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The role of brand equity and face saving in

Chinese luxury consumption
Article in Journal of Consumer Marketing June 2016
DOI: 10.1108/JCM-08-2014-1116

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The role of brand equity and face saving in

Chinese luxury consumption
Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

AQ: au

Department of Marketing, School of Business, Hong Kong Baptist University, Hong Kong, Hong Kong
Abstract
Purpose This paper aims to investigate the impact of brand equity on Chinese consumers affective attitudes toward luxury brands and their
behavioral intentions by applying the cognitive-affective model. The interaction effect between face saving and consumers affective attitude on
luxury consumption is also examined.
Design/methodology/approach A field survey was conducted using a sample of 248 luxury consumers in three Chinese cities.
Findings Brand equity was found positively to predict Chinese consumers affective attitudes and their willingness to pay a premium price for a
luxury brand. Moreover, consumers who highly value face saving were found to be more willing to pay a premium price, even though they hold
a less positive attitude toward the brand.
Research limitations/implications The use of cross-sectional survey data with young Chinese consumers in first-tier cities may limit the
generalizability of the findings as well as precluding the making of causal inferences.
Practical implications Global luxury marketers who plan to enter the China market can utilize marketing strategies to create prestigious value
and appeal to consumers who seek for social approval and status.
Originality/value Previous published studies of brand equity and luxury consumption have primarily emphasized Western markets. These findings
advance our understanding of luxury purchase intention among young Chinese consumers, for whom the need for social acceptance acts as a crucial
motivator in luxury consumption. The results contribute to amplifying the brand equity concept by taking cultural context into consideration.
Keywords China, Luxury, Cultural values, Brand equity, Affective attitude, Face saving
Paper type Research paper

1. Introduction

Although many business scholars have examined brand

equity, their findings based on Western samples may not be
applicable to Asian markets because of the cultural
differences. For instance, Chinese luxury consumption is
focused on personal items, while Western luxury consumers
focus more on experience or service consumption (Wang et al.,
2011a, 2011b). A richer understanding of brand equity and its
effects in different markets is thus needed and of great interest
to academics and practicing managers alike. In response to the
call from Buil et al. (2013), this study was designed to
contribute to and extend the study of brand equity by
exploring the notion in a Chinese context. Following Hennigs
lead (Hennigs et al., 2012), luxury consumers were defined in
this study as people who are very interested in luxury and
purchase established luxury brands on a regular basis.
Prior research applying the cognitive-affective model has
demonstrated that consumer purchase behavior is predicted
by both cognitive and affective responses (Kumar et al., 2009).
However, despite frequent assertions about the impact of
brand equity on consumer responses (Buil et al., 2013), few
studies have empirically explored brand equity as cognitive
factor influencing consumers emotional attitudes and
behavioral intentions in the context of Chinas luxury brands
market. This study was designed to investigate the influence of
brand equity (a cognitive construct) on affective attitude (an

The luxury goods market has experienced a significant growth

worldwide over the past decade (Monkhouse et al., 2012).
Luxury brands entail high brand equity and are usually
characterized by high quality and premium pricing. Prior
scholarly work on brand equity has focused on its antecedents
and consequences in developed Western markets and
considered such markets as major sources of luxury
consumption (Madden et al., 2006; Srivastava and Shocker,
1991). However, the recent global recession has led to some
emerging economies such as Chinas accounting for much of
the recent growth in luxury consumption (KPMG, 2013).
With Chinas rapid economic growth, sales there of luxury
goods are far better than in many other major luxury markets
(Atsmon et al., 2011). A report from a global bank reveals that
25 per cent of the worlds luxury purchases are now made by
Chinese nationals (HSBC, 2012), and other research has
found that Chinese aged 20 to 40 years constitute the main
body of luxury consumers (Wang et al., 2011a, 2011b). This
indicates the strong luxury purchasing power of Chinas
younger generation.

