Bài báo nghiên cứu khoa học đạt chuẩn SCOPUS ISI uy rín nói về sự ảnh hưởng của phương tiện truyền thông xã hội WOM tác động lên ý định mua sắm thương hiệu xa xỉ của người tiêu dùng. This research develops a conceptualized model that illuminates the role of luxury perceptions in explaining consumer engagement in social media WOM and luxury purchase intention. It also explores the moderating effects of consumer demographic characteristics and perceived social status. The proposed model is validated by using SEM in AMOS against 282 samples, and chisquare difference test is applied to test the moderating effects. The findings demonstrate that social media WOM positively influences consumer luxury purchase intention. Perceived quality highly influences functional and social value, and social media WOM is strongly influenced by personal and functional value. This research 1) highlights the powerful role of social media WOM in enhancing luxury brands purchase intention, 2) extends current body of knowledge of the social media WOM and its focal antecedents, and 3) shows how consumer characteristics (e.g., age, gender, income, education, perceived social status) are important for developing customized marketing strategy to promote luxury brands on SNS. Overall, this study helps firms to understand which aspect of luxury brands to be emphasized to initiate consumers into social media WOM, which in turn, influences purchase intention.
Trang 1Available online 10 September 2020
0969-6989/© 2020 Elsevier Ltd All rights reserved
A study of antecedents and outcomes of social media WOM towards luxury
brand purchase intention
Jungkun Parka, Hyowon Hyuna,*, Toulany Thavisayb
aSchool of Business, Hanyang University, 222 Wangshimni-ro, Seongdong-gu, Seoul, South Korea
bFaculty of Economics and Business Management, National University of Laos (NUoL), Po Box 7322, Vientiane, Laos
A R T I C L E I N F O
Keywords:
Luxury product
Perceived quality
Perceived value
Social media WOM
Consumer characteristics
A B S T R A C T This research develops a conceptualized model that illuminates the role of luxury perceptions in explaining consumer engagement in social media WOM and luxury purchase intention It also explores the moderating effects of consumer demographic characteristics and perceived social status The proposed model is validated by using SEM in AMOS against 282 samples, and chi-square difference test is applied to test the moderating effects The findings demonstrate that social media WOM positively influences consumer luxury purchase intention Perceived quality highly influences functional and social value, and social media WOM is strongly influenced by personal and functional value This research 1) highlights the powerful role of social media WOM in enhancing luxury brands purchase intention, 2) extends current body of knowledge of the social media WOM and its focal antecedents, and 3) shows how consumer characteristics (e.g., age, gender, income, education, perceived social status) are important for developing customized marketing strategy to promote luxury brands on SNS Overall, this study helps firms to understand which aspect of luxury brands to be emphasized to initiate consumers into social media WOM, which in turn, influences purchase intention
1 Introduction
The diffusion of social media has emerged over the last decade as the
principle communication channels of marketing activities (Rialti et al.,
2017) It is the Internet-based applications which are characterized by
accessibility, bidirectionality (e.g two-way communication), and
interoperability (e.g., exchanging of information) (Kaplan and Haenlein,
2010) By using social media, luxury firms can reach and initiate their
customers into marketing activities of luxury brands in social
commu-nities (Gallaugher and Ransbotham, 2010) For instance, Louis Vuitton
posts their fashion shows on its Facebook page (Kapferer, 2012), which
creates different opportunities for brand-related users to entertain,
interact, and share information In addition, according to Deloitte
social media approach, and luxury firms could optimize the benefits of
such platform to increase its users by customizing pictures, videos, and
design to meet their personalities (Bazi et al., 2020) (Figs 1 and 2)
Information shared by consumers in social media sites is widely
known to influence and form consumer attitudes and behavioral
in-tentions For instance, word-of-mouth (WOM) over social media is
known as electronic WOM (Yang, 2017) It is a form of communication
that has been recognized to be one of major influential information sources on social media sites (Jalilvand and Samiei, 2012) Consumers who rely on social media need information and opinions from others to increase their awareness of a certain brand as much as they enjoy sharing their own experiences of luxury brands with their peers This form of communication provides credibility and trustworthiness (
misunderstanding of brands In the era of social media boom, firms being on social platforms is crucial, and it is a part of online marketing strategies (Sokolova and Kefi, 2020) The advent of social media pro-vides marketers and consumers with various social platforms, and they are essential resources of products and services Instagram for, instance,
is one of them that has been used recently by luxury brands to inspire their consumers As such, Instagram has more than 1 billion users
visual contents (e.g., images, videos, gifs) (Vinerean and Oprena, 2019)
As this platform provides more visual extensions with textual descrip-tion (Sokolova and Kefi, 2020), it is considered as more appropriate for luxury fashion brands, and it appeals to luxury consumers who are highly tech-savvy and spend more time using this site (Instagram, 2017) Consequently, using the content they see on Instagram influences their
* Corresponding author
E-mail addresses: viroid2007@gmail.com (J Park), hhwony326@gmail.com (H Hyun), thavisay.toulany@gmail.com (T Thavisay)
Contents lists available at ScienceDirect Journal of Retailing and Consumer Services
journal homepage: http://www.elsevier.com/locate/jretconser
https://doi.org/10.1016/j.jretconser.2020.102272
Received 19 March 2020; Received in revised form 29 June 2020; Accepted 31 July 2020
Trang 2future behavioral intention and luxury shopping (Casal´o et al., 2018)
Moreover, WOM in social media is the most persuasive information
sources on the Web (Abubakar and Ilkan, 2016) that have led to
sig-nificant changes in consumer behaviors (G´omez-Su´arez et al., 2017) It
helps consumers to look for information about products and brands, find
comparisons, and learn about other consumers’ usage experiences with
a particular brand, product, and service, so that they are able to finalize
their purchasing decision confidently (Pentina et al., 2015)
Consumers in the digital age use their profile pages to post
recom-mendations and opinions about a product or brand (Kudeshia and
reviews and recommendations that users post on social media have
proved to be a key factor in finalizing consumer’s purchasing decision
(e.g., Farzin and Fattahi, 2018) since it influences a decision making of
their friends and acquaintances in their social communities, and other
potential consumers who see the shared posts However, previous
studies examining consumer purchase intention as a consequence of
