management research project - ii submitted in the partial...

“Study on the dimensions of consumption of luxury brand”

Management Research Project -II Submitted

In the partial fulfillment of the Degree of Master of Business Administration Semester-IV

By

Brijesha Makwana (12044311044)

Charmi Patel (12044311076)

Dipak Patel (12044311082)

Himanshu Patel (12044311087)

Pooja Soni (12044311155)

Under the Guidance of:

Prof. (Dr.) Mahendra Sharma Prof. & Head,

V. M. Patel Institute of Management.

&

Jayesh D. Patel Assistant Professor,

V. M. Patel Institute of Management.

Submitted To: V. M. Patel Institute of Management

(April 2014)

Certificate by the guide

This is to certify that the contents of this report entitled “Study on the dimensions of

consumption of luxury brand” submitted to V. M. Patel Institute of Management for the

Award of Master of Business Administration (MBA Sem-IV) is original research work carried

out by them under my supervision. This report has not been submitted either partly or fully to any

other University or Institute for award of any degree or diploma.

Name Exam No

Brijesha Makwana 12044311044

Charmi Patel 12044311076

Dipak Patel 12044311082

Himanshu Patel 12044311087

Pooja Soni 12044311155

Professor & Head,

V. M. Patel Institute Of Management,

Ganpat University.

Kherva.

Date: / /

Place:

i

Candidate’s statement

We hereby declare that the work incorporated in this report entitled “Study on the

dimensions of consumption of luxury brand” in partial fulfillment of the requirements

for the award of Master of Business Administration (Sem.-IV) is the outcome of original study

undertaken by us and it has not been submitted earlier to any other University or Institution for

the award of any Degree or Diploma.

Brijesha Makwana 12044311044 Charmi Patel 12044311076 Dipak Patel 12044311082 Himanshu Patel 12044311087 Pooja Soni 12044311155

Date: / /

Place:

ii

Preface

As a part of MBA curriculum and in order to gain particular knowledge in the field of

management, we are required to make report on any Management related topic.

The basic objective behind doing this project is to gain the knowledge about the Management

research and to interpret its various implications. We have selected the topic of “Study on

the dimensions of consumption of luxury brand (special focus on fashion accessories,

cosmetic and fragrances, watch, handbags)”

In this project we have included the various concepts, effects and implications regarding to

study of Marketing Research.

Doing this project helped us to enhance our knowledge regarding the field work. Throughout

the study we did undergo many new experiences related to people’s opinion as well as their

tendencies. Through this report we come to know about importance of work and role of

devotion towards the works.

iii

Acknowledgement

The research report on “Study on the dimensions of consumption of luxury brand (special

focus on fashion accessories, cosmetic and fragrances, watch, handbags)”has been given

to us as part of the curriculum in IV-Years Masters Degree in Business Administration.

We have tried our best to present this information as clearly as possible using basic terms that

we hope will be comprehended by the widest spectrum of researchers, analysts and students

for further studies.

We have completed this research report under the guidance and supervision of Prof. Jayesh

Patel; we will be failed in our duty if we do not acknowledge the esteemed bookish guidance,

assistance and knowledge. We have received from them towards fruitful and timely

completion of this work.

Our acknowledgement may not redeem the debt we owe to my parents for their direct/indirect

support during the entire course of this project.

We also thankful to our friend who helped us a lot in the completion of this project.

iv

Contents Certificate by the Guide i

Candidate’s Statement I

Preface iii

Acknowledgments iv

List of Tables xiii

List of Figures xvi

Abbreviations Used xvii

N0 Particular Page No.

1 Chapter-1 Introduction 1-21

1.1 Introduction of topic 2

1.2 The basic definition of luxury 3

1.3 Global Luxury market 4

1.4 Indian Luxury market 6

1.5 Worldwide Luxury market 9

1.6 Consumption of luxury 12

1.7 Luxury Brands 14

1.7.1 Definition of luxury Brands 14

1.8 The relationship between luxury products and Brands 16

1.9 The key players in luxury markets 17

1.10 Brand definition 19

1.11 The five dimension of Brand 20

2 Chapter-2 Literature review 22-28

2.1 Literature review 23

2.2 Experiential dimension of luxury Brand 24

3 Chapter-3 Research Methodology 29-37

3.1 Problem statement 30

3.2 Research objective 30

3.2.1 Sub-objective 30

3.3 Scope of study 30

3.4 Significance of study 31

3.5 Hypothesis of study 31

3.6 Research design 34

3.7 Sampling method 35

3.7.1 Sampling techniques 35

3.7.2 Sampling size 35

3.8 Data collection 35

3.8.1 Primary data collection 35

3.8.2 Secondary data collection 35

3.8.3 Tool for data collection 35

3.8.4 Data collection method 36

3.9 Data analysis 36

3.10 Reliability test 36

4 Chapter-4 Data analysis 38-81

4.1 Factor analysis 39

4.2 One way ANOVA analysis 45

5 Findings 82-84

6 Conclusion 85-86

7 Bibliography 87-90

8 Appendices 91-96

List of tables

No List of Tables Page

3.1 Reliability statistic 36

4.1.1 KMO and Bartlett's test 39

4.1.2 Total variance explained 40

4.1.3 Rotated component matrix 41

4.2.1 Assumption of equality of variances for brand value 45

4.2.2 ANOVA results for brand value and gender 45

4.2.3 Assumption of equality of variances for symbolism of brand 47

4.2.4 ANOVA results for brand symbolism and gender 47

4.2.5 Assumption of equality of variances for influence of brand 48

4.2.6 ANOVA results for influence of brand and gender 48

4.2.7 Assumption of equality of variances for attractiveness of brand 49

4.2.8 ANOVA results for attractive of brand and gender 49

4.2.9 Assumption of equality of variances for effectiveness of brand 50

4.2.10 ANOVA results for brand effectives of brand and gender 50

4.2.11 Assumption of equality of variances for brand and myself 51

4.2.12 ANOVA results for brand and myself and gender 51


4.3.2 ANOVA results for brand value and age 52


4.3.4 ANOVA results for symbolism of brand and age 53


4.3.6 ANOVA results for influence of brand and age 54


4.3.8 ANOVA results for attractiveness of brand and age 55


4.3.10 ANOVA results for effectiveness and age 56

4.3.11 Assumption of equality of variances for s brand and myself 57

4.3.12 ANOVA results for brand and myself and age 57


4.4.2. ANOVA results for brand value and current living status 58


4.4.4 ANOVA results for brand symbolism and current living status 59


4.4.6 ANOVA results for influence of brand and current living status 60


4.4.8 ANOVA results for attractive of brand and current living status 61


4.4.10 ANOVA results for brand effectives of brand and current living status 62

4.4.11 Assumption of equality of variances for brand and myself 63

4.4.12 ANOVA results for brand and myself and current living status 63


4.5.2 ANOVA results for brand value and education 64


4.5.4 ANOVA results for symbolism of brand and education 65


4.5.6 ANOVA results for influence of brand and education 66


4.5.8 ANOVA results for attractiveness of brand and education 67


4.5.10 ANOVA results for effectiveness and education 68


4.5.12 ANOVA results for brand and myself and education 69


4.6.2 ANOVA results for brand value and employment status 70


4.6.4 ANOVA results for symbolism of brand and employment status 71


4.6.6 ANOVA results for influence of brand and employment status 72


4.6.8 ANOVA results for attractiveness of brand and employment status 73


4.6.10 ANOVA results for effectiveness and employment status 74


4.6.12 ANOVA results for brand and myself and employment status 75


4.7.2 ANOVA results for brand value and annual income 76

4.7.3. Assumption of equality of variances for symbolism of brand 77

4.7.4 ANOVA results for symbolism of brand and annual income 77


4.7.6 ANOVA results for influence of brand and annual income 78


4.7.8 ANOVA results for attractiveness of brand and annual income 79


4.7.10 ANOVA results for effectiveness and annual income 80


4.7.12 ANOVA results for brand and myself and annual income 81

5.1 Finding of gender 83

5.2 Finding of age 83

5.3 Finding of current living status 83

5.4 Finding of education 84

5.5 Finding of employment status 84

5.6 Finding of annul income 84

List of figures

Figure

Name of figure

Page no

1.1 Luxury brand 15

2.1 Experiential dimension research modal 24

2.2 Five value of prestige combined with five relevant motivations 25

2.3 Three level of prestige 25

Abbreviations Used

No Short form Full form

1 KMO Kaiser Meyer Olkin

2 US United States

3 UK United Kingdom

4 GDP Growth Domestic Product

1

CHAPTER- 1

INTRODUCTION

2

1.1 Introduction of topic

Today, the market of luxury brand is rapidly growing. The unprecedented growth of the luxury

sector from a value of US $ 20 billion in 1985 to its current $ 180 billion worth has been

brought. Luxury brands now play an increasingly important role in profit generation for global

corporations. Historically, the value of luxury brands has been experienced many changes over

time. In the past, luxury brands were the product of great craftsmen and the value of luxury

brands was in the dimension of functional value and then changed to social value which

emphasize on the other meaning rather than product itself.

In the previous studies on luxury brand consumption, the motives for acquiring luxury brands

were traditionally regarded as? Buying to impress others. A review of the literature shows that

social orientation dominates luxury-related research, while personal orientation is comparatively

overlooked. Overall, there is lake of a rigorously examined empirical model, which aims at

specifying the antecedents and consequences of personal orientation towards luxury-brand

consumption.

Therefore, this study aims to first demonstrate the necessity of taking an importance on changes

in perspective of the dimension of experiential consumption of luxury-brand in exploring the

topic of luxury-brand marketing management second, analyze difference of effect in empathy

and brand loyalty on luxury-brand as consumers with personal orientation experience the

dimension of experiential value and finally provide strategic recommendations for enhancing

luxury-brand consumption value for those consumers.

