Quest Journals

Journal of Research in Business and Management

Volume 2 ~ Issue 9 (2014) pp: 19-32
ISSN(Online) : 2347-3002
www.questjournals.org

Research Paper

Impact of age on purchase behaviour of luxury brands

Dr. R. Srinivasan, Dr. R.K. Srivastava &Prof.Sandeep Bhanot

Received 14 October, 2014; Accepted 30 October, 2014 © The author(s) 2014. Published with open
access atwww.questjournals.org

ABSTRACT:
Purpose and objectives of the study: In this study, we aim to understand the influence of age on the frequency
of buying luxury products, influence to buy luxury products and intention to purchase the same brand that they
have previously purchased. Also we study the different luxury value dimensions like financial value, functional
value, individual value and social value and how these are influenced by age of the consumer.
Research Methodology: Data was collected from 1200 respondents in Mumbai. These people belonged to
people of both genders, different occupations, income groups, religions, age groups, education and marital
status.
Results: It is found that there is a relation between age and kind of luxury product that consumers intend to buy
and the place from which they buy luxury brands. There is also a relation between age and influence to buy
luxury products and intention to repurchase the brand. Younger people up to 40 years showed a higher rating
towards financial value, materialistic value and self-identity value as compared to older people. Younger people
up to 50 years showed a higher rating towards uniqueness value and snob value as compared to older people.
There is a significant difference in perception of usability value among people of different age groups. People
in the age group of 36-40 years showed a higher rating towards prestige value as compared to other age groups.
Managerial implications: Luxury brand companies can target the right target segment by understanding how
age influences the purchase of luxury brands and whether there is any significant difference in financial value,
functional value, individual value and social value with respect to age of the consumer. They can devise
strategies to enable the right target segment to access their products easily.

Keywords:Age, luxury, purchase behaviour, luxury brands

I. INTRODUCTION
1.1 Purchase behaviour: The actions a person takes in purchasing and using products and services, including
the mental and social processes that precede and follow these actions can be called as purchase behaviour. It
helps us to answer questions such as:
(i) Why people choose one product or brand over another?
(ii) How they make these choices, and
(iii) How companies use this knowledge to provide value to consumers

Purchase decision process: Behind the visible act of making a purchase, lies a decision that must be investigated.
The purchase decision process is the stages a buyer passes through in making choices about which products and
services to buy. There are five stages of purchase behaviour: (i) problem recognition (ii) information search (iii)
alternative evaluation (iv) purchase decision (v) post purchase behaviour

1.2 Luxury brands: Luxury is no longer restricted today to only the rich and the selected few but is being used
for mass marketing now. The concept of luxury has been changing dramatically across time and culture. Earlier,
luxury was connected with things like wines, champagne, designer clothes and sports cars. These days, people
have become richer and luxury is a blurred genre that is no longer the preserve of the elite. More and more
consumers have increased their financial status as the old values of tradition and nobility have become less
important. People are having much more disposable income in comparison to earlier generations, resulting in a
tendency towards fulfilling personal needs and aspirations through experience. Therefore, it could be said that
luxury is more about experience (Yeoman and McMahon-Beattie, 2010), rather than financial value. This is not
to say that luxury is about status, but luxury is more than financial value. Indeed, they run hand in hand. The
need for personal gratification and aspirations has led to greater emphasis on having things which make life
*Corresponding Author: MR. Sandeep Bhanot 19 | Page
 Impact of age on purchase behaviour of luxury brands

better and easy. It means that consumers want to improve their life. This is what Danziger (2005) and Israel
(2003) mean when they say that luxury is not just restricted to trophies and status symbols but also covers things
giving aesthetic experience and indulgence. This is also due to increasing purchasing power of women in
society, which is a good sign for luxury markets such as wellbeing, clothes and tourism. We see that the earlier
concept of luxury of consumption and elitism stills prevails especially in emerging economies of China. In the
recent times, the Global Financial Crisis has led consumers to re-examine their priorities and as a consequence,
attitudes and behaviours towards luxury have changed.

In management field it is accepted to distinguish luxury products from necessary and ordinary products within
their category by their basic characteristics. These include things like financial value, quality, aesthetics,
exclusivity and status giving. All of these characteristics are relative terms. A luxury product is characterised by
a relatively high rating on each of these dimensions compared to other products of its category (Trommsdorff
and Heine 2008, p. 1670). Luxury brands are those whose ratio of functional utility to price is low while the
ratio of intangible and situational utility to price is high.

1.3 Influence of ageon purchase of luxury brands: Age is one of the important demographic variables which
can have an influence on purchase behaviour of luxury brands. People of different age groups can respond
differently to the various attributes of luxury brands. They may want to purchase them from different places or
look for different dimensions of luxury value. The perception of different luxury values like functional value,
financial value, individual value and social value can be different for people of different age groups.

