A study of influence of personal factors on consumer behavior in luxury goods in China

Abstract

This study attempts to investigate the influence of personal factors in consumer behavior regarding luxury consumption in Beijing, China. The relevant literature was used to build a conceptual model to guide the development of the analysis. Based on this model a survey was conducted on 270 respondents in Beijing, China. Quota sampling method was applied to collect data. Income at least 50000RMB per year, and possessing at least one luxury product was used as the criteria for the sample. Some 234 useable questionnaires were returned for analysis. This study mainly focuses on how personal factors influence people purchase luxury goods, for personal factors of age, gender, lifestyle, self-concept, perception, and brand experience. The findings were: (1) there is significant difference in consumer behavior by age groups, and also generation Y is the most loyal group for a brand compared with other age groups; (2) women are likely to purchase luxury goods more than men and they tend to consume the same brand more than men; (3) the personal factors such as lifestyle, self-concept, perception, brand experience can clearly explain consumer behavior. Remarkably, brand experience is the most significant factor that influences consumer behavior; (4) the personal factors are also significantly associated with brand loyalty for luxury consumption among Beijing luxury consumers. Knowledge of Chinese consumers’ personal factors can substantially improve the efficiency and effect of marketing effort on the luxury market. Such knowledge can make marketing planning such as promotion strategies and positioning product to different consumers easier. The analysis of this study provides measurable variables that reflect the main element of Chinese consuming the luxury products and enrich the knowledge of luxury companies beyond the demographic information about Chinese consumers.