Consumer Attitude Towards Luxury Brands: An Empirical Study Analysis

This project presents an empirical study analyzing consumer attitudes towards luxury brands. The research explores the factors influencing purchasing decisions, including brand reputation, product quality, and pricing. The study employs a survey methodology, collecting primary data from a sample of 20 respondents and using SPSS for data analysis, including descriptive, correlation, and regression analyses. The findings reveal that consumer attitudes towards luxury brands are positively influenced by factors such as income level, product uniqueness, and the desire for a luxurious lifestyle. The analysis also indicates that while consumers value luxury brands, they are sensitive to price increases. The study concludes with limitations and offers insights into consumer behavior in the luxury goods market.

CONSUMER ATTITUDE
TOWARDS LUXURY
BRANDS: AN EMPIRICAL
STUDY

TABLE OF CONTENTS
A. Research Title.............................................................................................................................1
B. Research Background..................................................................................................................1
C. Research Objectives....................................................................................................................1
D. Secondary Research....................................................................................................................1
Concept of the Luxurious Brands...........................................................................................1
Consumer attitude towards luxurious brands.........................................................................2
Factors affecting consumer's attitude towards purchasing branded goods and services........2
E. Primary Research.........................................................................................................................3
Data collection........................................................................................................................3
Survey methodology...............................................................................................................3
Sampling method....................................................................................................................3
Sample size.............................................................................................................................3
Data analysis...........................................................................................................................4
F. Data Analysis...............................................................................................................................4
Descriptive Analysis...............................................................................................................4
Correlation Analysis...............................................................................................................6
Regression Analysis...............................................................................................................6
G. Conclusion and Limitations........................................................................................................9
Conclusion..............................................................................................................................9
Limitations..............................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................12
Appendix 1: Research Questionnaire...................................................................................12

A. Research Title
To analyse consumer attitude towards the luxury brands: An empirical study.
B. Research Background
Consumer behaviour can be defined that in which ways buying attitude of them changes
on the basis of different aspects like income, age, services, quality, brand, validity, feasibility etc.
The present study is on the basis of consumer behaviour which get fluctuate for the purchasing of
branded products and services from the market. It majorly focuses that, in the industry what are
the various factors by which purchasing power and attitude of individual affects towards the
luxurious brands and its products. In the current era, majority of the people want unique and
differentiate products and services which are provided by the luxurious brands. In order to
determine level of attitude and purchasing behaviour of the local community towards the
branded items, the present research is to be conducted. In addition to this, for collecting primary
data from the respondents, questionnaire sources is sued by the scholar. Further, data are
analysed from application of SPSS tools and tests on the collected data set.
C. Research Objectives
 To identify concept of the Luxurious Brands.
 To assess consumer attitude towards luxurious brands.
 To analyse factors affecting consumer's attitude towards purchasing branded goods and
services.
D. Secondary Research
Concept of the Luxurious Brands
According to the Heine (2012) the company which has the highest level of reputation in
the industry and comes under the prestige or extreme category is considered as the luxury brands.
Such kind of brands and firms provide higher quality of the products and services to the
customers. People or customers of the luxury brands rely or come under the upper economic
class.
Liu and et.al., (2012) argues that, normal or lower class of people cannot afford products
and services of the luxury brands due to having higher prices. Level of revenue or sales as well
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as loyalty of the consumers is up to the greater extent towards the luxury branded companies. In
the industry, number of such brands are very few as compare to the local firms.
Consumer attitude towards luxurious brands
As per the views of Kim and et.al., (2012) people always concern towards the higher
quality of the goods and services which are provided by the luxury brands. Level of prices
charged by such kind of companies are comparatively higher than local firms. Those
communities or customers who not look and consider to the pricing aspect and focus on the
quality only, are always preferred to the branded items. Further, due to offering the highest
quality, customers like to purchase and see the luxury brands with positive attitude.
Ko and Megehee (2012) states that, when talking about the loyalty towards the
consumers of the firm then luxury branded firms come into consideration in comparison to the
local brands. Therefore, loyalty affects to the consumers in terms of buying products from the
luxury brands. Along with this, due to increasing income and living of standard, customer's
attitude for purchasing and consuming branded items influence in the positive manner (Gil and
et.al., 2012). In this regard, customers always looking for the initiative and differentiate products
which are always being offered by the luxury brands. Therefore, it can be said that attitude or
buying behaviour of the consumers is positive towards the luxury brands.
Factors affecting consumer's attitude towards purchasing branded goods and services
In the opinion of Reis (2015) several kinds of factors and elements are there, which
highly affect to the customers in order to buy products from the luxury brands. Products and
services of these kinds of brands have higher quality of items which create the positive impact on
the customers. Because of offering high standard of the goods, people switch towards the
luxurious items which is one of the basic factor affecting them. Further, due to enhancing the
income and profit of individuals, they like to purchase items of luxury brands and avoid to the
local companies. Such brands offer products after making modifications and taking initiatives
which become a unique item (Brun and Castelli, 2013). Due to uniqueness in the goods,
customer attitude diverts towards the luxury brands. Most of the community wants to live a
luxurious and higher standard of the life which is also one of the major element affects to the
customers for purchasing the branded items.