WOM in social media have rarely conducted a research in luxury context
(Alhidari et al., 2015; Kudeshia and Kumar, 2017; Tien et al., 2018), and
vice versa (Nwankwo et al., 2014; Park et al., 2018) Therefore, as WOM
is an important factor in shaping consumers purchase decision (Fariz
media would have an influence on luxury brand buying decision
Understanding key antecedents of social media WOM in luxury
context is considerably important because consumer perceptions toward
luxury including perceived quality and perceived value is a subjective
concept (Phau and Prendergast, 2000) that influences behavioral
intention towards luxury brands It is within this context; the present
study sets to find out the key determinants involved in consumer
engagement in social media WOM behavior and its possible
consequences
Consumer demographic characteristics and perceived social status
could play an important role in understanding individual consumers
Particularly, many aspects of consumer characteristics such as age,
gender, income, and education might impact behavioral intentions and
cannot be ignored This implies that consumption of luxury goods
cannot be well understood without a consideration of consumers of
luxury and their characteristics (Ghosh and Vashney, 2013) Marketers
require this information as key input to create specific consumer
seg-ments (Rialti et al., 2017) In consistent with prior knowledge, this study
aims to show how differences of consumer demographic characteristics
and their perceived social status are related to antecedents of social
media WOM and their engagement, and luxury purchase intention
Accordingly, the objective of this study is threefold: to examine the
effect of luxury perceptions, including perceived quality, social, per-sonal, and function value on social media WOM; to examine the influ-ence of social media WOM on luxury purchase intention; and to examine the moderating effects of consumer demographic characteristics (e.g age, gender, income, and education) and perceived social status on the relationships between perceptions of luxury, social media WOM, and purchase intention
This current study expects to provide several contributions to liter-atures on consumer engagement in electronic WOM and luxury brand shopping First, the results provide a new theoretical model regarding the effect of key luxury perceptions (i.e., perceived quality, social value, personal value, and functional value) attribute on social media WOM engagement Second, this research extends the relationship between electronic WOM engagement and luxury brand shopping by specifically examining the role of active consumers in social media WOM with specific regard to their luxury purchase intention
2 Literature review and hypothesis development
2.1 Luxury brands and consumer engagement in social media
Luxury brands can refer to attributes pertaining to premium image, quality, pleasurable purchase and consumption experiences that reflect the buyers’ perceived luxury after purchasing (Keller, 2009) Phau and
awareness, perceived quality, and brand loyalty To our understanding, luxury is the combination of quality and value which is the outcome of core qualities that communicate to the target consumers
Luxury firms are now engaging in social media, which is a two-way communication platform allowing consumers to interact with brands, share information and opinions with other social community’s mem-bers, and build a relationship with brands (Kim and Ko, 2010) Luxury brands are generally perceived as high price and believed to provide rare attributes including both superb quality and exclusive function With advanced technology, exclusivity and uniqueness can be communicated
to consumers on social media sites (Miller et al., 2009)
Social media sites including Twitter, YouTube, and Pinterest are being used widely by luxury brands (Chu et al., 2013; Phan, 2011) For instance, Louis Vuitton has its Facebook page where social media users are able to access to various contents like video clips, pictures, text, links, and stories Such contents are the stimuli that create consumer engagement in social media (Dhaoui, 2014; Chu et al., 2019) Consumer engagement is the interaction between consumers and brands and other community’s members, which creates two-way communication
Fig 1 Conceptual framework of luxury brand purchase intention and social media WOM
Trang 3experiences (Brodie et al., 2013) By the way, consumer engagement in
social media can be understood as interactions The interactions include
sharing, commenting, reproducing, and liking the contents (Dhaoui,
a capital of opinions and shapes consumers’ attitude and behaviors
including purchase intention (Jin, 2012; Chu and Kamal, 2011)
WOM in social media as the outcome of consumer engagement (i.e., a
consumer creates and shares information to other social media users)
has gained important role in understanding purchase intention towards
luxury goods Since social media enables consumers to create and access
to various types of information (e.g., reviews, recommendations,
pic-tures) makes purchasing decision more dependent on social media WOM
turn to marketers and friends for information However, social media
WOM has become powerful source of information in the present days
consumers to share and obtain information at a time and place (Nam
seek product and service information which has a clear negative or
positive valence (King et al., 2014), which is viewed as more trustworthy
and honest than the one obtained through firms’ websites and
adver-tisements (Nam et al., 2019) Certain consumer profiles are not being
considered to affirm that WOM social media has become a powerful
source of information today in this present study However, as cited in
the study of Nam et al (2019), 91% of consumers search for the
infor-mation from blogs, read product reviews, or visit other online platforms
for user-generated contents prior to purchasing goods (Brightlocal,
2016)
With the advent of digital information and communication
tech-nology, luxury brands are able to showcase particular attributes of
luxury to social media users on social media sites Attributes such as
quality, rarity, and personality are presented and communicated by
using marketing communications of luxury brands (Dhaoui, 2014) For
instance, within this context, quality attributes are communicated
through advertising and marketing activity, such as public relations,
celebrities, stories, and influences are great potential communication
tools to communicate luxury attributes to consumers (Chu et al., 2019)
Researchers suggest that marketer’s generated content may not be a
reliable source of information compared to consumer’s generated
con-tent as it is generated by actual experiences (e.g., exchanging
informa-tion, judgments, reviews, recommendations, and opinions) since it
makes them feel confident in understanding about products and brands
users get involved in social media activities to discuss about quality and value of luxury brands on social media
Despite the fact that adopting social media worries the luxury firms that the luxury status, appeals of exclusivity, and uniqueness would be destroyed by democratizing nature of social media (Dauriz et al., 2014),
at the present, luxury brands are now increasingly adopting social media technologies in retailing landscape (Kwon et al., 2017) As stated by
