Online Behaviour of Young Adults Regarding Luxury Shopping - Research Paper Example

Online Behaviour of Male Consumers between the Ages of 25- 28 Regarding Luxury Shopping Introduction The market for luxury goods has been undergoing a considerable revolution over the years (Sharma and Sheth, 2004: 698). This can be attributed to the invention of online shopping. Additionally, these goods have become increasingly affordable and accessible to consumers. This concept is related to the emotional attachment that consumers associate to certain categories of goods. Another point to be noted is that the market for luxury goods has expanded in developed and emerging economies, and it is facilitated by the online shopping (Galbraith, 2001: 50). The phenomenon for luxury goods has changed as there has been the emergence of ‘new luxury’ products that are commonly consumed by the middle class. Conversely, ‘old luxury’ products include brands like Dolce and Gabbana, HUGO BOSS and Louis-Vuitton are not as widely consumed as the ‘new luxury’ among the middle income young consumers. In a nutshell, the ‘new luxury’ products stand out among the consumers due to their emotional appeal and superior performance (Silverstein and Fiske, 2008: 35). This paper studies the online behaviour of male consumers between the ages of 25-28 regarding luxury. This section of the population has been observed to be mainly shopping for fashion clothing, electronics, fragrances, entertainment and cosmetics in the online market. Statement of the Problem In the past, luxury brands were for the few privileged shoppers, but now with the invention of online shopping and affordability consumption of these products has increased among the young males (GoMo News, 2013). Recent studies reveal carried out in the UK market that spending on luxury products has increased by 50 percent in the past ten years as compared to the7 percent increase in spending on basic goods (Keane and McMillan 2004: 30; Frost and Sullivan,2012). In addition to, the rising trend of online spending has resulting to numerous challenges and opportunities to the luxury brands (Goldsmith, 2002: 25; Eroglu et al., 2003: 140). It is therefore imperative for luxury brand mangers to get a comprehensive understanding of why consumers buy luxuries. It is important to note that consumers mainly in the age bracket of 25- 28 years buy to impress (Fan and Burton, 2002: 26; Martin and Turkey, 2004: 464). There has been an emerging view that there are two types of luxury good consumption, personally oriented and socially oriented and they should be considered in the online sales and marketing. The current study seeks to get an understanding of the online behaviour of male consumers between the ages of 25 to 28 regarding luxury shopping. Aims and Objectives Consumer behaviour towards online shopping for luxury goods is highly dependent on age and gender. This is because the older generation views luxury differently from the younger generation due to the effect of the internet (Hauck and Stanforth, 2007: 175). This paper studies on the behaviour for male online shoppers between ages 25 to 28. Past studies have overlooked the motivational factors affection the consumer behaviour in the purchase of ‘new luxury’ goods (Twitchell, 2003: 43; Parker and Schaefer, 2004: 176). The study will analyse the deep motivation factors including image, fashion and media. The paper looks at the shopping tendencies for male shoppers between the ages of 25 to 28 years for luxury goods in the online market and the motivational factors behind their decision making. Objectives To study how the gender and age affects the shopping tendencies of online male shoppers. To study the motivational factors affecting the purchase of luxury products by online shoppers in the UK. To give an understanding of the various internal psychological processes decision making with regards to the consumption of luxury goods. Research Questions Do age and gender impact on the consumers’ perception of luxury products? Why do people in this age bracket opt for the ‘new luxury’ goods? What are the motivational factors behind online shopping? Research Methodology After deciding to conduct this research, questions relating to this topic and the specific problems to be considered may begin. In this way, the motivation and objectives of the study are founded. Following this, relevant literature on online consumer behaviour for luxury goods is brought together to uncover the past and present developments in the industry. The information for the research will be collated from a review of existing sources. These texts are from book, academic journals, academic websites and news reports. Surveying will be used for data collection and questionnaires will be distributed manually and online for convenience (Saunders, Lewis and Thornhill, 2009: 40). Literature review This section presents the theoretical concepts that have been used in this study. The purpose is to give an understanding for the previous studies relating to the topic. As earlier mentioned, the concept of luxury has changed over the years (O'Cass and Frost, 2002: 67). This trend has led to the democratisation of luxury brands especially in the online market and this has presented