The Analysis of Factors affect the
Female Consumer Behavior in
China
’s Luxury Goods Market
A qualitative study
Bachelor Degree Project
Bachelor thesis within:Business Administration Programme of Study:Marketing Management Credits:15 ECTS
Author:WEN XI LYU YI GONG JJÖNKÖPINGMay 2020
Acknowledgements
Here, we would like to acknowledge the people who gave us wireless help and support during these five months. It can be said that the thesis cannot be carried out smoothly without them.
First and foremost, we would like to thank our tutor, MaxMikael Wilde Bjoeling. Throughout the process, he guided our thinking direction with great patience and professionalism. When we were confused and encountered challenges, he gave us practical advice and feedback. His guidance always answered our questions and kept us optimizing, whether it is offline
discussions or remote assistance.
Next, we wish to thank our opponents in four seminars. In each seminar, they pointed out our shortcomings politely and provided several feasible suggestions generously.
Further, we hope to thank our ten interviewees for the data support. Due to geographical restrictions and the impact of COVID-19, we cannot conduct face-to-face interviews. So, we are very grateful to our interviewees for taking the time to conduct online interviews with us. Their responses are useful and essential for this thesis.
Last but not least, we wish to expand our gratitude to JU staff, including teachers who teach us knowledge, subject librarians, and staff who provide us with academic and emotional support.
Thanks!
Jonkoping, May 2020
Bachelor Thesis in Business Administration
Title: The analysis of factors affect female consumer behavior in China’s luxury goods market
Authors: Wenxi Lyu &Yi Gong Tutor: MaxMikael Wilde Björling Date: 2020-05-18
Key Terms: Theory of reasoned action, Theory of planned behavior, Asian hierarchy of needs.
Abstract
China's luxury market plays an increasingly important role on the world stage. And females are termed as the most massive consumers of luxury goods in China. Understanding
consumer behavior is the gateway for luxury goods companies to target China's female market. There is a lack of study of Chinese female consumers on the luxury market; the primary purpose of this study is to research what factors affect female consumer behavior on the luxury goods markets in China.
In order to do the research, a qualitative study has been conducted via doing semi-structured interviews with ten Chinese females aged between 35-45 and who own luxury bags. Thematic analysis was applied in this study and connected with the human behavior model closely and deeply.
The study revealed that attitude to behavior is an essential factor for female consumers to purchase luxury goods. The behavioral and control beliefs are consistent with the needs of status, which also influence Chinese female consumers. Therein Chinese culture is an undeniable factor affecting them. However, normative beliefs have little impact in this field. These findings are favorable for Luxury companies to make appropriate female
Key words: Chinese female consumer behavior, Luxury goods, Attitudes, Subjective norms, Perceived behavioral behavior, ‘face’, ‘guanxi’
Table of contents
THE ANALYSIS OF FACTORS AFFECT THE FEMALE CONSUMER
BEHAVIOR IN CHINA’S LUXURY GOODS MARKET
错误！未定义书签。...0
CHAPTER ONE: INTRODUCTION... 5
1.1 RESEARCHBACKGROUND...5 1.2 PROBLEM DISCUSSION...7 1.3 RESEARCHGAP... 8 1.4 RESEARCHQUESTIONS... 9 1.5 PURPOSE...9 1.6 PERSPECTIVE... 10 1.7 DELIMITATION...11
CHAPTER TWO: FRAME OF REFERENCES...12
2.1 HUMAN BEHAVIOR ANDCHINESE CONSUMER BEHAVIOR...12
2.1.1 Maslow's Hierarchy of Needs and other alternative motivation models...13
2.1.2 Theories of Reasoned Action and Planned Behavior... 15
2.2 CULTURE FACTOR... 16
2.2.1 Face consciousness...17
2.2.2 'Guanxi.'...18
2.3 DEFINITION OF LUXURY GOODS... 18
2.4 CHARACTERISTICS OF LUXURY GOODS...20
2.5THEORETICAL FRAMEWORK... 20
2.5.1 Asian hierarchy of needs... 21
2.5.2Attitudes to the behavior...21
2.5.3 Subjective Norms... 21
2.5.4 Perceived Behavioral control...21
CHAPTER THREE: METHODOLOGY AND METHODS...23
3.1 RESEARCH CONTENT...23
3.2 RESEARCHPHILOSOPHY...23
3.2.1 Positivism...24
3.2.2 Interpretivism...24
3.2.3 The choice of research philosophy... 24
3.3 RESEARCH APPROACH...25
3.3.1 Qualitative research approach...25
3.4 RESEARCHDESIGN...26
3.4.1 Exploratory research...26
3.5 POPULATION ANDSAMPLE... 27
3.5.1 Sample selection... 27
3.5.2 Sampling technique...28
3.6 DATA COLLECTION METHOD... 28
3.6.1 Semi-structured interview design... 29
3.6.2 Limitations of the semi-structured interview... 30
3.7 DATA ANALYSIS METHOD...30
3.8 TRUSTWORTHINESS IN QUALITATIVE RESEARCH...31
3.9 ETHICS... 31
CHAPTER FOUR EMPIRICAL FINDINGS...32
4.1ATTITUDE...32
4.1.2 Motives and motivating factors... 33
4.2 NORMS...34
4.3 EXPERIENCE...34
4.4 SOCIAL CLASS AND'GUANXI'... 35
4.4.1 Social class... 35
4.4.2 Guanxi...35
CHAPTER FIVE ANALYSIS AND INTERPRETATION... 37
5.1ATTITUDES...37
5.2 NORMS...40
5.3 EXPERIENCE...40
5.4 SOCIAL CLASSES AND‘GUANXI’...41
CHAPTER SIX DISCUSSION...45
6.1 ANSWER TO THE RESEARCH QUESTION... 45
6.2 MANAGERIAL IMPLICATION... 46
6.3 LIMITATION OF THE RESEARCH... 47
6.4 SUGGESTION FOR FURTHER RESEARCH... 47
REFERENCES...49
APPENDIX...56
INTERVIEW QUESTIONS...56
ANSWERS(TRANSCRIPT VERSION)...57
Interview No.1 White collar female worker aged 38 who often buys luxury bags57 No.2 Interviewee- A woman age 32 who often purchase luxury bags...60
No.3 Interviewee- young women aged 36 who often purchase luxury bags online62 No.4 Interviewee College teacher who aged 33... 64
No.5 Interviewee College staff aged 36 who own a lot of luxury bags... 65
No.6 Interviewee housewife aged 42 who adore luxury bags... 67
No.7 Interviewee college female student aged 35... 68
No.8 Interviewee female worker who aged 36...69
NO.9 Interviewee A nurse who aged 40... 70
Chapter One: Introduction
In this chapter, the background of the research is introduced. The problem is also discussed in this chapter. Furthermore, the research gap was identified. The research question was formulated. After that, the research purpose and perspective were discussed in detail. In the last section, delimitation was presented.