suggested by other scholars, such platforms strengthen the relationship between firms and consumers (Kim and Ko, 2012) and brand engage-ment (Dhaoui, 2014) Engaging in social media thus enables users to voice their perceived quality of products by creating a product review or rating (Shanahan et al., 2019) Also, limiting social media feed with top-quality visual content (photos and video clips) could boost the perception of exclusivity and premium quality of luxury branded products (Pentina et al., 2018)
2.2 Social media WOM and its antecedents
Several recent studies have identified the influential factors that could draw consumer’s engagement in electronic WOM (See-To and Ho,
ante-cedents explain the outcome of a solid relationship between consumers and product, brand, and service As such result, they create potential responses and shape consumer’s perceptions towards goods and ser-vices, and thus enables the customer to voice his/her opinions and give recommendations to other customers (Ismail and Spinelli, 2012) Social media WOM is a factor that influences consumers in different stages of purchasing-decision process (Mishra and Satish, 2016) Therefore, recent literature on electronic WOM emphasizes that study-ing of the drivers of social media WOM can help researchers and prac-titioners gain deeper understanding of why and how they influence (An
atti-tude towards a brand acts as an important predictor of social electronic WOM because it is a result of the evaluation of products (e.g., favorable
or unfavorable attitude toward product, brand, and service), and con-sumers tend to write online reviews based on their assessment of brand-related stimuli Fariz and Fattahi (2018) propose a conceptual framework explaining the drivers of consumer engagement in social media WOM They find that, trust, informational influence, sense of belonging, altruism, moral obligation, and knowledge self-efficacy are the positive drivers of social media WOM Engaging in electronic WOM
is conceptualized around the construct of consumer engagement
Fig 2 Structural model of luxury brand purchase intention and social media WOM Note: *p < 0.05; **p < 0.01; ***p < 0.001
Trang 4Consumer engagement explains motivation and cognitive response
to-wards brand (Baldus et al., 2015) and online WOM (i.e., liking and/or
commenting) (Simon et al., 2013) However, few of the exiting studies
have examined its effect in online luxury brands (Vinerean and
Oper-eana, 2019)
Other researchers (e.g., Alhidari et al., 2015) conceptualize that
engagement in social networking site (SNS) depends on the level of
importance, time, and effort a user gives to SNS Thus, they rely on the
Elaboration Likelihood Model to understand electronic WOM
partici-pation by incorporating belief in self-reliance, SNS involvement, and
SNS risk-taking as the important antecedents Wang et al (2016)
pro-pose a research framework grounded in the social capital theory and
self-determination theory (SDT) to explain consumers engaging in
electronic WOM on social networks This study believes that the creation
of shared information (i.e., social capital) content and motivations of
consumers are the key drivers to understand social media WOM
be-haviors Similarly, Cheung and Lee (2012) show that consumer intention
to engage in WOM on social media is influenced by three motivational
factors such as egoistic, collective, and altruistic
The results of aforesaid studies may not lead to clear understanding
of social media WOM in luxury setting since WOM behavior could be
dependent on industry (Harrison-Walker, 2001; Yen and Tang, 2019)
The research is missing in the literature on the antecedents related to
luxury perceptions and social media WOM behavior and its subsequent
impact on purchase intention of luxury brands Cheung and Lee (2012)
content that consumer’s intention to engage in social media WOM is
difficult to explain as a research on this topic is still limited To address
the issue, this study departs from most electronic WOM studies (e.g.,
Klein et al., 2016; Ismail and Spinelli, 2012; Liu and Lee, 2016; Chang
value of luxury are proposed as potential antecedents that affect social
media WOM
The present study identifies four selective perceptions of luxury
because consumers’ social media WOM is associated with luxury brands
(Godey et al., 2016; Pentina et al., 2018) Particularly, perceived quality
is one of the salient dimensions of perceived brand leadership (Chang
et al., 2016; Chang and Ko, 2014) that reflects the key aspects of luxury
di-mensions of luxury value perceptions (Wiedmann et al., 2009)
Con-sumer value perception is a subjective concept (Kortge and Okonkwo,
1993), and it tends to affect the intention to share the information and
promote value of product or service when it accomplishes consumers’
desires Based on the aforementioned understanding, this research
pre-dicts that perceived quality, functional, personal, and social value are
positively associated with social media WOM of luxury brands In other
words, consumers develop further relationship with luxury brands by
recommending and sharing the product-related information obtained
from various sources with their peers on SNS in the forms of review,
recommend, comment on luxury brands
2.3 Perceived quality and perceived value of luxury
Perceived quality refers to a consumer evaluating overall excellence
of a brand based on intrinsic and extrinsic cues (Asshidin et al., 2016) In
a luxury context, for instance, luxury brands consumers explain the
criteria as materials, components, physical performance, workmanship,
and durability as quality Specifically, the fabric does not shrink after
washing or wearing, and the color does not fade reflect the luxury
brands’ premium quality (Mrad et al., 2020) Some of these criteria
including fabric, color, workmanship, and durability refer to the
attri-butes of the products (Abraham-Murali and Littrell, 1995; Zhang et al.,
at-tributes as tangible and intangible (Keller and McGill, 1994)
charac-teristics such as materials, components, physical performance,
workmanship, and durability
Quality is a consequence of the judgment of a product or service
made by consumers among two standards of product quality (1) sub-jective quality (quality as perceived by the consumer) and (2) obsub-jective quality (Molina and Munuera-Aleman, 2009) The judgment made of quality is likely to be difficult due to its characteristics, which are intangible (Joung et al., 2016) Consumers have to rely on relevant in-formation or personal experiences in order to obtain perceived product quality, which also plays a mediating role between extrinsic cues and perceived customer value quality (Tsiotsou, 2006)
Consumer perceived quality of luxury brands is shaped by the pro-cess of perceptions involved in the propro-cess of decision making Great perceived quality happens as a result of consumer recognition of dif-ferentiation and superiority of the brand relative to competitors’ brands; which can influence their purchase decisions and may drive them to choose one brand over a competing one (Ngoma and Ntale, 2015) Furthermore, perceived quality also provides value to consumers by providing them with a reason to buy and by differentiating the brand against competing brands (Asshidin et al., 2016) These researchers suggest that value of products or services which consumers search for are considerably influenced by perceived quality and it is fair to imply that the overall value perceptions are its outcomes Joung et al (2016)