numerous opportunities and posed enormous challenges to businesses world over. Existing market research has shown luxury brand consumption is both socially and personally oriented. However, the section of personally oriented consumers has not received the optimum benefit of theoretical and empirical research. The current study integrates the relevant theoretical concepts and empirical findings to investigate the behaviour of male online shoppers for luxury goods. Status consumption among male online shoppers between 25 to 28 years This market is viewed as being highly competitive and represents a wide market that can be generalised (Piacentini and Mailer, 2004: 251). In spite of the plenty opportunities presented by this market, the audience is hard to please owing to their dynamic needs. The internet and the media impact heavily towards their needs and make their preferences savvy. They are considered to be lavish spenders with regards to branded luxury goods (Piacentini and Mailer, 2004: 252; Taylor and Cosenza, 2002: 393). It has been proven that this group of consumers is motivated by the need to show off status brands. There is an underlying assumption that this section engages in the purchase of luxury products various purposes and preferences. Status consumption has been argued to be the motivating factor that enhances the individual’s social class through evident consumption. This kind of consumption involves the public display as a sign of status, wealth and power. This helps in promoting self- concept and social recognition (O'Cass and Frost, 2002: 67; Piacentini and Mailer, 2004: 255). This group of shoppers is status oriented therefore, they purchase luxury goods that signify a high social status in the view of those they feel are significant. It can be noted that individuals from a wealthy background and more disposable income are less likely to participate in consumption spending (Piacentini and Mailer, 2004). On the other hand, people from the lower and middle income backgrounds are more likely to be involved in status spending. Country of origin Past literature has shown that the country of brand origin is considered to have a huge impact on consumers’ decisions (O'Cass and Frost, 2002: 69). Researchers have attempted to evaluate the consumer perceptions on brands from various countries and the importance of particular aspects when purchasing these products. Nevertheless, these terms are becoming increasingly confusing in a market comprised of hybrid products originating from more than one country (O'Cass and Frost, 2002: 70). Origin of a certain brand may be one of the major reasons why online shoppers between 25- 28 years attach certain characteristics to certain products (O'Cass and Frost, 2002: 81; Usunier and Lee, 2005: 32). It can be concluded that the origin a brand is a viable variable to use in evaluating the consumers’ attitude towards various products (Craig and Douglas, 2006: 332). Numerous studies have concentrated on the consumers’ attitudes of domestic brands versus foreign products with regards to ethnocentrism (Kaynak and Kara, 2002: 928; Critin et al., 2003: 917). For instance, a recent study shows that Australian consumers are more likely to purchase foreign apparels more than domestic ones. This means that they have lower ethnocentrism and this is likely to have detrimental effects to the domestic economy such as loss of jobs (Kaynak and Kara, 2002: 930; Supphellen and Rittenburg, 2001: 395). Consumer behaviour The consumer behaviour model is used to explain the concept of consumer behaviour. This model states that the decision making process involved in buying a product consists of five essential steps (Blackwell, Miniard and Engel, 2006: 12). The first step is recognition of the problem which involves problem recognition. The second step is concerned with the formulation of a solution to this problem. The third step involves evaluation of available alternatives in the market. The fourth step involves choosing a plan that is in line with the consumers’ needs and preferences. Finally, the consumers make their choice and there is and final result which is either satisfaction or conflict between the consumers’ expectations and the outcome (Schiffman and Kanuk, 2003: 57). Research Approach Several sources were used in order to get a comprehensive view of the research strategy, data collection and purpose of the research. There are two methods that are considered when choosing a research approach, the deductive approach and the inductive approach. The deductive approach involves the development of theory and hypothesis and then a research strategy is used to test the theory. This approach is widely used in scientific research and it is considered to be highly structured (Saunders, Lewis and Thornhill, 2003). On the contrary, the inductive approach involves the collection of data and development of theory. The inductive approach focuses on the research context and gives an understanding on the meaning attached by people to events (Curwin and Slater, 2002: 46). This strategy is applied in social research it gives a deeper understanding of the problem being studied (Saunders, Lewis and Thornhill, 2003). The research is an empirical research which employs both a quantitative