1.1 Research Background
The current global economic crisis indicates a shadowy perspective concerning luxury goods brands. The results come from the fact illustrated that the worlds' largest luxury goods
markets, which are Japan, the United States, and Europe as having a negative growth in 2009 (Godey et al., 2016). Despite China's huge population, which is expected to see a massive market for luxurious goods, the market still experiences little growth. The population in China is one-fifth of the world's population; the nation is considered as one of the countries with high consumption of luxurious goods (Cheung, 2018). This phenomenon has placed the country as the third worldwide consumers of luxurious products.
The Chinese market was previously viewed as inaccessible to western companies. However, recently, it has turned out to be the most potential market; hence an increasing number of international luxury brands started entering the Chinese market. The emergence of luxury brands has created a desire for Chinese consumers because these internationally famous luxurious goods viewed as a representation of wealth, success, and social status (Ko, 2019). The result of globalized consumption brought about by the socio-political-economic
variations in modern China.
In the previous decades, China has been left backward and regarded as inferior due to the socio-economic-political changes occurring in the country. Such include cultural revolution, historical ideological of the Chinese society, and the desire for luxury brands in general. Hence, the symbolic value of goods in Chinese culture lies more into the status the good carries (Godey et al., 2016). Despite the little growth in the consumption of luxurious goods due to changes in trends, there is still a potentially exponential growth in the Chinese market.
Research shows that purchasing habits a particular population determines the demand for such luxurious goods. Their hierarchy explains Chinese consumption for luxurious products in needs and the planned behavior theoretical perspectives (Ko, 2019). Understanding consumer behavior is essential for international luxury brands to ensure that there are appropriate marketing strategies utilized in China. The consumer behavior, in turn, affects the luxury goods in the Chinese market.
Furthermore, Females are termed as the primary consumers of luxurious products and to be more specific in China. In the article 'The female economy,' it says that 'women now drive the world economy.' The data of global women purchasing power exceeded GDP aggregated China and India in 2009(J. Silverstein & Sayre, 2009).And the trend of female consumption is heating up. Indeed, this trend is also increasing in China. Female consumers usually pay more attention to these four businesses -- food, fitness, beauty, and apparel. Here, apparel includes accessories and shoes, and it has a substantial developing space due to the growing physical and psychical needs (J. Silverstein & Sayre, 2009). There is a specific survey regarding the critical changes of Chinese consumers via interviewing 1000 people across 44 Chinese cities in 2016. In terms of product consumption, they shifted their consumption focus from mass products to desire premium products. Therein the intention of purchasing
expensive apparel increased 20% from 2011 to 2015, which is a prominent growth.
Additionally, that survey also investigated the consumption of international Chinese travelers and found that apparel and cosmetics are the categories they purchase most frequently
wherein watch and handbag occupy around half of all (Zipser, Chen, & Gong, 2016). Combining with this moderate growth, we will target the luxury bag as a representation of luxury goods in our research.
The study will be significant in contributing to two key areas. Firstly, the research will aim at filling then existing literature gap. The study will explore the consumer behavior patterns of females in China, how they contribute to the Chinese market of luxury goods as well as the factors which affect the female consumer behavior. Secondly, the research will provide both
empirical and practical findings, which will contribute to insights on feasible market options for the growth and development of both existing and new luxury brands in China.
1.2 Problem discussion
The development of the national economy and the increment in purchasing power have seen increased consumption of luxury goods among the Chinese. Chinese consumption of
luxurious products accounts for 10% in the global market in 2006 (Ko, 2019). The number has doubled and tripled six years later, increasing sales with over 10%. Chinese consumption of luxurious goods has recently been among the world's recognized markets, with most of the market being Hong Kong, Macao among other countries, and the rest in mainland china (Godey et al., 2016). Chinese online shopping has been seen to contribute mostly to luxurious goods purchases, and from the trends has the potential to contribute highly to the market. According to the world luxury association, Chinese overseas consumption of luxury goods during the spring festival summed to $8.5 billion in 2013. Additionally, it shows an 18% increment in consumption rates compared to the previous' year.
It is interesting how many of the Chinese people travel to oversee countries while at the same time the Chinese spent a lot of money on luxurious goods, save on food and hotels while on these trips. It is interesting how they travel in groups, remain strict with their budgets, not wanting to spend a lot on their native food (Zhang, 2019). In most of the offices, the female employees prefer to take food like noodles while at their pay durations they save some amount for designer good like wears and handbags. In China, luxury goods are more expensive compared to the salaries of some of the employees, yet most of the people prefer and like purchasing luxurious products (Godey et al., 2016). It is a crazy behavior leading to the question of why Chinese people purchase luxury goods. The behavior is seen to be most on young people compared to the world's average. According to research, the consumption of luxurious products that aged 45 years old accounted for 73%, while 3% came from consumers between the age of 18 and 34 in China (Ko, 2019). Most of the consumers are women, unlike men. The behavioral changes in woman's purchasing habits need to be examined (Ko, 2019).
To ensure that relevant stocks are provided is essential to understand the factors which affect the habitual purchasing of luxurious goods among the women in Chinese. If necessary luxurious products which make the Chinese travel oversees are provided to the Chinese market, then such trips will be minimized. Exploring the subject is vital to offer other options for luxurious Chinese goods companies, hence contribute to making China huge in luxurious goods production and consumption.
1.3 Research Gap
Based on the literature review, it is evident that several research studies have been conducted to investigate the reasons why customers purchase luxury goods in China. The majority of the research has addressed the political and economic factors that promote the regular purchase of products in China with the skewed focus on luxury goods such as clothes and jewelry.
Moreover, the previous investigations have been conducted to understand the financial factors that drive and block the Chinese people from purchasing the goods. In most cases, the
research has been limited to the general population without specifications (Zhang, 2019). From the studies, there has been an existing rapid increase in the number of people purchasing luxury goods in China due to the growth of the country's economy. The data has been derived from different stores selling luxury goods in China by various researchers.
With the current change in the factors that lead to the purchasing of luxury goods,
there is a need to study the demographic, psychological, and socio-cultural factors that affect the purchasing decision of luxury goods. The main concern is to understand the motivating factors that have led to a paradigm shift in the purchase decisions of the customers hence leading to new market trends in China. In the previous studies, the researchers have majored on the key factors that influence the purchasing of luxury goods by studying the general population. However, the majority of men tend to stay a simple life even after accumulating wealth. In this case, the concern of changing the focus of the study to a better and more clear perspective. In this case, the need for
examining. What factors affect female consumer behavior on the luxury goods market in China?
On the other hand, the scope of many existing studies is limited to a single category of luxury goods and most vehicles and ornaments in European countries. However, there are no or few existing studies that examine the factors affecting customer behavior of the Chinese luxury goods market. Since the Chinese luxury goods market is experiencing rapid growth, there is a need for taking in-depth research on the factors that will determine its status in the future. Lastly, the current growth of the luxury goods market in China requires an adequately researched study on the main factors that can foster a managerial approach. However, the previous studies lack information on customers' socio-demographic characteristics that will help the luxury goods stores to deal with customers' needs. As a result, there is a need for conducting research that examines customers' perceived preferences on these products and the factors affecting their purchase decisions.
