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Article
Publication date: 31 August 2010

Lee Lik Meng

403

Abstract

Details

Foresight, vol. 12 no. 5
Type: Research Article
ISSN: 1463-6689

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Article
Publication date: 12 September 2016

Yonghwan Chang, Yong Jae Ko and Walter L. Leite

Despite the remarkable growth of the luxury industry, a phenomenon referred to as luxury fever, as well as the growing interest in word-of-mouth (WOM) marketing in the industry at…

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Abstract

Purpose

Despite the remarkable growth of the luxury industry, a phenomenon referred to as luxury fever, as well as the growing interest in word-of-mouth (WOM) marketing in the industry at hand, little is known about how consumers’ perceived leadership of luxury brands dynamically influences their WOM behavior. This paper aims to examine the moderating role of a type of luxuries (accessible vs inaccessible) in the relationship between the four dimensions of perceived brand leadership – quality, value, innovativeness and popularity – and consumers’ WOM recommendation intention.

Design/methodology/approach

The current research is based on survey data gathered from 333 actual customers who attend five golf clubs located in North Florida. An innovative data analysis procedure that combines structural equation modeling with propensity score analysis to estimate the moderating effects, controlling for selection bias, is presented.

Findings

Quality was the significant predictor of WOM among consumers of inaccessible luxuries (private club). In contrast, financial value and popularity were key factors in predicting WOM of individuals who chose accessible luxuries (public club).

Originality/value

This paper attempts to shed new light on the field of strategic luxury marketing by addressing differential consumption decision-making processes corresponding to hierarchically constructed luxury services. In addition, an innovative way is suggested to achieve covariates’ balance in the examinations of latent variables and multisampling models for observational research.

Details

Journal of Services Marketing, vol. 30 no. 6
Type: Research Article
ISSN: 0887-6045

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