Scale for consumption of luxury goods: indicators date and accuracy in ‘brasil central’

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Authors critical to distinctive consumerism, such as Jean Baudrllard, Thorstein Veblen e Zigmund Bauman, have characterized contemporary society based on over and ephemeral consumption, alongside being a victim of media power. In other words, in such societies, luxury is related to the futile and superfluous, very close to a capital sin such as lust.

The bias of the Veblenian effect prevailed in contemporary society and provided a misunderstanding of the consumption of luxury, especially in view of classical economists who defined contours of heterogeneity. These goods would be cut off in case of a fall in income, as if consuming luxury were immoral or superfluous. This universe of consumption is misunderstood even by its consumers, after all according to Douglas and Isherwood (2012), goods are the ones that give visibility and stability for the different culture categories. In addition, all possessions carry social significance and concentrate a full use of communicating aspects, where consuming goods is a ritual in a fluid process of classifying people and events.

The problem in question lies in the following: what items should comprise a structured instrument for the consumption of luxury products? This study is justified by the importance that the luxury market has been receiving in the last ten years. During this period, consumption of luxury products have flourished in Brazil, mainly in São Paulo, Rio de Janeiro and Distrito Federal (MARCONDES, 2010). From this discussion, which involves cultural consumption theorists and those who defend critical theory, this study aims to validate a scale for the consumption of luxury products. In this discussion, authors such as (MCCLELLAND, 1978);(VEBLEN, 2017);(BOURDIEU, 1989);(DUBOIS; CZELLAR; LAURENT, 2005); (DOUGLAS; ISHERWOOD, 2002);(LIPOVETSKY; ROUX, 2003);(ALLÉRÈS, 2005).

To reach this main objective, we investigated and applied a structured instrument to 385 individuals, consumers of luxury products, in three Brazillian capitals.

There is a belief related to the so-called exclusive products that the concept of art makes them rare and expensive. Thus, transferring this to the luxury, the concept of art seems to be a natural way to go. In practice, the significance of rarity cannot be shared among consumer communities at the risk of overexposing the brand (DOSS; ROBINSON, 2013), as well as creating a bias in the analysis of cognitive, emotional, behavioral and social investment behavior in branded interactions (HOLLEBEEK; CHEN, 2014). Therefore, rarity and scarcity are just a few elements to be considered in this context. The hypotheses of this research are related to the status that directly influences pleasure.

H1 Exclusivity influences Pleasure.

Exclusivity is key to maintaining status. This is an important variable for the construction of pleasure and maintenance of the concept of luxury (MAKKAR; YAP, 2018; VIGNERON; JOHNSON, 1999).

H2 Exclusivity influences Status.

Aspects such as exclusivity, status and tradition come into play as well. This is the transformation of the product into art, as if it were a craft, immersed in meanings that invite their consumers into live a story. It resides in the process of making art a particular product, a robust method of differentiation by exclusivity, status and tradition (MAKKAR; YAP, 2018). Therefore, the following hypotheses are installed:

H3 Functional aspects influence the perception of product tradition.

It is understood as functional aspects the technical and physical characteristics, such as: quality, raw material, durability, among others. A product with extensive quality assurance and technical assistance, it becomes durable and enabled to be passed from generation to generation (Zeithaml, 2012)

H4 Tradition influences the formation of necessity by exclusivity.

Style and good taste determine differentiation, inclusion, and exclusion among others. Knowing how to use a product framed in this situation provides this differentiation, even if false. Fashion is the striking expression of contemporary society, but it is not intensely related to the democratization of consumption, but rather to the maintenance of status. Being fashionable indicates that the consumer privileges a status of distinction (BOURDIEU, 2013), also predicted by Asian, European and North American empirical studies (VALETTE-FLORENCE; KAPFERER; VALETTE-FLORENCE, 2016; WALLEY et al., 2013; WU; LI; LI, 2013)(VALETTE-FLORENCE; KAPFERER; VALETTE-FLORENCE, 2016; WALLEY et al., 2013; WU; LI; LI, 2013)(VALETTE-FLORENCE; KAPFERER; VALETTE-FLORENCE, 2016; WALLEY et al., 2013; WU; LI; LI, 2013). In this way the hypotheses that influence pleasure are proposed.

