Factors That Influence Consumer Decisions for Purchasing and Use of Luxury Products - Literature review Example

Progress Log Week 1 Date: Research topic: Conceptualizing luxury market terminologies Research objective: To explore how different literature have conceptualized luxury to establish a definition of luxury for the purpose of the research Research question: What is luxury? How best can this research conceptualize luxury? Please reference below all the literature you have read Chaudhuri, R and Majumdar, S. (2006) Of diamonds and desires: understanding conspicuous consumption from a contemporary marketing perspective. Academy of marketing science review, 2006(11). Lebreton, T. (2006) Marketing International Luxury Brands in China, South China Morning Post, 2005 Phau, I., and Prendergast, G. (2000) Consuming Luxury Brands: The relevance of the 'Rarity Principle', Brand Management, 8 (2) , 122-138. Sulehri, N., Malik, F., Qureshi, W. and Anjum, N. (2011) Consumer behaviour slide down for purchase of luxury brands in Pakistan; A conceptual framework. European Journal of Economics, Finance and Administrative Sciences, 1 (28). Please write summaries / notes of each source read: Sulheri et al (2011) conceptualizes the term luxury as having characteristics of status and premium and by which consumer make statements on their prestige. They are also characterised by aspects of high cost, uniqueness, limited editions and availability in the market, and an aspect of sensual gratification. The definition of luxury is enhanced by inclusion of the perception of a society and the individual, and thereby entrench the satisfaction of needs beyond the basics into psychological. As such, the article demonstrates how these perceptions and the overall consumer trends are changing due to political situations in Pakistan. This is corroborates Phau & Prendergast (2000) which indicate the aspect of cost and necessity consideration. Chaudhuri (2006) conceptualizes luxury products as being synonymous to conspicuous consumption. This article is emphatic on the role of socio-economic status and how individuals seek for prominent products. It presents a contemporary perspective of luxury market in comparison to its evolution over time. Lebreton (2006) presents a dissertation on how best international luxury brands may be marketed in china. These literature present luxury products as targeting the middle-high and high-end markets communicating to consumers and the society an aspect of elegance and style. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) The beginning of this study required a fine understanding of terminologies. I have searched the library and online for the various meanings of the term luxury. There are numerous meanings various authors have put across. However, I feel that no one literature I have come across gives any differences. May be there is a global consensus in this. In addition, most of the literatures do not entirely dedicate themselves on the conceptualization of this term. They are dealing with it as just a part of many others. As such, I feel the need to concentrate on key readings and may be peruse through others. I will have many citations, but will concentrate on readings that have a significant dedication to my research focus. Progress Log Week 2 Date: Research topic: Consumer behaviour and consumption decisions, globally and in China Research objective: To establish the factors that influence consumer decisions for purchasing and use of luxury products Research question: What are the factors that influence consumption of luxury products? What are the trends in purchasing behaviours? References Chadha, R., & Husband, P. (2006). The cult of the luxury brand: Inside Asia's love affair with luxury. London: Nicholas Brealey International. Executive Dickson, A., Lennon, J., Montalto, P., Hen, D. and Zhang, L. (2004) Chinese consumer market segments for foreign apparel products. The journal of consumer marketing, 21 (4/5) 101-110. Steenkamp, J., Batra, R., and Alden, D (2003) How perceived brand globalness creates brand value. Journal of International Business Studies. 34, 53-65. Tavares, L. (2003) A multi-attribute motivational model of consumer choice based on a new outranking relation. International transaction in operational research, 10, 36-37. Wang, Y, Sun, S & Song, Y. (2011) Chinese luxury consumers: motivation, attitude and behaviour. Journal of promotion management, 17(3), 345-359. Please write summaries / notes of each source read: Consumer behaviour factors have been popular in marketing literature. There is a vast range of literature resources for this aspect. Specific to luxury products consumption, Steenkamp (2002) demonstrate how perceived brand globalness is reflected in purchasing decisions. Its comparative data from USA and Korea indicates luxury products have a global outlook and therefore carry a sense of prestige and perceived quality. Perceived quality is more than perceived prestige. Tavares (2003) proposes a multivariate model in view of understanding the motivations of purchasing. This model makes use of both motivational