suggest that perceived quality has a significant effect on perceived value
quality is one important factor that influences consumer preference resulting from the comparison of consumer’s intended purpose with the actual performance (Erdogmus and Bü;deyri-Turan, 2012) Based on previous observations, it is assumed that consumers weight value of luxury items on social, personal, and functional attributes Thus, the following hypotheses are proposed:
H1 Perceived quality of luxury brand positively influences social
value
H2 Perceived quality of luxury brand positively influences personal
value
H3 Perceived quality of luxury brand positively influences functional
value
2.4 Perceived value and social media WOM
From an economic standpoint, consumers consider perceived value
in relation to the price they are willing to pay for goods or services as much as the value they receive in return as the offerings In psycho-logical perspective, it is rather interpreted in relation to cognitive and affective issues that impact purchasing decisions and brand selection
value that is compatible to the amount spent or for the value that sat-isfies their needs and wants (Kuo et al., 2009) This implies that cus-tomer’s perceived value yields broad perspectives, such as money, quality, benefit, and social psychology Brennan and Henneberg (2008)
emphasizes that there is no consensus or clarity about perceived value This current study, thus, argues that consumers perceive value of goods and services differently depending on the individuals and number of factors pertaining to the actual purpose of luxury consumptions Consumers usually look for value that either satisfies their needs and wants or quality that provides tangible and intangible benefits They are also likely to evaluate the overall luxury value in relation to financial, functional, and social dimensions which truly reflect the individual’s luxury value perception (Hennigs et al., 2013) Liao and Wang (2009)
evaluate the individual dimension of value focusing on consumers’ personal orientation towards luxury consumption to deal with personal issues, such as materialism (Bao et al., 2003; Hirschman and Holbrook,
Social value dimensions, such as conspicuousness and prestige value, which are the acquirement of perceived utility of goods or services that the individuals recognize within the social groups, are the driving force
of luxury brands consumption and have a significant tendency towards
Trang 5the brand selections (Brinberg and Plimpton, 1986; Liu and Hu, 2012)
Previous researchers show that perceived value leads to behavioral
in-tentions For instance, Hartline and Jones (1996); Matos and Rossi
signif-icantly influences WOM engagement However, the study is not
con-ducted in a luxury context To date, the relationship between perceived
value and WOM has been rarely explored in luxury study To extend the
previous findings, this study proposes that perceived value is expected to
indicate positive outcome leading to engagement of social media WOM
This relationship is based on the concept of consumer perceived value
Consumer interprets perceived value on the basis of the benefits
received from consuming products and services that meet their needs
and requirements (Johnston and Kong, 2011) When this occurs,
con-sumers feel that it is important to recommend good value that they have
received to others in their social groups (McKee et al., 2006) Thus, it is
assumed that consumers might engage in social media and offer WOM
recommendations based on the value (i.e., social, personal, functional)
they gain The following hypotheses are thus formulated:
H4 Consumer’s social value is likely to influence social media WOM
H5 Consumer’s personal value is likely to influence social media
WOM
H6 Consumer’s functional value is likely to influence social media
WOM
2.5 Social media WOM and purchase intention
WOM in social media sites is a new form of digital communication
playing an important role in exchanging and sharing information among
social media users Many consumers rely on luxury experiences shared
by others through social media across multiple platforms which enhance
both brand evaluation and purchase intention (Moran et al., 2014)
In the digital era, the main challenge for firms is the rise of the
consumer interaction on Facebook, Twitter, and YouTube These
plat-forms allow individuals to communicate and share their luxury brands
experiences on multiple channels to express themselves through posts,
comments, and luxury brand recommendation to their social networking
groups
With advanced development of social media, users can have a live
conversation with other friends These users may appear to play a role of
“self-enhancement” or “opinion leader,” in sharing and spreading
knowledge of luxury brands to help others who will buy such brand in
the future (Wojnicki and Godes, 2008) Jalilvand and Samiei (2012)
show that WOM has a positive direct impact on purchase intention
However, this finding is limited to automobile industry Thus, it is
worthwhile to take a look at the effect of social media WOM on luxury
purchase intention
H7 Social media WOM will positively influence luxury purchase
intention
2.6 Moderating effect of consumer demographic characteristics
Prior research finds significant moderating effects of consumer
de-mographic characteristics (Morris et al., 2005; Venkates et al., 2003)
dif-ferences in luxury brand consumption Recent important study
con-ducted by Schade et al (2016) compares age differences of attitude and
luxury consumption However, the previous studies have not examined
the moderating effect of income and education Due to such limitation,
this provides little help in theorizing the moderating effect of income
and education in the paths between luxury value and social media WOM
engagement Nevertheless, it is believed that these variables
differen-tiate consumer perception and consumption of luxury brands Higher
income consumers are more comfortable with selecting brands and
spending more for expensive goods and services than lower income
consumers For instance, the heaviest consumers of luxury goods are the wealthiest ones (Husic and Cicic, 2009) and middle-income group (Zhan
different income levels might differ in perceptions towards luxury values (i.e., social value, personal value, and functional value) and behaviors (i e., social media WOM engagement) Hassan et al (2015) in their study suggest that higher income group perceives global luxury brands to be more luxurious than local luxury brands compared to those with lower income This could imply that higher income consumers are more brand loyal and seek the best quality over the price, while its counterpart looks for the best price for a given quality, less brand prominence, and more intrinsic luxury cues (Hassan et al., 2015) Malc et al (2016) further state that different income levels result in different perceptions of price fairness Thus, this could be concluded that difference in income leads to the difference in luxury perceptions In addition to income, educational level has an impact on perceptions and luxury purchase intention The attributes of luxury brands are responded differently by consumers with different educational backgrounds (e.g., graduate, undergraduate, and postgraduate), which differentiates behavioral intentions (Srinivasan,