H5 The need for exclusivity influences differentiation.

Allied to the practice of making art an exclusive product, there exists another search factor of symbolic and conspicuous price strategy. Exposing the price or not, and whether or not to carry out a liquidation, are concerns related to the marketing practices of luxury products. It should be noted that this is not a concern of a luxury brand. Experimental studies attest that exposing price does not change 'desirability' in times of consumption of accessible and democratic goods (PARGUEL; DELÉCOLLE; VALETTE-FLORENCE, 2016). The way in which the tactic of pricing creates distinction and desire is discussed at the microeconomic and market level. It should be noted that these two aspects are intertwined in the context of fashion, which in a non-rational way entails status and consequently, promotes distinction. Style and good taste determine differentiation, inclusion, and exclusion among other things. Knowing how to use a product framed in this situation provides this differentiation, even if false. Fashion is the striking expression of contemporary society. It is not intensely related to the democratization of consumption, but rather to the maintenance of status. It is in fashion that the consumer favors a status of distinction (Bourdieu, 2013), an idea also predicted by Asian, European and American empirical studies (KAPFERER, 2014; LII; WU; DING, 2013; WALLEY et al., 2013). In this way the hypotheses that influence pleasure are proposed:

H6 Functional aspect influences pleasure and H7 Tradition influences Pleasure.

The products related to the concept of new luxury still retain an inheritance of their creators, the true artisans of the big brands (GODEY et al., 2016; TRUONG; MCCOLL; KITCHEN, 2009). The example applies to brands such as Louis Vuitton, Hermés, Armani, among others (Dubois, Czellar, & Laurent, 2005).

H8 Differentiation influences Status and H9 Status influences Pleasure.

In this context of the search for distinctive consumption, meaningful approaches are bringing other lenses to the understanding of symbolic consumption. Some classic prejudices are softened when it is understood that the less privileged consumers do not only live in the search for the basics, a concept which is purely arbitrary. After all, in all social classes there is consumption of differentiation, exclusivity and status. An example of such changes is the consumption of wine that is often consumed in the presence of reference or aspirational groups (WOLF et al., 2016). In fact, the frequency of consumption deconstructs the concept of prestige and luxury being that it is expected that prestige is something casual and restricted in its use. Technology also impacts the construction of the concept of luxury and luxury since it is considered that the rare of yesterday is the superfluous of today. This was the case with the air bag, ABS brakes, refrigerators and microwaves, which have all evolved from the rare to the indispensable (Douglas & Isherwood, 2002).

The methodology of this study sought to validate a scale for luxury consumption as well as to promote a study to deepen the subject. The search for the modeling technique of structural equations (SEM) and partial least squares (PLS) was useful. The SEM / PLS technique is indicated when there are a large number of variables involved and grouping of variables around constructs. Such an aspect made it possible to reach the objectives and studies of the hypotheses.

A total of 385 participants were randomly interviewed in large cities in the region of Central Brazil at events held with the theme of new luxury and luxury. The inclusion criterion was to frequently consume luxury products and follow bloggers and vloggers of this consumption universe. This criterion was based on a list of luxury brands that are considered to be exclusive and marketed food and beverages; beauty products; perfumery; fashion and cars. From this relationship, those who consumed accessories and products from an extended line of these brands were considered a 'luxury consumer' and were invited to participate in the survey. Three situations were foreseen:

[1] line extension: when a manufacturer launches another item to compose its line from one product. For example, a perfume or cream that accompanies the same fragrance.

[2] category extension: used by the parent brand to penetrate a new market segment. For example, a sports car that has as mix, key chains, clothing and accessories.

[3] junior version: brands created from parent brands when the goal is to reach new segments such as Armani with the Armani Exchange. The practice in this case aims to preserve the main brand when promotions and discounts launch cheaper products.

Individuals under the age of 18 years and incapable of responding to interviews were adopted as exclusion criterion. The interviews were conducted in public settings, such as squares, parks and other public places.

