The relationship between status- and conspicuous consumption in luxury brands in the South African emerging market

Abstract

The major theme of this research is the manner in which luxury good companies enter an emerging market economy, such as South Africa. The study thoroughly analyses how the emerging middle class of the country perceive luxury brands in term of being either status-giving or conspicuous. The study used a scale to measure luxury brands’ status and conspicuousness by analysing well-established international luxury brands that have a large footprint in South Africa as a reference point. The dimensions of luxury brand perception were measured when the scale between status and conspicuousness was utilised. This study employed a Factor Analysis as well as Perceptual Mapping in order to determine the relationship between conspicuous- and status consumption in the South African emerging market. The data was collected from 120 consumers who were owners of luxury products, but were deemed to be part of the upper middle class. Status and conspicuousness were revealed as two separate but related constructs, yet the South African emerging consumer does not discern between these two aspects. Strategic marketing implications for marketing managers were identified and discussed within the five brands that were selected, and their relevant product categories.