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Article
Publication date: 1 February 1984

Roger Mason

In recent years business organisations have recognised the great profits potential offered by the demand for status goods and have sought to encourage still higher levels of status

Abstract

In recent years business organisations have recognised the great profits potential offered by the demand for status goods and have sought to encourage still higher levels of status seeking among consumers. To this end, many products are designed and promoted either wholly or partly as status symbols, with marketing strategies geared to securing rapid rates of social obsolescence in goods and services on offer. At the same time, we still know remarkably little about conspicuous consumption itself or about buyer behaviour in the market for status goods. This article examines the special characteristics of the conspicuous consumer and explores ways in which marketing planning may be improved.

Details

Marketing Intelligence & Planning, vol. 2 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 21 December 2023

Yue He, Zan Mo and Huijian Fu

Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by…

Abstract

Purpose

Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by high-status brands may be challenged by horizontal extended products launched by relatively low-status brands when these two types of products target similar consumers. This study aims to examine the impact of product type (horizontal extended versus downward extended) on consumers’ purchase intentions, the underlying mechanism and the moderating role of power distance belief.

Design/methodology/approach

Four scenario-based experiments were conducted to probe the research questions.

Findings

Consumers develop lower purchase intentions for downward (versus horizontal) extended products due to the reduction of perceived fit and self-congruity (Study 1). Beyond that, power distance belief moderates the impact of product type on consumers’ purchase intentions, as a low power distance belief reduces the negative effect of downward line extension (Studies 2a, 2b and 2c). Perceived fit and self-congruity mediate the interaction effect between product type and power distance belief on consumers’ purchase intentions (Study 2c).

Practical implications

This study provides marketing practitioners with guidance on implementing the strategy of downward line extension.

Originality/value

This study serves as a preliminary effort to compare consumers’ responses between downward and horizontal extended products, which deepens the understanding of downward line extension. It also contributes to the body of knowledge about line extension and power distance belief by demonstrating the moderating role of power distance belief in a line extension context.

Details

Journal of Product & Brand Management, vol. 33 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 3 August 2021

A.R.S. Ibn Ali and Wirawan Dony Dahana

This paper aims to address how the status consumption tendency of consumers in emerging markets is negatively influenced by five individual traits: self-control…

Abstract

Purpose

This paper aims to address how the status consumption tendency of consumers in emerging markets is negatively influenced by five individual traits: self-control, self-actualization, religiosity, future orientation and self-efficacy.

Design/methodology/approach

A conjoint experiment measured the importance of certain smartphone product attributes. A latent class regression analysis was then employed to estimate segment-level part-worths using conjoint data collected from 500 Bangladeshi consumers.

Findings

The results revealed three segments with members that differ in how they evaluate smartphone product attributes. Those susceptible to a product's brand name (i.e. status seekers) appear to have low self-control, are less religious and are more myopic.

Research limitations/implications

An issue may exist with generalizability, as the analysis was conducted based on data collected in one country and for one product category. However, this study's framework provides direction for future researchers to better understand status consumption in emerging countries.

Practical implications

The findings are useful for marketers selling status products to improve market segmentation and target their offerings more efficiently.

Originality/value

The originality of this paper is twofold. First, it investigates the influencing factors of status consumption that have not been addressed in the extant literature. Second, it is the first to use experimental data to measure segment-level status consumption accurately.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 May 2017

Youjae Yi, Seo Young Kim and Jae Won Hwang

This study aims to examine how social exclusion and the social status of a rejecter affect consumers’ purchase intentions toward ordinary products.

Abstract

Purpose

This study aims to examine how social exclusion and the social status of a rejecter affect consumers’ purchase intentions toward ordinary products.

Design/methodology/approach

Three experiments were conducted to test the hypotheses.

Findings

The status of a rejecter, whether high or low, had a significant influence on individuals’ evaluations of ordinary products. Results showed that individuals who were rejected by a low status source had higher purchase intentions toward the ordinary (vs unique) products compared to those who were rejected by a high status source due to threatened self-concept.

Practical implications

With the increased number of lonely consumers in the market today, firms should pay closer attention to the behavioral patterns of consumers who are socially excluded. In addition, firms should be aware that consumers’ purchase intentions vary depending on the sources of social exclusion.

Originality/value

This paper addresses the significant impact of sources of social exclusion on consumers’ evaluation of ordinary products. Moreover, this study focuses on a relatively neglected definition of social status, namely, the sociometric status, to fill the gap in the social status literature.