Figure 1
Path Diagram
From some related studies and according to the exploratory study that guided the quantitative phase of this research, 6 variables were related. Similar studies on the consumption of luxury products and luxury had some common variables such as: excellence, aesthetics, pleasure, identity and utilitarian aspects (CHOO, MOON, KIM, e YOON, 2012); identity, social recognition, self-esteem, achievement, aspiration for the brand and award (indulgence) (PILLA, Sarkar, e ROY, 2016); prestige, exclusivity, rarity, leadership and seduction (KAPFERER e VALETTE-FLORENCE, 2016; KAPFERER e LAURENT, 2016).

Table 1
Study Variables

This survey made the connection between the latent variables in the Structural Equation Modeling Path Diagram (MEE) possible. The seven-step model was adopted: [1] development of a theoretical model; [2] construction of a path diagram; [3] conversion of a path diagram of causal relationships; [4] choosing the type of data matrix and estimation of the proposed model; [5] assessment of the model identification; [6] evaluation of quality criteria; [7] interpretation and modification of the model, if theoretically justified (HAIR et al., 1998).

Analysis of the Correlation Matrix and Anti-Image Matrix

Once the correlation matrix was constructed, the first visual examination finds that there are not many correlations above the suggested scores, though some are as high as 0.50 and 0.60. Values near 0.50 indicate that the factors found cannot satisfactorily describe the variations of the original data. Regarding the MAS tests (0.800); KMO (2829.731) and Bartlett's Sphericity Test (595.000), presented adequacy for the use of PA. With regard to the sphericity test, the value considered satisfactory for the significance test (sig) would be below 0.05. Above 0.10, the use of AF is discouraged (LATTIN; CARROL; GREEN, 2011).

The desired option for the extraction of factors fell on Orthogonal and Varimax. In this sense, by the criterion of latent root, the extraction would be 6 factors; according to the Kaiser criterion, the choice would be 10. The other suggested criteria of percentage of variance and heterogeneity of the respondents were disregarded due to the low accumulated variance recorded in the first attempt to extract factors (56.75%). When Factorial Analysis was run without determining the amount of factors to be extracted, the maximum accumulated total variance obtained was 56.75%.

Table 2
R Square and α Cronbach

With respect to α, we highlight 'tradition', 'differentiation' and 'status', with expressive values, granting the proviso that this measure is extremely sensitive as new variables are inserted into the study dimensions. However, for R2, it is possible to state that the coefficient has an explanation coefficient of zero, that is, nothing elucidative.

Table 3
Correlation Between Latent Variables

The dimensions proposed in the Factor Analysis are created from the subjectivity suggested by the researcher, naming these dimensions can also follow the variable that presents the highest factorial load (Hair et al., 1998).

When running the AF, the lowest value for the main diagonal was related to the variable FUN08 (0.42) and the highest was related to PRA01 (0.70). On the secondary diagnoses, a low value was verified for TRA09. The requirement here is to exclude low values that interfere with the Mean Extracted Variance (AVE).

According to Table 3, variables in four models with a low factor load were excluded until the process had factorial loads equal to or greater than 0.70 and an AVE greater than or equal to 0.50. In the first passage with the exclusion of three variables, the model underwent a significant improvement mainly in the Differentiation, Functional and Tradition dimension; in the third passage with the exclusion of two other variables, the model improved in all dimensions. Finally, in the fourth and last passage, with the exclusion of four other variables, the model reached its limit when it can be considered "adequate" from the point of view of convergent validity, and also suitable from the point of view of reliability (above 0.70).

Table 4
Correlation Between Latent Variables

The AVE improves significantly as the exclusion procedures for the variables occur. The constructs show improvement with the procedure.

Table 5
Average Variance Extracted by Model (AVE)

The variables have highly significant loads from a statistical standpoint: (t> 1.96) according to Table 6, and (t> 1.96 or p <0.05) according to the parameter.

Table 6
General Statistics by Construct

The next step was to verify the discriminant validity at the variable level. Because of this, a diagonal is created with the square root of the AVE's in the correlation matrix of the dimensions. Since the values on the diagonal are greater than the values outside the diagonal, there is discriminant validity.

Table 7
Correlation Between Latent Variables

Next, it was also necessary to assess the discriminant validity at the indicator level.

