderates the relationship of their social status insecurity and their ATPCLP. Furthermore, customers' value consciousness influences their ATPCLP and moderates the relationship between status consumption and ATPCLP. The impact of status consumption on ATPCLP depends on the importance one places on the value of the products. However, the authors found no differences in social status insecurity, status consumption and value consciousness, on their ATPCLP among the customers. Some implications and limitations of the results are discussed.

The use of convenience sampling and mainly college students (in Saudi Arabia) as respondents represent the main limitations of this study.

The practical implication of this study is to discourage the purchasing of counterfeit luxury products in their respective country Malaysian marketers need to stress that their genuine products are of top quality while Saudi marketers need to stress that their genuine products are of well-known brands that are sourced from well-known countries of origin. Besides, Malaysian marketers need to offer genuine products that are not overly priced or ones that indicate value-for-money while Saudi marketers need to convey the message that their genuine products could help enhance or uplift their customers' social status. In this study, the authors did not find any support for differences in ATPCLP between the two rather different Muslim-majority countries. This could be due to the fact that the majority of the respondents were females in their mid-20s and that both countries have a growing number of young customer base, which makes them particularly attractive target customers for branded/luxury products and, at the same time, easy preys to luxury products counterfeiters. This implies that there are still more opportunities for academics to study the topic or related topics in the future.

As far as the authors know, no one has undertaken a comparative study involving two very different Islamic majority countries (more conservative mono-cultural and mono-ethnicity Saudi Arabia versus less conservative multicultural and multi-ethnicity Malaysia) before.