Investigating Effective Factors on Purchase Intention of Luxury Products

Marketing managers are interested in consumer purchase intentions so as to prognosticate sales of existing and/or new products and services. Purchase intentions data can help managers in their marketing decisions related to product demand (new and existing products), market segmentation and promotional strategies. Luxury brand products and the motivation to buy luxury brands are becoming increasingly relevant to consumers in Asia. Luxury-purchase motivation predominantly based on Western thoughts and markets. Cultural values have been shown to influence consumer behavior in many studies. Establishing whether relationships exist between cultural values and motivation for consuming luxury products would be advantageous for the marketers of luxury products. The present study focuses on factors affecting the purchase intention of luxury products. Primary Tools for Data Collection was Likert's 5-scale questionnaire. Statistical Population is composed of all customers attending selected fancy and luxurious restaurants in Tehran. Since the statistical sample is infinite (over 100000 subjects), the sample size was determined to include 385 subjects by means of Kergesi Morgan's Table (1970), and simple random sampling method was applied. In order to analyze the data, descriptive and inferential statistics and the structural equation modeling were employed with SPSS and Lisrel software programs. The research, in terms of purpose, is practical and the method of data collection is survey. Research results suggest that the variables of consumer attitude toward luxurious products, quality of the service provided by fancy and luxurious restaurants, perception of brand and social effect affect the purchase intention, while the variables of store image (restaurant) and vanity bring about no impact on the purchase intention. In addition, the variable of vanity does not exert any moderating effect on the relation between perception of luxurious brand and purchase intention and between the social effect and purchase intention.