The current issue and full text archive of this journal is available on
Emerald Insight at: www.emeraldinsight.com/0736-3761.htm

Received 27 August 2014

Revised 19 March 2015
8 December 2015
Accepted 9 December 2015

Journal of Consumer Marketing

33/4 (2016) 000
Emerald Group Publishing Limited [ISSN 0736-3761]
[DOI 10.1108/JCM-08-2014-1116]

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The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

affective construct) and consumers willingness to pay more

for a luxury brand.
Holbrook and Hirschman (1982) have long since shown
that affect depends heavily on individual factors. Wiedmanns
group has shown that cultural values are an important factor in
shaping consumer perceptions of luxury (Wiedmann et al.,
2007). East Asias collectivist culture is normally assumed to
heavily influence Asians mindsets and behavior. A collectivist
culture emphasizes group harmony and face saving.
Monkhouse et al. (2012) have explored the impact of face
saving on East Asian consumers perceptions of luxury and
found that face-saving proclivity is a strong predictor of
conspicuous consumption and hedonistic display. Instead of
discussing its effect on consumers perceptions of luxury, this
study tested the idea that face saving motivated by the human
need for social acceptance plays a pivotal role in shaping
consumers attitudes and purchase behavior toward luxury
brands. It investigated the relationship between brand equity
and customer responses from both the attitudinal and
behavioral perspectives consumers affective attitudes as well
as their willingness to pay a premium price for a luxury brand
based on the cognitive-affective model. It also examined the
role of face saving and how it interacts with consumer affective
attitude in predicting purchase behavior for luxury brands in a
Chinese context. The findings should advance our theoretical
understanding and offer managerial implications for global
marketers entering Chinese markets.

rarity, while the luxury product itself consists of more than the
necessary and ordinary features of other products in the
category. Jewelry and yachts are two classic luxury product
categories, but today, the term is applied to assessable-luxury
brands, the so-called new luxury, which refers to brands with
high perceived prestige but which charge reasonable price
premiums to attract middle-class consumers (Truong et al.,
2009). Brand-conscious consumers associate prestige with the
brands image, and they perceive expensive and well-known
brands to be superior to others (Liao and Wang, 2009).
Because they can serve as symbols of status and prestige,
luxury brands are more attractive to consumers with high
levels of brand consciousness, which refers to a mental
proclivity to choose well-known brands (Sproles and Kendall,
1986). Building brand equity is thus vital for a luxury brand.
Brands with strong equity are rewarded with benefits such as
loyal customers and the ability to maintain a premium price.
2.2 Brand equity and consumers affective attitude
Brand equity has been defined as the incremental utility or
value added to a product or service by its association with a
brand name and/or symbol (Aaker, 1991). According to Keller
and Lehmann (2006), brand equity can be viewed and
measured from three distinct perspectives company-based,
financial and consumer-based. A brands value is ultimately
derived from individual consumers actions in the market
(Buil et al., 2013), so understanding consumers response to a
brand is important.
This research focused on consumer-based brand equity
(CBBE). Research has shown that CBBE is positively related
to a firms profits (Srivastava and Shocker, 1991) and stock
returns (Madden et al., 2006). It also leads to consumer
loyalty, less price sensitivity (Erdem et al., 2002) as well as
improved communication effectiveness (Keller and Lehmann,
2003). Building brand equity involves eliciting positive
emotional responses and generating favorable attitudes toward
the brand among target consumers (Kumar et al., 2009).
Unlike brand attitude which refers to the general appreciation
of a brand by a consumer (Mitchell and Olson, 1981), affective
attitude emphasizes the emotional rewards and feelings upon
using the branded product, such as a sense of pleasure and
happiness (Bian and Forsythe, 2012). According to Bian and
Forsythe, a favorable attitude toward a brand has a positive
impact on affective attitude. In other words, more favorable
perceptions and beliefs about a brand link with a stronger
consumer emotional attachment to the brand.
Aaker (1991) suggests that CBBE is a multidimensional
concept that involves brand loyalty, perceived quality, brand
associations, brand awareness and other proprietary brand
assets. Alternatively, Keller (1993) defines CBBE as the
differential effect of brand knowledge on consumer response
to the marketing of the brand and argues that brand
knowledge includes two components brand awareness and
brand image (i.e. a set of brand associations). Building on the
work of Aaker et al. (2001) demonstrated the utility of a
three-dimensional model of CBBE based on brand loyalty,
perceived quality and awareness. That model was later
supported by the work of Washburn and Plank (2002) and
that of Lais group (Lai et al., 2010). The three-factor model
was, therefore, used in the present study, and the label brand