II. STATEMENT OF THE PROBLEM/NEED FOR THE STUDY

In this study, we want to understand the influence of age on different aspects of purchase behaviour of
luxury brands like frequency of buying luxury products, influence to buy luxury products and intention to
purchase the same brand that they have previously purchased. Also we study the different luxury value
dimensions like financial value, functional value, individual value and social value and how these are influenced
by age of the consumer. Among the various demographic variables, we have selected age because perception of
different dimensions of luxury value can vary for consumers of different age groups and luxury brand
companies can use different strategies to cater to the requirements of these segments.

III. LITERATURE REVIEW

3.1 Luxury brands: The concept of luxury is complex and subjective and its meaning is dependent on various
personal and interpersonal motives (Vigneron& Johnson 2004). In order to understand the meaning of luxury,
we can first describe the nature of luxury, luxury goods, luxury brands and brand equity for luxury brands.
Roux &Floch (1996) say that luxury is not just about price, but also associated with pleasure, refinement,
exclusivity and appreciation. A luxury product is also characterised by very limited supply and recognition of
value by other people. Dubois, Laurent and Czellar (2001) proposed a definition of the nature and characteristics
of the concept of luxury, and identified six properties of luxury products: 1) excellent quality, 2) premium
pricing, 3) exclusivity, rarity and uniqueness, 4) aesthetics and good looks 5) ancestral heritage and 6)
superfluousness.
Kapferer (1997, p.253; as cited in Vigneron and Johnson 2004) summarised luxury as defining beauty,
enlightening and providing good taste. According to him, luxury products provide sensory pleasure and is the
appendage of the ruling or elite classes.
Luxury brands can also be described as premium or high priced brands that consumers purchase to satisfy their
psychological needs like materialistic, hedonic and social needs rather than for their economical and functional
value (Nueno and Quelch 1998). Thus, luxury brands can be characterised as those which are conspicuous,
unique and provide high social and emotional value and are of excellent quality (as explained by Vigneron and
Johnson 1999).
Webster (2002) defines it simply as “non-essential items”. Cornell (2002) says that luxury can be characterised
by a strong element of human involvement, scarcity or limited supply and value recognition by others.
Similarly, Kapferer (1997) says that luxury exhibits beauty and aesthetics and can be applied to functional
items. He also says that luxury has an enlightening effect and provides sensory pleasure. Berry (1994), similarly,
characterizes luxury goods as items that rise desire and provide pleasure to its consumers. Also the concept of
rarity and exclusivity has not been forgotten, being highlighted by Pantzalis (1995). On the other hand,
McKinsey (1990 in Wiedmann, Hennings, and Siebels 2009) sates that luxury goods are the ones that have the
higher ratio of price-quality. Phau and Prendergast (2000) argue that luxury goods are those which exhibit
exclusivity, brand image and identity, brand awareness and excellent in the minds of the consumers. Finally,
Kapferer and Bastien (2008) argue that “luxury is qualitative and not quantitative” and is when “hedonism takes
over functionality” as it has to be “multi-sensory and experiential” to each consumer. Thus, both authors claim

*Corresponding Author: MR. Sandeep Bhanot 20 | Page

 Impact of age on purchase behaviour of luxury brands

that luxury is only a true luxury when some part of it is handmade and the brand has the capacity to provide
exclusive services to their consumers.
Hence, the service and/or good has to be able to transmit to the customer extra pleasure (Kapferer 1997) and a
truly multi-sensorial experience (Kapferer and Bastien 2008), as consumers are increasingly seeking more
personal fulfilment and aspiration through experience (Yeoman, McMahon-Beatie and Brown 2005 & Yeoman
and Mc-Mahon-Beattie 2006). Luxury goods should present a high level of perceived quality (Phau and
Prendergast 2000), as a high price (McKinsey 1990) and also a limited supply (Cornell 2002, p.47) to ensure the
exclusivity and rarity required by customers (Pantzalis 1995; Phau and Prendergast 2000). Finally, we believe
that luxury goods have to have some part of it handmade and that the brand has to be able to answer to
customer‟s wishes and needs with special and customized offers (Kapferer and Bastien 2008).
Luxury products help to satisfy a consumer‟s functional needs and also fulfil him/her psychologically (Dubois,
Czellar& Laurent, 2001). A particular good can be desired as a luxury only if the ownership of the goods is able
to provide pleasure (Berry, 1994). In addition, luxuries are by definition always out of the reach of mass
consumption (Berry, 1994) and exclusivity and rarity are therefore features connected to the concept of luxury
(Pantzalis, 1995).
Luxury goods are premium goods with high quality products, aesthetic design supported by excellent service,
purchased by people from the higher income bracket (Cheng, 2006). In the earlier days the term „luxury‟ was
applied to products that were rare and scarce and available to a small segment of the people (Sriviroj, 2007). The
luxury items were out of reach of the ordinary people and considered rare. Today the luxury product market has
increased manifold. The young are spontaneously aware of the luxury brands which reflect their desires and
fantasies and these brands provide them with social status, comfort, good quality and self- esteem.