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Hidayat and Diwasasri (2013) criticised that, price level of luxury brands is too much
high which is not affordable by ordinary or lower level of the community. Further, number of
customers are very low of the branded organisations when making comparison with the normal
or local firms and brands.
E. Primary Research
Data collection
In the present study, primary data gathered by scholar for analysing behaviour of the
customers in terms of buying services and products of the luxury brands. Further, source which
is used to collect information is the questionnaire which are distributed between the local
community of the country (Data Collection Methods, 2017). The reason for selecting the specific
source is that, through questionnaire reliable, authentic and appropriate data can be gathered
which helps to carry out specific study and determine proper conclusion.
Survey methodology
Survey in the present research is to be carried out with the help of online method and
offline technique is ignored. Under the online, direct e-mail as well as social media network
considered through which questionnaire are distributed (Mackey and Gass, 2015). Further, while
taking responses from the people also same online methodology is undertaken by the scholar. It
is easy and cheap method along with consume lesser time for collecting information.
Sampling method
For collecting sample data among all the local community, simple random sampling
method is undertaken by the researcher. Under the chosen method any kind of parameter and
criteria is not framed and randomly sample are picked by the scholar (Kumar, Mohri and
Talwalkar, 2012). Further, randomly people are selected and taken as the sample for
questionnaire distribution and data collection.
Sample size
In the present research information collected from the local community of the country
because they are users of the luxury and normal brands. Further, randomly 20 people are selected
in among the overall population and with the help of online method questionnaire are allotted
(Vaioleti, 2016). After that, responses are collected and then analysed about the behaviour of
them towards the luxury brands.
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Data analysis
In order to make analysis and derive interpretation of the research problem SPSS tools
and techniques are to be applied on the data set which are gathered from the 20 local community.
Under the statistical, there are several kinds of analytical methods are undertaken which are such
as descriptive, correlation, regression and association analysis (Santner and Duffy, 2012).
Further, outcome of such all the analytical tools will be considered for making proper
interpretation and derive conclusion of the research.
F. Data Analysis
Descriptive Analysis
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Statistic Statistic Statistic Statistic Std. Error Statistic
Are you purchase those
products which are offered
by luxury brands?
20 1.00 2.00 1.3500 .10942 .48936
How long you prefer to
buy the products and
services of luxury brands?
20 1.00 5.00 2.7500 .25000 1.11803
Which are elements you
consider while purchasing
the products and service
from the market?
20 1.00 5.00 2.2000 .27720 1.23969
Are you agree that luxury
brands are overpriced? 20 1.00 5.00 1.6500 .25418 1.13671
Increase in price of luxury
products affects your
purchase decisions?
20 1.00 5.00 1.9500 .27601 1.23438
With increase in income
level do you think that you
will make more
expenditure on luxury
products will increase?
20 1.00 5.00 1.8000 .27720 1.23969
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Which are the factors from
the following affect
purchasing attitude
towards the luxury
brands?
20 1.00 4.00 2.3000 .24170 1.08094
Do you agree that, luxury
brands fulfil all your
wants and requirements
properly?
20 1.00 5.00 1.7500 .26031 1.16416
Valid N (listwise) 20
Analysis and interpretation
From the above mentioned descriptive data it can be analysed that, majority of the people
among 20 sample size purchase products and services which are offered by the luxury brands
due to having mean value is 1.35. Only few numbers of people not buy such kinds of the services
and items and prefer the local firms. Further, major respondents buy the luxury brands on half
yearly basis and sometimes quarterly. At the second question of purchasing frequency mean
value derive is like 2.75 where standard deviation is 1.11. At the time of buying or consuming
products from the luxury brands, people consider quality of the items as average value
determines like 2.2. Therefore, sometimes they consider durability of the goods as well and
pricing aspects are avoided. Mean value of 1.95 reflects in the mean data set that, majority of the
people agree that as pricing level of luxury goods and services increase, their purchasing
decisions affect up to the certain extent. The reason is that, upper class of the people only prefer
luxury brands on the frequent basis.
It can be found from the above descriptive analysis that, due to enhancing income of
individual they make more expenses on the luxury items. At this response of statement mean and
standard deviation derives like 1.80 and 1.24 respectively. In addition to this, 2.3 arithmetic
mean value indicates that, income level is the factor which highly impact on the purchasing
attitude of customers towards the luxury brands. Apart from this, product uniqueness,
innovativeness in the fashion and living luxurious life, these factors also influence to their
buying attitude of the branded items up to some level. Moreover, it has been found from 1.75
mean value that, people are satisfied from the products of luxury brands due to fulfilling all the
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requirements and wants of them. Hence, it can be analysed that, consumer attitude towards
purchasing of the luxury brands effect the income level up to the greater extent as compare to
other elements.