1.4 Research Questions
The research gap drives some intriguing research questions as following：
What factors affect female consumer behavior on the luxury goods market in China?
1.5 Purpose
The purpose of the thesis is that via analyzing the characteristics of luxury goods and the particular Chinese culture factors to understand the female consumer behaviors and provide a set of feasible marketing options for the development of Chinese luxury brands. The thesis examines the female consumer behavior with the motive of closing the research gap. Based on closing the research gap, the research aims at first understanding the business trend of the Chinese luxury goods market. Under the trends of the market, the study aims at finding the
growth pattern and main contributors to the growth. The application of the approach is strategic due to the purpose of the approach is to excavate all driving forces that lead to a successful market. Unlike other studies, the purpose of the study is to understand the main female customer behaviors in a developing economy of China (Zhang, & Zhao, 2019). In this case, the research surveys the difference between the factors confirmed in the developed economy and the developing economy of China.
In addition, the purpose of the study is to find out the motivation that leads women to purchase luxury goods in China. In this case, the research focuses on some basic needs. The motivations in the Chinese market are compared with the motives covered in different European countries such as France and England. Lastly, the purpose of the study is to offer the Chinese luxury market with a strategy-making guideline on how to cope with the female customers in the region.
1.6 Perspective
The research will apply a subjective research perspective. The perspective of the research is to explore the known issue of luxury goods. In this case, the main idea is weighing the behavior of female customers in the Chinese market. Therefore, the study is aiming at describing a true and valid reality that is independent. The study is strictly on the influence that leads to
impulse and normal buying of luxury goods. In most cases, the research will focus on the study of experiences from a personal perspective (Zhang & Zhao, 2019). The information collected will be based on the issues that took place. On the same, there will be a theoretical analysis of the existing models that explain the behavior of customers based on needs. All through, the research will be independent. The literature will only be based on the theoretical perspective to provide independent results that do not rely on other theories. The aim of the study will be to find what knowledge does when applied. On the theories, the study will address how knowledgeable customers' behavior can be used by different stores to conquer the market. On the same, the study will be discussing the interest it serves to different people
in the market. Therefore, the study will attribute the interpretation of personal experiences and phenomena based on existing studies.
1.7 Delimitation
The paper is set to cover any relevant information within the purpose and the research question. In the present study, the research will aim at solving the problem of customer behavior. The problem will also restrict the study from investigating information from
different backgrounds, such as foreign countries or male. However, the paper will exclude the existing data on the growth of luxury goods in china. In this case, the thesis will not cover any quantitative perspectives that lead to collection and analyzing statistical data. However, the delimitation will help the research to focus on the target sample. On the same, the research purpose will guide the research towards the end of the study. In this case, the purpose of the study will maintain the research within the context. In all dimensions, the research will support the proposal and work towards the objective.
Chapter Two: Frame of references
Introduction
The section reviewed the literature to identify the research gap and established a theoretical foundation for further research. The literature review started with introducing several well-known theories which define what motivates and what influences human behavior. Such as motivation models and Theories of Reasoned Action and Planned Behavior (TRA and TPB). Because this research target China, it is a special country differed from most countries in the world. The general human behavior theory seems not adaptable to China. Therefore, general Chinese culture as a factor was reviewed to observe whether it affect Chinese consumer behavior. Therein face consciousness and Guanxi are two typical factors that influence consumer behavior concerning luxury goods. After reviewing human behavior and Chinese consumer behavior, luxury goods and their characteristics were conceptualized, which give a closed view of luxury goods and connect with Chinese consumer behavior. Lastly, in the theoretical framework, Asian hierarchy of needs and TPB are chosen from the literature review as a framework which will be used to analyze which factors influence Chinese female consumers to purchase luxury goods and what are their attitudes.
2.1 Human behavior and Chinese consumer behavior
Purchasing luxury goods can be attributed to a kind of human behavior. Human behavior is formulated partly by need intensity which promotes people to satisfy or reduce their wants through thoughts and behaviors. Need is an internal driven force for a person that can transform behavior into action. (Steel & König, 2006) In other words, human action is a reflection of human needs to some extent. As early as 1938, Murray's proposed the system of needs is a psychological theory which divides needs into vasculogenic needs (primary) and psychogenic needs (secondary). This theory can be seen as a motivation theory which argues that different people's behaviors are caused by the interaction of individuals' internal activities with the outside world and the needs to be able to influence and organize personal perception, unification, thinking, intention, as well as affect people's entire psychology and behavior. (Cunningham & Jr, 1975) Even though Murrays' theory looks dated to some extent, it is not denied that the importance of needs influences human behavior. Not only the need is a driven force for human behavior, but the intention is also. Behavioral intention is an indication that
people can behave in a particular way (Triandis, 1980). Moreover, it is used to be a predictor for a massive range of human behavior involving consumer decision (Warshaw & D., 1984). In the most model such as the theory of reasoned action, the theory of planned behavior, the theory of protection motivation, theories of attitude-behavior or relations, they all mentioned that intention as an essential predictor of human behavior.
Therefore, we will review the internal side regarding the psychological influence to drive consumer purchasing behavior related to luxury goods. This section will focus on two types of models about human behavior -- motivation models and intention models.
2.1.1 Maslow's Hierarchy of Needs and other alternative motivation models
Maslow stated the theory of human motivation as one element to influence human behavior. Humans have some innate needs and are motivated to achieve those needs. Usually, the needs are divided into five tiers from a low level to a high physiological level, safety, love and belonging, esteem, and self-actualization (Maslow, 1943). And then, the five stages were expanded to include cognitive and aesthetic needs after esteem needs and transcendence needs as the peak in the hierarchy. However, in 1987, Maslow adjusted his statement that the order of needs in the hierarchy might be flexible rather than rigid because of the influence of the external environment and individual differences.
Meanwhile, he noted that most human behavior is motivated by multiple basic needs
simultaneously rather than by a single one (Maslow, Motivation and Personality, 1987). Tay and Diener confirmed this theory to some extent, via testing 123 countries with 60865 participants. The confirmation is that basic human needs seem to exist despite cultural differences (Tay & Diener, 2011).
Nonetheless, this well-known motivation theory is not applicable in Asia, such as China, which is the research target of this thesis. Schuette & Ciarliante pointed out that the two lower needs are the same, but they changed the higher three levels of needs instead of affiliation, admiration, and status, which focus on the perspective of social needs as most Asian countries are collectivism. The peak of the Asian hierarchy is status, which means the esteem of society as a whole (Schütte & Ciarlante, 1998).
