The influence of value perceptions on luxury purchase intentions in developed and emerging markets

Purpose: Despite the growing debate about differences in consumer attitudes and behavior in emerging and developed markets, there is little research on the differences in consumer value perceptions and their influence on purchase intentions. Focusing on the theory of impression management, this paper introduces a conceptual framework incorporating the social (conspicuousness and status), personal (hedonism and materialism) and functional (uniqueness and price-quality perceptions) value perceptions using the context of luxury goods. Design/Methodology/Approach: Data were collected through a structured questionnairebased study of consumers in four countries, representing two leading Western developed luxury markets (the US and the UK) and two important Eastern emerging markets (India and Malaysia). Multiple-group SEM analysis was used to analyze the data. Findings: The findings show several differences in the influence of value perceptions on consumer purchase intentions in the Western developed and Eastern emerging markets. The study highlights the importance of understanding the homogeneity and heterogeneity in consumer consumption decisions and provides managers with a basis to adapt their strategic responses. Originality/value: The results offer needed empirical support and cross-cultural stability to the much theorized construct of value perceptions by exploring their effects within and between Western developed and Eastern emerging markets. Additionally, it unifies and complements the previous work by integrating the theory of impression management and value perceptions framework, thus providing a comprehensive theoretical framework with empirical support.