attributes and other attributes relevant to consumer decisions. It emphasises on the role of perceptual attributes for consumer behaviour decisions. Dickson et al (2004) identifies segmentations of the Chinese market for foreign clothing. It identifies six market segments on the bases of geographic characteristics and demographics, perception to the products and apparel expenditures. Wang et al (2011) examines the attitudes of Chinese consumers for luxury brands. It uses a 3-model segmentation comprising of elitists, democratic and distant consumers. Elitist consumers buy luxury products for self-actualization and social comparison. Distant consumers purchases for others and less believes that quality connotes quality. Democratic consumers base their decisions more on luxury quality than other attributes. Chandha & Husband (2007) present the Chinese market as growing with an explosion. The book makes reference to preference for luxury products as a cult implying a luxeplosion in Asian markets. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) Yet another week of massive reading. I can simply make summaries of the literature I have come across. Time has been running so that at times I have to skim over journals, books and reports. The Asian market and its characteristic power distance components is an interesting topic. However, there are global trends influencing the market. I have a better understanding of my study. I think I should concentrate on learning more than just reading in order to write the paper. Too wide and too many objectives per week are limiting with respect to learning. Next week should be dealt with more precisely. Progress Log Week 3 Date: Research topic: Gender and consumption of luxury products Research objective: Explore gender trends affecting consumption of luxury products To explore the consumption trends for Chinese women To explore the factors that influence female luxury consumption in China Research question: What are the consumption trends of Chinese women for luxury products? Is there a distinction with reference to their consumption behaviours? What are the factors influencing their decisions? References Burkitt, L. (2011) In China, Women Begin Splurging. Beijing: The Wall Street Journal. Hung Li, Y. and Belk, R. (2005) Consumption and the modern woman in China: a conceptual framework. Asia pacific advances in consumer research, 46, 56-72. Hung, K., Li, S. and Belk, R. (2007). Glocal understandings: female readers' perceptions of the new woman in Chinese advertising. Journal of international business studies, 38, 1034-1051. Please write summaries / notes of each source read: Hung et al (2007) evaluates the perception of Chinese women readers on how the new woman is portrayed in Chinese advertising. The literature is a critic of standardization of advertisement as influenced by globalization. It suggests that standardization may not be the appropriate approach since transitional economies depict glocalization. Advertising that targets the Chinese should be glocalized so the modern woman is depicted in a culturally prominent manner. Hung et al (2005) reviews sociology, consumer research and anthropology literature seeking to explore the modern Chinese woman and their consumption trends. There is no clear femininization environment. As such, young Chinese women, employed and living in urban areas have a novel construction of their femininity. Lack of an ideal feminine model has led to development of new ideals which combine local and global elements. Burkitt (2011) reports that the Chinese market for luxury products is growing, especially with reference to women. There is a new market segment of young rich modern women now being targeted by luxury products such as Bulgari and Maserati. Their dominance over the previously male-dominated market is quickly forcing adjustments. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) There are numerous studies reflecting on the Chinese modern women. I have had ease in sourcing for literature on the matter. The problem is in the debate of what to include and what to omit in my writing. However, I convince myself that learning is the better thing I should do. The information and discovery is just overwhelming. In addition, I realize the values of comparing research-based literature with other such as newspapers, journals and magazine. The Wall Street Journal is a rich source especially for marketing and business. I also learn the value in critical reading. Progress Log Week 4 Date: Research topic: Methodology and research design Research objective: To establish the most appropriate research methodology for the study Research question: What are the research methods and methodology aspect best fit research objectives? References Groenewald, T. (2004) A phenomenological research design illustrated. International Journal of Qualitative Methods, 3 (1), 1-26 Hopkins, G. (2000) Qualitative research design. Retrieved 08/07/2012. Moustakas, C. (1994). Phenomenological Research methods. Thousand Oaks: Sage Publications. Please write summaries / notes of each source read: Groenewald (2004) presents