and qualitative research design. The main advantage of quantitative research is that it allows the researcher to quantify the answers given by respondents towards particular variables, demographic data and hypothesis which is used to draw conclusions and make comparison (Curwin and Slater, 2002: 45). Research Methods The survey method through the use of questionnaires was selected as the best method to collect data from the target group and employees of the luxury companies (Creswell et al., 2007: 70). This is done by the formulation of questions that are aimed to measure the intended variables. The questions were structured in a simple manner to facilitate straight forward answers. The participants who participated in the survey were online male shoppers in the UK and their age was between 25- 28 years. Data was gathered by use of web- based questionnaires and self- administered paper questionnaires. This improved the overall accuracy of the survey. The main advantages of using this method are, they can be administered to a large number of people, they are more economical to use and this method allows for anonymity. Use of Secondary Research Secondary research was used in this study as it saves on time, enhances a better understanding of the problem and it is cheaper (Curwin and Slater, 2002: 45). Additionally, it allows access of information that could have been difficult to obtain. In this case, there were difficulties in obtaining marketing data from luxury companies. It also forms a basis for data that has been collected by the researcher. The sources of data used include academic journals, books and academic websites. Limitations There were some limitations faced when conducting this study resulting from the confinement of time. The short time in which the study was carried out made it difficult to collect an ample number of samples the survey, more accurate results could have been obtained. Additionally, the samples obtained are confined to a curtained group which is mainly composed of students. It is suggested that a wider range of the sample space could have given a more comprehensive analysis (Curwin and Slater, 2002: 40). The limited time frame of the research restricted the study to go into the depth of the situation in the local market and the industry in general. The ethical issues relating to the research was related to the confidentiality of information by the luxury product companies (Curwin and Slater, 2002: 42). Emanating from the confidential nature of marketing information, it was not easy to get information on numbers recorded from online sales to male shoppers between 25- 28 years and how these companies market their brands in the online market. The general recommendation is that the study should concentrate on the entire population rather than the limited section of male online shoppers. Conclusion and Recommendations This section gives some of the findings that are obtained from the study and makes suggestions to online luxury companies on how they can improve their marketing strategies so as to satisfy the needs of the target population. The study answers all the research questions. It can be concluded that age and gender affect the consumers perception, online shopping is convention and easy and therefore preferred by the target population and the motivational factors behind shopping for luxury goods are psychological. Marketing managers are advised to understand their customers’ needs and make the relevant decisions with regards to the marketing strategy to employ. The research approach is limited by some aspects such as the sample size, effectiveness of methodology and time frame; measures should be taken to correct this. Most online luxury brand companies should consider the tastes and preferences of the younger generation. The strategies that are currently used by many companies should be reviewed with this notion in mind. Furthermore, consumer theories should be examined as there is a limited understanding of psychological influences on online shopping behaviour. In conclusion, relevant literature should be review to get a contemporary and thorough understanding of consumer needs. Areas for Further Study As earlier discussed, social research, so far, has been minimal with regard to the topic. The first suggestion is that investigative research should be conducted on the target market of conventional luxury goods. From our study, it is clear that most of the respondents were unable to afford traditional luxury goods including designer clothing and expensive automobiles. Therefore, interviewing the high class and affluent individuals in society would give insight on the consumption of these products. The second suggestion is that research should be done to establish the factors that affect the disparities among attitudes towards luxury products. References Books Blackwell, R.D., Miniard, P.W. & Engel, J.F. (2006) Consumer behaviour, Thomson/South-Western, pp. 12- 54. Creswell, W.J. & Plano Clark, L.V. (2007) Designing and conducting mixed methods research, California: SAGE, pp. 56- 93. Curwin, J. & Slater, R. (2002) Quantitative methods for business decision, London: Thomson Learning, pp. 40- 70. Galbraith, J.K. 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