Furthermore, the concept of individualism from Hofstede also stood on the same side with Schutte's argument, which explained individual success, achievement, self-actualization, and self-respect represent a high-quality life in an individualistic society. Moreover, these
representations have the same characteristics as esteem and self-actualization stages in Maslow's hierarchy. Therefore, the top stage in Maslow's hierarchy contradicts most
collectivist Asian countries (Hofstede, 1986). Besides, there is a Chinese hierarchy of needs presented by Nevis, which is based on collectivism and culture in China after Maslow's hierarchy also agreed with the former arguments. He defined four levels of needs with belonging as the bottom level of needs followed by the same original two lower needs from Maslow's, which is familiar with the Asian hierarchy mentioned before. Furthermore, he eliminated the needs of self-esteem and defined the peak is self-actualization, which is achieved by meeting the needs of societal development (Nevis, 1983).
The elements in these models influence and motivate human behavior under different cultural environments. Considering our research target, the quest for status in Asian Hierarchy leads to luxury consumption in China.
2.1.2 Theories of Reasoned Action and Planned Behavior
Fishbein states the theory of reasoned behavior that personal attitudes and values determine whether a person will have an intention to take a particular behavior, and the intention
determines whether a behavior is adopted by a person ultimately. This theory has an essential assumption that people are rational, and they can control and determine whether particular behavior can be adopted or not systematically (Fishbein, 1975). The theory believes that individual behavior can be reasonably inferred to some extent by the behavioral intention, and this of the individual is determined by two factors-- the attitude to the behavior and subjective norms. A person's behavior intention is a direct determinant of whether a person takes a target action. However, some scholars argued that this theory considered less in goals situation with no approach to determine the intention of goals such as ignoring the possibility of achieving the goals unsuccessfully.
Furthermore, they suggested adding intention comparisons when people consider their attitudes and subjective norms. Besides, they also pointed out that there should be further research on the choice situation and the differences between intention and estimation (Sheppard, Warshaw, & R., 1988).
Based on these two factors in the theory of reasoned action, Ajzen extended the boundary condition of the theory of reasoned action by adding a new factor called perceived behavioral control and stated the theory of planned behavior. Be different from the former two factors; this factor influence behavior not only via behavioral intention with motive implication indirectly, but also predict the behavior directly (Ajzen, 1985). This model helps understand how people change their behavior patterns, and it believes that human behavior is the result of well-thought-out plans.
These three main factors can be the psychological driving force to predict to perform target behavior regarding purchase luxury goods. Combining with the Asia hierarchy of needs and the external influences, they are available and efficient to analyze consumer behavior on luxury goods.
2.2 Culture factor
A purchase decision of a person is driven by many factors such as characteristics of goods, shopping habits, purchasing behavior, brands and retail service. A person is also influenced by four major factors – cultural, social, personal, psychological. For example, culture, social class, societal environment, membership groups, family, psychological factors (Rani, 2014). Schutte and Ciarlante argue that culture affects human behavior strongly in their book 'Consumer Behavior in Asia (Schütte & Ciarlante, 1998). Furthermore, this argument is supported by Kroeber and Parsons. They defined that culture shapes human behavior by transmitting and creating values, ideas, and other symbolic-meaningful elements (Kroeber & Parsons, 1958). Furthermore, Linton also argued that human behavior is configured by a culture which is shared and transmitted by the citizens of a given society (Linton, 1945). Therefore, culture is a crucial factor to affect personal needs and behaviors. The socio-cultural
environment and firm's marketing efforts are two external influences of human behavior to affect consumer decision-making and consumer's recognition.
China is generally considered as a collectivist country with Confucian culture.
The traditional Chinese self is based on the characters of interdependent, rational, contextual, and social. Edwin and John identified Confucianism as a system that focuses more on social ethics than a religion (Reischauer & Fairbank, 1961). Confucianism is the core element of collectivism because it pays more attention to collective values and interests than individual values and interests. Moreover, it cultivates social relationships and harmony in human society (IP, 2009). This point is consistent with the argument of the interdependent view of the self from Markus and Kitayama. Under collectivism, the connections between social context and individuals, persons, and others are tight. People are willing to establish
interdependent relationships continuously that can take place in the social context. Because social comparison and self-validation are all integrated into the whole context, and the nature of the context is the crucial motivation for people to interact and achieve goals in the context (Markus & Kitayama, 1991). In addition, both of them point to the family group as the most common collective class in human relationships to perform and express. Thus, individuals' performance in their group and the achievement of groups are concerned about a public issue that can be a measure of the extent of success and position of an individual or group.
2.2.1 Face consciousness
Cultural orientation is one factor to shape luxury consumption. Chinese are widely known to have a high degree of face consciousness to meet the tacit requirements from others and society (Wong & Ahuvia, 1998). "Face" and "Guanxi" are sub-factors from culture to influence consumers' behavior to purchase luxury goods. Face consciousness is one motivation to drive luxury consumption. The research from Mandel shows that consumers
desire for luxury to express their social status and reputable image. Furthermore, purchasing the famous brand and high price goods can be an approach for some Chinese to preserve their face (Mandel, Petrova, & Cialdini, 2006). Another survey also confirms this argument. Julie and Chenting researched the face influence in three aspects—conformity, distinctiveness, and other-orientation. Via comparing with American counterparts, the results show that Chinese consumers are more likely to link the brands and price of products to their face which is affected by the collectivistic culture and tend to enhance and save their face and prestige from purchasing luxury products (Julie & Su, 2007). Finally, they all mentioned that pursuing face and statue can be altered to the symbolic consumption of luxury goods.
2.2.2 'Guanxi.'
Gifts are the bond that sustains social relationships. Unlike souvenirs and omiyage, they play more critical roles in interdependent cultures and collectivist societies. Here, luxury goods are considered as appropriate gifts to deliver the social esteem to the receivers symbolically. Furthermore, they can display the givers' power and taste. They reflect the social hierarchy of both sides (Belk & Coon, 1993). Moreover, Wong has a similar view to Belk's that Asian consumers are more likely to obtain luxury through gift exchange than western consumers (Wong & Ahuvia, 1998). Gifting can maintain and expand interpersonal Guanxi in Chinese society. Guanxi is an exclusive personalized social network in Chinese culture. However, Li points out that Guanxi and gifting can be a negative mechanism to facilitate harmful activities for society, such as corruption, which can be linked with the rapid growth of luxury-products consumption (Li, 2010). Whether positive or negative influence, these studies confirm that the existence of Guanxi promotes the purchasing of luxury goods.