2015) This could be because highly educated consumers might feel that owning luxury brands adds to their status in a social group, they also might have more experiences and understanding of luxury goods Thus,
to address an issue in the literature and extend prior observations, the following hypotheses are proposed:
H8 Consumer demographic characteristics (e.g age, gender,
educa-tion, income) will moderate the relationship between (a) social value; (b) personal value; (c) functional value and social media WOM
H9 Consumer demographic characteristics (e.g age, gender,
educa-tion, income) will moderate the relationship between social media WOM and luxury purchase intention
2.7 Moderating effect of perceived social status
Consumption of luxury brands is believed to provide social status because luxury brands emphasize status and image They also help in-dividual consumers define luxury through conspicuous, unique, social, hedonic as well as quality values (Liu et al., 2012) According to Eastman
et al (1999, p 43), social status is the desire for social status leads to status consumption, which is defined as “the motivational process by which individuals strive to improve their social standing through con-spicuous consumption of consumer products that confer or symbolize status for both individuals and surrounding others.” In this perspective, luxury brands that provide brand prestige and value would respond to the consumers who seek to improve their status through high product positioning that is associated with the luxury brands (Steenkamp et al.,
status, which means that they have a certain position in society, they may be jealous of someone else and others may be jealous of them (Phau
con-sumption of luxury brands can reflect the owner as having a social status
more credible and reliable (Dommer and Swaminathan, 2013) There-fore, the individuals with higher perceived social status might possess higher knowledge and confidence about luxury brands that emphasize the needs to engage in social media WOM than those with lower perceived social status When engaging in electronic WOM, Zhang et al
WOM reviews from the senders with high social status This could be implied that those who engage in WOM to share information about products and services, stores, and companies might be more confident with luxury brands and tend to have convincing power Therefore, this study argues that perceived social status may play a moderating role in perceived value, social media WOM, and purchase intention link Spe-cifically, if social media WOM senders try to convey one’s perceived social status, they are more likely to engage in social media WOM and
Trang 6purchase luxury items to elicit favorable views from others
Further-more, an individual may desire to be associated with luxury products or
services to enhance their own social standing (i.e., perceived social
status) As such, luxury is admired However, perceived status level
(either low or high) depends on how an individual compare with others
except luxury This means that differences in perceived social status
depends on how one’s beliefs about the importance of buying or having
luxury items since social status is a subjective judgment, and its level is
not constant (Lo, 2008) Accordingly, this study believes that
con-sumer’s beliefs about purchasing or owning luxury items to be a part of
high social class that improves his/her social standing varies from
per-son to perper-son Thus, it is posited that:
H10 Perceived social status will positively moderate the relationship
between (a) social value; (b) personal value; (c) functional value and
social media WOM
H11 Perceived social status will positively moderate the relationship
between social media WOM and luxury purchase intention
3 Research methodology
3.1 Measurement
Each construct in the current study is adopted from the previous
research and measured by using a five-point Likert scale (1 = strongly
disagree and 5 = strongly agree) More specifically, most of the
mea-surement items have been previously validated However, specific
wording was modified based on the experts’ opinions to fit the luxury
context To measure the perceived quality, six items measuring this
construct are adopted from Dodds et al (1991) and a total of sixteen
items measuring multi-dimensions of perceived value come from Shukla
measuring perceived social status are taken from Fah et al (2011) and
self-administered questionnaire is made simple and understandable by
having only two main sections; the main study measurement is the first
section and respondent’s demographics and overall SNS-related
ques-tions is the second (See Table 2)
3.2 Sample and data collection
This study used online survey to recruit participants The Amazon
online marketplace called Mechanical Turk (M-turk) (Goodman et al.,
appropriate to increase participants and reach reliable samples with
diverse demographic characteristics (Casler et al., 2013) Recently, this
approach was employed by Yu et al (2018) to collect data for a study of
luxury
In order to incorporate the investigations of influencing effects of
social media WOM on purchase intention of luxury brands, an active
social media user is the central focus This study thus specifically targets
social media users To that end, the respondents were required to
pro-vide the information about the social networks they were a member of
(e.g., Facebook, Twitter, Instagram, Pinterest, YouTube) from the given
list and period of usage at the first step After that, they could proceed to
the next step in which they were asked to provide their opinions on
luxury perceptions, social media WOM, and purchase intention
An online survey was conducted and U.S consumers participated
According to the report, the U.S market is a key contributor to the
phenomenon of excessive luxury consumption (Chang et al., 2016), and
it represents a mature luxury market (Li, 2016) In addition, the country
also has large Facebook (32%), Instagram (32%), Pinterest (31%), and
Twitter (24%) users (Greenwood et al., 2016), and the Americans are
likely to voice and offer the information online (Fong and Buron, 2006)
All the respondents indicated the social networks they were a member of
and period of usage In total, the result revealed that there were 282 useable responses
The descriptive statistics demonstrate that the sample was familiar with social media The top 3 SNSs they were a member of were Facebook (46.9%), Instagram (27.2%), and Pinterest (11.6%) They also report the actual usage periods between one to five years The respondents appear
to be almost equal between female 55% and male 45% For age, 76.2% were in their twenties and thirties, 22.7% were in their forties and above With regard to education, 19.9% had an Associate degree or below, and 80.1% had a bachelor’s degree or higher Regarding average annual income levels, 35.5% had incomes less than $65,000, while 30.9% earned between $65,000 and $100,000, only 8% of incomes were more than $100,000 per year (See Table 1)
4 Data analysis and results
4.1 Validity and reliability test