3

1.2 The basic definition of luxury

Luxury means different things to different people. For many, it’s exclusivity. An experience or

item that’s limited in nature, and is not available to everyone – for reasons of expense or

otherwise. For others it means something that is inessential. A choice you make that isn’t about

necessity, but about self- indulgence or enjoyment. This could range from a bar of chocolate, to

designer fashion, jewellery or home ware. In travel, luxury is key a market segment. There is a

whole subset of the travel industry that caters for the affluent traveler, offering the most desirable

hotels and resorts, in the most exclusive locations. Then there are the services that cater for them

while they are away, from Michelin-starred restaurants to designer boutiques. Luxury travel is

big business. And when it comes to getting there? Of course private jet travel is widely-

considered as the epitome of luxury.

Why travel in an aircraft full of other people – even in a business or first class seat – when you

could have one all to yourself? Why eat what and when the airline decides, when you could

choose your own bespoke catering? And why fight your way through a crowded airport terminal

when you could drive straight up the aircraft steps? There’s no doubt that all these things are part

of the luxury appeal of private jet travel. Exclusivity, comfort and privacy are key components of

a luxury experience. But actually, if you asked most of our clients why they choose private

aviation, it comes down to one thing: Time. In today’s fast- forward world, there’s no greater

luxury.

Despite confusions, researchers across all disciplines share a basic understanding of luxury. To

begin with, luxury is defined as something that is more than necessary .In contrast to necessity;

some authors also characterize luxury by non-necessity and superfluity. The distinction between

necessity and luxury is based on the availability or exclusivity of resources. While necessities are

possessed by virtually everyone, luxuries are available exclusively to only a few people or at

least only on rare occasions imagined the necessity- luxury dimension as a continuum ranging

from absolute necessity to absolute luxury.

4

1.3 Global luxury market

The global luxury goods industry should exceed $307 billion by 2015, according to research

from private firm Global Industry Analysts. The market will be driven by rising income as the

economy recovers after the recession. Other relevant factors to the market include consumer

diversification, as there is a shift in target demographics away from very affluent consumers, and

a change in lifestyles that means luxury goods are attainable to a wider population. Luxury

products include clothing, footwear, jewelry, handbags, wines, yachts, perfumes, watches and

cosmetics.

Luxury goods manufacturers meet consumer demand by focusing on brand, aesthetics, quality

materials, superior craftsmanship and pricing to transform everyday objects into status symbols.

The industry rises and falls in tandem with gross domestic product, seeing demand climb in

times of economic stability and plummeting in unfavorable economic climates as consumers cut

back on non-essential spending.

Asia-Pacific is expected to record almost 16% annual growth in luxury goods between 2007 and

2015. Luxury watches represent the leading market segment in terms of value with over 17% of

the overall market, while cosmetics represent the fastest-growing market segment.

Economic growth worldwide, rising income and wealth levels, consumption of luxury goods by

middle class population and continuous global urbanization are fueling the development of the

global luxury goods market. The growth of the luxury market had high correlation with macro

indicators, such as real GDP, tourist arrivals, wealth, and disposable income. One of the main

drivers propelling the growth of this market is the growing global online personal luxury goods

market. The emergence of an off-price pricing strategy in the global online luxury goods market

is making personal luxury goods accessible to a greater number of individuals since they can

compare the prices of different products and make purchases. Further, men are increasing their

contribution to this market by making more online purchases.

This report analyzes the development of the "global luxury goods market", with a focus on some

of the major segments including cars, wines and spirits, jewelry and watches. The mature market

of Europe along with emerging market of China is being discussed in the report. The major

5

trends, drivers facilitating growth of the luxury goods market as well as the issues being faced by

the industry are being presented in this report.

Key market segments

The world apparel, accessories and luxury goods market is expected to record yearly growth of

almost 3.5% in the five-year period ending 2015, to reach almost $1.7 trillion, reports market

line. Women swear represents the largest market segment, generating almost $603 billion or 42%

of the overall market. The global gourmet products market enjoys strong demand, as consumers

are willing to pay extra for ethical food and drink, a factor that looms large in gourmet

advertising. Products claiming health benefits are also successful, reports Business Insights.

The US, the UK and France hold a combined 75% of the global champagne market, which has

recorded 8% growth in shipments recently, a strong indicator that the market is recovering after

the economic recession. Key players in the global champagne industry include Laurent Perrier,

Moët Hennessy Louis Vuitton, Lanson-BCC and Vranken-Pommery. The global luxury car

market is recording strong growth in China, with forecast sales of almost 910,000 units in 2011,

according to Dion Research, representing 25% year-on-year expansion. The market, which is

expected to expand by a further 20% in 2012, is driven by increasing spending capacity, new car

launches and new manufacturing sites.

Luxury car demand in India is particularly strong, recording its highest-ever sales in the first

quarter of 2011, reports Smart Research Insights. Companies such as Audi, Aston Martin,

Mercedes and BMW are likely to focus on India in the coming years. The 2010 luxury car

market in India sold around 18,000 units, and numbers are forecast to climb to 30,000 before

2015. Industry Leaders Key players operating in the global luxury goods industry include

Bulgari, Tiffany and Co, Shiseido, Polo Ralph Lauren, Valentino, Burberry, PPR, Armani,

LVMH, Gucci, Hermes, Fashion Group, Christian Dior, Prada and L’Oreal.

http://www.reportlinker.com/p0204559-summary/Global-Apparel-Accessories-Luxury-Goods.html



http://www.reportlinker.com/p0693529-summary/The-Future-of-Gourmet-Foods.html

http://www.reportlinker.com/p0574950-summary/Opportunities-in-the-Chinese-Luxury-Car-Market.html

http://www.reportlinker.com/p0654413-summary/Assessment-of-the-Indian-Luxury-Car-Segment.html

6

1.4 Indian luxury market

India’s luxury market is poised for big times this was confirmed by another report. The luxury

market in India is pegged to grow at 25 percent in 2013 till 2015 and likely to touch 15 billion

dollars (Rs 80,325 corers) from the current level of 8 billion dollars (Rs 42, 960 corers). “The

luxury market is poised to expand three fold in next three years and the number of millionaires is

expected to multiply three times in another five years,” said Assocham secretary general D S

Rawat while releasing the study on Indian luxury market. The report envisages an increase in

spending across the country and beyond the metros, with increasing brand awareness amongst

youth and purchasing power of the upper class in Tier II, III cities in India where luxury cars,

bikes and exotic holidays and destination weddings are no strangers. It may be recalled that even

a CII-AT Kearney report had confirmed the luxury market in India is set for big times.

The study projects Indian luxury market will touch 14.7 billion dollars (Rs 78,939 corers) in

2015. The number of ultra-high net worth households, with a minimum net worth of Rs 25 corers

is expected to triple to 2.86 lakh in next five years with a five-fold increase in their net worth to

Rs 235 trillion. And the HNIs will be double in number by 2015 to over 4 lakhs with a collective

wealth of 2,645 billion dollars (Rs 1,42,07,617 crores). With the luxury market expected to grow

at over 25 percent year on year, PE investments in the luxury segment are expected to increase

and support the enhanced size of the Indian luxury market. There are a number of funds in India,

which are focused on investing in consumer centric businesses, e.g. Ever stone, L Capital and

Vigo. A number of others are also currently investing in the consumer space owing to lack of

meaningful opportunities in other segments and some of these funds are expected to vet the

luxury markets' appetite for capital. With positive regulations and policies for the retail industry

being put in place by the government along with a burgeoning middle class which aspires to own

and experience luxury goods and services, India is a market that can no longer be ignored by

international brands. However, with every opportunity comes the accompanying challenges and

India is no different. With thorough market research, prudent marketing strategies and the right

local partner, global luxury players can unearth a sea of opportunities that India represents, says

the study.

7

India's luxury market bucked the lingering economic slowdown and swelled to $8.5 billion in

2013 as savvy consumers continued to open their purses on high-end products and services, an

Assocham study found. "Be it a family holiday to exotic locations in Europe or US, sporting

branded jewellery, driving around in top-end SUVs, going out for a fine dining in five star

hotels, India's luxury life style market has remained largely affected by the economic slowdown

in 2013," Assocham Secretary General D S Rawat said. He reasoned that a young demographic

profile, increasing number of millionaires and aspiration integration with the globe are all among

the driving factors for the luxury markets in India. Since high-end products and lifestyles are not

price elastic, they are not much affected by the slowdown.

According to the study, the luxury market in India witnessed a growth rate of 30% in 2013. The

segment stood at $6.5 billion in 2012 and is estimated to cross $14 billion mark during the course

of the next three years. Sectors such as five star hotels and fine-dining, electronic gadgets, luxury

personal care, and jewellery performed well in the year of 2013 and are expected to grow by 30-

35% over the next three years, the study revealed. Besides, big ticket spends on luxury cars are

likely to continue, growing by 15-20% over the next three years, driven by consumption in

smaller towns and cities, it said.

The study divided the luxury sector into various categories including apparel and accessories;

pens; home decor; watches; wines & spirits; jewellery; services like spas, concierge service,

travel & tourism, fine dining and hotels; and assets like yachts, fine art, automobiles. The study

further said that 2014 will be a good year for the Indian luxury market despite the upcoming

general elections, even though not many economic reforms may be introduced.

The Indian Luxury Market- The luxury market is growing at a rapid pace in the India with a

compounded annual growth of 25 per cent. Its present and future is endowed- estimated to be at

US$4.76 billion, the luxury market in India is set to touch three times its current size at

US$14.72 billion by 2015. The country has become the prime destination for top-notch global

brands, while many high-end luxury brands have quickly set up their shops here. The market the

entire luxury market can be divided into three- luxury products, luxury services and luxury

assets. According to a CII-AT Kearney report in 2010, in the last few years (2007-2009), the

http://www.business-standard.com/search?type=news&q=Luxury+Market

http://www.business-standard.com/search?type=news&q=Slowdown

http://www.business-standard.com/search?type=news&q=Assocham

8

luxury products market has grown at 22 per cent. In 2009-10, India consumed luxury goods

worth US$1.5 billion. The escalation can be attributed to the evolving number of wealthy

shoppers in India – today, nearly 70% of India’s wealth is concentrated in the five metros. Over

time, the market has grown to be so strong that it even escaped the brunt of recession as only a

fraction of luxury products saw a minor dip in the sales. The riches for which the switch from a

luxury item to a ‘second-fiddle’ would not be a consideration helped wade the industry over

money crunch period. According to the Kearney report most luxury product categories witnessed

over 15 per cent growth over the past few years (including recession years). The performance of

categories like Electronics, Wines and Spirits, Apparel and Jewellery was impressive.