2.3 Definition of luxury goods
The concept of luxury goods is ambiguous because various researchers from different fields expressed diverse opinions regarding luxury goods. For instance, in the economic literature, economists stated that luxury goods are defined as goods that own a high income of elasticity of demand(Byron, Deaton & Muellbauer, 1982).On the contrary, the necessities are the
consumption of goods without considering income levels, which illustrate that these products are not affected by the income change.(Bochanczyk-Kupka, 2019).However, scholars in the marketing field have different attitudes toward the definition of the luxury of goods. They considered that the explanation of luxury goods is defective; it requires more research to demonstrate. For example, Phau and Prendergast (2000)have stated that the cognition of luxury goods by the individuals are different. The goods might be considered as a luxury, while others recognized it as a necessity(Hauck & Stanforth, 2007). Additionally, the definition of luxury goods ranges from society to society, which demonstrates that the concepts of luxury goods are too broad(Kemp, 1998).
Although it is hard to define luxury goods, some marketing scholars are still devoted to dealing with the problem of conceptualizing the luxury goods to demonstrate the essence of the concept. For example, according toSeringhaus (2005),luxury brands were defined as combining the synthesis of emotion, the responsibility to self-concept, and communicate the concepts in brand identity.Phau and Prendergast (2000)have claimed that the definition of a luxury brand is competitive based on five factors, such as evoking exclusivity; owing
well-known brand identity; stimulating brand awareness and perceived quality, staying sales levels, and customers' loyalty. Despite the opinions provided clues for the perception of luxury goods, however; it lacks research to identify the concept of luxury goods. As a result, several marketing field researchers discovered the definition of luxury goods by utilizing multifarious models. For instance, in order to identify the distinction between luxury goods and non-luxury goods, Vickers and Renand utilize the three-dimensional model. In the article, researchers view that luxury goods and non-luxury goods can be determined based on the functionality, experience dimensions. On the one hand, the luxury goods represent the personal identity and social status while the non-luxury goods more emphasize on the functionality(Vickers & Renand, 2003).However, the models conducted by the researchers are still not enough to identify the definition of luxury goods(Štrach & Everett, 2006).
Luxury goods are considered as the symbol of personal and social status(Vickers & Renand, 2003).Thus, since the process of conceptualizing the luxury goods is complicated, although it is lack of specific definition, however, more and more researches were conducted to identify the luxury goods.
2.4 Characteristics of luxury goods
Consumers always link specific features when it comes to discussing luxury goods. Some researchers identify the characteristics by comparing the traditional luxury goods features with modern luxury goods. On the one hand, the history of luxury goods has three main characteristics: excellent materials and super quality; high price and rarity; unique design and innovation(Bochanczyk-Kupka, 2019).On the other hand,Dubois, Czellar & Laurent(2011)
claimed that luxury goods have five characteristics: extremely high price, exceptional quality, superfluous, uniqueness, and scarcity. However,Bochanczyk-Kupka (2019)stated that the main characteristics of luxury goods are common to be the high price compared with non-luxury goods. Besides, luxury manufactures differentiate their goods by providing the innovation, sophistication, and craftsmanship. TheDubois, Czellar & Laurent(2011)holds the same opinion withBochanczyk-Kupkathat the marketers are required to be innovative to increase the consumption of luxury goods.
Other marketing scholars identify the characteristic of luxury goods by making a comparison between goods and mass production goods. As Riley stated, during the process decision of buying mass-produced in the mass market, consumers will consider the price and function primarily, additionally, customers are affected by the brand name and identity, the successful brands are flexible to corporate the brand name with the characteristics of innovation and craftsmanship. The mass products are able to alert the essence of the characteristic of luxury goods to support the innovation during the process of mass production(Bochanczyk-Kupka, 2019).
2.5Theoretical framework
From the literature review and conceptual framework, we determined the Asian Hierarchy of Needs and the theory of Planned Behavior as our main theoretical framework and connecting with external factors to support this research.
2.5.1 Asian hierarchy of needs
Since China is a typical collective and Confucian country, the model stated by Schütte and Ciarlante is suitable for us to observe the needs of Chinese women regarding purchasing luxury goods. Asian model prioritizes interpersonal relationships and social interactions as higher levels of needs. The needs of status, admiration, and affiliation, which are different from Maslow's model, are the represents of social needs in China.
Thorstein Veblen noticed that people are willing to pay a premium price for some
commodities not only to obtain direct material satisfaction and enjoyment but also to obtain psychological satisfaction to a greater extent, which can be explained as conspicuous consumption, and this is a mode of status-seeking and display wealth. (Veblen, 1899) Some definitions and characteristics of luxury goods in the literature review indicated that
purchasing luxury goods is a kind of Veblen effect. With the rapid growth of the social economy in China, people's consumption will gradually transfer from the pursuit of quantity and quality to the pursuit of taste with the increase of income. Therefore, the request for status is the primary motivating factor for Chinese people to purchase luxury goods.
2.5.2Attitudes to the behavior
Attitude to the behavior is a person's positive or negative feeling about taking a target action, and it is affected by behavioral beliefs, which mean a person's belief and subjective estimates of the consequences of a target behavior. These beliefs will vary with different crowds.
2.5.3 Subjective Norms
The second factor--subjective norms refer to the degree of perception of people take notice of other people to think and evaluate what behavior should he or she do or not do. Moreover, it is affected by normative beliefs, which means the belief pattern that a person owns after measuring his idea pattern with the opinions that others may have.
Perceived behavioral control refers to the obstacles reflecting the previous experience and expectations of the individual. When people think that the more resources and opportunities they have, the fewer obstacles they expect, the stronger they control behaviors.
Chapter Three: Methodology and methods
IntroductionIn this chapter, the methodology and methods were presented. The research content, research philosophy, research approach, the research design was discussed in detail. In the sampling section, the explanation of the sampling size, sampling technique were explained.
Additionally, in the data collection section, the choice and limitations of methods were presented. Finally, the explanation of credibility, transferability, dependability, and
confirmability showed that how we conduct the trustworthiness in qualitative research. The last part presented how we deal with ethical issues during the research process.
3.1 Research content
This research focuses on examining factors that affect female consumer behavior in the luxury goods market in China. This research will choose luxury bags as a representation of luxury goods because it is the most frequently purchased luxury goods type by Chinese female, which occupies around 60% of all categories (Zipser, Chen, & Gong, 2016).
Simultaneously, Females are termed as the primary consumer groups of luxurious goods and to be more specific in China. As a result, to understand the phenomenon in depth,
investigating the factors that affect female consumer behavior on the luxury goods market is necessary.
3.2 Research Philosophy
Research philosophy is defined as the beliefs and assumptions about what types of data can be gathered and analyzed (Saunders et al.,2012). The research philosophy is the reflection of the research's' assumptions, which will assist us in clarifying the methods utilized in the study and specify the way of interpreting the findings. Galliers and Land (1987) proposed two main research philosophies: Positivism and interpretivism. It will be discussed in detail in section 3.2.1 and 3.2.2.
3.2.1 Positivism
Positivism emphasizes studying the phenomenon by utilizing scientific methods. The characteristic of positivist research is focusing on the scientific methods and statistical analysis and gaining the objective data (Mack,2010). Positivism research aims to prove or disapprove a hypothesis (Mack,2010).