Details

European Journal of Marketing, vol. 51 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 12 October 2020

Norizan M. Kassim, Mohamed Zain, Naima Bogari and Khurram Sharif

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…

2071

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 21 December 2010

Michael Jensen

This study focuses on how the creation of a new market identity, defined here by the social categories that specify what to expect of products and organizations, helps legitimize…

Abstract

This study focuses on how the creation of a new market identity, defined here by the social categories that specify what to expect of products and organizations, helps legitimize normatively illegitimate products and thereby facilitate the formation of markets for these products. A product is given a legitimate market identity by recombining existing product and status categories in a way that is both isomorphic with and differentiated from these preexisting categories. I argue that the creation of a new market identity helped create a market for feature films that combined legitimate comedy and illegitimate pornography following the legalization of pornography in Denmark in 1969. Topological analyses of the cultural content of all the film posters used to promote Danish films between 1970 and 1978, and regression analyses of the status of the actors appearing in these films document the importance of market identity in legitimizing illegitimacy.

Details

Categories in Markets: Origins and Evolution
Type: Book
ISBN: 978-0-85724-594-6

Article
Publication date: 14 November 2016

Norizan Kassim, Naima Bogari, Najah Salamah and Mohamed Zain

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…

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Abstract

Purpose

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.

Design/methodology/approach

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

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 28 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 26 January 2022

Honghong Zhang and Xiushuang Gong

This study aims to examine the effect of opinion leadership on individuals’ susceptibility to social influence, which eventually affects their adoption behavior and assess how…

Abstract

Purpose

This study aims to examine the effect of opinion leadership on individuals’ susceptibility to social influence, which eventually affects their adoption behavior and assess how these relationships vary with gender in new product adoption.

Design/methodology/approach

Data were collected based on a survey of young consumers regarding the adoption of new consumer electronics. The hypotheses were tested using structural equation modeling and multiple sample analyses.

Findings

The study finds that opinion leaders are more sensitive to influence from others when the mechanism of status competition is at work. Although consumers who are more susceptible to normative influence tend to adopt new products later than others, those who are more susceptible to status competition are more likely to adopt earlier. The results also provide evidence for gender differences. Female leaders are more susceptible to status competition, whereas male leaders are less sensitive to informational influence. The effects of susceptibility to normative influence and status competition on adoption behavior are stronger for female than for male consumers.

Originality/value

The overall structural model predicts an interesting relationship between individual influence and susceptibility, as well as the effects of these factors on adoption behavior. This study also provides deeper insights into the dynamics of the social influence mechanisms at work for each gender in new product adoption.

Details

Journal of Product & Brand Management, vol. 31 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 30 March 2022

Rajesh Iyer, Barry J. Babin, Jacqueline K. Eastman and Mitch Griffin

This study explores consumers' motivations to purchase luxury and counterfeit products using an international sample. In addition, it also examines the moderating role of…

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Abstract

Purpose

This study explores consumers' motivations to purchase luxury and counterfeit products using an international sample. In addition, it also examines the moderating role of interpersonal influence on this process. This study seeks to examine if the consumers who demand the highest quality express a preference for luxury goods over counterfeit goods.

Design/methodology/approach

Survey research was employed to subjects from the USA, India, China and Russia. Responses from US and India consumers were collected using online software, whereas responses from China and Russia were collected with the help of a local market research firm.

Findings

The findings of the study indicate that consumers tend to show similar reactions based on the luxury and counterfeit consumption process examined here. In terms of interpersonal influence as a moderator, however, the study found it significantly impacts status seekers' attitude toward luxury and how a perfectionist shopper perceives counterfeit consumption.

Originality/value

This study is one of the first in the literature to empirically address both luxury and counterfeit consumption. Further it considers consumers from multiple countries with high levels of luxury good purchases.

Details

International Marketing Review, vol. 39 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 7 August 2007

Thirarut Sangkhawasi and Lalit M. Johri

The paper aims to investigate the influence of status brand strategy of Mercedes Benz on materialism.

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Abstract

Purpose

The paper aims to investigate the influence of status brand strategy of Mercedes Benz on materialism.

Design/methodology/approach

Materialism level and perceived status associated with status brands are measured amongst Bangkok people. The correlation between the two shows the nature and the extent of the impact of the strategy on materialism.

Findings

Status brand strategy promotes materialism at a moderate level. Older and low to middle income people are susceptible to the impact of the strategy. The three characteristics of the brand – symbolic meaning, quality, and emotional appeal – show a strong impact on materialists.

Research limitations/implications

This paper focuses on the Bangkok population and a single status brand. The analysis does not distinguish between the perception of the owner and non‐owner of the brand.

Practical implications

The findings point to adopting appropriate marketing strategies. These are: use direct marketing channels, expand product range to introduce affordable products, and communicate against bad connotation of materialism.

Originality/value

This paper calls for a reexamining of the impact of status brand strategy in escalating materialism. The findings will help in implementing strategies to discourage excessive materialism.

Details

Journal of Consumer Marketing, vol. 24 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

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