9

1.5 Worldwide luxury market

The world luxury goods market is benefiting from changing attitudes towards luxury, once the

domain of the very wealthy, now becoming accessible to a wider, less-wealthy demographic.

Euro monitor International points out the importance of packaging in attracting new consumers,

boosting demand in Brazil, Russia, India and China. The luxury goods industry is expected to

grow by 65% between 2010 and 2015, according to Data monitor, led by rising demand in

developing countries. Reversing the trend of recent years, the Americas region is the king of the

luxury goods spending hill, estimated to grow at 4% in 2013 versus 2012, surpassing the

estimated 2.5% growth rate for China, as luxury spending in that country moderates. A steady

pace of store openings in second-tier cities in the U.S. interior has fueled sales growth in the U.S.

In a twist, an additional factor driving the growth in the Americas is luxury spending by the

increasing number of Chinese now visiting in western cities in the U.S. such as Las Vegas and

Los Angeles; this according to the 2013 Luxury Goods Worldwide Market Study, presented in

collaboration today in Milan with Alta gamma, the Italian luxury goods manufacturers industry

foundation.

Overall worldwide, luxury goods spending will grow by 2% to €217 billion at current exchange

rates over 2013, as challenging economics in Europe continue and as China shifts from market

expansion to network maintenance of major luxury brands which entered China over the past

several years. However, it is important to note that the growth figure masks a significant impact

from exchange rates. At constant exchange rates, market growth would have reached 6% for the

year, compared to 5% in 2012. The devaluation of the yen is responsible for over half of this

year’s gap. “The hyper growth of recent years was destined to moderate,” said Claudia

D'Arpizio, a Bain partner in Milan and lead author of the study. “The silver lining for luxury

brands is that they can now change their focus from keeping up with the present to planning for

the future.”

Beyond the Americas, the study also surfaces significant regional differences in the luxury

market: Europe will see 2% growth, with increasing spending by tourists counteracting slower

spending by European nationals. Tourist spending now drives half of revenues in Italy, 55% of

revenues in the U.K., and 60% of revenues in France Japan will experience a 12% decline.

http://www.reportlinker.com/p0691964-summary/Luxury-Goods-Diversification-Creating-Packaging-Opportunities-Worldwide.html

http://www.reportlinker.com/p0693533-summary/Global-Luxury-Retailing-Market-Size-Brand-Strategies-and-Competitor-Performance.html

10

Although in real terms, Japanese consumption increased by 9% after a long period of stagnation,

the sharp depreciation of the yen imposed a steep penalty on the final revenues for luxury brands,

even while consumers are responding well to brands’ offerings Greater China’s growth of 4%

includes a split in performance between the Mainland, which will grow at 2.5%, and Hong Kong

and Macau, which increasingly capture Chinese spending as the nearest-to-home touristic

markets. Overall, Chinese consumers have increased from 25% to nearly 30% of the luxury

market, including local luxury consumption, and purchases made by tourists abroad

Southeast Asia has become the rising star of the Asia Pacific region, with growth of 11%, not

only in its historic core of Singapore but in Malaysia, Indonesia, Vietnam, and Thailand, as well

The Middle East remains relatively strong, with 5% growth. Sales remain strong in Dubai as

well, while Saudi Arabia is also gaining share to become the region’s second largest luxury

market Africa is increasingly demonstrating its attractiveness as a high-potential region, with

11% growth and expansion into new markets such as Angola and Nigeria beyond its traditional

strongholds of Morocco and South Africa

Online sales continue to grow faster than the rest of the market, turning in 28% annual growth

for the year and reaching close to 10 billion Euros, nearly 5% of total luxury sales and larger

than luxury revenues for all of Germany. In online sales, shoes are the top-performing category.

Bain identifies this level of online penetration as a point where brands have to treat their online

channel as a seamless part of their overall channel strategy, rather than an incidental source of

additional revenue.

In addition, Bain’s “Luxury Goods Worldwide Market Study” finds accessories, including

leather goods and shoes, have definitively become the largest segment, growing 4% for 2013 to

reach 28% of total revenues. By contrast, apparel is now a quarter of the market, growing at 1%.

Hard luxury and perfumes and cosmetics will finish up 2013 with 2% growth. Beyond personal

luxury goods, Bain’s analysis and forecasts for luxury cars, wine and spirits, hotels, in-home and

out-of-home food, home furnishings, and yachts all show growth, with luxury cars, wine and

spirits, and hotels outpacing personal luxury goods and leading to an overall 2013 market of

€800 billion of affluent spending, up 6% over 2012. This figure is on track to approach €1

trillion within the next five years.

11

Finally, Bain’s study underlines that in the long run, Italian brands have gained the largest

market share of luxury sales, moving from 21% in 1995 to 24% today, nearly equaling French

brands’ share of 25%. But in a consolidating market, French conglomerates are a driving force,

owning 29% of the market compared to 25% in 1995.

“The luxury market is becoming more and more complex and, in some aspects, starting to look

like more competitive industries such as fast-moving consumer goods. Brands find themselves

having to adapt by bringing in the level of detailed customer insight that food or drink brands

need to drive growth,” concluded D'Arpizio. “While still showing steady, if not extravagant

growth, brands are adjusting to a new set of scientific tools in order to keep creativity and

product excellence at the center of their strategies and organizations.”

12

1.6 Consumption of luxury

Today, the market of luxury brand is rapidly growing. The unprecedented growth of the luxury

sector from a value of US $ 20 billion in 1985 to its current $ 180 billion worth has been

brought. Luxury brands now play an increasingly important role in profit generation for global

corporations. Historically, the value of luxury brands has been experienced many changes over

time. In the past, luxury brands were the product of great craftsmen and the value of luxury

brands was in the dimension of functional value and then changed to social value which

emphasize on the other meaning rather than product itself. In the previous studies on luxury

brand consumption, the motives for acquiring luxury brands were traditionally regarded as

‘buying to impress others’.

A review of the literature shows that social orientation dominates luxury-related research, while

personal orientation is comparatively overlooked. Overall, there is lake of a rigorously examined

empirical model, which aims at specifying the antecedents and consequences of personal

orientation towards luxury-brand consumption. Therefore, this study aims to first demonstrate

the necessity of taking an importance on changes in perspective of the dimension of experiential

consumption of luxury-brand in exploring the topic of luxury-brand marketing management

second, analyze difference of effect in empathy and brand loyalty on luxury-brand as consumers

with personal orientation experience the dimension of experiential value and finally provide

strategic recommendations for enhancing luxury-brand consumption value for those consumers.

the luxury market and determine the factors that determine luxury consumption. Luxury

consumption has been neglected, and yet many questions arise concerning the underlying

dimensions of luxury shopping.

Those in this market consumer perceive quality as a brand determinant. Further, strong patron

status suggests a “snob effect” among respondents, who buy exclusive items in an attempt to

distinguish themselves. Hence, rare products indicate respect and prestige among the

respondents. Furthermore, this paper defines two sub-categories, namely “old aristocracy” and

“new money”, with the latter more ascendant in the case of a developing market. It also showed

that luxury consumers behave similarly worldwide, regardless of economic or social

surroundings.

13

Luxury consumption should be put in the context of psychological determinants, and perhaps

tested according to lifestyle.

14

1.7 Luxury brands

1.7.1 The definition of luxury brands

The modern understanding of a brand is consumer and identity oriented. Accordingly, brands are

regarded as images in the minds of consumers and other target groups which are designed by

companies to identify their products. Luxury brands are highly associated with their core

products. This is reflected by the larger part of the existing definitions of luxury brands, which

refer to specific associations about product characteristics.

The constitutive characteristics of luxury products therefore correspond largely with those of

luxury brands, which leads to the following definition: Luxury brands are regarded as images in

the minds of consumers that comprise associations about a high level of price, quality, aesthetics,

rarity, extraordinariness and a high degree of non-functional associations. Any potential luxury

brand should be evaluated by the constitutive characteristics of luxury; these explanations are

summarized by the following

Price: The brand offers products which belong to the most expensive products of their category.

Quality: The brand offers everlasting top-of-the- line products, which won’t be disposed of even

after long utilization or defect, but rather repaired and which often even gain in value over time.

Aesthetics: The brand behaves like a chic and vain dandy, who would never leave the house in

less than perfect style. Whenever and wherever the brand is seen, it embodies a world of beauty

and elegance.

Rarity: In contrast to mass-market brands, the brand needs to limit its production and tries not to

disclose its (high) sales numbers. The brand plays hard to get and is not available at all times or

places.

15

Extraordinariness: The brand has a mind and style of its own and its products offer a “kick” and

surprise with the “expected unexpected.”

Symbolism: The brand stands for “the best from the best for the best”; its charisma fills the

room, and regardless of whether it is of a conspicuous or understated nature, deep inside, it is

swollen with pride.

Figure 1.1: Luxury brand

16

1.8 The Relationships between Luxury Products and Brands

By definition, luxury brands need to offer luxury products. Without a product portfolio that

includes luxury products, it is impossible to achieve a luxury brand image. Nevertheless, the

product range of a luxury brand does not necessarily consist only of luxury products. For

instance, Mercedes offers luxury cars such as the S-class and non- luxury cars such as the A-class

the latter of which can also be referred to as misstate products. However, all products of a luxury

brand such as Mercedes can be referred to as luxury-branded products. Unsurprisingly, non-

luxury brands are generally associated with non- luxury products. Nevertheless, there are also

many examples of non- luxury brands that still offer luxury products. For instance, luxury yachts

by Blohm+Voss, private jets by Bombardier and first-class flights by Lufthansa undoubtedly

belong to the luxury segment. These non-luxury brands that also offer luxury products can also

be referred to as luxury product brands.