3.2Influence of age on purchase of luxury brands:

Bernard Dubois and Gilles Laurent (1993) in their study explain that in all European countries, the purchase
level of luxury brands follows a bell-shaped curve. It should be noted however that the right-hand (decline) part
of the curve is much more regular than the left-hand (growth) side. This could reveal different "introduction to
luxury" patterns in the various European countries (while, on the reverse, the level of interest in luxury goods
would regularly decline for people over 49 years). In Italy and Spain, the maximum level of purchase is
observed for the 25-34 year group versus the 35-49 group for the three other countriesi.e. France, U.K. and
Germany, thus revealing a quicker diffusion of the luxury concept even though these two countries also are the
less wealthy ones in the group.
KoonnareeWongsiriwat (2007) explains that the purpose of the study is to investigate the factors that influenced
to brand equity of luxury handbags. The findings of this study indicate that demographic factors which are
gender, age, education, occupation, income, marital status and number of children have a great significance to
brand equity of luxury handbags and psychographic factors like value, attitude and lifestyle have a great
significance to brand equity of luxury handbags.
Hauck &Stanforth (2007) in their study show that there are significant differences between cohort groups in
their perceptions of luxury goods and services, especially between the oldest and youngest cohorts. The
elasticity measures showed that for all three cohorts, certain goods and services were inelastic and, therefore,
were considered not to be luxury goods. The reasons why people buy goods they do not need varied between
cohorts.
Paurav Shukla (2008) in his study addresses the issue of conspicuous consumption among middle age
consumers (40‐60), focusing on the psychological and brand antecedents, using the context of automobile
buying behaviour.
Ching-Yaw Chen et al. (2012) in their study explain that explore the differences in Taiwanese women‟s
purchasing decisions towards two different categories: luxury goods and general products. Demographic
variables like age, education, occupation, marital status, income play key factor in purchasing decisions.
Taiwanese woman aged 21-40 years dominate luxury goods shopping most of them being well educated and
independent. They consider product origin, functionality, prices, reputation, brand awareness, appearance and
design rather than TV shopping, venting bad mood, endorsers influence or just for the sake of it.
CesareAmatulli and Gianluigi Guido (2012) in their study compare elderly consumers who consider luxury
goods mainly as status symbols – a situation which is known as “externalized luxury” – with elderly consumers
who, on the contrary, perceive luxury goods mainly as an expression of individual style – so-called “internalized
luxury” (Amatulli and Guido, 2011). Moreover, the socio-psychographic differences between elderly consumers
who buy luxury goods mainly for status, or mainly for individual lifestyle, are pointed out. The results provide
implications for marketing managers of luxury companies, who need to better understand and reach older
consumers. In particular, these findings can help luxury marketing managers in planning specific
communication strategies aimed at improving the effectiveness of brand image among elderly consumers.
Mohammad Ali Abdolvand and NahidReihani (2013) in their study aim to examine the consumption behaviour
of luxury products among the young people (aging from 18 to 35 years). They have focused on the two fields of
*Corresponding Author: MR. Sandeep Bhanot 21 | Page
 Impact of age on purchase behaviour of luxury brands

brand association and psychological antecedents. The purchase of luxury watch has been studied as
consumption behaviour. The findings show that two criteria such as brand association and psychological
antecedents significantly affect the consumption behaviour of luxury products among the youth.

3.3 Dimensionalising Luxury:

Wiedmann, K.P., N. Hennigs& A. Siebels (2009) developed a luxury value model useful for studying the
relationship between value perception and luxury consumption. Their model includes four luxury value
dimensions: financial value, functional value, individual value and social value. Different authors have
addressed different combinations of these luxury value dimensions. (a) Several authors have studied the
financial value people derive from buying products they believe others cannot afford. Stokburger-Sauer
&Teichmann (2013) say that despite the fact that the functional value of luxury brands is usually not
substantially higher than other non-luxury brands, luxury brands can reach substantial price premiums in the
market over non-luxury ones.(b) Luxury consumption has also been studied from the perspective of the
functional value luxury goods provide. Simply stated, some people buy luxury goods because they believe they
offer superior quality &perform better, that they are more user friendly, or more unique than their non-luxury-
brand competitors are. Luxury brands are supposed to offer greater product quality &performance than non-
luxury brands (according to O‟Cass& Frost, 2002; &Vigneron& Johnson, 2004). Others have shown that
perceived usability value drives purchases of luxury goods. Coulter, Price &Feick (2003) have focused on the
functional dimension of luxury brands. Gardyn (2002); Chadha & Husband(2007) and Berthon et al. (2009)
have studied about high reputation of luxury goods which illustrate functional, symbolic &/or experiential
values in perception of owners. Atwal & Williams (2009) have said that luxury products no longer provide
solely on functional values, but also, on emotional values and social values. Ko et. al. (2010) has emphasised on
high quality value for luxury brands.
(c) Several researchers have studied the social value of luxury consumption. Vigneron& Johnson, 2004;
Wiedmannet al., (2009); Han,Y.J , J.C.Nunes&X. Dreze, (2011), have studied the social orientation of luxury
brands. Such social value has two sub-dimensions: snob value and prestige value. People seeking snob value
derive value from buying scarce luxury goods that others cannot access. Prestige seeking consumers seek to
conform to aspirational groups that consume such luxury goods to demonstrate that they belong to this group.
(d) Individual value: Lipovetsky& Roux (2003); Danziger, (2005);Geerts&Veg-Sala (2011); Srinivasan,
Srivastava, &Bhanot, (2013) have studied the personal oriented consumption of individuals and called it as
emotional luxury. Social value can be associated with Self-identity, materialistic and hedonism values.