Exploratory factory analysis (EFA) was chosen to validate the mea-surement scales prior to conducting further analysis Kai-ser–Meyer–Olkin (KMO) index and Bartlett’s test of sphericity showed that the sample size adequacy index (0.915) was sufficient to carry out the factor analysis (Hair et al., 2015) The results showed that the items loaded on the respective factors with scores ranging from 0.61 to 0.87 except one item measuring luxury purchase intention had a cross-loading with low scores (0.32) thereby it was required to be deleted from the scales, and others were retained Cronbach’s Alpha (α) for the internal consistency of each variable was conducted and all constructs satisfied levels of reliability with scores ranging from 0.89 to 0.77 Confirmatory factor analysis (CFA) results for overall of goodness-of-fit (χ 36 =641.68), with a significant level at (p < 0.000)
and the standards of fit indices (GFI = 0.87; AGFI = 84; RMR = 0.07; CFI
Table 1
Respondents’ socio-demographic characteristics
>Bachelor’s degree 226 80.1
Social media usage
Social media usage frequency From home (including a home office) 254 90.1
From a public terminal (library,
Members of social media Facebook Instagram 217 157 46.9 27.2
Trang 7=0.94; IFI = 0.97; TLI = 0.96; NFI = 0.94; RMSEA = 0.05) all indicate
that model fits with the data collected Furthermore, Pearson’s
corre-lation matrix test with the means and standard deviations for the scale
reveals no correlation coefficient above 0.74 (See Table 3) Finally, the
average variance extracted (AVE) test results fall above the cut-off value,
which is 0.50 with composite reliability coefficient (C.R) (See Table 2)
4.2 Structural equation modeling
Structural equation modeling (SEM) was applied to test the proposed
hypotheses using AMOS program The overall model fit was satisfactory
The chi-square statistic (χ 293 =539.80) was at a significant level (p <
0.000) and the fit indices were within accepted standards (GFI = 0.88;
AGFI = 0.84; RMR = 0.08; CFI = 0.94; IFI = 0.94; TLI = 0.93; RMSEA =
0.06) The first three proposed hypotheses with their path coefficients
were then tested The results show that perceived quality significantly
influences social, personal, and functional values, supporting H1- H3
with a positive effect (β = 0.62, t = 6.15; β = 0.31, t = 4.36; β = 0.72, t =
7.26) all with significant level at (p < 0.001) H4 was supported with
significant level at (p < 0.05), (β = 0.17, t = 2.07) H5 and H6 were also
supported (β = 0.25; t = 3.45; β = 0.33; t = 3.44) (p < 0.001) The last
proposed hypothesis was supported (β = 0.79; t = 6.05) (p < 0.001) (See
Table 4)
4.3 Moderating effect analysis
To examine moderating effects, multigroup analysis was conducted
to compare chi-square difference (Δchi-square) with one degree of
freedom of constrained and unconstrained models Respondents were
split into groups such as gender (male vs female) Education, no-
university degree (i.e., have none or less than Associate degree) and
university degree (i.e., higher than bachelor’s degree) For income, age
and perceived social status, the groups were separated using median
split For instance, age (i.e., <30 years old; >30 years old); income (i.e.,
< $65,000 per year; >$65,000 per year); lower/high social status The
median split approach used in this study categorizes the respondents into groups This splitting procedure is argued by several scholars, however, recent other researchers suggest that it is the most common approach to categorizing the group of subjects with different profiles based on central tendency (Garcia et al., 2015); especially, Fazeli et al
apply median split to categorize respondents in luxury study According
to the results shown in Table 5, H8 was supported, in that demographics such as age, education, and income have moderating effects among the relationship of personal value and social media WOM, while H9 was not supported indicating that no moderating effects exist in the linkage of social media WOM and purchase intention H10 was supported and the effects of moderators were found in the social and personal values, whereas H11 was not supported
5 Discussion
On the premise of existing literature, this research develops a
Table 2
Reliability and validity tests
Social value 1 Owning luxury goods indicates a symbol of achievement 0.78 0.83 0.84 0.52
2 Owning luxury goods indicates a symbol of wealth 0.73
3 Owning luxury goods indicates a symbol of prestige 0.73
4 Luxury goods are important to me because they make me feel that acceptable in my work circle 0.68
5 I purchase luxury goods to gain/increase social status 0.66
2 It is important to me to own really nice luxury goods 0.80
3 It sometimes bothers me quite a bit that I can’t afford to buy all the luxury goods I want 0.78
4 While shopping for luxury goods, I feel the excitement of the hunt 0.70
5 When shopping for luxury goods, I am able to forget my problems 0.66
6 When in a bad mood, shopping for luxury goods enhances my mood 0.62 Functional value 1 I often buy luxury goods in such a way that I create a personal image that cannot be duplicated 0.74 0.78 0.74 0.52
4 In my mind, the higher price charged by luxury goods indicate higher quality 0.71
Social media word-of-mouth 1 I’m likely to post status/photos/comments about the luxury items I possess in my social network 0.82 0.77 0.78 0.55
2 I would recommend the luxury items to my friends and relatives 0.71
3 If my friends were looking for a new item, I would tell them to try the luxury items I have used 0.68 Purchase intention 1 I have strong possibility to purchase luxury items 0.82 0.80 0.81 0.67
Perceived social status 1 I feel that to be part of high-class society, luxury buying is important 0.84 0.77 0.77 0.69
2 Buying luxury items is symbolic of higher living standard 0.83
3 I find myself holding a special place in the social gathering as I possess luxury items 0.81 Goodness-of-fit: χ 236 =641.683, p < 0.000; GFI = 0.87; AGFI = 84; RMR = 0.07; CFI = 0.94; IFI = 0.97; TLI = 0.96; NFI = 0.94; RMSEA = 0.05
Table 3
Construct means, standard deviations, and correlations
PQ 1.00
SV 0 52 1.00
PV 0.30 0.58 1.00
FV 0.50 0.61 0.74 1.00 SMWOM 0.45 0.45 0.44 0.48 1.00
PI 0.20 0.40 0.43 0.47 0.37 1.00 PSS 0.47 0.68 0.51 0.60 0.53 0.39 1.00 Mean 3.69 2.20 2.92 3.13 3.61 3.00 3.33 S.D 1.02 1.10 1.12 1.09 0.96 1.03 1.13
Trang 8conceptualized model that illuminates the significant role of consumer
luxury perceptions in explaining consumer engagement in social media
WOM and their luxury brand purchase intention It also explores the
moderating effects of consumer characteristics and perceived social
status on the relationship between luxury perceptions, social media
WOM, and purchase intention As consumption of luxury and social media continue to increase, and the relationship between luxury con-sumption and digital usage clearly becomes a future oriented fashion, it
is worthwhile to take a look at how consumers currently buy luxury products and services in the digital age, and what luxury firms should do
to cope with consumer tendencies Therefore, the effort of this present study contributes to current body of knowledge in three main ways First, the most important finding of the research is the relationship between social media WOM and luxury brand purchase intention It demonstrates that social media WOM positively increases consumer luxury purchase intention This implies that social media WOM is an effective tool in shaping consumer purchase decision towards luxury brands, which is a critical process in the customer journey and the major consequence of social media WOM Although this proposed effect in the model is not new, and several previous studies have confirmed the relationship to be valid, this study examines the model on social media WOM in luxury setting in which consumer engagement in WOM activity
