Uncertainty and affluent teenagers’ luxury buying-decision: The role of avoidance-related indecisiveness

Abstract

Global teen population constitutes a sizable market in the luxury brands industry. However, little is known about the mechanism through which teens form an attitude towards luxury brands, particularly in the context of emerging economies. Drawing insights from self-concept theory, self-discrepancy theory, and social consumption motivation, our study proposes a theoretical framework to explain how teenagers' self-related perception influence social consumption motives through avoidance-related indecisiveness, thereby determining teenagers' attitude towards luxury brands. Using a sample of 610 affluent private school students across five major cities of India, we empirically validate our theoretical framework through structural equation modelling. Our study contributes to the existing literature by demonstrating the impact of teenagers’ self-perception on the display of avoidance-related indecisiveness and resisting social consumption motives of luxury brand purchases.

Introduction

Luxury brand market has witnessed exponential growth worldwide, with its market potential expected to reach USD 40 trillion by 2020 compared to USD 1 trillion in 2014, and its customers tripling in the past two decades (Ko et al., 2019). Luxury brands, defined as, “premium products, which provide pleasure as a central benefit and connect with consumers emotionally” (Hagtvedt and Patrick, 2009, p. 609), offer a sense of indulgence to consumers through its exclusiveness, premium price, high-quality, and social reputation (Nueno and Quelch, 1998). Although substantial scholarly attention has been paid to the underlying motivations driving purchase-decision of luxury brands, yet only a limited attention being given to teenage consumers whose luxury spending outpaces any other demographic group (Schade et al., 2016). However, recently luxury brand marketers have realized that teenagers are a significant market segment (Bakir et al., 2020; Gil et al., 2012), with higher disposable funds compared to adult consumers. Compered to teenagers, adult consumers shoulder greater financial responsibilities and therefore direct their finances towards payment of health insurance, credit-card instalments, rents, and groceries bills (Zollo, 1999), rather than luxury brand consumption. Specifically, emerging economies, such as China, India, and the Middle East, have witnessed an exponential growth in teenagers' luxury brand purchases due to rapid globalization, and a subsequent rise in standard of living (Kim and Ko, 2012). Despite the apparent economic significance of developing nations' teen segment, the majority of studies on teenagers’ luxury buying decisions have concentrated on developed countries (Bakir et al., 2020; Gil et al., 2012; Mrad et al., 2020), compared to emerging markets. Therefore, the current study also aims to fill this research void, by attempting to understand the luxury purchase decisions among teenage consumers in the context of emerging markets.

Contemporary discourses remain equivocal on the antecedents of luxury brand buying decisions (Bian and Forsythe, 2012). Few scholars assert self-related antecedents, while other scholars advocate social motivations behind luxury purchase decisions (Ordabayeva and Chandon, 2011). Studies endorsing self-related antecedents have espoused the symbolic self-completion theory, which suggests that teenagers, who generally possess an unclear self-concept, view luxury brands as an avenue for ‘self-presentation’ and ‘self-expression’ (Bian and Forsythe, 2012; Mrad et al., 2020). Particularly, these studies have hinted individuals' personality (Casidy, 2012), need for uniqueness (Chaudhuri et al., 2011), self-monitoring (Bian and Forsythe, 2012), self-concept clarity (Gil et al., 2012), self-image (Chebat et al., 2006), and brand self-congruency (Silverstein and Fiske, 2008) as possible reasons behind luxury buying. Meanwhile, existing studies examining the social antecedents conceptualize luxury brands as a medium to gain social acceptance (Gentina et al., 2016), flaunt wealth to others (Pino et al., 2019), bridge comparative material possession gaps (Gil et al., 2012) and enhance social status and visibility (Chaudhuri et al., 2011; Mrad et al., 2020). However, majority of these studies have explored social and self-related antecedents in isolation while ignoring possible interplay between these antecedents. With only a few studies linking these antecedents (Gil et al., 2012), our study conceptualizes the mechanism through which teens' self-related antecedents render social motivation, which in turn builds a positive attitude toward luxury brands.

Taking cognizance of adolescence as a transitory period of rapid individual and social growth (Bakir et al., 2020), we draw insights from self-concept theory, self-discrepancy theory, and social consumption motivations to propose a theoretical framework for explaining the underlying mechanism. Broadly, our study seeks to explore how teenagers' self-related perception allows them to undertake avoidance-related indecisive behaviors, which may manifest social consumption motives and, subsequently, a positive attitude towards luxury brands. Firstly, we have considered the role of self-related factors, including self-concept clarity, elements of uncertainty, and self-esteem. During adolescence, individuals endeavor to form a clear perception of themselves through developing a consistent self-concept (Bakir et al., 2020). However, the inability to attain self-concept clarity manifests uncertainty in teenagers, given their incomplete information access, and inadequate understanding about a particular task. Such uncertainty results in poor task execution, which lowers their self-esteem. Secondly, we draw from the self-discrepancy theory to identify self-protective measures undertaken by teenagers to tackle their lack of self-clarity. Owing to their low self-esteem in early stage (Rosenberg, 1979), teenagers form negative evaluations of their actual self in comparison to their ideal self, which compels them to engage in decision avoidance as a self-protective measure, as evident in their hesitancy, indecisiveness, and procrastination. Thirdly, to avoid being judged as indecisive, teenagers adopt social motives, which induces them to form socially appropriate ‘right’ decisions.

Drawing from our proposed theoretical model, we have derived a set of testable hypotheses and subsequently employed SEM to empirically verify the same. Overall, our study advances existing theoretical understanding in the under-researched area of teenagers’ luxury brand purchases, particularly in the context of emerging economies. These insights have implications for luxury brand marketers to reconsider their marketing and positioning strategies for their teen segment. We have organized our study into five sections. Firstly, we propose our theoretical framework. Secondly, we develop a set of testable hypotheses. Thirdly, we elaborate on the research methodology, followed by a presentation of our key-results. Finally, we conclude and outline the theoretical and practical implications of the study.