An Emperical Study Of Influencing Factors On The Behavior Of Chinese Luxury Consumers

Since China joined the World Trade Organization in December 2001,its luxury consumer market has been developing rapidly,and large numbers of international companies in China continue to expand,attracting global attention.Chinese luxury consumer behavior is not exactly the same as that of western consumers,so the relevant researches concerning the former deserve closer attention.Currently under the New Normal,Chinese economy is transforming from rapid growth to a mid-low period.On a background of this situation,to explore the driving mechanism and influencing factors of luxury consumption has very important theoretical and practical significance,for it will promote the sustainable development of China's domestic luxury brands and Chinese economy.This paper includes nine chapters.Chapter One is Introduction.Chapter Two illustrates the current situation both at home and abroad,and lists my research perspectives on the basis of literature review.Chapter Three focuses on research methods.Chapters Four to Seven analyze the influences of income,face,public self-consciousness and gender upon luxury consumption.Chapter Eight offers the conclusion and projection.Chapter Nine provides relevant policy suggestions.The purpose of this paper is to analyze the factors influencing luxury consumption,to put forward hypotheses on the basis of the literature review,and to analyze the four variables: income,face,public self-consciousness and gender,with the quantitive method and the logit pattern & structure.Combining social culture and personal value,several online questionnaires designed with Star Software were conducted,and the data were collected by using software SPSS and AMOS to give the following conclusions.First,the influence of income on luxury goods.Income was selected as the main explanatory variable and,by gradually increasing the control of variables,to observe its effect on luxury consumption.Regression analysis was used and revealed a U-turn curve between income and luxury consumption,that is,when the annual income is above 1.828(100,000 yuan per year),the increase of income will promote luxury consumption;when the annual income is below 1.828,luxury consumption will decrease.Second,factoring food and domestic expenses into the variables,the research reveals these elements have a significant impact on luxury consumption,and further proves the existence of U-turn relation,that is,luxury consumption requires a certain level of income.Finally,the research on the preferences of investment provesluxury consumption is affected by consumption ideas,and is related to consumers' psychology,and consumer's' validity value can be enhanced by luxury consumption.Second,the influence of face on luxury goods.This paper divides the features of face into three categories: obligatory,discrepant and others-oriented.Then the influences of the three categories are studied on “inaccessible luxuries”,“accessible luxuries” and “new luxuries”.Clustering analysis is used to divide consumers into four groups: conservative,sociable,experiencer,and flaunter.The number and features of each group are analyzed.Finally,the segmented regression analysis is used to test the relation between the face features of classified groups and different intentions of luxury purchase,and shows that the classified groups are affected by different levels of luxuries and face features,and these differences lead to differences in their consumption behavior.Third,the influence of public self-consciousness on luxury goods.This chapter first discusses the role of public self-consciousness from the cultural perspective,and divides the cultural perspective into three categories: power distance,individualism and uncertainty of avoidance.The study shows that consumers with higher uncertainty of avoidance tend to have a higher awareness of their public social status,and the higher their awareness of individualism,the higher their social self-consciousness.Then the study shows that social self-consciousness is proved to have positive influence on two social-oriented motives,namely social conspicuousness and social recognition.Social recognition and self-oriented motive have positive influence on purchase intentions of consumers,but social conspicuousness have negative influence on the intention of purchasing fake luxuries.Finally,the cultural perspective and the self-oriented motive are not conspicuous,but have great impact on relevant social behaviors.Fourth,the influence of gender on luxury consumption.The study shows first that Chinese women are more inclined to status consumption,and this has positive influence on purchase motives.Studies have shown that to promote self-esteem and social status Chinese women tend to use luxuries in the presence of others;The study shows then that power influence is less for men than for women,while the former are greatly affected by face.Face as a part of traditional culture has great impact on Chinese men,who will try everything possible to save face,tend to satisfy others and purchase luxuries to gain recognition.Besides,income has greater influence on men.Finally,an analysis is conducted of the overall structural formula,and reveals therelation between the different variables.The study shows similar results,theoretical analysis and module results as those of previous studies.Finally,as luxury goods industry is a kind of resources industry requiring large amount of energy and labor and high technology,and as China is going through a transformational period of slowing growth and structural optimism,we need to reconsider the development of luxury goods industry.As foreign companies have reached high maturity in development,brand establishment and production,and thus cannot make big changes in reducing cost,saving energy and poor performance in social responsibility,our companies can heighten their social responsibility to lessen the impact of foreign counterparts,to protect our own luxury industry,to map out future plans of luxury development on the basis of Chinese culture,face and gender difference,to advocate green luxuries and low-energy luxury industry,to promote the competitiveness and sustainability of luxury goods,and to create more jobs and promote healthier development of Chinese economy.