Table 8
Correlation Between Latent Variables

According to Table 7, issues related to differentiation are a preponderant factor for exclusivity; functional product issues are also related to exclusivity; tradition is built by the exclusivity and functionality of the product.

In elaborating the constructs, the goal was to follow the theoretical reference using the Factor Analysis proposal as support. The main criterion for evaluating the reliability and validation of the structural model is through the determination coefficient R2 for endogenous latent variables (CHIN, 1998; HAIR et al., 1998). Chin (1998) considers that in order for R2 to be weak, the value will be around 0.19; to be moderate, the value will be centered at 0.33, and finally to be substantial, the expected value will be 0.67.

Figure 2
Structural Coefficients

Considering the parameters suggested by Chin (1998), one has to say that in terms of pleasure construction, there are no substantial exogenous variables. Only tradition would receive the criterion of 'moderate' while the others would be considered 'insufficient'. In isolation, their contributions would also be moderate, with emphasis on exclusivity (0.28).

Chart 2
Correlation between Latent Variables

In analyzing from a statistical point of view, only the connection tradition and pleasure do not demonstrate any significance. However, from a practical point of view and from the parameters of Chin (1998), there would be no significance for all of the parameters. In the construction of the model, in general and by order of importance, we have exclusivity (0.280), tradition (0.272), status (0.249), differentiation (0.214) and functional (0.00).

In Chart 2 we have the main questions forming the decision-making process for luxury products. Tradition is built in a significant way by the functional appeal of the product while there is an expressive link between tradition and exclusivity, as well as exclusivity and differentiation. Status and exclusivity are the most significant constructs for the formation of the pleasure construct.

In three recent surveys, the dimensions surveyed were slightly different. In the French study, the following was predicted: [1] product superiority, [2] selective distribution, [3] class and status, [4] originality, [5] exclusivity, [6] glamor, [7] rarity and [8] fashion (VALETTE-FLORENCE; KAPFERER; VALETTE-FLORENCE, 2016). In the North American study, the dimensions were constituted by: [1] differentiation, [2] extreme quality, [3] hedonism, [4] singularity and [5] personal projection (VIGNERON; JOHNSON, 2017). In a study carried out in the United Kingdom, the proposed dimensions contemplated: [1] affection, [2] characteristics, [3] status, [4] gifting and [5] involvement (WALLEY et al., 2013). The dimensions involved suggest a semantic question, which raises other studies and may include other aspects such as corporate reputation (WALSH; SCHAARSCHMIDT; IVENS, 2017).

Figure 1 and Chart 2 show the dilemmas related to multivariate analysis: validity and significance. Two results are expected from an analysis like this one: [1] the magnitude offered for effects between variables (for this the model must be correct); [2] and whether or not this model is robust. In summary, the model is correct, but not necessarily significant.

The study participants had an average of 25.33 years (vloggers and bloggers). The majority were male (56.35%), students (65.78), with an average income equivalent to (US $ 3,500.00). All respondents were of Brazilian origin.

The values of products are socially constructed, since there is no category of goods that responds to objective needs. Its function goods is a socially assigned meaning. The value of objects is the result of a combination of practicality and symbolism elaborated by the members of a group. In this experience, the consumer, in order to effectively insert himself or herself in the context of socially attributed meanings, goes through a learning context for the tendencies to be consumed (ROCHA, 2005). This learning is often provided by experts, since the tradition of consumption requires a series of requirements, such as dedication, experience, and cultural experience, among others (FEATHERSTONE, 2002). This situation predicted by the author provided the emergence as the figures of the coolhunters and bloggers.

It stands out as both practical contributions that the scale for the consumption of affordable luxury, or luxury, can contribute to the development of new products that reach audiences of other income ranges and in doing so also promote the well-being and satisfaction of users and companies in general. In an extended way, the form found to classify the products like luxury also appears timely:

[1] products in their junior version; [2] line extension products and [3] category extension products.

Despite the potentialities referenced here for this scale, it is important to recognize that the same should be the subject of other studies that test other forms of validation. This does not necessarily include content validity and internal or concurrent structure and construct. The results obtained demonstrate that the scale of motivation to consumption of luxury products has good psychometric properties in addition to being stable. This in turn makes it possible to reach the proposed objectives.

