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Impact of Psychological Needs on Luxury Consumption

Listed author(s):
  • Ning Mao

    (China-ASEAN International College and Dhurakij Pundit University, Thailand)

  • Michael McAleer

    ()

    (National Tsing Hua University, Taiwan; University of Sydney Business School; Erasmus University Rotterdam, The Netherlands, Complutense University of Madrid, Spain and Yokohama National University, Japan)

  • Shuyu Bai

    (Limian Material Technology Corporation, China)

This paper examines the impact of psychological needs on luxury consumption. Veblen’s Theory of the Leisure Class (1899) invented the term “conspicuous consumption” to describe luxury goods and services, in which Veblen indicated the purpose of luxury consumption was to display wealth and social status. This paper integrates the following two papers: (1) Han and Zhou (2002), who proposed an integrative model, and argued that three variables, namely Country-of-Origin, Brand Name, and Price, were major predictors for overall product evaluation and purchase intentions; and (2) Han, Nunes and Dreze (2010), who proposed a taxonomy called The Luxury 4Ps, to explain the inductive and deductive psychological needs of luxury consumption.

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File URL: http://papers.tinbergen.nl/17063.pdf
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 17-063/III.

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Date of creation: 18 Jul 2017
Handle: RePEc:tin:wpaper:20170063
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  1. Michael McAleer & Ning Mao, 2017. "Theravada Buddhism and Thai Luxury Fashion Consumption," Journal of Reviews on Global Economics, Lifescience Global, vol. 6, pages 58-67.
  2. Marie-Laure Djelic & Antti Ainamo, 1999. "The Coevolution of New Organizational Forms in the Fashion Industry: A Historical and Comparative Study of France, Italy, and the United States," Organization Science, INFORMS, vol. 10(5), pages 622-637, October.
  3. Holt, Douglas B, 1998. " Does Cultural Capital Structure American Consumption?," Journal of Consumer Research, Oxford University Press, vol. 25(1), pages 1-25, June.
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