Antecedents to the luxury purchase intentions of South African millennials

Abstract

This study seeks to explicate the antecedents to the luxury purchase intentions of the influential South African Millennial consumer. Specifically, the purpose of this study is to firstly verify the cross-cultural stability of Shukla s (2012) conceptual value perceptions model (comprising social, personal and functional value perceptions) as it relates to luxury brands in the South African context, and, secondly, to synthesise an extension of this model by incorporating the constructs of self-congruity, brand consciousness, and social media marketing, each of which has been found to be a predictor of luxury consumption in other markets. To this end, a descriptive, quantitative research study was conducted among South African Millennials. Primary data was collected through the use of an online questionnaire. Snowball sampling (through the use of Facebook) rendered a satisfactory sample of 388 valid responses. Structural equation modelling was employed to establish the validity and reliability of the proposed model and respective constructs, and to test the related hypotheses. The findings revealed that each of the constructs is positively correlated with the luxury purchase intentions of South African Millennials, with materialism being the most significant antecedent to luxury consumption. The results validated Shukla s (2012) model in the South African context as it relates to Millennial consumers. The findings further demonstrate that, while similarities exist between the value perceptions of South African Millennials and those of consumers in western developed and eastern emerging markets, the differences in this regard should also be considered before generalised assumptions are formed regarding the factors that inform the decisions of luxury brand consumers. This study advances the existing theoretical understanding of luxury consumption by exploring and developing a deeper understanding of the luxury purchase intentions of Millennials by testing the relevant theory in the South African context, which, in turn, may inform the marketing strategies of global luxury companies looking to South Africa for growth opportunities.