IV. GAP ANALYSIS

Wong &Ahuvia (1998) have studied the impact of culture, social status, hedonic value and country of origin but
other demographic variables have not been considered.
Vigneron& Johnson (1999), Wiedmann et al. (2009), Han et al. (2010) have focused on the personal orientation
and social orientation for consumption of luxury brands but impact of demographic variables like age on
purchase of luxury brands has not been studied.
Rolf-Seringhaus (2002) have considered the motivation of people for consuming luxury according to
psychographics and dividing luxury consumers into three segments i.e. „Old money‟, „Nouveau riche‟ and
„Excursionists‟, but other demographic variables like age on have not been considered. Gardyn (2002), Chadha
& Husband (2007), Berthon et al. (2009) have studied about high reputation of luxury goods which illustrate
functional, symbolic &/or experiential values in perception of owners. But impact of demographic variables like
age on purchase of luxury brands has not been studied.
The study by Seringhaus, F. H. Rolf (2005) considers the impact of culture on purchase of luxury brands but
other demographic variables like age have not been considered. Also, the study by Nelson et al. (2005) shows
the purchase behaviour of Indians towards local and international brands but other variables like age, gender
and education have not been considered. Seringhaus (2005) has studied the presence of luxury brands online but
the impact of demographic variables like age on purchase of luxury brands has not been studied.
Yeomann&Mc-Mahon-Beattie (2006) have said that modern societies seek more personal fulfilment and
aspiration through experience, but they have not concentrated on aspects like limited supply and high
price.Chaudhuri&Majumdar (2006) have found that consumers are motivated to purchase luxury products to
enhance self-concept and materialistic value, but other dimensions like quality and functional value have not
been studied. Chadha & Husband (2006) have divided the Asian economies into five stages of „Luxe Evolution‟.
They have studied the brand awareness, price factor, gifting of luxury brands, status value and aesthetic value of
Chinese consumers and a similar study has been done for Indian consumers. But impact of demographic
variables like age on purchase of luxury brands has not been considered. The study by Mandel et al. (2006)
considers the psychographic profile of consumers but demographic profile has not been considered.
Wiedmann et al. (2007) have considered financial value, functional value, personal value, social value and
luxury value for luxury brands but impact of demographic and psychographic variables on purchase of luxury
*Corresponding Author: MR. Sandeep Bhanot 22 | Page
 Impact of age on purchase behaviour of luxury brands

brands has not been considered. The study by Heilman et al. (2007) is an interesting study on consumer
behaviour not undertaken by other authors but other variables like age and income also need to be considered.
Fionda and Moore (2009) have emphasised on a clear brand identity, premium pricing, heritage and exclusivity
as a characteristic of luxury brands but other things like quality and product integrity have not been
considered.Berthon et al. (2009), in their article present a philosophical analysis of luxurybrands, focusing on
their aesthetics and degree of ephemerality. The gap in the study is that purchase of luxury brands with respect
to demographic variables like age, gender, education etc. has not been considered. Atwal & Williams (2009)
have said that luxury products no longer provide solely on functional values, but also, on emotional values and
social values. But impact of demographic variables like age on purchase of luxury products has not been
studied.
The study by Han, Young Jee et al. (2010) shows how purchase of luxury brands depends on wealth but other
factors like age, occupation, culture, personality, education and culture have not been considered. The study by
Lasaleta et al. (2010) considers the impact of wealth and psychographics on purchase of luxury brands but other
demographic variables have not been considered. The study by WWD: Women's Wear Daily, (2010) considers
the impact of culture and wealth on purchase of luxury brands but other demographic and psychographic
variables have not been considered. The study by Mayne, Eric (2010) shows the impact of culture on purchase
of luxury brands but other demographic variables like age have not been considered.Ko et al. (2010) has
emphasised on high quality value for luxury brands, but other dimensions of luxury value have not been
considered.
Abdolvand and Reihani (2013) examined the consumption behaviour of luxury products among the young
people and concentrated on the two fields of brand association and psychological antecedents.

