Factors Determining Generation Z Luxury Goods Consumer Buying Behavior In The China Mainland And Hong Kong

With China,both on the Mainland and in Hong Kong,increasing in global financial status and influence,it is similarly becoming a burgeoning and leading consumer market in Asia and a purchasing powerhouse for luxury goods.This is particularly attracting the new buying power of those born after 1995,which marketing analysts categorize as Generation Z.Generation Z consumers have substantially different characteristics and buying behavior than previous generations.Research suggests that,to succeed in this increasingly digital business world,retailers must understand the expectations of Generation Z consumers,their circles of influence,and the factors determining their luxury goods buying behavior.The aim of this research is to theoretically substantiate and empirically verify the factors determining Generation Z luxury goods consumer buying behavior on the China Mainland and in the Hong Kong Special Administrative Region(SAR).A conceptual model was derived from published research,which highlighted three main factors that determine Generation Z luxury goods consumer buying behavior.Subsequently,3 main hypotheses were formed(each with sub-scale hypotheses),and a study was designed to test them.The Generation Z age group(18-23)was selected as the focus for studying the relationship between consumer buying behavior and its determinants to re-examine these hypotheses.The mixed research method design comprising a survey instrument and semi-structured interviews was used to carry out the study.Identical investigation tools and procedures were followed for both regions.(1)A qualitative survey was conducted with a(non-random,convenience,yet strategically selected)sample of 26 respondents from the management team of a premiere global luxury brand in the China Mainland and Hong Kong;(2)A quantitative survey was also conducted in both locations using a(non-random,broad distribution,snowball)sample(N=1178)with 1000 luxury goods consumers.In brief,results confirmed 3 key factors and 6 sub-dimensions determining Generation Z luxury goods consumer buying behavior:(1)Luxury brand equity(furnctional,social,emotional,and financial);(2)Social environment(friends and family);and(3)Media.The conceptual research model was tested on the whole sample of luxury goods consumers in both locations(China Mainland N=487,Hong Kong N=513)via analysis of statistically significant correlations and coefficients of determination.It was found:·In both regions functionality of luxury goods is not important,Generation Z first choose luxury goods by fashion trends and design;·Family and friends have the largest influence on mainland’s Chinese Generation Z luxury goods consumer buying behavior,meanwhile in Hong Kong family has no effect on Generation Z;· Media plays an important role in Generation Z luxury goods buying decision-making process,however regional distinctions cause different preferences of media channels;· Hong Kong’s Generation Z is more rational shoppers,while mainland’s Chinese Generation Z luxury goods consumers are more impulsive buyers.The present research thus demonstrates that culture(specifically those elements related to geographic location)is a significant part of the economy and provides insight into the consumer choices that determine the prosperity of the growing luxury goods market.As such,cultural values should also be considered in future designs.This study fills a gap in the scientific literature by proposing,testing,and confirming a conceptual research model that focuses on factors that determine Generation Z luxury goods consumer buying behavior in these two China markets.