An investigation on Iranian consumer behavior towards famous luxury brands

Abstract

During the past few years, there has been a growing trend on luxury good consumption among Iranian consumers. Many rich people change their mobile devices, purchase new expensive cars, etc. This paper investigates the effects of three factors including consumer perceived value, sensitivity to social norms and need for uniqueness on consumer’s intention to purchase luxury products based on the theory of planned behavior. The proposed study uses clustering technique and randomly chooses a sample of 250 rich people and distributes a questionnaire among them. The study uses structural equation modeling and the implementation of the proposed model has been executed using LISREL software package. The results indicate the all three factors, consumer perceived value, sensitivity to social norms and need for uniqueness, influence consumer intention to buy luxury goods. In addition, consumer knowledge is a mediator factor between need for uniqueness and purchase intention.

Keywords

• Luxury brands
• Consumer behavior
• Social norms
• Purchase intention