V. IDENTIFICATION OF VARIABLES
Based on the gap analysis, following variables have been identified.
The dependent variable is purchase behaviour of luxury products.
The independent variables are
(i) Different dimensions of luxury value namely (a) financial value (b) functional value (c) Individual value (d)
Social value (ii) Age of the consumer

VI. THEORETICAL CONSTRUCT

Based on the gap analysis, following variables have been identified. The dependent variable is purchase
behaviour of luxury products. The independent variables are
(i)Different dimensions of luxury value (ii) Age
Considering the four main luxury dimensions and age into account, we have proposed the theoretical model
shown in Fig. 1 and 2.
Fig.1

Adapted from Wiedmann’s model, Academy of Marketing Science Review, 2007

With new additional variable as snob value
Fig.2

*Corresponding Author: MR. Sandeep Bhanot 23 | Page

 Impact of age on purchase behaviour of luxury brands

VII. OBJECTIVES OF THE STUDY

The objectives, mentioned below, will be considered:
(i) To understand the different luxury value perceptions among consumers: Here we have identified four
important luxury dimensions namely financial value, functional value, social value and individual value based
on our literature review.
(ii) To understand whether demographic variables like age influence the purchase behaviour of luxury brands.
(iii) A conceptual model has been made to show the influence of age on the various luxury value dimensions on
purchase behaviour of luxury brands.

VIII. FORMULATION OF HYPOTHESES

The hypothesis can be written as follows:
(i) First, we want to test whether there is any relation between demographic variables like age and frequency of
buying luxury brands, influence to buy luxury brands and intention to purchase the same brand previously
purchased.

Srinivasan et al.(2014) in their study have found that demographic variables like gender, income, age, education,
religion, ethnicity, marital status and occupation can influence the purchase of luxury products. Hence the
following hypothesis can be taken:

H1: There is a relation between age and frequency of buying luxury brands
Srinivasan et al.(2014) in their study have also found that demographic variables like gender, income, age,
education, religion, ethnicity, marital status and occupation are related to a consumer‟s influence to buy luxury
brands. Hence the following hypothesis can be taken:

H2: There is a relation between age and influence to buy luxury brands

Srinivasan et al.(2014) have also found that demographic variables like gender, income, age, education, religion,
ethnicity, marital status and occupation influence the intention to purchase the same brand previously purchased.
Hence the following hypothesis can be taken:

H3: There is a relation between age and intention to purchase the same brand previously purchased
Similarly, we want to find whether age is related to the place from where a consumer buys luxury brands and
also the kind of luxury product they intend to buy.
Hence we can have the following two hypotheses:
H4: There is a relation between age and the kind of luxury product a consumer intends to buy

H5: There is a relation between age and the place from where a consumer buys luxury brands

(ii) Now, we want to test whether there is any significant difference in perception of different dimensions of
luxury value with respect to age of the consumer.

*Corresponding Author: MR. Sandeep Bhanot 24 | Page

 Impact of age on purchase behaviour of luxury brands

We want to find whether financial value of the luxury brand is perceived differently by people of different age
groups. Hence we can have the hypothesis as:

H6: There is a significant difference in perception of financial value among people of different age
groups.

Similarly, we want to find whether the functional value of the luxury product is perceived differently by people
of different age groups. Hence we can have the hypothesis as:

H7: There is a significant difference in perception of functional value among people of different age
groups.

The individual value of the luxury brand can be perceived differently by people of different age groups. Hence
we can have the hypothesis as :

H8: There is a significant difference in perception of individual value among people of different age
groups.

Similarly, the social value of the luxury brand can be perceived differently by people of different age groups.
Hence we can have the hypothesis as :
H9: There is a significant difference in perception of social value among people of different age groups.