3.2.2 Interpretivism
The interpretivism study involves researchers to interpret the elements of the study.
Interpretivism research design refers to the humanist qualitative methods of analyzing data collected in the research (Sobh & Perry,2006). Differentiate from the positivism,
interpretivism research focuses on the ability of individuals to construct meanings (Mack, 2010).
3.2.3 The choice of research philosophy
Proctor (1998) claimed that positivism and interpretivism should be understood before choosing research methods. After clarifying the two types of research philosophy, positivism is not appropriate in the present study. According to Crossan (2003), positivism focus on the 'object.' Meanwhile, significant critics of positivism are that it does not provide a means to investigate human beings' behaviors in a depth way. Consequently, Chinese female customers are 'subjects' instead of 'objects.' Moreover, the purpose of the study is to understand the Chinese consumer female behavior by analyzing the characteristics of luxury goods and particular Chinese culture factors. Therefore, the positivism research philosophy is not suitable in the research.
On the other hand, the interpretivism study involves researchers to interpret the elements of the study. It requires us to provide the interpretation of personal purchasing experiences related to females in China. Furthermore, the target population for the study was the female
consumers of luxurious products in a Chinese online store. Hence, adapting the interpretivism as the research philosophy is more suitable in the present research.
3.3 Research approach
The choice of the research approach depends on the nature of the research problem (Creswell,2014). The distinction between the qualitative deductive research from other qualitative researches is the starting point, the theories came from the literature review, and these theories will be utilized in analyzing the data (Boyatzis,1998). The present study
implied the deductive approach because, in this case, the human behavior theories are derived from the review of the literature, and these theories will be applied in the data analysis parts in order to deal with the research question. As a result, the deductive approach is appropriate in the study.
3.3.1 Qualitative research approach
Qualitative research is defined as an approach for discovering and understanding the groups or individuals related to the human problem (Creswell,2014). The quantitative approach is associated with observing the happening of an event through a mathematical method (Silverman,2015). However, the qualitative research method is related to the research of meanings (Aspers,2004). Qualitative research is based on using words instead of numbers. As mentioned in Chapter1, female consumers are becoming major customers who purchase luxury bags in China. The purpose of the study is to understand the primary female consumer behavior in China, which illustrates that the qualitative research method is appropriate. Additionally, the research philosophy is beneficial for the researchers to determine to apply the quantitative approach or the qualitative approach in the study. As mentioned in 3.2.1, the interpretivism concentrates on interpreting the elements of the study. In this case, 'females,' 'consumer behavior' 'luxury bags' and 'Chinese market' are the elements in the study; we will interpret the effect of factors on these elements by using the words. Hence, the qualitative research approach is suitable for research.
3.4 Research Design
According to Mugenda (2003), a research design is a method used to carry out a research study; in other words, it is the way of answering the research question. It provides the
guideline for the researcher to collect the data and analysis of the data. Moreover, three types of research were discussed. There are three types of research classified by a purpose:
Exploratory, Descriptive, Analytical, and Predictive (Collis & Hussey, 2014). Exploratory research can be used when there are few studies covered with the problem; the purpose of the study is studying for the patterns rather than test a hypothesis (Collis & Hussey, 2014). The descriptive research focuses on examining a problem that already existed, while the
explanatory focus on measuring the relationship between variables (Collis & Hussey, 2014). Therefore, exploratory is appropriate in the research.
3.4.1 Exploratory research
In this case, the exploratory research was oriented toward the study. The purpose of the study is to find the growth pattern and the main contributors to the growth of the Chinese luxury goods market, which in line with the characteristics of exploratory research stated by Collis and Hussey (2014).
Moreover, the format of semi-structured interviews is commonly used by researchers in qualitative research (Bloom & Crabtree,2006). Semi-structured interviews provided the guideline between the interview and the researchers. Therefore, the semi-structured interview is appropriate in this study to obtain the data. More details about the semi-structured interview will be discussed in the data collection method part.
In summary, exploratory research is appropriate in the present study, and we utilized the semi-structured interview method to collect the data.
3.5 Population and Sample
According to Collis and Hussey (2014), the population is the collection of all elements in the dataset, and the sample is the subset of the population. It is possible to select the whole population if the population is really small; on the contrary, the researcher has to select a sample (Collis & Hussey, 2014). Since China has a large population in the world which illustrate it is impossible to select the whole population. Consequently, we will select a sample for our research.
3.5.1 Sample selection
The sales value of personal luxury goods by the Chinese consumers amounted to 105 billion euros, which ranked second after the United Sate (Blazyte,2019). As mentioned in the
research content, around 60% of female customers prefer to purchase luxury bags. Therefore, the sample selected in this study is the female consumers who own luxury bags in China.
Furthermore, in chapter1 we discussed that the consumption of the luxury goods that aged under 45 years old account for 70% and 3% women purchase the luxury goods aged between 18 and 34 years old (Ko, 2019). Based on this, we prefer to select women aged between 35 and 45 years old.
Overall, the study selected the Chinese female customers aged between 35 and 45 years and owned luxury bags.
3.5.2 Sampling size
The proper sample size for the semi-structured interview should be five to twenty-five
(Saunders et al.,2012). Based on the suggestion, we selected ten respondents for our research; meanwhile, ten respondents are enough for us to establish patterns.
3.5.2 Sampling technique
There are two forms of sampling technique: probability sampling technique and
non-probability sampling technique. Random sampling refers to all populations own an equal chance of selection (Marshall,1996). Collis & Hussey (2014) suggested that there is no need to use the random sampling technique under interpretivism. The research philosophy clarified that interpretivism was conducted toward the research. Consequently, the random sampling technique was not suitable in this case. Otherwise, the non-probability sampling focus on understanding the social phenomenon in-depth way, which is appropriate for qualitative research (Marshall,1996). This research applied the qualitative approach and aimed at understanding the phenomenon of what motives Chinese females to purchase luxury goods. Hence, the non-probability technique is appropriate for the present study.
3.6 Data collection method
The present study implemented the primary data to deal with the research question. Primary data is defined as the data collected by the investigator for the purpose, the main methods for collecting primary data are interviews, surveys, focus groups, and social media monitoring (Bernard,2000). The interview is the main technique of collecting primary data in which a sample of interviewees are asked questions to discover what they think, do, or feel (Collis & Hussey,2014). Therefore, the interview can be utilized as a method in the study in order to collect the information of respondents about their opinions, practices, or attitudes.
Furthermore, the interview was classified in different types, such as structured interviews, semi-structured interviews, and unstructured interviews. In this study, the semi-structured interview was adopted to specify the purpose of the study. The reasons for utilizing the semi-structured interview are present as follows. Primarily, as mentioned in 3.4.1, researchers most frequently collect qualitative data by utilizing a semi-structured interview. Additionally, according to McIntosh & Morse (2015), the benefits of the semi-structured interview are relatively flexible, high return rate and revising, changing, and adding answering order. The
questions can be prepared before the scheduled interview, which allows us to have enough to do the preparation and analysis.