These relationships between luxury products and brands are summarized in. This demonstrates

that a decision about the categorization of a brand as luxury or non- luxury must refer to the

brand image and cannot be made just by evaluating the luxuriousness (or even only the price) of

some of its products. A highly expensive and luxurious product does not necessarily come from a

luxury brand. On the other hand, there are luxury brands such as Mercedes whose product

portfolio actually consists to a larger extent of non- luxury products, even including construction

vehicles and garbage trucks. Therefore, the evaluation of the luxuriousness of a brand should

refer to the core product category with which this brand is associated.

A luxury brand that manages to be clearly associated with the constitutive characteristics of

luxury within its core product category can successfully extend its product portfolio and even sell

garbage trucks.

17

1.9 The key players in luxury markets

currently the world's largest luxury brands research and management international non-profit

organization and is focused on the international luxury market (luxury brands, services and

consumers) and specializes in luxury brand management, market research, brand intellectual

property protection, consumer arbitration, trade promotion and government affairs. The Most

Valuable Luxury Top 100 list is based on luxury brand's influence on a global scale, market

share, consumer feedback and other composite scores -- for currently the world's most credible

rankings.

Fashion related brand name:

• Hermes

• Chanel

• Louis Vuitton

• Christian Dior

• Ferragamo

• Versace

• Prada

• Fendi

• Giorgio Armani

• Ermenegildo Zegna

Jewellary related brand name:

• Cartier

• Van Cleef & Arpels

• Boucheron

• Harry Winston

• Chaumet

• Kloybateri

• Bvlgari

• Montblanc

18

• Tiffany&Co

• Mikimoto

Watches related brand name:

• Patek Philippe

• Vacheron Constantin

• Piaget

• Jaeger-Le Coultre

• Audemars Piguet

• Blancpain

• Rolex

• Breguet

• IWC

• Franck Muller

Cosmetics related brand name:

• Chanel

• Christian Dior

• Guerlain

• Givenchy

• Helena Rubinstein

• Sisley

• La Prairie

• La Mer

• Lancome

• Biotherm

19

1.10 Brand definition

A brand is a name given to a product and/or service such that it takes on an identity by itself.

A brand differentiates a product from similar other products and enables it to charge a higher

premium, in return for a clear identity and greater faith in its function. A brand is also likely to

survive longer than just an undifferentiated product. A brand is akin to a living being: it has an

identity and personality, name, culture, vision, emotion and intelligence. All these are conferred

by the owner of the brand and needs to be continuously looked at to keep the brand relevant to

the target it intends to sell to.

Any brand is a set of perceptions and images that represent a company, product or service. While

many people refer to a brand as a logo, tag line or audio jingle, a brand is actually much larger. A

brand is the essence or promise of what will be delivered or experienced. Importantly, brands

enable a buyer to easily identify the offerings of a particular company. Brands are generally

developed over time through:

• Advertisements containing consistent messaging

• Recommendations from friends, family members or colleagues

• Interactions with a company and its representatives

• Real- life experiences using a product or service (generally considered the most important

element of establishing a brand)

Once developed, brands provide an umbrella under which many different products can be

offered--providing a company tremendous economic leverage and strategic advantage in

generating awareness of their offerings in the marketplace.

20

1.11 The 5 dimensions of brand (that are essential steps in building a successful-brand)

1. Develop a vision for your brand:

The vision for a brand consists of a broad statement of what the brand aspires to be. The vision

should take a long-term perspective, in recognition of the fact that building a powerful brand

does not happen in weeks or months. A solid brand vision defines the business in terms the

customer can understand and relate to. It must be original, motivational and inspiring. And, the

vision must get buy-in by senior management if it is to be successfully implemented.

2. Position your brand in order to differentiate yourself from competitors:

Brands are multidimensional in that they usually carry with them a number of images and

associations in the minds of the company and customers. However, all successful brands have a

particular focus that differentiates it from those of competitors. A properly-positioned brand

must transcend demographics and clearly identify likely prospects. The Brand Team identifies

prospects based on which needs and motivations the brand addresses.

3. Create a personality for your brand:

Ultimately, your brand must be something with which people can identify. It has to have its own

personality, its own character. Your brand will likely evolve over time, but its essential character

should-endure.

4. Articulate the benefits your brand delivers to customers:

In time your brand must come to represent a set of functional benefits in the minds of your

prospects and customers. Thus, during brand definition your team must clearly articulate the set

of benefits - the value - that it represents to customers. It is important to note that strong brands

also carry with them a set of emotional associations. The emotional benefits of a brand are often

supported by the functional benefits, and they form the basis of the brand's positioning.

21

5. Define the values your brand represents:

Finally, your brand must represent a particular set of values. This is because your target

customer base is composed of human beings, and humans are value-motivated. If you

successfully articulate the values your brand represents, you have a better chance of getting

customers to associate the values of your brand with their own values. Value definition can

create long-term bonds between your brand and your target customers.

When your company decides it is ready to put the effort into developing its brand it should start

by undertaking the processes of brand discovery and brand definition. Every brand definition

process, in turn, should include developing a vision, determining effective positioning, creating a

brand personality, articulating the benefits of the brand, and defining the values that your brand

represents.

22

CHAPTER- 2 LITRATURE REVIEW

23

2.1 Literature review of consumption

Personal orientation and experiential dimension of luxury-brand:-

The definition of luxury brand traditionally relate to high price, high quality, prestige (Dubois

and Czellar 2005; Eastman et al., 1999; Vigneron and Johnson 1999; 2004). Previous researches

limited in researches that focused on demographics of consumers who bought luxury brand, and

concentrated on symbolic value of luxury brand through socio cultural approach related to usage

of luxury brand. The research scope of luxury-brand marketing management is expanding to

cover consumers whose purchase motives are more personal than social in nature.

Wong and Ahuvia (1998) theorized that orientation towards luxury-brand consumption is more

visible in some consumers who are intent on deriving self-directed hedonic experience from the

use of the product, pursuing private meanings in the product and judging the product with

individual-based standards. Personal orientation and Self-directed pleasure: Self-directed

pleasure features the feelings of bliss, contentment, and ecstasy for the self, which is contrasted

to other-directed pleasure. Csikszentmihaly (1990) emphasized it as an essential element that

individuals perceive in forming their own hedonic experience, which is spontaneous and intense,

yet self-determined. Vigneron and Johnson (1999) asserted that consumers with stronger

personal orientation may seek self-directed pleasure from luxury-brand products. Self-directed

pleasure is not occurring by external factor rather than occurring through internal experience of

consumer. Thus, this can be seen as a positive emotion such as self satisfaction and pleasure by

owning luxury-brand products. And self-directed pleasure with strong individual dimension will

increase personal orientation on luxury-brand which is the propensity to consumption that mainly

focuses on individual.

24

2.2 Experiential dimension of luxury-brand:

Brand loyalty was defined as a deeply held commitment to re buy or repatronizc a preferred

product or service consistently in the future (Oliver, 1999). In behavior approach of loyalty, it

defined as a commitment on unique value of specific brand and it increases in a mood of positive

feeling or emotional state (Chaudhuri and Holbrook, 2001). All this characteristics of brand

loyalty relate to motivation of increase in four experiential dimensions of luxury brand

consumption which has pointed out above. Therefore, consumers who have a high level of four

experiential dimensions of luxury brand consumption also likely to increase brand loyalty on

luxury brand thus, this reasoning leads us to propose following hypotheses.

Figure 2.1. Research model

Source: Vigneron and Johson 1999

Personal

Orientation

Brand Loyalty

Congruity with Internal

Self

Self-gift Giving

Self-directed

Pleasure Empathy

Quality Assurance

25

Research model indicates that the relationship between personal orientation and four experiential

dimension. It suggests that consumers with strong personal orientation will increase the level of

experiential dimension on luxury brand, and as those experiential dimension increases, the level

of empathy and brand loyalty will be increase. To measure the research model, existing and

tested measures were used. Based on the explanation on personal values of luxury brand in the

researches (Wong and Ahuvia, 1998; Wiedmann etc., 2007), the characteristic of personal

orientation described as it considered judging by her or his own value as important and apply it

to the luxury brand on the evidence of the research of Tsai (2005) which defined it as highly

dependent on self-concept.

Figure 2.2: Five values of prestige combined with five relevant motivations

Values Motivation

Conspicuous Veblenian

Unique Snob

Social Bandwagon

Emotional Hedonist

Quality Perfectionist


Figure 2.3: Three levels of prestige


Other Types of Brands - +

Up Market Premium Luxury

26

8 P’S of luxury brand

1. Performance:

Performance refers to the delivery of superior experience of a luxury brand at two levels – first,

at a product level and, second, at an experiential level. At a product level, fundamentally it must

satisfy the functional and utilitarian characteristic as well as deliver on its practical physical

attributes – a recipe of quality or design excellence ingredients such as craftsmanship, precision,

materials, high quality, unique design, extraordinary product capabilities, technology and

innovation. A luxury brand must perform at an experiential level as well, i.e. the emotional value

of the brand the consumers buy into – beyond what the product is to what it represents. For

example, Rolex stands of symbol of heroic achievement and Tiffany & Co. is a symbol of love

and beauty.

2. Pedigree:

Many luxury brands have a rich pedigree and extraordinary history that turn into an inseparable

part of the brand’s mystique. This mystique is generally built around the exceptional legendary

founder character of the past, making up an integral part of the brand story and brand personality.

So, when consumers buy, say, a Cartier or a Chanel product, it is not only because of the product

performance factor, but subconsciously they are also influenced by the brand’s rich lineage,

heritage and the years of mastery.

3. Paucity:

Over-revelation and distribution of luxury brands can cause dilution of luxury character. Hence,

many brands try to maintain the perception that the goods are scarce. A case in point is Burberry,

which diluted its brand image in Britain in the early 2000s by over-licensing its brand, thus

reducing its image as a brand whose products were consumed only by the elite. Gucci is now

largely sold in directly-owned stores following a nearly crippling attempt to widely license its

brand in the 1970s and ’80s.Broadly, there is natural paucity – the actual scarcity – as well as the

technology- led paucity and the tactical-driven paucity Natural paucity is triggered by scarce

ingredients such as platinum, diamonds or those goods that require exceptional human expertise

such as handcrafted quality that constraints the mass production.