the principles necessary in phenomenological design and illustrates how to implement a phenomenological methodology. The illustration is of five steps beginning with bracketing and reduction of the phenomenon. Secondly, one delineates units of meaning used in creating research themes. Data is collected, summarised and modifying as necessitated by the research. Finally, themes are extracted from the data to make conclusions and summary. Hopkins (2000) studies quantitative designs and suggests guidelines for a successful quantitative research design. The literature presents an overview of types of studies appropriate for quantification relationships. It explains descriptive and experimental designs. For the quantitative approach, large heterogeneous samples are more reliable and less likely to have skewed results. Moustakas (1994) illustrates approaches for human science research employing qualitative methodologies. These are heuristics, hermeneutics, ethnography and empirical phenomenological research. On phenomenological studies the book details on the step-by-step phases to be followed. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) My critical reading skills are improving by the day. However I had difficulties establishing the kind of study required for my study. My supervisor has been very helpful in helping me reflect on the readings I’ve had so far. With improvements in critical readings, I feel the need to develop reflective skills to enhance my learning. Many authors have written on research design and methodology. I did not have a problem in accessing materials comparing them apart from time limitations. The following weeks will be spent on developing my reflective skills. Progress Log Week 5 Date: 16th July, 2012 Research topic: Data collection Research objective: To collect data through questionnaires and interviews Research question: References Colton, D. and Covert, R., (2007). Designing and constructing instruments for social research and evaluation. 1st ed. San Francisco: Jossey-Bass. Hsiung, P., Jaschok, M. and Milwertz, C., (2001). Chinese women organizing : cadres, feminists, muslims, queers. New York: Berg. Please write summaries / notes of each source read: I have travelled to China for data collection purposes. I have interviews to conduct and questionnaires to administer to my targeted population. I begin by confirming the approval from relevant authorities. My reading for this week has been on the Chinese culture and more on research methodology. I read in-depths from Colton & Covert (2007) on research instruments. This literature provides an in-depth and detailed analysis of data collection instruments for social research. It presents a nomenclature of categorising them, describes each instrument, its construction and how to best administer it. Hsiung et al (2001) is a detailed book on the Chinese women and how they have influence on the general Chinese society. Women’s organizing began in the 1980s and is now in a new phase. The role of feminization in the society and how women have organized themselves in view of addressing inequalities is impactful not only in china, but also on the global perspective. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) The week has been a focus on developing reflective abilities. Am doing my data collection and I feel I need an in-depth knowledge of what I am doing as well as my targeted population. More is needed on understanding the Chinese women and how they have changed with time. The modern woman has a history. Am still having numerous literature at my exposure, especially from the web. Accessing materials in China is not easy as in my home place. I need more planning in advance in order to have more ease in access. Progress Log Week 6 Date:23rd July 2012 Research topic: Interviews and questionnaires administration Research objective: To recruit research sample from the target population and collect data Research question: References Creswell, J. and Clark, V. (2011). Designing and conducting mixed methods research. 2nd ed. Los Angeles: SAGE. Lai-man, S., and Wai-yee, S. (2009) The influences of Face Oriented Brand Values and Attitudes on the Consuption of Luxury Brands: A study of the Chinese Female Consumers in Hong Kong and Mainland China, The Chinese University of Hong Kong. Please write summaries / notes of each source read: Creswell & Clark (2011) presents in-depth information on major approaches in mised research designs. For each of the design, the literarure provides step-by-step details on the process of research. a reader can learn how to undertake an entire research with ease following the gudelines. For each, there an elaborate research instrumentation process as well as data collection. Lai-man & Wai-yee (2009) is a phenomenological study on the how Chinese female consumers are influenced by face oriented values of brands and their attitudes for luxury brands. It presents a cultural orientation to branding as reflected in Hofstede models for national cultures. The Chinese are highly influenced by ‘face’ in their attitudes and how they value luxury brands. They are contrasted to Hong Kong females who are more individualistic and with less concern for quality and product performance. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) The last two weeks have been contextual reading moments. Am reading as I see for myself what has been written about by many authors. I get to reflect on the culture the modern Chinese women demonstrate as they do their shopping in the malls. My assimilation of information has been enhanced by enhancing reflective skills. I need more current reports and information. At least I hope to have more ease in accessing readings like magazines and fashion reports. They should be available for sale in various oultlets and vendors. This is unlike books with characteristic challenges in borrowing and purchasing online access. Progress Log Week 7 Date: 1st August 2012 Research topic: Data collection Research objective: To recruit a sample of the targeted population and to collect data from them To conduct interviews Research question: References Luo, W., (2008). Aching for the modern body: Chinese women's consumption of cosmetic surgery,. University of Utah. Wu, J., (2009). Chinese fashion : from Mao to now. New York: Berg. Please write summaries / notes of each source read: Luo (2008) studies the factors that influence Chinese women to undertake cosmetic surgery. It notes that the number of women seeking to change their bodies is increasing with the government reporting on increasing revenues from the practice. It seeks to identify the ideologies and meanings that influence this kind of consumption. This is against a backdrop of revolutionary consumer trends in the country with respect to culture and the economy. Wu (2009) is a detailed analysis of the progressive nature of the dressing fashion in China. It accounts for the changes that have occurred in the fashion industry in the post Mao era. It presents a revolutionary relationship between fashion, identity, and gender and fashion consumption trends. Its authenticity to the Chinese culture is that it is more of a narrative from a Chinese author and a Chinese perspective. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) I had set myself to meet many objectives whereas in China for data collection. At best, I have achieved two important things. I have collected data with a personal experience. Secondly, I have enhanced and used my reflective reading skills to learn and experience the culture from a first-hand experience. I still have the challenge of too wide goals and objectives. I need to do this with more precision. In the next two weeks I am focusing on data analysis and discussions. I plan my reading with precision and close relevance to the activity I am undertaking. I predict more ease in accessing resources, especially from libraries at home. The Chinese women are best learnt in the context of their culture. Progress Log Week 8 and 9 Date: Research topic: Data coding, entry and analysis Research objective: To learn how to use phenomenological research data To code, analyse and establish themes from the collected interviews Research question: What are the consumption motives for Chinese females with reference to luxury brands Please reference below all the literature you have read Dunn, L., 2008. A phenomenological study of the perceptions and experiences of seven urban middle school science teachers related to retention, Orlando: University of Central Florida. Groenewald, T 2004, A phenomenological research design illustrated. International Journal of Qualitative Methods, 3 (1), 1-26 Please write summaries / notes of each source read: Groenewald (2004) cites caution on the use of terminology ‘data analysis’ and suggests the use of data ‘explicitation’. The former has connotations of fragmenting the data into various parts implying that aspects of the phenomenon could be lost. Explicitation uses data as a whole but requires the research to develop themes by which to bracket the phenomenon. It has five steps beginning with phenomenological reduction. Units of meanings are delineated, followed by their clustering into various themes. At stage four, each of the interviews is summarised and modified as the researcher may deem necessary and as the objectives necessitate. Finally, themes are extracted from the data so that the researcher can draw conclusions. Dunn (2008) uses a phenomenological approach to explore the experience and perceptions of teachers with reference to retention. This literature presents a complete research paper from which one may draw an illustration. Personal reflection of your progress (any difficulties / points for consideration for next week’s independent learning) Data explicitation is not an easy task. There is no time for uncoordinated and unplanned activities. These two weeks have been characterised by precision in reading and application of knowledge. A time to apply reflection both from my readings as well my supervisor’s reflections. Two things have been of help in the exercise: critique and reflection. There are numerous readings I have encountered; using the two, my discretion has been enhanced. Read More