IX. METHODOLOGY
To measure the underlying dimensions of consumers‟ luxury value perceptions, in this study we have used
already existing tested measures (Tianet. al., 2001; O‟Cass& McEwen, 2004; Tsai, 2005; Wiedmannet. al.,
2009) and generated various items based on the literature review. The important components of luxury value
dimensions are considered for constructing questionnaire items. 1200 respondents completed a questionnaire
consisting of 57 items.
Sample characteristics and data collection:
The present research focuses on the purchase behaviour of consumers of luxury goods; thus, the target
population is individuals from the middle class and upper middle class segment. In this case, judgement
sampling and snowball sampling used to get the list of 2000 respondents and then systematic random sampling
are used to select 1200 people. The Kaiser-Meyer-Olkin measure of sampling adequacy (KMO), with a value of
0.851, which is greater than 0.7 shows that the sample size was sufficiently large to conduct factor analyses,
described in the results section of this study.
The study was done during the time period from April 2013 to February 2014.
The sample of respondents is from Mumbai and consisted of both genders, age ranging from up to 25 years to
more than 50 years. They were people of different educational backgrounds, occupations, income groups,
marital status and religions. A sample size of 1200 people was taken. The age groups considered were 0-25
years, 26-30 years, 31-35 years, 36-40 years, 41-50 years and more than 50 years. The respondents has monthly
income groups as Rs. 50000-1 lakh, Rs. 1.1 lakhs -1.5 lakhs, Rs. 1.6 lakhs-2 lakhs, Rs. 2.1 lakhs-2.5 lakhs, Rs.
2.6 lakhs-3 lakhs, Rs. 3.1 lakhs-4 lakhs, Rs. 4.1 lakhs-4.5 lakhs, Rs. 4.6 lakhs – 5 lakhs, and more than Rs. 5
lakhs. This is as per the standards set by the Asian Development Bank and the 2005 Mckinsey report.
Data are collected using a structured questionnaire. All respondents completed the instrument in
Mumbai and Navi Mumbai. The sample seems to well represent India‟s middle class and upper middle class
educated urban people. The sample was fairly young with 44% of respondents younger than the age of 35 and
53% between the ages of 35 and 50 years. One third identified as business people while 40% identified as
professionals. The remaining 27% respondents identified as retired or homemakers or service people. The
respondents covered four types of ethnicities i.e. north, south, east and west of India. Sixty two percent were
single. 92% were at least college educated with 47% indicating that they had completed post-graduate work.
The monthly incomes ranged from Rs. 50000 to more than Rs. 5 lakhs. This is as per the standards set by the
Asian Development Bank and the 2005 Mckinsey report.

X. QUANTITATIVE DATA ANALYSIS

The quantitative data analysis techniques used in this study are (1) Chi-square test (2) Factor analysis (3)
Kruskal-Wallis H test
To understand the different luxury value perceptions among consumers, factor analysis will be first performed
on the questionnaire. This will give us the important luxury value dimensions which influence the purchase

*Corresponding Author: MR. Sandeep Bhanot 25 | Page

 Impact of age on purchase behaviour of luxury brands

behaviour of luxury brands. Chi square test is used to see whether age is related to purchase behaviour of luxury
brands. Also, Kruskal-Wallis H test is used to see how each dimension of luxury value is influenced by age.

XI. RESULTS
The study was intended to find how age influences the important luxury dimensions and also the purchase
behaviour of luxury brands. It involved the following steps:
(a) According to the factor analysis results, a nine- factor solution whichexplains 56.2 % of total variance in
42 items wasobtained. All itemsgrouped meaningfully into the factors with highloadings. Factors with Eigen
values more than 1 were considered. The nine factors were named as prestige value, self-identity value, quality
value, uniqueness value, hedonic value, materialistic value, snob value, usability value and financial value.

(b) Reliability of the scalesis measured by computing the Cronbach alpha. For allthe nine factors used in this
research, reliabilityvalues had a range between 0.7 and 0.83.
Testing of hypotheses summary results are given below.

XII. Summary of testing of hypotheses

Hypothesis Test used Significance Status of Comment

value hypothesis
1. There is a relation between Chi square test 0.344 Rejected There is no relation
age and frequency of buying between age and
luxury brands frequency of buying
luxury brands.
2. There is a relation between Chi square test 0.000 Accepted There is a relation
age and influence to buy between age and
luxury brands influence to buy luxury
brands

3. There is a relation between Chi-square test 0.000 Accepted There is a relation

age and intention to purchase between age and
the same brand previously intention to purchase
purchased the same brand
previously purchased
4.There is a relation between Chi-square test 0.000 Accepted There is a relation
age and the kind of luxury between age and the
product a consumer intends to kind of luxury product
buy a consumer intends to
buy
5. There is a relation between Chi-square test 0.000 Accepted There is a relation
age and the place from where a between age and the
consumer buys luxury brands place from where a
consumer buys
6.There is a significant Kruskal-Wallis H 0.000 Accepted There is a significant
difference in perception of test difference in
financial value among people perception of financial
of different age groups. value among people of
different age groups
7(a) There is a significant Kruskal-Wallis H 0.346 Rejected There is no significant
difference in perception of test difference in
quality value among people of perception of quality
different age groups value among people of
different age groups.
7(b) There is a significant Kruskal-Wallis H 0.001 Accepted There is a significant
difference in perception of test difference in
uniqueness value among perception of
people of different age groups uniqueness value
among people of
different age groups