As a theoretical contribution, we believe that we occupy a gap in the theory of the consumption of luxury, after all are rare the publication on mass consumption, symbolic and cultural. Access to the consumption of prestigious and quality products promotes a sense of belonging and the search for an identity that is consistent with new consumption patterns (accessible, quality and prestige products).

There are wide possibilities for a future research agenda. It is possible, for example, to investigate aspects of brand hate related to fear, deception, shame and dehumanization (ZARANTONELLO et al., 2016). Likewise, it is also possible to investigate the gifting effect (Waller, 1999) of the high luxury and luxury communities (CAVENDER; KINCADE, 2014). In the universe of cultural and symbolic consumption, it is possible to investigate the Diderot Effect, or the interconnections between complementary products (MCCRACKEN, 1986).

This survey has a cultural cut. For reasons of caution, it is recommended to observe the demographic differences for replication of this research instrument.

Satisfaction, recognition, reward and merit, coupled with design, quality, durability and beauty, would be the determinants of luxury consumption. In this specific case, there was no correspondence between the studies due to the latent 'functional' variable having very low representation. However, status and recognition correspond to the one described by the authors regarding hedonism.

The functional is allied to a significant tradition and exclusiveness. In this regard, price, quality and raw material make up the aspects of product tradition being that tradition is synonymous with exclusivity in this study. From studies centered on the recommendation of a product of prestige, one has that tradition which is not preponderant by the formation of the concept of differentiation. It would be tangible aspects, such as the quality and innovation that determine a consumer to indicate their preferred brand (CHANG et al., 2016), as well as performances excellence (CHOO et al., 2012).

It is assumed that the functional question of a luxury product (quality, technical aspects, and technology, among others) is related to tradition (image of the founder, experience, and market, among others). Both constructs would be closely related to the exclusivity of use and the pleasure of living the emotion of that particular consumption; status is a determinant construct for the elaboration of the pleasure of consumption; the exclusivity would be the construction factor of the differentiation construct.

The pleasure dimension assumes the role of dependent variable where the values t> 1.96 are significant at 5%. It is observed that only a structural coefficient was not significant, Tradition - Pleasure. No doubt is it possible to affirm that pleasure is the propulsion of luxury consumption in this quantitative research beyond the latent variable being the center of character. Pleasure arises in situations of experiential consumption, the manifestation of a true aura, experiential power, only experienced in stores that teach the secret of the great brands of luxury (HUGHES; AHEARNE, 2010). This pleasure relates to the sharing of information about the manufacturing processes and materials used and the teachings passed on by the seller about elements of the history of brands that are less known or not public (CERVELLON; COUDRIET, 2013). The seller of this universe is an ambassador (when outside the country of origin) and a noble citizen (when in the country of origin). Consumers expect them to have the attitude and behavior of a privileged person, to be well educated, distant and unfamiliar with the customer, identified with the brand and defined with the same attributes that define their favorite brand (Hughes & Ahearne, 2010), in order to allow the appropriation of meaning by the consumer (McCracken, 1986).

With regard to the question of differentiation and its construction in research, the variables exclusivity and status are essential aspects.

From a statistical standpoint, the ESM model is extremely significant, receiving Functional-Tradition (13.09); Tradition-Exclusivity (12.03); and Exclusivity-Differentiation (10.70); Differentiation-Exclusivity (7.23). The construction of pleasure in this consumption is mainly based on status (2.61) and exclusivity (2.76). Tradition does not suggest engagement in the construction of pleasure.

From a practical point of view, the ESM model is of medium relevance since most relations constructed are only medium-low. The Exclusivity (0.28) constructs stand out as important; Tradition (0.27) and Status (0.24). The strongest relationships are between Functional and Tradition; Tradition and Exclusivity; Exclusivity and Differentiation. In the construction of the Pleasure construct, which is the dependent variable, we have Status as the most significant in this relationship.

The results behave in a way that is in line with what has already been observed in other studies where tradition does not seem to be relevant for the construction of the pleasure of luxury consumption.