Demographic characteristics of female luxe-bargain clothing shoppers: an acquisition-transaction utility approach

Abstract

Over time, the association with a “bargain” has shifted from cheap, mostly low‐quality products, to buying the best value for the least money spent across brand categories (Martinez & Kim, 2012). This is confirmed through emergence of a specific shopper type, i.e. luxe‐bargain shopper (Lim, 2009:7; Bäckström, 2011; Martinez & Kim, 2012; Lim et al., 2013). The acquisition‐transaction utility theory (Thaler 1983) proposes that a consumer’s choice behaviour depends on two factors, i.e.: the value derived from products with reference to the actual price paid compared to the reference price, thus the predominant financial benefits, and the perceived benefits that consumers believe they are acquiring of the deal compared to the paid price, thus the predominant hedonic benefits. Two utility values are thereby distinguished, namely (1) acquisition‐ (financial) and (2) transaction (hedonic) utility. Literature does not distinguish demographic differences in consumers who seek luxury bargains for the utilitarian (financial) benefits and those who do so primarily for hedonic reasons. This creates a predicament for brand managers who are obliged to build a brand’s image and who strive to protect the image of their brands. The research aimed to demographically cluster consumers who are self‐admitted luxe‐bargain hunters as (1) being primarily interested in financial gains, i.e. functional/ acquisitional utility, and (2) those that do so to derive transactional, i.e. hedonic benefits from the shopping experience to ultimately describe the respective groups in terms of their demographic profile. The study used an explorative, quantitative research approach. A survey was conducted in the greater Gauteng area with the focus on female luxe‐bargain hunters aged 21 years and older with a minimum monthly household income of R6000. A structured self‐administered questionnaire that included a list of selected brands that are available in South Africa, and slightly adapted versions of established scales were used in the questionnaire. Through exploratory factor analysis, the data pertaining to luxe‐bargain hunters were distributed amongst two factors, i.e. Factor 1: Acquisition utility, and Factor 2: Transaction utility, which coincided with extant literature. Notwithstanding female consumers’ demographic characteristics, their association with the acquisitional utility (financial benefits) of a bargain, exceeds the transactional utility (hedonic benefits). Differences among different age, income‐ and level of education categories were not significant for either of the utilities. This indicates that these demographic characteristics are not significant in terms of consumers’ regard for the financial benefits or the hedonic benefits that are associated with luxury bargains. Significant population differences were however evident, in that Blacks’ association of the acquisitional‐ (M=4.22) as well as the transactional benefits (M=4.12) of luxury bargains were highly positive and significantly higher (p<0.05) compared Whites’ association of both utilities. Based on the findings of this study, various recommendations are made, such as increasing the sample size and to include male consumers in order to expand and build on this existing research. This study makes a valuable contribution towards the literature and also for consideration by marketers and retailers in the South African clothing sector.