Moreover, we are possible to express the interview questions with our preparations. In our study, the respondents are free to respond to these interview questions, and we are capable of changing the answers when we finished the interview. In consequence, a semi-structured interview is appropriate for our research.
3.6.1 Semi-structured interview design
The prepared open-ended questions organize the semi-structured interview, it usually takes between 30 minutes to several hours to finish (Bloom & Crabtree,2006). Several methods, such as face-to-face, telephone, and online, for conducting the interview, were identified by Collis and Hussey (2014). The online method, such as the Skype meeting, is considered as the best method for the present study. The reason for choosing online methods instead of a
face-to-face interview is the impact of the coronavirus pandemic and the distance limitation. For instance, most people avoid meeting people in China due to coronavirus, and the distance between Sweden and China is so far. Since we live in Sweden right now, it is hard for us to achieve these consumers in China.
Before the interview, we will prepare our interview by writing down the information based on the purpose and research question. And then, we will draft a guideline to include all open questions (see appendix A) to make sure the participants can elaborate on their opinions. However, we will not stick to the guideline due to it is a semi-structured interview. After that, we will ask permission for these interviewees and arrange a suitable time for them.
Additionally, we will remind the interviewees about the time on the day before the appointment.
During the interview, when the interviewee joins us, we will do the introduction for our research topic, background, and purpose in order to build rapport with our interviewee. After
that, we will start by asking simple questions and then go the complicated questions in the right way. We will try to follow a "loosely" interview and encourage interviewees to
participate actively. We allow our interviewees to elaborate on their own and actual thoughts. Furthermore, we will record and use the content of interviews with interviewees' permission. During the process, we will control the time of the interview between 40 minutes to one hour.
3.6.2 Limitations of the semi-structured interview
There are some limitations when we conduct a semi-structured interview. Robson (2002) had pointed out that the disadvantage of the interview is the time consuming because the
researchers need to code and translate in the aspect of the data collection and analysis. For our research, since some respondents do not speak English, the interview questions in English will be hard for some people to understand. As a result, we have to translate these questions into Chinese, which will be time-consuming.
3.7 Data analysis method
The present study will apply the thematic analysis to analyze the data. "Thematic analysis is a method for identifying, analyzing, and reporting patterns (themes) within data" (Braun & Clarke,2006). The benefits of utilizing the thematic analysis are the flexibility in qualitative research (Braun & Clarke,2006). Since the present study focuses on looking for patterns that illustrate that the thematic analysis is appropriate in our research. Braun and Clarke (2006) discussed the steps for the thematic analysis in the deductive research. Firstly, be familiar with the data. During the process, we will take notes for the coding, then will transcribe the verbal data for conducting the thematic analysis. Then, developing the coding manual. After that, make sure the validity of the code and summarize the data. Finally, we will connect the codes and identifying themes with the theories we identified in the literature review.
3.8 Trustworthiness in qualitative research
Four aspects that should be considered by the qualitative researchers for conducting the trustworthiness research such as the credibility, transferability, dependability, and
confirmability (Lincoln & Guba,1985) Credibility refers to the confidence of the qualitative researchers to the truth of research findings. In order to enhance the credibility in the research, we utilized the member check technique by asking the interviewees to review the data
collected by us. During the process, trust is an essential factor. Transferability refers to the ability to generalize the inquiry (Nowell et al.,2017). To establish the transferability in our study, we applied the non-probability sampling technique to make sure the data is related to the context. To ensure the dependability in the research, we will invite an outside researcher to do the audit for the study. Ultimately, confirmability refers to conducting the researcher's interpretations and findings derived from data (Ryan et al.,2007). In the aspect of
confirmability, reflexivity is a technique which will be utilized to enhance the confirmability. When we conduct the research, we focused on the impact of the research process, such as the selection of the methodology and analysis of data on the research topic in order to enhance the confirmability.
3.9 Ethics
Research ethics is an essential factor that needs to be considered in the research. Volunteer participation and confidentiality are the main categories in research ethics. In our research, before the interview, we will send the message to the participants to make sure she or he prefers to join our interview. We will not force them to conduct the interview. Additionally, before held the interview, we informed the interviewee the conversation would be recorded; if she or he disapproved of it, we would not do it. Also, for the transcript of data, we will use A, B, or C to instead the name of the interview to protect their privacy. Ultimately, due to
Sweden and China have time different, we will make an appointment of the time with the interviewee to select the appropriate time to conduct the interview.
Chapter Four: Empirical Findings
IntroductionThe results of the study were based on the formulated research question. There were several designed interview questions which were formulated to investigate the primary research questions of the study. This section of the paper will aim to give the main findings for the study as per the primary research objectives of the study. The ten interviewees completed the interview during the interview. Additionally, all the data collected during the interview was analyzed. The results were analyzed as per the primary research objective of the study.
What factors affect female consumer behavior on the luxury goods market in China?
This research question focused on identifying what factor affect female consumer behavior on China's luxury goods market. As stated in the research, it is essential to identify the critical motivators towards the consumption of particular luxury goods. The participants were asked several questions in order to answer the research question.
Consumer behavior plays an instrumental role in the market actions taken by firms in a particular market. Considering the primary aim of the business is to satisfy customers, many organizations take their time to satisfy their consumer needs. The themes are important to understand the female consumer behavior. These themes have been labeled as "Attitude," "Norms," "Experience," and "Social class and 'Guanxi'." The four aspects can be considered as a proper interpretation of the understandings of female consumer behavior, and all of them are not isolated, they are related to each other.
4.1Attitude
The attitude was the first theme in the study, which was identified by participants having a particular attitude towards luxury goods. A positive attitude sure participant's inclination to buy these goods while a negative attitude showed reluctance. participants were asked with regard to this objective was what your attitude toward luxury bags is? (Positive or negative,
had a positive attitude toward luxury bags. The main factors that were identified to be influencing the positive attitude in consumers are the quality and appearance of these items. Participants had the view that luxury bags had a better appearance and felt more superior compared to other goods on the market hence the positive attitude.
4.1.2 Motives and motivating factors
Motive will often lead to the intention to buy; in addition, motivating factors will influence consumer consumption behavior. In order to investigate the motives and motivating factors that influenced consumers, participants were asked what motivates or influences you to
purchase luxury bags? Moreover, which motivation is the main one. Most of the participants
stated that design and reward were the key motivation for purchasing luxury bags since three participants gave these reasons. One of the participants stated that the main motivation comes from the fact that I have just worked, and I want to buy a bag to reward myself, which is
commemorative this implied that participants felt the need to get rewarded after
accomplishing a specific achievement they would need to reward themselves as a form of motivation. The preference for taste and luxury was another motivating factor that
participants identified. Besides that, participants also stated that having a good luxury bag design will motivate them to buy such items. The appearance of a luxury bag was the a critical motivating factor to purchase items according to one participant the main motivation
is the appearance, if the appearance is not good, no matter how cheap the luxury goods are I will not purchase it. As such, the design of the item superseded all the other factors in terms
of influencing participant to buy.
