An Empirical Study On The Relationship Between Consumer’s Perceived Risk And New Luxury Brand Equity

China has shown its significance in global luxury market.Convinced by broad market potential andunique cultural background, experts exhibit great enthusiasm in researching Chinese luxury market andrelated hot topics.As a brand-new trend overwhelming traditional luxury concept,‘new luxury’is on the rise,spreading from traditional mature luxury market to the emerging market——China, and resonating with themiddle-class.Brand equity is the core of research in brand competitiveness, which is based on the ‘Brand ValueChain Theory” of Kevin Lane Keller. From the view of consumer, brand euity is attempting to figure outthe essence of brand advantage. Nevertheless, present research merely focuses on value-adding andtransferring process, ignoring the devaluing process and the interference factors in consumer’s mind. Thispaper highlights the function of perceived risks in influcing consumer’s mind and behavior, hence, thebrand equity. Considering the summary of the present researches, this paper establishes the structural modelof the connection between the perceived risk and new luxury brand equity, which lays the foundation forefficient brand management. Given the influence on the perceived risks, the income level and puechaseexperience is set as moderating factor.The171valid samples with high brand awareness of the listed new luxury brand underlie thestructural model and empirical analysis. This paper conducts the group analysis in the light of twomoderating factors. In the light of purchase experience, the samples are divided into ‘experienced consumergroup’ and ‘inexperienced consumer group’. The ‘inexperienced consumer group’ has more risk factorsnegatively influencing brand equity with the strong effect of functional risk. However, risk factorsadversely influencing brand equity of ‘experienced consumer group’ is more dispersive. In the light ofincome level,‘privileged group’ and ‘underprivileged group’ are set. The ‘underprivileged group’ has moreinfluencing risk factors than its counterpart with the strong functional risk, while ‘privileged group’ showssignificant correlation between social and psychological factors and brand equity.The findings is intended for effective brand management lowering consumer’s perceived risk andraising brand equity from the perspectives of experiential marketing, group identification, pricing strategyand added-value services.