27

4. Persona:

The persona of a luxury brand is largely a result of, first, its distinctive projection plus coherence

of its applications across consumer touch points and, second, the brand communication through

its advertising. The visual brand identity captures the brand’s personality, mystique and

emotional values in a nutshell. The distinct and consistent orchestration of the identity is central

to establishing the visibility, familiarity and common identifiable brand imagery. The visual

brand orchestration can manifest by way of its coherent application of its identity, brand colors,

other design elements such as icons, uniquely identifiable design, branded environment and even

the tone of voice. While the luxury brand’s visual identity is a fairly stable factor, luxury brand

advertising is a more dynamic and versatile marketing vehicle. While the pedigree of the brand

has its role, keeping up the contemporary appeal and the newness factor is crucial for enduring

brand relevance.

5. Public figures:

Public figures or celebrities have traditionally been employed as one of the marketing mix in

luxury brand advertising and they still continue to garner attention, credibility and impact. Public

figures can span from film stars to music personalities, from sports personalities to royal families

and even the designer themselves .But because celebrity endorsements are no longer exclusive to

the luxury space and extensively used and abused across mass categories, they take a different

meaning when it comes to luxury brand endorsement.

6. Placement:

The retail branded environment in luxury branding is all about heightening the consumer’s brand

experience and amplifying the brand aura. Hence, the branded environment and the movement of

truth is where it must “live” the brand by orchestrating immaculate detailing that engages all

senses of the discerning audience.

28

7. Public relations:

Public relations in luxury branding play an enormous role in image proliferation of the brand,

thereby subtly influencing public opinion.PR is also employed to convey other supporting

messages and attributes of the brand that cannot be explicitly captured in advertising, but are by

no means are less important to create brand’s personality, mystique and emotional value.

8. Pricing:

Pricing plays a quite a big role in the way that consumers perceive luxury brands. Consciously or

subconsciously, consumers tend to generate a mental luxury stature or image with the price range

that the brand operates. Therefore, it is important for luxury brands to price themselves right as

setting the price lower than consumer expectation and willingness to pay can potentially harm

the brand value, whereas the reverse can potentially not, given enough justification for

consumers to go ahead and buy. The pricing strategy in luxury brands gained spotlight recently

not only because of the challenging economic environment, but because of more informed-and-

exposed consumers who are more discriminating and demanding and for whom premium pricing

without substance does not imply luxury.

29

CHAPTER- 3

RESEARCH METHODOLOGY

30

Research methodology

Chapter three describes the research methodology used in this study. It addresses the target

Population, sampling techniques, size and data collection and validity of the instrument used in

the study. The study is descriptive in nature. The research will employ a questionnaire to gather

data, make use of appropriate statistical techniques to evaluate the data and reach conclusions.

3.1 Problem statement (problem identification)

In this research Focus is on to investigate various factors which lead to focus on the dimension of

consumption of luxury brand.

3.2 Research objectives

Focus on to check dimension of consumption of luxury brand.

3.2.1 Sub-objective

To find out key factors which help on dimension of consumption of luxury brand. To assess the

gender toward value of brand, dimension of brand, influence of brands, effective of brand,

brands myself.

3.3 Scope of the study

This study discusses the dimension of experiential consumption of luxury brand. Specifically, it

examines factors of experiential dimensions and the impact of personal orientation on

experiential dimensions as well as experiential dimensions on empathy and loyalty of luxury

brand.

31

3.4 Significance of the study

In this study, it is going to be helpful to Marketers as comparison strategy, decision making and

Future Market Trend. It is going to be helpful to the Researchers as Database and for further

study and to the Students as secondary data in Project Reports, Secondary Data in Research

Report and general guidelines.

3.5 Hypothesis of the study

A hypothesis is an assumption or claim about some characteristic of a population, which we

should be able to support or reject on the basis of empirical evidence.

H0: Males’ and females’ perception for brand value are same.

H1: Males’ and females’ perception for brand value are different.

H0: Males’ and females’ perception for symbolism of brand are same.

H2: Males’ and females’ perception for symbolism of brand are different.

H0: Males’ and females’ perception for influence of brand are same.

H3: Males’ and females’ perception for influence of brand are different.

H0: Males’ and females’ perception for attractiveness of brand are same.

H4: Males’ and females’ perception for attractiveness of brand are different.

H0: Males’ and females’ perception for effectiveness of brand are same.

H5: Males’ and females’ perception for effectiveness of brand are different.

H0: Males’ and females’ perception for brand and myself are same.

H6: Males’ and females’ perception for brand and myself are different.

H0: Age and perception for brand value is same.

H7: Age and perception for brand value is different.

32

H0: Age and perception for symbolism of brand are same.

H8: Age and perception for symbolism of brand are different.

H0: Age and perception for influence of brand are same.

H9: Age and perception for influence of brand are different.

H0: Age and perception for attractiveness of brand are same.

H10: Age and perception for attractiveness of brand are different.

H0: Age and perception for effectiveness of brand are same.

H11: Age and perception for effectiveness of brand are different.

H0: Age and perception for brand and myself are same.

H12: Age and perception for brand and myself are different.

H0: Current living status and perception for brand value is same.

H13: Current living status and perception for brand values is different.

H0: Current living status and perception for symbolism of brand is same.

H14: Current living status and perception for symbolism of brand is different.

H0: Current living status and perception for influence of brand is same.

H15: Current living status and perception for influence of brand is different.

H0: Current living status and perception for attractiveness of brand is same.

H16: Current living status and perception for attractiveness of brand is different.

H0: Current living status and perception for effectiveness of brand is same.

H17: Current living status and perception for effectiveness of brand is different.

H0: There Current living status and perception for brand and myself are same.

33

H18: There Current living status and perception for brand and myself are different.

H0: Education and perception for brand value is same.

H19: Education and perception for brand value is different.

H0: Education and perception for symbolism of brand is same.

H20: Education and perception for symbolism of brand is different.

H0: Education and perception for influence of brand is same.

H21: Education and perception for influence of brand is different.

H0: Education and perception for attractiveness of brand is same.

H22: Education and perception for attractiveness of brand is different.

H0: Education and perception for effectiveness of brand is same.

H23: Education and perception for effectiveness of brand is different.

H0: Education and perception for brand and myself is same.

H24: Education and perception for brand and myself is different.

H0: Employment status and perception for brand value is same.

H25: Employment status and perception for brand value is different.

H0: Employment status and perception for symbolism of brand is same.

H26: Employment status and perception for symbolism of brand is different.

H0: Employment status and perception for influence of brand is same.

H27: Employment status and perception for influence of brand is different.

H0: Employment status and perception for attractiveness of brand are same.

H28: Employment status and perception for attractiveness of brand are different.

34

H0: Employment status and perception for effectiveness of brand are same.

H29: Employment status and perception for effectiveness of brand are different.

H0: Employment status and perception for brand and myself are same.

H30: Employment status and perception for brand and myself are different.

H0: Income and perception for brand value is same.

H31: Income and perception for brand value is different.

H0: Income and perception for symbolism of brand is same.

H32: Income and perception for symbolism of brand is different.

H0: Income and perception for influence of brand is same.

H33: Income and perception for influence of brand is different.

H0: Income and perception for attractiveness of brand is same.

H34: Income perception for attractiveness of brand is different.

H0: Income perception for effectiveness of brand is same.

H35: Income perception for effectiveness of brand is different.

H0: Income perception for brand and myself are same.

H36: Income perception for brand and myself are different.

3.6 Research design

In study report use descriptive research design when the researcher desires to know the

characteristics of certain groups. It is useful to collect demographic information and make the

predictions about the trends.

35

3.7 Sampling method

3.7.1 Sampling Techniques

To get the information about the topic from young consumer, Convenience Sampling Method is

used. It is easy to convince the respondents to fill up the questionnaire.

3.7.2 Sampling Size

Take a view from statistics, Levin & Rubin has examined the sample size determination

Calculations and provided guidelines for acceptable tolerance limit, significance level with

respect to the means/proportions of population. So we are going for 320 sample size of

respondents for this research.

3.8 Data Collection

3.8.1 Primary Data Collection

The study undertaken there to be mainly based on the primary data i.e. closed ended structured

questionnaire is designed. A survey technique is used for the primary data collection for the

topic.

3.8.2 Secondary data collection

The study also contains secondary data i.e. data from authenticated website, Proquest.

3.8.3 Tool for data collection: structured questionnaire

To get the primary data from the market, closed ended structured questionnaire is designed.

From this questionnaire we can easily collect the information regarding the study project.

36

3.8.4 Data collection method: Personal Interviews.

3.9 Data analysis

The collected data is coded in the SPSS 16.0 software to make the things presentable and more

effective. Data will analyze with the help of different tests in this software like Factor analysis,

ANOVA Test, many other tests. The results are shown in SPSS file which helps me in easy and

effective presentation and hence results are being obtained. Microsoft Excel is also used to

effective data presentation via graph.

3.10 Reliability test:

Reliability analysis allows to study the properties of measurement scales and the items that

compose the scales. The Reliability Analysis procedure calculates a number of commonly used

measures of scale reliability and also provides information about the relationships between

individual items in the scale. Intraclass correlation coefficients can be used to compute inter-

rater reliability estimates.

Reliability Statistics

Cronbach's Alpha No. of Items 0.855 27

Cronbach’s Alpha

This model is a model of internal consistency, based on the average inter-item correlation.

Cronbach's alpha is the most common measure of internal consistency ("reliability"). It is most

commonly used when you have multiple Likert questions in a questionnaire that form a scale and

you wish to determine if the scale is reliable.

37

If a reliability coefficient of .70 or higher is considered “acceptable” in most social science

research situations. Here Cronbach's alpha is 0.855, which indicates a high level of internal

consistency for scale with this specific sample.