is conceptualized as those who are active in sharing information about luxury This means that consumers who are likely to talk about luxury
Table 4
Structural equation modeling results
H1 : Perceived Quality → Perceived Social Value 0.62 6.15***
H2 : Perceived Quality → Perceived Personal Value 0.31 4.36***
H3 : Perceived Quality → Perceived Functional Value 0.72 7.26***
H4 : Perceived Social Value → Social Media Word-of-mouth 0.17 2.07**
H5 : Perceived Personal Value → Social Media Word-of-
H6 : Perceived Functional Value → Social Media Word-of-
H7 : Social Media Word-of-mouth → Purchase Intention 0.79 6.05***
Goodness-of-fit: χ 2293 =539.808, p < 0.000; GFI = 0.88; AGFI = 0.84; RMR =
0.08; CFI = 0.94; IFI = 0.94; TLI = 0.93; RMSEA = 0.06
Table 5
Moderating effect of gender, age, education, perceived social status
Trang 9brands on social media, are also likely to purchase them Unlike extant
literature that generally talks about consumers of SNS who rely on social
media WOM as a source of information, reviews, and opinions of
product, brand, and service (An et al., 2019; Baker et al., 2016)
The result of a positive relationship between social media WOM and
luxury purchase intention is also similar to previous studies conducted
in different context For instance, the study conducted by Kudeshia and
Facebook fan page They confirm that the higher social media WOM, the
greater purchase intention of smartphones The same findings are also
found in the research by Fariz and Fattahi (2018) They report that
electronic WOM significantly affects purchase intention as it accelerates
positive messages about products and brands in SNS
Second, the results suggest that perceived social, personal, and
functional value significantly influence consumer engagement in social
media WOM This indicates that consumers who perceive value of
lux-ury product, brand, and service demonstrate greater engagement in
social media WOM Particularly, this result shows that intention to
participate in WOM on SNS is associated with perceived luxury value,
which implies that consumers are keen to discuss their status with
friends and family, comment on luxury brands, share their own
expe-riences, and even recommend a certain brand to their acquaintances
by perceived functional value, followed by personal value, and social
value Functional value that consumers perceive are the intangible
rather than the tangible functions Consumers might use these as a
means to connect themselves to their society in order to create a unique
image and proudly express themselves
In addition, perceived social, personal, and functional value act as
important antecedents of social media WOM Ever since the spreading of
social media WOM, which turns into a critical factor influencing
con-sumers in different stages of purchasing process, researchers are in their
quest of finding out of the key antecedents of WOM in social media
Gvili and Levy, 2018) The findings of present research enhance an
understanding of the social media WOM and its focal antecedents
deriving from consumer luxury perceptions Particularly, perceived
quality, which tends to be an effective pre-determinant of the three focal
influential factors that motivate consumers throughout the entire
pro-cess of social media WOM As such result, this study is considered as one
of the few studies linking perceive quality, perceived social, personal,
and functional value of luxury and consumer social media WOM
engagement Furthermore, as consumer decision-making process is
complicated in SNS, purchasing behavior of consumers becomes unique
perception of luxury can have the potential to draw consumers to engage
in social media WOM, which in turn, leads to a choice of luxury
con-sumption through SNS
Finally, significant differences among the groups of consumers with
different age, education, income, and perceived social status are found
in the relationship between perceived personal and social value, and
social media WOM However, difference in gender is not found to be
significant in any relationship of this study The explanation might be
that, even though, both male and female consumers might develop
perceptions of luxury value differently, their engagement in social media
WOM tends not to be varied as SNS is a platform where everyone can
make their own choice to participate in sharing, creating, and posting
freely However, perceiving reviews as positive or negative might create
differences in behavioral outcomes between males and females, such as
purchase intention (Bae and Lee, 2011) Perceived social value is the one
and only factor that differentiates consumers with different age,
edu-cation, and income from engagement in social media WOM In that,
older age group with higher educational background and greater income
show stronger engagement This indicates that these groups might have
more luxury consumption experiences, so that they tend to be more
reliable on SNS and are more motivated to participate in social media
WOM Perceived social status also has a significant difference in the aforesaid links The results show that perceived high and low social status groups engage in social media WOM differently For instance, perceived social status significantly moderates the relationship between perceived social value and social media WOM; highly perceived social status consumers show greater social media WOM engagement It is also significant in the relationship between perceived personal value and social media WOM In that, weakly perceived social status group tends
to have more engagement than the higher group Thus, perceived social status, social and personal value are effective moderators of perception
of luxury and social media WOM, and none of these moderators have an impact on the relationship between social media WOM and purchase intention of luxury brand in this particular study
6 Conclusions and implications
The present investigation provides both theoretical and managerial implications From a theoretical standpoint, since WOM communication plays an important role in influencing shoppers’ behavioral decisions
Kude-shia and Kumar, 2017), several researchers have identified its ante-cedents (e.g., An et al., 2019) and examined its effect on purchase intention (e.g., Zahratu and Hurriyati, 2020; Ismagilova et al., 2019) Based on the previous studies, however, the engagement process of electronic WOM and its outcomes have rarely received attention in luxury setting This present research, thus, builds upon existing litera-tures and proposes a conceptual model that incorporates perceived quality and value of luxury perceptions, social media WOM, and luxury purchase intention Incorporating perceived quality and perceived value (i.e., social value, personal value, and functional value) deepens the understanding of their effects on social media WOM engagement Although these factors are not new in luxury literatures, they have not been considered in the specific literature on social media WOM engagement Of note, while several studies have already advanced the understanding of the impact of electronic WOM on purchase intention (e.g., Kudeshia and Kumar, 2017; Erkan and Evan, 2016), they largely focus on behavior of passive consumers (i.e., those who simply search for information and opinions of others) (Wang and Fesenmaier, 2004) The said impact on active consumers (i.e., those who recommend and share their opinions with friends and acquaintance in social media platforms) (Wang and Fesenmaier, 2004); however, has been ignored in luxury setting The finding shows that social media WOM highly in-fluences purchase intention This implies that consumers who are likely