2. Literature review and hypothesis

development
The cognitive-affective model predicts consumer behavior
using both cognitive and affective aspects of a consumption
experience (Oliver, 1993). In deciding to purchase a luxury
brand, consumers perceive cognitive cues from the brand,
such as its image, the price and perceived quality (Kumar
et al., 2009). Appraisals of such cognitive cues can lead to the
formation of affective responses (i.e. emotional feelings) which
significantly predict consumer purchase intention (Bian and
Forsythe, 2012; Lee et al., 2008). Using the cognitive-affective
model as the framework, this research considered the
influences of both brand equity (cognitive) and affective
attitude (affective) on consumer purchase behavior in luxury
consumption.
2.1 Luxury brands and brand equity
According to the functional theory of attitude (Katz, 1960), a
consumers attitudes can serve as important expressions of
their values, which guide their behavior. Attitudes, central
values and even self-concept can all be expressed through
purchase decisions. The consumption of luxury goods has
been recognized as having a strong social function (Bian and
Forsythe, 2012), as luxury goods can confer status and social
prestige to their owners (Vigneron and Johnson, 2004) beyond
the items utilitarian value.
A luxury brand is defined as one which goes beyond
functional utility and emphasizes the prestige and image of the
owner (Liu et al., 2012) as well as delivering excellent quality
(Vigneron and Johnson, 2004). Heine (2012) differentiates
luxury brands from luxury products. The former is an image in
the consumers mind associated with high price, quality and
2

AQ: 1

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The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

knowledge (in light of Kellers work) was adopted in

combining brand associations and awareness.
As one basis of brand equity (Kayaman and Arasli, 2007),
brand loyalty can be described as a consumers attitudinal
attachment to a brand (Aaker, 1991; Pappu et al., 2005).
Chaudhuri and Holbrook (2001) describe such loyalty as [. . .]
the degree of dispositional commitment in terms of some unique
value associated with the brand (p.82). Self-enhancement
theory asserts that people are driven to increase their feelings of
personal worth and self-esteem by seeking information or
approaching their aspirations (Higgins, 1987). Loyal use of
luxury brands is a means for self-enhancement. Pappus group
has shown that consumers who are loyal to luxury brands are
more likely to perceive those brands as offering superior quality
and to derive emotional rewards from using them (Pappu et al.,
2005). The emotional rewards can be explained by the
enhancement of self-esteem. In addition, research has shown that
loyal consumers are more likely to generate favorable affect
through using a product than those who are less loyal
(Chaudhuri and Holbrook, 2001):

recall that a brand is a member of a certain product category

(p. 61), which is related to the strength of the brand node or trace
in memory. The strength of brand association is closely related to
brand awareness (Keller, 1993; Yoo et al., 2000). The greater the
brand awareness, the greater the likelihood of the brands coming
to mind. All the knowledge associated with the brand in memory
is then recalled, such as its attributes and benefits and the sensory
pleasure of the consumption experience. For luxury brands, the
objective is that this be closely linked with prestige, high quality
as well as delightful experiences. When a brand has strong and
positive associations, recollections of its superior and luxurious
attributes and benefits can easily be triggered, giving the
consumer enjoyment in using the product.
Percy and Rossiter (1992) have examined how brand
awareness is associated with affective attitudes and purchase
intentions. Consumers are more likely to generate stronger
emotional responses toward a brand when they are more
familiar with it and hold some favorable, strong and unique
brand knowledge in memory. For luxury brands, therefore, a
consumers positive attitudes such as pleasure and happiness
should be positively linked with their level of brand knowledge
(combining brand associations and awareness):

H1.

Brand loyalty is positively related to consumers

affective attitude toward a luxury brand.

H3.