Cronbach's alpha is not a statistical test - it is a coefficient of reliability (or consistency).

38

CHAPTER- 4

DATA ANALYSIS

39

4.1 Factor Analysis:-

Factor analysis is a means by which the regularity and order in phenomena can be discerned. As

phenomena co-occur in space or in time, they are patterned; as these co-occurring phenomena

are independent of each other, there are a number of distinct patterns.

Factor analysis was performed on 40 items. Varimax rortation method was used with principle

components method. Based on communality, 3 items were deleted which were item 14, 21 and

22. After removing these three statements, factor analysis was again performed on remaining

items.

KMO and bartlett's test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This measure varies between 0 and 1, and

values closer to 1 are better. A value of 0.6 is a suggested minimum. B. Bartlett's Test of

Sphericity - This tests the null hypothesis that the correlation matrix is an identity matrix. An

identity matrix is matrix in which all of the diagonal elements are 1 and all off diagonal elements

are 0. You want to reject this null hypothesis. Taken together, these tests provide a minimum

standard which should be passed before a factor analysis (or a principal components analysis)

should be conducted.

Table 4.1.1: KMO and bartlett's test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.918

Bartlett's Test of Sphericity Approx. Chi-Square 3.900E3

Df 276

Sig. 0.000

40

Table 4.1.2: Total variance explained

Component

Initial Eigenvalues Rotation Sums of Squared Loadings

Total

% of

Variance Cumulative % Total % of Variance Cumulative %

1 9.379 39.079 39.079 3.929 16.371 16.371

2 1.740 7.250 46.329 3.316 13.818 30.189

3 1.569 6.539 52.868 3.241 13.505 43.694

4 1.250 5.210 58.078 2.275 9.479 53.173

5 1.078 4.493 62.571 1.806 7.526 60.700

6 1.024 4.268 66.838 1.473 6.138 66.838

Factor loadings and communalities

In this table shown that all different variable of affecting that study of dimension on consumption

on luxury brand and shown that different communality of increase and decrease.

Factor analysis produces factor loadings for each combination of extracted factor and the

observed variables. Factor loadings are similar to correlation coefficients between the factors and

the variables. Thus the higher the factor loading, the more likely it is that the factor underlies that variable. Factor loadings help in identifying which variables are associated with the particular

factors.

Communalities:-This is the proportion of each variable's variance that can be explained by the

factors. It is also noted as h2 and can be defined as the sum of squared factor loadings for the

variables.

41

Table 4.1.3: Factor loadings and communalities

Value

of

brand

Symbolizes

of

brand

Influence

of

brand

Attractiveness

Of

brand

Effective

of

brand

Brand

and

myself

Commun

-ality

having a product price to

buy brand's product

make me feel good

0.762 0.752

purchasing brand is self

gifting for myself 0.761 0.773

purchasing brand is

pleasure experience for

myself

0.737 0.620

brand's products have

grate quality 0.632 0.674

luxury brand with a high

price means good quality

compared to other brand

0.608 0.715

I focus to make an

impression on other

through luxury brand

0.604 0.643

I feel frustrated if don't

look good 0.801 0.580

brand is enhancing my

appearance 0.757 0.752

other have to highly

regard me 0.708 0.615

my appearance is very

important to me 0.700 0.518

42

achieving greater success

is the most important for

me

0.668 0.669

brand's product has the

best quality 0.836 0.768

brand's product is the

superior one. 0.793 0.703


sophisticated 0.675 0.615


precious 0.546 0.627

I like to show that I have

brought brand's product 0.762 0.700

brand's product is

expensive. 0.754 0.659

buying brand's product is

to show the status 0.681 0.572

my friends and i buy

same product 0.851 0.652

befor purchasing luxury

brand product, i see what

brand impacts on others

0.675 0.727

befor purchasing brand

produc i see what kind of

people buys certain

brand

0.564 0.667


attractive 0.855 0.689

43

In factor analysis last this six factor output gats that.

1) Value of brand

A rotation sum of squared loadings, parentage of variance component one comes is

16.371.factore name is value of brand. In this factor three statement includes which is Brand’s

product has the best quality, Brand’s product is superior one, Brand’s product is the

sophisticated.

2) Symbolizes of brand


13.818.factore name is Symbolizes of brand. In these factor three statements includes which I

like is to show that I have bought brand’s product, Brand’s product is expensive, buying brand’s

product is to show the status.

3) Influence of brand


13.505.factore name is Influence of brand. In this factor statement includes which is my friend

and I buy the same product, before purchasing luxury brand products, I see what brand impacts

on other, Before purchasing luxury brand product, I see what kind of people buys certain brand

4) Attractiveness of brand

A rotation sum of squared loadings, parentage of variance component one comes is 9.479.factore

name is Attractiveness of brand. In this factor statement includes which is Brand’s product is the

attractive.

5) Effective of brand

A rotation sum of squared loadings, parentage of variance component one comes is 7.529.factore

name is Effective of brand. In this factor statement includes which is Brand’s product is the

attractive, Brand’s product is the unique, Brand’s product is stunning.

6) Brand and myself


16.371.factore name is Brand and myself. In this factor statement includes which is product price

to buy brand’s product makes me feel good, Purchasing brand is self gifting for me, Purchasing

44

brand is a pleasure experience for myself, Brand’s products have grate quality, Luxury brand

with a high price means good quality compared to other brand.

45

ANOVA Analysis

ANOVA is used to test the effect of independent variable on dependent variable.

Analysis of Variance (ANOVA) is a statistical method used to test differences between two or

more means. It may seem odd that the technique is called "Analysis of Variance" rather than

"Analysis of Means." The name is appropriate because inferences about means are made by

analyzing variance. ANOVA is used to test general rather than specific differences among

means.

4.2 Gender and brand value

As per objective, it was decided to examine the male’s perceptions and female’s perceptions of

brand value. For that, gender was measured on categorical variable and brand value was

measured on interval data. Therefore, one-way analysis of variance was performed. Before that,

it is required to check the assumption of equality of variance. The hypothesis is formulated as

under:

Test related Hypothesis is H1

Table 4.2.1: Assumption of equality of variances for brand value

Levene Statistic df1 df2 Sig.

0.634 1 318 0.427

Table 4.2.2: ANOVA results for brand value and gender

Sum of Squares Df Mean Square F Sig.

Between Groups 1.429 1 1.429 1.651 0.200

Within Groups 275.219 318 .865

Total 276.648 319

46

Table 4.2.1 indicates that the levene’s statistic was found to be a non-significant (p>0.05).

Therefore, assumption is not violated and we can move further for ANOVA.

Interpretation: - The significant level 0.200 is higher than 0.05, so the null hypothesis is accepted and alternate hypothesis is rejected. Males’ and females’ perception for brand value are

same.

47

Test related Hypothesis H2

Table 4.2.3: Assumption of equality of variances for dimension of brand.


2.076 1 318 0.151

Table 4.2.4: ANOVA results for dimension of brand and gender


Between Groups 2.284 1 2.284 2.949 0.087

Within Groups 246.310 318 0.775

Total 248.594 319



Interpretation: - The significant level 0.087 is higher than 0.05, so the null hypothesis is

accepted and alternate hypothesis is rejected. Males’ and females’ perception for symbolism of

brand are same.

48


Table 4.2.5: Assumption of equality of variances for influence brand.


3.379 1 318 0.067

Table 4.2.6: ANOVA results for influence brand and gender


Between Groups 1.651 1 1.651 2.136 0.145

Within Groups 245.726 318 0.773

Total 247.376 319



Interpretation: - The significant level 0.145is higher than 0.05, so the null hypothesis is

accepted and alternate hypothesis is rejected. Males’ and females’ perception for influence of

brand are same.

49


Table 4.2.7: Assumption of equality of variances attractive.


1.556 1 318 0.213

Table 4.2.8: ANOVA results for attractive and gender


Between Groups 4.630 1 4.630 4.495 0.035*

Within Groups 327.592 318 1.030

Total 332.222 319

Note:* Significant p<0.05 level



Interpretation: - The significant level 0.035 is less than 0.05, so the null hypothesis is rejected

and alternate hypothesis is accepted. Males’ and females’ perception for attractiveness of brand

are different.

50


Table 4.2.9: Assumption of equality of variances for effective of brand.


2.458 1 318 0.118

Table 4.2.10: ANOVA results for effective of brand and gender

Sum of Squares df Mean Square F Sig.

Between Groups 0.705 1 0.705 0.932 0.335

Within Groups 240.274 318 0.756

Total 240.979 319




accepted and alternate hypothesis is rejected. Males’ and females’ perception for effectiveness of

brand are same.

51


Table 4.2.11: Assumption of equality of variances for brand and myself.


4.865 1 318 0.028

Table 4.2.12: ANOVA results for brand and myself and gender


Between Groups 4.140 1 4.140 6.000 0.015*

Within Groups 219.449 318 0.690

Total 223.589 319




Interpretation: - The significant level 0.015 is less than 0.05, so the null hypothesis is rejected and alternate hypothesis is accepted. Males’ and females’ perception for brand and myself are

different.

52

4.3 Age and brand value

As per objective, it was decided to examine the different age group of brand value. For that, age

group was measured on categorical variable and brand value was measured on interval data.

Therefore, one-way analysis of variance was performed. Before that, it is required to check the

assumption of equality of variance. The hypothesis is formulated as under:


Table 4.3.1: Assumption of equality of variances for value of brand


1.190 3 316 0.314

Table 4.3.2: ANOVA results for value of brand and age


Between Groups 1.424 3 0.475 0.545 0.652

Within Groups 275.224 316 0.871

Total 276.648 319




accepted and alternate hypothesis is rejected. Males’ and females’ perception for brand and

themselves are same.

53




1.594 3 316 0.191

Table 4.3.4: ANOVA results for dimension of brand and age


Between Groups 3.377 3 1.126 1.451 0.228

Within Groups 245.217 316 0.776

Total 248.594 319



Interpretation:- The significant level 0.228 is higher than 0.05, so the null hypothesis is

accepted and alternate hypothesis is rejected. Age of perception for brand value is same.