The fourth question that the participants were asked was, what do you consider when you
decide to buy a luxury bag. Participants gave various answers to this question. However,
according to many of the participant's cost was a crucial factor of consideration. Participants were not willing to buy above their budget in order to satisfy their need for luxury goods. Buying within a particular budget was critical for participants for economic reasons. The design was also crucial when deciding to purchase. Participants would only buy the bags that suited their preferences and were within their financial reach. According to the responses, the
design was indicated by words such as appearance, look, or bags that the participants were interested in.
4.2 Norms
Subjective and normative norms greatly influence people behavior. People will behave according to how others perceive them or how they view to be perceived by others. To investigate the kind of norms that influenced the consumer behavior participants were asked.
Do you care what other people think about whether you own luxury goods or not? And do you have any perceptions for others who have luxury bags and have no luxury bags? These
questions were in a bid to investigate whether societal norms had any influence on consumers purchasing decisions. A majority of the participants stated that they did not care what people thought of them when they owned luxury goods in terms of how participants perceived people with and without luxury bags. The consumers did not regard owners of luxury items with high esteem. One of the participants stated that I do not support the consumption of luxury goods
which affects your daily life rhythm. For example, advance consumption (buy credit card purchase. One noticeable pattern from the answers was that participants believed that people
should only buy what was within their limit and thus they should not incur debts in pursuit of luxury good
4.3 Experience
Another factor that was investigated was the impact of past experiences and how they influenced their future purchasing decisions. Understanding past experiences influenced consumers perceptions. The past experiences of consumers is considered to have some
influence on their future buying decisions. Participants were asked In your past experiences of purchasing luxury bags, what do you think is the most beneficial thing for you. And whether these past experiences affect you decide on purchasing luxury goods or not? And what extent will they change. The participant has considered factors like whether the item that they bought preserved value or not. According to one participant, most of her buying decisions were influenced by previous purchasing experience. One central factor that many participants
considered was the brand. Previous positive experience with a brand would influence a consumer to buy again from the same brand. Factors like after-sale services were also considered critical by customers when making purchasing decisions. The most beneficial thing for participants when purchasing luxury bags was the feeling that the purchase of such items brought. Participants felt more beautiful, confident and classy after purchasing such items. However, some participants stated that they did not feel any change after purchasing luxury items.
4.4 Social class and 'Guanxi' 4.4.1 Social class
The hierarchy of needs in society will influence the associations that consumers make with luxury goods. Social class is one of the qualities that Asian people perceive to gain up the pyramid, to investigate these perception consumers were asked how they perceived luxury goods to impact their lives. In essence, the question investigated whether purchasing luxury items influenced the consumer's position in society or the feeling of change of social status. According to the responses given by participants, there was one main feeling that the
purchase of luxury items emanated. Participants believed that by purchasing such items, they would be happier. However, participants had a different feeling of how purchasing items changed their societal status. While all the participants were for the idea that purchasing luxury items would impact their happiness, their responses varied on how the purchase of luxury goods impacted their social status.
4.4.2 Guanxi
The art of gift-giving is one of the most instrumental elements in the Chinese cultures as such it has a considerable impact on consumer behavior as such participants were asked whether
they would give a luxury gift to their friends. This was done to investigate the concept of Guanxi and how luxury items would influence it. Many of the participants stated that they would gift luxury items to their friends. However, the participants would consider several factors before gifting such items to friends such as the economic condition of the friends they were gifting and whether the friends were familiar with such items before gifting them.
Chapter Five: Analysis and interpretation
IntroductionThis chapter concentrates on the four thematic analysis via analyzing the findings with the theories mentioned in the frame of references to closely understand factor affecting Chinese female consumers on the purchase of luxury goods.
5.1Attitudes
Market actions are primarily influenced by how consumers behave. While factors such as affordability, after-sale services and the quality of products are seen as the main influential factors for firms in many markets, they are not necessarily the primary factors of
consideration by consumers in the luxury goods market (Albrecht, Backhaus, Gurzki & Woisetschläger, 2013). According to the theory of reasoned actions and behavior, a person has to have particular attitudes and values in order to take on a particular behavior.
Consumers attitudes and values will thus influence consumer behavior in luxury goods markets. These values and attitudes can be interpreted in terms of the considerations made by consumers when making luxury goods purchases.
As seen from the results, most of the participants have a positive attitude toward luxury bags. Several key factors affected the attitude of female consumers in these markets before making purchase decisions. The key motivating factor that affects the attitude of female consumers to purchase luxury items is design, reward and price.
Three participants in the interview stated that design was the key motivation for purchasing luxury bags. It influences the luxury goods markets in the sense that many producers in this market will go for high end and unique designs to attract more customers. In order to appeal to the target market firms in these markets will compete to have the most appealing goods in the market. The consumers' emphasis on design is one of the critical factors that has affected the producers' behavior on the luxury goods market in China. The design is a critical
motivating factor when buyers are making a purchasing decision. According to one of the participants no matter how cheap the item is, she would not purchase it if it was of poor
design quality. The response showed that even excluding the other factors, the design of an item will be critical to a buyer making purchases. However, it should be noted that preference for a particular design or style is relative from one person to the other. As such, the design preference for one customer will not necessarily be the taste preference for other customers. Firms in the market have, therefore, to research about the taste preference for the target market of the goods that they produce.
The second primary factor of consideration of consumers was the reward. Many of the participants stated that after attaining a certain accomplishment or reaching a particular goal, they would feel the need to reward themselves for their efforts. According to one of the participants, she would only purchase a luxury bag if they have made a major
accomplishment, and thus, they feel like they need to get rewarded. This reward was actualized in the form of purchasing a luxury bag. These kinds of actions concur with the theory of reasoned behavior, which states that a person will have an intention to take on a particular behavioral action. As seen from the results in the study, the main intention of the consumers, in this case, is to reward themselves, which ultimately leads to the purchase of luxury items. According to the theory of reasoned behavior, having a certain attitude towards a product will ultimately lead to the development of the purchasing behavior. Considering that consumers associate success with the purchase of luxury items infers that with increased success levels, they will be increased consumption of luxury goods. By understanding, this intention companies in the luxury goods market can act appropriately. These actions can be achieved through the redesigning of their advertisement and promotion methods. Bearing in mind that most consumers will be driven to buy luxury goods as a means of rewarding themselves firms can advertise their goods by exhibiting them as the perfect reward for attaining a goal or a particular achievement. As a result, it would greatly attract customers.
Affordability is another way that female consumers have impacted the luxury goods market. Most of the participants state that they would consider the price of a certain bag before
purchasing it. According to the participants, the price was a key factor of consideration before making a purchasing decision. One of the participant's stated that "Because I think if I