Perceived quality refers to the consumers subjective quality

judgments about a brands overall excellence or superiority
(Zeithaml, 1988). As a component of brand value, perceptions
of good quality contribute to brand equity (Yoo et al., 2000)
and help a brand to stand out from the others (Bao et al.,
2011). Perceived quality has been regarded as one of the vital
determinants of consumers attitudes and preferences
(Richardson et al., 1994) and is an important factor in
determining affective commitment (Aurier and Gilles, 2012).
Self-verification theory (Swann, 1983) argues that people are
motivated to seek to verify and validate their existing
self-concepts. They look for experiences that confirm their
sense of self. In the cognitive process of evaluating brand
quality, the perceived superior quality of a luxury brand
reinforces the sense of self (Fuchs et al., 2013). This helps to
generate customer satisfaction and emotional value by
fulfilling an important need for customers who value quality
(Iglesias and Yague, 2004). Affective attitude toward the
brand (as distinct from the product itself) is then formed. In
other words, perceiving the high quality of a luxury brand can
provide consumers with a gratifying experience and lead them
to recognize its greater differentiation and superiority. This
can give them a greater sense of pleasure from using the
product:
H2.

Brand knowledge is positively related to consumers

affective attitude toward a luxury brand.

2.3 Affective attitude and consumer behavioral

intentions
Consumers are willing to pay a premium price for a luxury
brand with comparable functions if the prestigious brand
confers esteem on the owner and fulfills some psychological as
well as functional needs (Li et al., 2012). Sproles and Kendall
(1986) have shown that brand-conscious consumers are
willing to buy more expensive but better-known brands, as
they believe that a higher price implies better quality.
Attitude reflects an individuals internal assessment of a
person, an event or an object such as a branded product. It is
an encoding of feelings associated with the object (Millar
and Abraham, 1986, p. 271). Attitudes are considered
relatively stable and enduring predispositions to behave in
certain ways. They are regarded as reliable predictors of
consumers behavior (Shimp, 2010), and particularly of
purchase intention (Liu et al., 2012). The traditional view
of attitude-behavior consistency also suggests that consumer
behavior is closely linked with and shaped by ones attitude
about a product. Consumers are, of course, more likely to
purchase products toward which they hold a more positive
attitude. The work of both Batra and Homer (2004) and Lee
et al. (2008) has demonstrated a significant relationship
between purchase intentions and emotional values, which
refers to consumers feelings and attitudes upon using a brand.
The cognitive-affective model suggests that affect has a
stronger association with consumers purchase intentions than
cognition (Li et al., 1994). Bian and Forsythe (2012) suggest
that affect can be used to explain why consumers are willing to
pay a price premium for a luxury brand even when equal
functional benefits can be achieved with a less expensive,
non-luxury alternative. Using branded luxury products can
stimulate positive attitudes in consumers for whom brands

Perceived quality is positively related to consumers

affective attitude toward a luxury brand.

Also, in line with information integration theory where an

attitude is formed through integrating information about various
positive or negative attributes of a product (Anderson, 1971),
knowledge is considered a key factor explaining why people
prefer one brand over others. Brand knowledge can be regarded
as a brand node in memory to which a variety of associations are
linked (Keller, 1993, p. 3). Beyond mere awareness, it involves
associations linked to memories about the brand. Brand
awareness refers to the [. . .] ability for a buyer to recognize or
3

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The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

H5.

satisfy social needs, and this, in turn, can influence their

intention to repurchase such products:
H4.

Favorable affective attitude has a positive impact on

consumers willingness to pay a premium price for a
luxury brand.