54


Table 4.3.5: Assumption of equality of variances for influence of brand.


0.469 3 316 0.704

Table 4.3.6: ANOVA results for influence of brand and age


Between Groups 2.907 3 0.969 1.253 0.291

Within Groups 244.469 316 0.774

Total 247.376 319




accepted and alternate hypothesis is rejected. Age and perception for symbolism of brand is

same.

55


Table 4.3.7: Assumption of equality of variances for attractive


2.964 3 316 0.032

Table 4.3.8: ANOVA results for attractive and age


Between Groups 18.161 3 6.054 6.091 0.000*

Within Groups 314.061 316 0.994

Total 332.222 319




Interpretation:- The significant level 0.029 is less than 0.05, so the null hypothesis is rejected

and alternate hypothesis is accepted. Age and perception for attractiveness of brand are different.

56


Table 4.3.9: Assumption of equality of variances for brand effective of brand.


0.984 3 316 0.400

Table 4.3.10: ANOVA results for effective of brand and age


Between Groups 6.776 3 2.259 3.048 0.029*

Within Groups 234.203 316 0.741

Total 240.979 319





and alternate hypothesis is accepted. Age and perception for effectiveness of brand are different.

57




1.243 3 316 0.294

Table 4.3.12: ANOVA results for brand and myself and age


Between Groups 8.259 3 2.753 4.040 0.008*

Within Groups 215.331 316 0.681

Total 223.589 319





rejected and alternate hypothesis is accepted Age of perception for brand and myself are

different.

58

4.4 Current living status and brand value

As per objective, it was decided to examine the different living status group of brand value. For

that, current living status group was measured on categorical variable and brand value was

measured on interval data. Therefore, one-way analysis of variance was performed. Before that,

it is required to check the assumption of equality of variance. The hypothesis is formulated as

under:


Table 4.4.1: Assumption of equality of variances for value of brand


2.045 3 316 0.108

Table 4.4.2: ANOVA results for value of brand and current living status


Between Groups 14.380 3 4.793 5.775 0.001*

Within Groups 262.268 316 0.830

Total 276.648 319





and alternate hypothesis is accepted. Current living status and perception for brand values are

different.

59


Table 4.4.3: Assumption of equality of variances for dimension of brand


1.150 3 316 0.329

Table 4.4.4: ANOVA results for dimension of brand and current living status


Between Groups 3.659 3 1.220 1.574 0.196

Within Groups 244.935 316 0.775

Total 248.594 319



Interpretation:- The significant level 0.196 is higher than 0.05, so the null hypothesis is accepted and alternate hypothesis is rejected. Current living status and perception for symbolism

of brand is same.

60


Table 4.4.5: Assumption of equality of variances for brand and influence of brand


1.121 3 316 0.341

Table 4.4.6: ANOVA results for influence of brand and current living status


Between Groups 0.571 3 0.190 0.244 0.866

Within Groups 246.806 316 0.781

Total 247.376 319




accepted and alternate hypothesis is rejected. Current living status and perceptions for influence

of brand is same.

61


Table 4.4.7: Assumption of equality of variances for attractive


0.669 3 316 0.572

Table 4.4.8: ANOVA results for attractive and current living status


Between Groups 9.841 3 3.280 3.215 0.023*

Within Groups 322.381 316 1.020

Total 332.222 319





and alternate hypothesis is accepted. Current living status and perceptions for attractiveness of

brand are different.

62


Table 4.4.9: Assumption of equality of variances for brand and effective of brand


0.542 3 316 0.654

Table 4.4.10: ANOVA results for effective of brand and current living status


Between Groups 2.108 3 0.703 0.930 0.427

Within Groups 238.871 316 0.756

Total 240.979 319




accepted and alternate hypothesis is rejected. Current living status and perceptions for

effectiveness of brand are same.

63




3.248 3 316 0.022

Table 4.4.12: ANOVA results for brand and myself and current living status


Between Groups 2.234 3 0.745 1.063 0.365

Within Groups 221.356 316 0.700

Total 223.589 319




accepted and alternate hypothesis is rejected. Their Current living status perceptions for brand

and myself are same.

64

4.5 Education and brand value

As per objective, it was decided to examine the education group of brand value. For that,

education group was measured on categorical variable and brand value was measured on interval

data. Therefore, one-way analysis of variance was performed. Before that, it is required to check

the assumption of equality of variance. The hypothesis is formulated as under:


Table 4.5.1: Assumption of equality of variances for brand and value of brand.


2.642 4 315 0.034

Table 4.5.2: ANOVA results for value of brand and education


Between Groups 34.610 4 8.653 11.261 0.000*

Within Groups 242.038 315 0.768

Total 276.648 319





and alternate hypothesis is accepted. Education and perception for brand value is different.

65


Table 4.5.3: Assumption of equality of variances for brand and dimension of brand.


2.009 4 315 0.093

Table 4.5.4: ANOVA results for dimension of brand and education


Between Groups 19.326 4 4.831 6.638 0.000*

Within Groups 229.268 315 0.728

Total 248.594 319





and alternate hypothesis is accepted. Education and perception for symbolism of brand is

different.

66


Table 4.5.5: Assumption of equality of variances for brand and influence of brand.


1.388 4 315 0.238

Table 4.5.6: ANOVA results for influence of brand and education


Between Groups 2.783 4 0.696 0.896 0.467

Within Groups 244.594 315 0.776

Total 247.376 319




accepted and alternate hypothesis is rejected. Education and perception for influence of brand is

same.

67


Table 4.5.7: Assumption of equality of variances for brand and attractive.


4.967 4 315 0.001

Table 4.5.8: ANOVA results for attractive and education


Between Groups 25.649 4 6.412 6.588 0.000*

Within Groups 306.573 315 0.973

Total 332.222 319





and alternate hypothesis is accepted. Education and perceptions for attractiveness of brand is

different.

68


Table 4.5.9: Assumption of equality of variances for brand and effective of brand.


5.898 4 315 0.000

Table 4.5.10: ANOVA results for effective of brand and education


Between Groups 16.780 4 4.195 5.894 0.000*

Within Groups 224.198 315 0.712

Total 240.979 319





and alternate hypothesis is accepted. Education and perceptions for effectiveness of brand is

different.

69




0.302 4 315 0.876

Table 4.5.12: ANOVA results for brand and myself and education


Between Groups 16.866 4 4.217 6.425 0.000*

Within Groups 206.723 315 0.656

Total 223.589 319





and alternate hypothesis is accepted. Education and perception for brand and myself are

different.

70

4.6 Employment status and brand value

As per objective, it was decided to examine the employment status of brand value. For that,

employment status was measured on categorical variable and brand value was measured on

interval data. Therefore, one-way analysis of variance was performed. Before that, it is required

to check the assumption of equality of variance. The hypothesis is formulated as under:


Table 4.6.1: Assumption of equality of variances for value of brand.


1.417 5 314 0.218

Table 4.6.2: ANOVA results for value of brand and employment status


Between Groups 6.123 5 1.225 1.421 0.216

Within Groups 270.525 314 0.862

Total 276.648 319




accepted and alternate hypothesis is rejected. Employment status and perception for brand value

is same.

71




0.970 5 314 0.436

Table 4.6.4: ANOVA results for dimension of brand and employment status


Between Groups 0.775 5 0.155 0.196 0.964

Within Groups 247.819 314 0.789

Total 248.594 319




accepted and alternate hypothesis is rejected. Employment status and perception for symbolism

of brand same.

72




1.014 5 314 0.410

Table 4.6.6: ANOVA results for influence of brand and employment status


Between Groups 0.670 5 0.134 0.171 0.973

Within Groups 246.706 314 0.786

Total 247.376 319




accepted and alternate hypothesis is rejected. Employment status and perceptions for influence of

brand is same.

73


Table 4.6.7: Assumption of equality of variances for brand and attractive.


0.633 5 314 0.674

Table 4.6.8: ANOVA results for attractive and employment status


Between Groups 8.057 5 1.611 1.561 0.171

Within Groups 324.164 314 1.032

Total 332.222 319




accepted and alternate hypothesis is rejected. Employment status and perceptions for

attractiveness of brand are same.

74




1.349 5 314 0.243

Table 4.6.10: ANOVA results for effective of brand and employment status


Between Groups 2.164 5 0.433 0.569 0.724

Within Groups 238.815 314 0.761

Total 240.979 319




accepted and alternate hypothesis is rejected. Employment status and perceptions for

effectiveness of brand are same.

75




1.624 5 314 0.153

Table 4.6.12 ANOVA results for brand and myself and employment status


Between Groups 1.184 5 0.237 0.334 0.892

Within Groups 222.406 314 0.708

Total 223.589 319



Interpretation:-The significant level 0.892 is higher than 0.05, so the null hypothesis is accepted and alternate hypothesis is rejected. Employment status and perceptions for brand and

myself are same.

76

4.7Annual income and brand value

As per objective, it was decided to examine the annual income of brand value. For that, annual

income was measured on categorical variable and brand value was measured on interval data.

Therefore, one-way analysis of variance was performed. Before that, it is required to check the

assumption of equality of variance. The hypothesis is formulated as under:


Table 4.7.1: Assumption of equality of variances for value of brand.


1.272 3 316 0.284

Table 4.7.2: ANOVA results for value of brand and annual income


Between Groups 15.990 3 5.330 6.462 0.000*

Within Groups 260.658 316 0.825

Total 276.648 319

Note: Significant p<0.05 level




and alternate hypothesis is accepted. Income and perception for brand value is different.

77




2.950 3 316 0.033

Table 4.7.4: ANOVA results for dimension of brand and annual income


Between Groups 12.280 3 4.093 5.474 0.001*

Within Groups 236.314 316 0.748

Total 248.594 319





and alternate hypothesis is accepted. Income and perception for symbolism of brand is different.