to recommend luxury brands in social media tend to purchase them Therefore, the research provides new theoretical perspectives that contributes to an understanding of the mechanism of luxury purchase intention Specifically, the role of active consumers in social media WOM in enhancing luxury shopping intention Overall, the findings of this research offer theoretical contributions to existing studies In particular, this study theoretically contributes to both literatures on consumer engagement in electronic WOM (Yang, 2017; Gvili and Levy,
2018) and luxury brand shopping (Hung et al., 2011; Kautish et al.,
2020)
From a managerial perspective, the findings of this study are important for luxury firms because the information found in this research provides suggestions and ideas on how they could work on this information First, with the recent advancement of communication technology, the relationship between social media WOM and luxury brand purchase intention become a new phenomenon However, the influence of social media WOM on luxury purchase intention is not widely documented in the literature The result of hypothesis testing shows that consumers who use social media WOM to spread and share the information of luxury products and brands tend to buy them even-tually Therefore, this implies that social media WOM positively affects luxury purchase intention, and luxury firms should note these effects Especially, they also should consider the market in which users
Trang 10recommending products and brands to others show great intend
pur-chase towards luxury brands By having said that, firms need to work on
marketing activities that involve the creation of luxury perceptions, such
as perceived quality, social, personal, and functional value as these
perceptions work hand in hand to encourage consumers to share
infor-mation and give recommendations to others on SNS, which in turn,
in-fluences purchase intention In addition to this, firms might need to
emphasize on the importance of functional value factor as it occurs to be
the most influential factor among the three focal determinants of social
media WOM
Second, while firms pay attention to developing marketing strategy
to encourage consumers to engage in social media WOM based on
consumer luxury perceptions, they may need to know that the result of
the strategy might not turn out as planned unless they put the emphasis
on the right target market According to the results, age, education,
income, and consumer perceived social status tend to play an important
role in social media WOM engagement That is to say, consumer
engagement in social media WOM is dependent on differences in their
characteristics This gives a signal to firms that the engagement in social
media WOM of luxury consumers can be more complex For instance,
older age consumers with high income and education are more likely to
engage in social media WOM than their counterparts If firms want to
focus on these groups as they tend to be more professional in both luxury
experiences and networking, luxury brands and products should be able
to provide personal value On the other hand, such value might not
encourage the young age consumers to engage in social media WOM,
this might also lead to favorable or unfavorable purchase intention
Furthermore, SNS creates a place where luxury consumers can showcase
their social status to other users in their social communities Thus, firms
should identify the market based on perceived social status, and then
they should try to enhance luxury brands that are able to deliver social
status attributes since the engagement in social media WOM tends to
vary This allows firms to encourage the members of a particular group
to engage in social media WOM in order to generate effective results
Overall, by working on identifying market segment could allow firms to
adopt personalized and customized strategies to market their luxury
products and services in order to satisfy needs and preferences of
con-sumers on SNS
Finally, the results are also informative for luxury firms who sell their
products and services online They are informed about which luxury
perception acts as a vital factor involved in shaping consumer social
media WOM behaviors Direct effects of perceived social, personal, and
functional value on social media WOM urge luxury marketing managers
and media managers to work together and manage their marketing
communication By utilizing marketing methods emphasizing on each
factor to form perceptions of luxury brand is a crucial marketing tool to
initiate consumers into social media WOM
6.1 Limitations and directions for future research
Although this paper provides useful insight into luxury brand
pur-chase intention, it does have some limitations that create opportunities
for future research possibility First, this study does not include
partic-ular luxury brand or product, which leads to a lack ability to explain
actual experiences of consumers on specific SNS and luxury brands
Future research may address this limitation by focusing on specific
so-cial networks and brands This means asking the respondents that which
social media they would be likely to engage in order to recommend the
luxury items Also, this research finds that gender does not have a
moderating effect in any hypothesized relationships, which could not
support the previous findings Therefore, future research should
consider these in the sampling method process
Second, another limitation is related to the ability to make a clear
justification about the actual purchase of luxury brand as this study fails
to capture luxury expenses of an individual The actual expenses could
be used to identify future expense Future study might consider
including this as another factor
Finally, the current research uses generic measurement methods to estimate the quality and value of luxury brand Luxury brand is limited
to its category compared to other products which have three major categories, such as search, experience, and credence The differential effects regarding the perceived quality could result in different percep-tions of values since each category carries different traits, so that con-sumer evaluating luxury products could be the important factors resulting in high vs low purchasing intention Future research is encouraged to develop a specific measurement tool in order to examine the luxury brands under the product category effects and analyze the consequential outcomes to avoid the equal justification of perceived value across the luxury brands
Appendix A Supplementary data
Supplementary data to this article can be found online at https://doi
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