2.4 Face saving and affective attitude on luxury brand

purchase intention
The functional theory of attitude suggests that consumer
behavior is in part driven by social attitudes. In the case of
luxury consumption, research has shown that a need for social
status and a prestigious image can be important drivers
(Mendel et al., 2006). The individual need for status varies
among cultures, and this tends to lead to different patterns of
luxury consumption. For instance, Chinese consumers appear
to be more face-conscious and are more likely to relate brands
to face than those in the USA (Li and Su, 2007). In an
individualist culture like that of the USA, individuals tend to
be concerned about self-esteem based on bounded, unique
and independent characteristics. In collectivist cultures like
Chinas, in contrast, the stress is on relatedness to a group and
maintaining the groups social esteem (Hofstede, 2001).
Chinese consumers tend to be more concerned with face
their social status and others perceptions of them than are
Western consumers (Monkhouse et al., 2012). This face
consciousness is associated with a persons desire to avoid
losing face in front of others. Goffman (1967) describes face
saving as [. . .] the positive social value a person effectively
claims for himself by the line others assume he has taken
during a particular contact (p. 5). It is related to the outer
public self of an individual and his public dignity and standing
(Monkhouse et al., 2012) driven by the human need for social
acceptance (Wan, 2013). People in China are well-known to
have strong face consciousness and to feel under pressure to
live up to others expectations to preserve face (Wong and
Ahuvia, 1998). Failing to preserve face results in discomfort,
embarrassment and annoyance (White et al., 2004).
Consuming brand-name and high-priced products can for
some Chinese be one step in maintaining face. Consumers
seeking social approval are more attracted to prestigious goods
and willing to pay more for them, based largely on their
prestige (Mendel et al., 2006).
The theory of reasoned action (Fishbein and Ajzen, 1975)
also supports the idea that beliefs about face saving, a
self-esteem maintenance process, can relate positively to
intentions to purchase luxury goods. Consumers concerned
about face may, in some cases, be more likely to purchase a
premium-priced luxury brand of goods regardless of their
personal liking for the product to gain or to save face. Liao and
Wang (2009) have also argued for a moderating effect of face
on brand consciousness, as it places emphasis on conspicuous
consumption that meets the individuals psychological need
for social status. The effect of face saving on a consumers
willingness to pay a premium price should be more
pronounced when the consumer holds a less positive affective
attitude toward the brand. The consumer who highly values
face may still be willing to pay a lot more for a luxury brand
despite lacking any strong preference for the product:

Face saving interacts with a consumers affective

attitude toward a luxury brand in predicting their
willingness to pay a premium price for a luxury brand.
In other words, the effect of face saving on customer
willingness to pay a premium price for a luxury brand is
stronger for consumers who hold less positive affective
attitudes about it (Figure 1).

F1

3. Methodology
3.1 Research design and sampling
This study aimed to investigate any relationship between
brand equity, affective attitude, a willingness to pay a
premium price and the role of face saving in the context of
Chinese luxury consumption. A field survey was conducted
in China during March and April of 2013 using a structured
and self-administrated questionnaire following a recall
method.
The questionnaires were distributed in three first-tier
cities in China Shanghai, Beijing and Guangzhou. Those
cities were chosen because most luxury brands are available
in all of them because of their larger consumer markets and
the greater spending power of their residents (HKTDC
Research, 2012). Consumers in those cities are, therefore,
more likely than those elsewhere to have experienced luxury
consumption.
The target respondents were Chinese consumers aged
between 20 and 35 years who had luxury consumption
experience. According to Wang et al. (2011a, 2011b), young
Chinese aged between 20 and 40 years constitute the main
body of luxury consumers in China, and Atsmons group has
reported that 45 per cent of Chinas luxury buyers are aged
under 35 years (Atsmon et al., 2011).
Convenience sampling using mall intercepts was chosen
to approach target respondents. Two filter questions asked
the potential respondents to recall up to three luxury brands
they had purchased and when they had made those
purchases. Respondents who were intercepted at large
shopping malls in the three cities were invited to fill out the
questionnaire.
Of the 312 questionnaires collected, 248 were usable.
The final respondents consisted of 80 from Beijing, 90 from
Shanghai and 78 from Guangzhou, all aged from 20 to 35
years. The data were first checked, and no significant
differences were found among the three groups in terms of
their demographics (gender distribution, average age and
employment status distribution) (p 0.05).
Table I summarizes the samples demographics and other
characteristics. Of the respondents, 65 per cent were female.
Around 40 per cent were aged between 20 and 23 years, while
Figure 1 The conceptual model tested in this study
Brand Loyalty

H1

Perceived
Quality

H2
H3

Brand
Knowledge

Affective
Attitude

H4

H5
Face Saving

Consumer Willingness
to Pay a Premium
Price for a Luxury
Brand

T1

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The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

Table I Sample profile

Variable

Frequency

(%)

Gender
Male
Female

87
161

35.1
64.9

98
86
45
19

39.5
34.7
18.1
7.7

66
167
4
11

26.6
67.3
1.6
4.4

80
90
78

32.3
36.3
31.5

Age (years)
20-23
24-27
28-31
32-35
Employment status
Full-time student
Employed
Unemployed
Self-employed
City
Beijing
Shanghai
Guangzhou