78




1.479 3 316 0.220

Table 4.7.6: ANOVA results for influence of brand and annual income


Between Groups 11.275 3 3.758 5.030 0.002*

Within Groups 236.101 316 0.747

Total 247.376 319





and alternate hypothesis is accepted. Income and perceptions for influence of brand is different.

79


Table 4.7.7: Assumption of equality of variances for attractive.


2.151 3 316 0.094

Table 4.7.8: ANOVA results for income and attractive and annual income


Between Groups 14.826 3 4.942 4.920 0.002*

Within Groups 317.396 316 1.004

Total 332.222 319





and alternate hypothesis is accepted. Income and perceptions for attractiveness of brand is

different.

80




6.602 3 316 0.000

Table 4.7.10: ANOVA results for effective of brand and annual income


Between Groups 16.963 3 5.654 7.976 0.000*

Within Groups 224.015 316 0.709

Total 240.979 319





and alternate hypothesis is accepted. Income and perceptions for effectiveness of brand is

different.

81




4.060 3 316 0.007

Table 4.7.12: ANOVA results for brand and myself and annual income


Between Groups 19.246 3 6.415 9.921 0.000*

Within Groups 204.344 316 0.647

Total 223.589 319





and alternate hypothesis is accepted. Income and perceptions for brand and myself are different.

82

CHAPTER - 5

FINDINGS

83

Table 5.1: Finding of gender

Independent variable Dependent variable Significant level

Gender Brand value 0.200 Ho accepted

Symbolism of brand 0.087 Ho accepted

Influence of brand 0.067 Ho accepted

Attractiveness of brand 0.035 Ho rejected

Effectiveness of brand 0.335 Ho accepted

Brand and myself 0.015 Ho rejected

Table 5.2: Finding of age


Age Brand value 0.652 Ho accepted




Effectiveness of brand 0.008 Ho rejected

Brand and myself 0.294 Ho accepted

Table 5.3: Finding of current living status


Current living status Brand value 0.001 Ho rejected






84

Table 5.4: Finding of education


Education Brand value 0.000 Ho rejected

Symbolism of brand 0.000 Ho rejected





Table 5.5: Finding of employment status


Employment status Brand value 0.216 Ho accepted



Attractiveness of brand 0.171 Ho accepted



Table 5.6: Finding of annul income


Annual income Brand value 0.000 Ho rejected

Symbolism of brand 0.001 Ho rejected

Influence of brand 0.002 Ho rejected




85

CHAPTER - 6

CONCLUSION

86

CONCLUSION OF THE STUDY In the overall research study of “study on the dimension of consumption of luxury brand

(special selected category fashion accessories, cosmetic and fragrances, watch and

handbags) ” is very interesting & result of the research study is very useful for the marketer.

Value of brand and attentiveness are positively related with current living status, education and

annual income. Influence of brand is negatively related. Conclusion tells about luxury brand and

gender having no such kind of relation. And education is impacted to consumption of luxury

brand. If marketers using this research study then it creates or builds a strong reputation into the

market with unique personalities or identity of them. Because of current living status are

attractive towards the luxury brand.

87

CHAPTER - 7

BIBLIOGRAPHY

88

Book

Book-1:- NARESH K. MALHOTRA (2009). Marketing research. New Delhi: PRENTICE-

HALL OF INDIA

Book-2:-LEVIN & RUBIN (2005) Statistical for management Delhi: PRENTICE-HALL OF

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http://news.cnet.com/8301-1023_3-57489698-93/40-percent-of-worlds-top-brands-already-on-instagram/

http://blog.privatefly.com/what-is-luxury

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http://ftalphaville.ft.com/2013/04/11/1457062/the-evolution-of-luxury-markets/

89

Definit ion of brands as appeared in

http://economictimes.indiatimes.com/definition/brands

http://www.persuasivebrands.com/Topics_Brand_Definition.aspx

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http://www.reportlinker.com/ci02177/Luxury-Goods.html

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http://www.fashionunited.in/news/fashion/indian- luxury-market-to-touch-15-bn-by-2015-

assocham-130220134950

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Economy affecting the luxury market as appeared in

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slowdown-study-114010600871_1.html

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Global Luxury market as appeared

http://www.researchandmarkets.com/research/4mff7m/global_luxury

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http://www.articlesbase.com/marketing-articles/the-5-dimensions-of-brand-definition-in-strategic-brand-planning-445052.html

http://www.reportlinker.com/ci02177/Luxury-Goods.html

http://www.fashionunited.in/news/fashion/indian-luxury-market-to-touch-15-bn-by-2015-assocham-130220134950

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Luxury-Goods-Market-Report

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market-study-fall-2013.aspx

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Software

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Journal

Dubois and Czellar (2005), Eastman et al., (1999), Vigneron and Johnson (1999) (2004),

Csikszentmihaly (1990), Wong and Ahuvia (1998) Gupta, Krishna das, “Changing paradigms of

luxury consumption in India: a conceptual model”, South Asian journal of management; oct-dec

(2009); 16, 4; abi/inform complete pg. 29,

Oliver (1999), Chaudhuri and Holbrook (2001), Wong and Ahuvia, 1998; Wiedmann (2007)

Jong-Kuk shin min-Sook park mi-ri kim pusan, “The study on the dimension of experiential

consumption of luxury brands”, national university, Journal of Business and Educational

Leadership Vol. 3, No. 1; fall 2011

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http://www.bain.com/publications/articles/Luxury-goods-worldwide-market-study-2013.aspx

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http://www.bain.com/publications/articles/luxury-goods-worldwide-market-study-fall-2013.aspx

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http://www.ijept.org/index.php/ijept/article/view/Segmenting_Luxury_Market_Based_on_the_Type_of_the_Luxury_Consumed

91

CHAPTER - 8

APPENDIXES

92

Questionnaire

Dear Sir/Madam,

We the students of V.M. Patel Institute of management are conducting a market research on

“study on the dimensions of consumption of luxury brand” as a part of MBA Programmed

curriculum. Data will be collected strictly for academic purpose and it will be highly

confidential. Kindly extent your co-operation in filling this questionnaire and enable us in doing

the research successfully.

Definition of luxury brand:

“Luxury brands are regarded as images in the minds of consumer that comprise associations

about a high level of price, quality, aesthetic, rarity, extraordinariness and a high degree of non

functional association”

PART A: Fundamental question- (Kindly tick mark (√) at the appropriate place.)

1) Gender: [ ] Male [ ] Female

2) Age

[ ] 18 to 22 [ ] 23 to 27 [ ] 28 to 31 [ ] 32 to 35

3) Current Living Status

[ ] Married [ ] Unmarried [ ] widow [ ] Divorce

4) Education

[ ] 10th pass [ ] 12th pass [ ] Graduate [ ] Post Graduate [ ] Doctorate

5) What is your employment Status?

[ ] Working full time as employee [ ] Working part time as employee [ ] Studying

[ ] Self employee in own business [ ] Unemployed [ ] House wife

93

6) Annual income (Rs)

[ ] Less than 1, 00,000 [ ] 1, 00,001 to 3, 00,000

[ ] 3, 00,001 to 6, 00,000 [ ] More than 6, 00,000

Part B:”Attitude towards shopping and branded products” (Kindly tick mark (√) at the appropriate

place.)

1) Where you are going for shopping?

[ ] Shop [ ] Mall [ ] Particular brand showroom [ ] other

2) Do you like to purchase branded products?

[ ] Yes [ ] No

3) Do you possess any luxury brand?

[ ] Fashion Accessories

[ ] Cosmetic and Fragrances

[ ] Watch

[ ] Handbags

Specify the brand name___________________________________________________

4) Which time do you like to purchase branded products?

[ ] Frequently [ ] occasionally [ ] some time [ ] For gift

5) How often do you purchase luxury brand products?

[ ] Weekly [ ] Monthly [ ] every 6 months [ ] Once a year [ ] others

6) How do you collect the information about luxury fashion products? [ ] Television [ ] Face book/Twitter [ ] Online [ ] Advertisement [ ] Newspaper/Magazine

[ ] Video [ ] Friends [ ] Others

94

7) Will you still purchase luxury fashion products even if the prices increase?

[ ] Yes [ ] No

Part C:”Functional value of Brand”(Kindly tick mark (√) at the appropriate place)

Variable Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

Brand’s product has the best quality.

Brand’s product is the superior one.

Brand’s product is the sophisticated

Part D:”Symbolic dimension value of Brand”(Kindly tick mark (√) at the appropriate place)

Variable Strongly

Disagree


Agree

I like to show that I have bought Brand’s

product.

Brand’s product is the expensive.

Buying Brand’s product is to show the status.

Part E:”Experiential value of Brand” (Kindly tick mark (√) at the appropriate place)

Variable Strongly

Disagree


Agree

Brand’s product is the precious.

Brand’s product is the attractive.

Brand’s product is the unique.

Brand’s product is stunning.

95

Part F:”Social influence of Brand”(Kindly tick mark (√) at the appropriate place)

Variable Strongly

Disagree


Agree

Before purchasing luxury brand products, I

see what brand impacts on others.

My friends and I buy the same product.

Before purchasing luxury brand products, I

see what kind of people buys certain

brands.

I focus on others intention to buy other

luxury brands.

I focus to make an impression on others

through Luxury Brands.

Part G:”Perception of Brand”(Kindly tick mark (√) at the appropriate place)

Variable Strongly

Disagree


Agree

Luxury brand with a high price means

good quality compared to other

brands.

Purchasing brand is a pleasure

experience for myself.

Purchasing brand is self-gifting for

myself.

Having a product price to buy brand’s

product makes me feel good

Brand’s products have grate quality.

I buy Brand’s product that fit how I

see myself , not how other see me

96

My life would be better if I owned

Brand’s products

Part H:”Enhancing Appearance & Achievement through Brand”(Kindly tick mark (√) at the

appropriate place)

Variable Strongly

Disagree


Agree

My appearance is very important to

me.

I feel frustrated if I don’t look good.

Brand is enhancing my appearance.

Others have to highly regard me.

Achieving greater success is the most

important for me.

Thank you for your valuable time

management research project - ii submitted in the partial...

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