*Corresponding Author: MR. Sandeep Bhanot 26 | Page

 Impact of age on purchase behaviour of luxury brands

7(c) There is a significant Kruskal-Wallis H 0.030 Accepted There is asignificant

difference in perception of test difference in
usability value among people perception of usability
of different age groups value among people of
different age groups
8(a) There is a significant Kruskal-Wallis H 0.037 Accepted There is asignificant
difference in perception of test difference in
materialistic value among perception of
people of different age groups materialistic value
among people of
different age groups
8(b) There is a significant Kruskal-Wallis H 0.092 Rejected There is no significant
difference in perception of test difference in
hedonic value among people of perception of hedonic
different age groups. value among people of
different age groups.
8( c) There is a significant Kruskal-Wallis H 0.011 Accepted There is a significant
difference in perception of self- test difference in
identity value among people of perception of self-
different age groups. identity value among
people of different age
groups.
9(a) There is a significant Kruskal-Wallis H 0.000 Accepted There is asignificant
difference in perception of test difference in
prestige value among people of perception of prestige
different age groups. value among people of
different age groups.
9(b) There is a significant Kruskal-Wallis H 0.005 Accepted There is asignificant
difference in perception of test difference in
snob value among people of perception of snob
different age groups. value among people of
different age groups.

XIII. Findings:
(a) From Chi square test: When the influence of age on purchase of luxury products was considered, chi
square test was used and the following results were obtained:
(i) There is no relation between age and frequency of buying luxury products.
(ii) There is a relation between age and kind of luxury product that consumers intend to buy. Younger people up
to the age of 50 years prefer to buy apparel and mobile phones while people more than 50 years old prefer to
buy apparel and watches.
(iii) There is a relation between age and the place from which they buy luxury brands. People up to an age of 40
years prefer to buy luxury brands from malls and speciality stores whereas people more than 40 years old prefer
to buy luxury brands from malls and company outlets.
(iv) There is a relation between age and influence to buy luxury products. Younger people (up to 35 years)
depend on themselves and their friends to buy luxury products whereas people more than 35 years old depend
on themselves and their family to a greater extent.
(v) There is a relation between age and intention to repurchase the brand. Younger people up to the age of 50
years show a more positive intention to repurchase the brand as compared to people over 50 years.
(b) From Kruskal-Wallis H test:
Kruskal-Wallis H test was used to find whether there is any significant difference in the perception of the
different dimensions of luxury value with respect to age. The following results were obtained:
(i) There is a significant difference in perception of financial value among people of different age groups.
Younger people up to 40 years showed a higher rating towards financial value as compared to older people.
(ii) There is no significant difference in perception of quality value among people of different age groups.
(iii) There is a significant difference in perception of uniqueness value among people of different age groups.
Younger people up to 50 years showed a higher rating towards uniqueness value as compared to older people.
(iv)There is a significant difference in perception of usability value among people of different age groups.

*Corresponding Author: MR. Sandeep Bhanot 27 | Page

 Impact of age on purchase behaviour of luxury brands

(v) There is a significant difference in perception of materialistic value among people of different educational
levels. Younger people up to 40 years showed a higher rating towards materialistic value as compared to older
people.
(vi) There is no significant difference in perception of hedonic value among people of different age groups.
(vii) There is asignificant difference in perception of self-identity value among people of different educational
levels. Younger people up to 40 years showed a more positive rating towards self-identity value as compared to
older people many of whom have given a neutral rating.
(viii) There is asignificant difference in perception of prestige value among people of different age groups.
People in the age group of 36-40 years showed a higher rating towards prestige value as compared to other age
groups.
(ix) There is a significant difference in perception of snob value among people of different age groups. Younger
people up to 50 years showed a higher rating towards snob value as compared to older people.

XIV. Conclusions: Using the chi-square test,it is found that there is a relation between age and kind of luxury
product that consumers intend to buy and the place from which they buy luxury brands. There is also a relation
between age and influence to buy luxury products and intention to repurchase the brand. There is a significant
difference in perception of financial value among people of different age groups. Younger people up to 40 years
showed a higher rating towards financial value as compared to older people. There is a significant difference in
perception of uniqueness value among people of different age groups. Younger people up to 50 years showed a
higher rating towards uniqueness value as compared to older people. There is a significant difference in
perception of usability value among people of different age groups. There is a significant difference in
perception of materialistic value among people of different educational levels. Younger people up to 40 years
showed a higher rating towards materialistic value as compared to older people. There is a significant difference
in perception of self-identity value among people of different educational levels. Younger people up to 40 years
showed a more positive rating towards self-identity value as compared to older people many of whom have
given a neutral rating. There is a significant difference in perception of prestige value among people of different
age groups. People in the age group of 36-40 years showed a higher rating towards prestige value as compared
to other age groups. There is a significant difference in perception of snob value among people of different age
groups. Younger people up to 50 years showed a higher rating towards snob value as compared to older people.