Correlation Analysis
Correlations
Are you agree that
luxury brands are
overpriced?
Increase in price of luxury products
affects your purchase decisions?
Are you agree that
luxury brands are
overpriced?
Pearson Correlation 1 .174
Sig. (2-tailed) .462
N 20 20
Increase in price of
luxury products affects
your purchase
decisions?
Pearson Correlation .174 1
Sig. (2-tailed) .462
N 20 20
Analysis and Interpretation
The correlation tool reflects that among two variables, which kind of relation is there like
positive or negative. Further, range of correlation output always remains between +1 to -1 in
which positive indicates that independent variable affect to the dependent variable in same
direction and vice-versa. In the present study, output of correlation generated is 0.174 by which it
can be found that, there is positive relation in the luxury brands overprice and increase in its
pricing factor. From this respective answer it can be said that due to overpriced luxury brands,
purchasing decision will be affects up to the very lower level. The reason is that, income level of
the people reduce negative impact on the overpriced and they continue their buying behaviour.
Hence, it can be said from the correlation analysis that, due to overpriced of analysed brands
purchasing decision of individual influenced in positive direction but with the very little
variation.
Regression Analysis
Hypothesis frame
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H0: There is no mean significant difference between price of luxury brands and purchasing
decisions of consumers.
H1: There is mean significant difference between price of luxury brands and purchasing
decisions of consumers.
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Are you agree that luxury
brands are overpriced?b . Enter
a. Dependent Variable: Increase in price of luxury products affects your purchase
decisions?
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .174a .030 -.023 1.24876
a. Predictors: (Constant), Are you agree that luxury brands are overpriced?
ANOVAa
Model Sum of
Squares
df Mean Square F Sig.
1
Regression .881 1 .881 .565 .462b
Residual 28.069 18 1.559
Total 28.950 19
a. Dependent Variable: Increase in price of luxury products affects your purchase decisions?
b. Predictors: (Constant), Are you agree that luxury brands are overpriced?
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 1.637 .501 3.269 .004
Are you agree that luxury
brands are overpriced? .189 .252 .174 .752 .462
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a. Dependent Variable: Increase in price of luxury products affects your purchase decisions?
Analysis and interpretation
The model of regression also indicated relationship between two variables like
correlation where one variable is dependent and other independent. Basic difference is that,
regression helps to assess mean significant difference between both the variables also and
analyse hypothesis test. Under the regression model output comes like 0.462 which is lower than
standard value like 0.5. After making comparison between standard and actual value, research
able to know that whether null hypothesis is accepted or alternate. The present regression test
focuses on two variable at where constant or independent is overpriced of the luxury brands.
Further, second depended factor is purchasing decision of individual while price improve of the
luxury brands.
Henceforth, due to deriving 0.462 regression value null hypothesis is accepted and
alternate is rejected. Therefore, there is no mean significant difference between the luxury
products overpriced and purchasing decision of the consumers.
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Analysis: From the above data it is found that number of male respondent is 53% and
female is 47% which means that males are more aware about luxurious products. 39% of the
answerer falls in the age group of 20 to 30 years that shows they are more updated with current
happening in the market. 43% of the people are professionals who respond in the survey as they
are more educated they know more about expensive items in the market. In the responses it is
found 33% of the people are post graduation which represents that literate person know that
though branded products are expensive but it is useful for a long time. 40% are those who have
5-10 lakh income as they earn more so they prefer quality product on the other hand 7% are
those who have below 5 lakh income as they earn less they prefer less luxurious product.
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G. Conclusion and Limitations
Conclusion
From the present study it can be summarised that, income level of the local community
and individual create positive impact on the buying attitude of those products and services which
are offered by the luxury brands. It can be said that, as income and economic condition of people
increases then they would like to prefer luxury brands and avoid the local firms. There are
different kinds of aspects and elements available which create huge impact on the consumer
attitude towards the branded items. From the data it can be ascertained that, income level creates
the major impact and after that innovation in fashion as well as uniqueness of the goods also
influenced to their buying decisions. As per the secondary research also it has been analysed that,
because of increasing in the income of people they like to purchase luxury brands and avoid to
the unbranded items. At the last, it can be found that products and services offered by the luxury
brands fulfil all the wants and requirements of the local community up to the greater level.
Limitations
Very basic problem incurred while doing the present analysis is that, to use SPSS
software is typical and taking more time in order to input the data set. Along with this, to
understand overall data, tests and models of statistical are also complex which create problem
while interpreting the collected information (Flick, 2015). In order to gather data, sample of only
20 people is taken at the present research in which is very few for making the proper analysis.
On the other hand, those people who know about the present topic and prefer the luxury brands
are selected which helps to take reliable and valid facts as well as figures.
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