Assessing factors influencing personal luxury brands consumption between Kuala Lumpur and Paris

Due to the demands as well as the seen potential of Malaysia growing its popularity as a tourist destination, the number of high-end luxury fashion houses have been growing tremendously. More and more high-end luxury brands are starting to invest on branches in various states in Malaysia, such as Starhill Gallery, The Gardens Midvalley, The Pavillion, Suria KLCC, Johor Premium Outlet, Mitsui Premium Outlet, and Genting Premium Outlet. With this growth, these high-end products are becoming more and more accessible. However, consumers and retailers need to develop a better understanding of the consumption of luxury goods, primarily to determine the initial intention of purchasing of high-end fashion products or to supply the products according to the demands of their potential buyers. The primitive idea of luxury brands consumption indicates distinct persona and social status for the consumers have been extended over time by researchers. Researchers have brought to light on the area of inquiry that stipulate the consumption of luxury brands in allowing consumers to also convey numerous aspects of their identity beyond their status, specifically their values. Furthermore, research has examined the influenced of personal values, cultural values, and values specific to certain populations in luxury consumption among consumers. Consumption of luxury goods for status and values has been shown in the literature to enable consumers in displaying and potentially improve their image and illuminate their social identification with the socially significant others. A range of factors seem to contribute on luxury goods consumption. Luxury consumption is influenced by individual market preferences such as the desire for individuality, self-confidence, and pride. In addition, country of origin, perceived economic value, and authenticity assessments are all significant factors throughout luxury brand perceptions. According to current study, the complexities of romantic relationships can also inspire consumers to purchase luxury goods. These various factors illustrate the wide range of motivating elements in luxury consumption hence implying that further research is needed. A total of 284 respondents participated in this study via snowball sampling. This sampling method is often used in populations that are difficult to reach for research. Respondent-driven sampling is a form of snowball sampling. Under certain conditions, snowballing approach helps the researcher to make asymptotically realistic steady estimations. Additionally, snowball sampling and respondent-driven sampling enable participants to draw conclusions about the social network platform connecting the estranged populations. Cronbach’s alpha was used to assess the scales as a measure to ensure reliability. Also, Pearson’s correlation coefficient was applied to test the correlations between the study variables. This study applies a step-by-step process on illustrative data by utilizing PLS-SEM through the application of SmartPLS3. The variables of this study include the variable of financial value, functional value, individual value, social value, country of origin and customer shopping experience as extracted from previous literature. Questionnaire results confirm the validity of measurement as well as the predictive relevancy of the structural model. These six variables exhibit a large amount of variance. The study also found that the effect of the mediator on the R2 (endogenous latent variable) value is immense. Furthermore, the study found that several factors are the significance of indirect effect with a t value above 1.96. On the magnitude of mediation, the study had confirmed customer shopping experience partially mediates Kuala Lumpur but not in Paris. Based on the analysis, the thesis revealed the profound reasoning and backgrounds resulted in the status in personal luxury goods consumption in Kuala Lumpur and ultimately brought forward strategies for guiding luxury goods marketing in Malaysia.