XV. Benefits of the study: Knowledge of all relevant aspects of consumer perceptions of luxury can be
useful for managerial practice. According to perceived values in luxury brands, different sets of luxury products
and different types of advertising strategies should be applied for people of different age groups. Strategies
should be used with focus on the more important values for each group. Even if consumers buy the same luxury
goods, their perceptions about luxury values can differ, so the luxury market is heterogeneous and the role of
product characteristics plays an important role. Thus, it is the marketer‟s duty to consider individual differences
in evaluating luxury values and provide them products which satisfy their requirements.

XVI. Managerial implications:The results of this research have practical implications for marketers
working in the luxury industry. The results suggest that a focus on designing and managing optimal products
together with exclusivity can create positive emotions. To effectively react to the needs, wants and values of
purchasers is vital, especially in an increasingly competitive global marketplace. Positioning and segmentation
decisions have to be made on a global level. Companies should inform consumers about the high quality
materials and handcrafting of luxury products and emphasise a unique, quality product. Consumer education can
transpire in the form of advertising that stresses quality and/or labels, packaging, and supplementary facts that
offer comprehensive information on genuine luxury products. Managers of luxury goods should emphasise the
positive, functional, aesthetic and emotional experience of owning and using a luxury product. Knowledge and
understanding of these differences and similarities can help in designing suitable marketing campaigns. From a
market positioning perspective, monitoring the evaluative criteria of consumers can help marketers to recognise
and focus on the specific luxury dimensions, with special reference to education. Luxury brand companies can
understand people of different educational levels respond to the different luxury value dimensions and how the
luxury products can cater to the requirements of each group.

XVII. Limitations and scope for further research: Firstly, a particular limitation of this study was that
the respondents were all from Mumbai and Navi Mumbai and represented only one specific demographic group
i.e. urban people of India. Thus, the results might vary if this study was repeated in different cities or regions of
India. In terms of further research, therefore, researchers should consider expanding the study focus to different
areas and different populations.

*Corresponding Author: MR. Sandeep Bhanot 28 | Page

 Impact of age on purchase behaviour of luxury brands

Secondly, we have considered the influence of education on the different luxury value dimensions and the
purchase behaviour of luxury products. Other demographic variables like age, occupation, income group,
gender, ethnicity and marital status can be considered to study their influence on purchase behaviour of luxury
brands.
Thirdly, only the overall perceptions about luxury value have been tested. We can apply similar analysis for a
specified luxury product or service.

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*Corresponding Author: MR. Sandeep Bhanot 29 | Page

 Impact of age on purchase behaviour of luxury brands

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Table 1

Agegroup * howoftenbuy luxury products Chi-Square Tests

Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 21.933 20 .344
Likelihood Ratio 27.616 20 .119
Linear-by-Linear 2.888 1 .089
Association
N of Valid Cases 1200
a. 15 cells (50.0%) have expected count less than 5. The minimum expected count is .04.

Table 2: Agegroup * kindofluxuryproductyouintendtobuy Chi-Square Tests

Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 73.352a 30 .000
Likelihood Ratio 75.717 30 .000
Linear-by-Linear 6.923 1 .009
Association
N of Valid Cases 1200
a. 13 cells (31.0%) have expected count less than 5. The minimum expected count is .46.

Table 3: Agegroup * fromwhereyoubuyluxurybrands Chi-Square Tests

Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 48.158a 20 .000
Likelihood Ratio 45.141 20 .001
Linear-by-Linear 13.288 1 .000
Association
N of Valid Cases 1200
a. 8 cells (26.7%) have expected count less than 5. The minimum expected count is .21.

Table 4: Agegroup * influencetobuyluxuryproducts Chi-Square Tests

Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 68.294 25 .000
Likelihood Ratio 71.901 25 .000
Linear-by-Linear 1.563 1 .211
Association
N of Valid Cases 1200
a. 8 cells (22.2%) have expected count less than 5. The minimum expected count is .46.

Table 5: Agegroup * intentiontorepurchasebrand Chi-Square Tests

Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 43.628a 10 .000
Likelihood Ratio 37.222 10 .000
Linear-by-Linear .131 1 .717
Association
N of Valid Cases 1200

*Corresponding Author: MR. Sandeep Bhanot 30 | Page

 Impact of age on purchase behaviour of luxury brands

Table 1

Agegroup * howoftenbuy luxury products Chi-Square Tests

Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 21.933 20 .344
Likelihood Ratio 27.616 20 .119
Linear-by-Linear 2.888 1 .089
Association
N of Valid Cases 1200
a.2 cells (11.1%) have expected count less than 5. The minimum expected count is 3.54.

Tables 6 to 13

*Corresponding Author: MR. Sandeep Bhanot 31 | Page

 Impact of age on purchase behaviour of luxury brands

*Corresponding Author: MR. Sandeep Bhanot 32 | Page