3.3 Reliability and validity of the measures

Reliability test and maximum likelihood confirmatory factor
analysis (CFA) were used to test the reliability and validity of
the measures. The results presented in Table II suggest
satisfactory internal consistency for all of the constructs, with
Cronbachs alpha coefficients greater than the standard alpha
of 0.70 (Nunnally, 1978).
The models overall fit statistics and indices were
satisfactory (2 [80] 140.12, p 0.001; root mean square
error of approximation [RMSEA] 0.055; comparative fit
index [CFI] 0.97; incremental fit index [IFI] 0.97;
normed fit index [NFI] 0.94; and non-normed fit index
[NNFI] 0.96), in support of an acceptable model fit. The
factor loadings of all items on their respective factors were all
positive and statistically significant with the lowest t-value
being 7.61 (p 0.01), assuring construct reliability (Anderson
and Gerbing, 1988). Furthermore, all the estimates for
average variance extracted (AVE) were equal to or greater
than 0.50 (ranging from 0.50 to 0.65), in support of
convergent validity (Fornell and Larcker, 1981). The
composite reliabilities of all of the constructs exceeded the
recommended level of 0.70. These statistics together indicate
a sound internal structure for the CFA model (Bagozzi and Yi,
1988). Discriminant validity was assessed by comparing the
estimated AVE of each construct with the squared correlation
between two constructs. All the AVEs exceeded the squared
correlations, confirming the discriminant validity of the
measures (Fornell and Larcker, 1981).
The means, standard deviations and inter-correlations of
the proposed constructs are provided in Table III.
Because of the single source data, the potential for common
method variance was examined using Harmans single factor test.
The un-rotated factor solution from exploratory factor analysis
revealed four factors with eigenvalues greater than 1.0,
accounting for 63.55 per cent of the total variance, while the first
factor did not account for a majority of the variance (31.3 per
cent). Thus, no general factor was apparent, indicating that
common method variance may not have been a significant
problem.

Note: The full sample included 248 respondents

those aged between 24 and 27 years accounted for another 35

per cent. More than half (67 per cent) were employed.

T2,AQ:2

3.2 Measures
Such a sample was considered suitable because the
questionnaire was based on Truongs concept of new luxury
(Truong et al., 2009) in defining a luxury brand. New luxury
brands such as Ralph Lauren and Calvin Klein were shown in
the questionnaire as examples. As most of the items were
adapted from previous studies with minor wording
modifications to suit the research context, the original
questionnaire was drafted in English and then translated into
Chinese and checked using the standard back-translation
procedure (Brislin, 1980). Most of the responses used
seven-point Likert scales anchored by strongly disagree and
strongly agree. The questionnaire was pre-tested with 50
mainland Chinese college students before commencing the
main survey. Minor refinements were made to avoid
ambiguity.
The consumers views of brand equity were conceptualized
and adapted based on the three-dimensional framework
proposed by Yoo and Donthu (2001). A two-item scale based
on the work of Bian and Forsythe (2012) was used to measure
the respondents affective attitudes toward luxury brands. A
four-item scale adapted from the work of Monkhouse et al.
(2012) was used to measure face-saving proclivities.
Behavioral intentions were measured by asking the
respondents about the extent to which they were willing to pay
a premium price for a luxury brand. Individual measurement
items for the constructs are reported in Table II.
In addition, each respondents age, gender and employment
status were also surveyed, and these were treated as control
variables.

4. Results
A combination of structural equation modeling (SEM) and
regression analysis was used to test the hypotheses. H1 to
H4 were first examined via SEM using version 8.80 of the
LISREL software package. SEM can generate particularly
accurate results, as it estimates structural relations and
measurement errors simultaneously. Regression analysis
was used to test H5, which proposes an interaction of
affective attitude and face saving in predicting consumers
willingness to pay a premium price for a luxury brand.
4.1 Direct effect of brand equity on consumer affective
attitude and behavioral intention
H1, H2 and H3 predict that brand loyalty, perceived quality
and brand knowledge positively influence consumer
affective attitude toward luxury brands, and ultimately
impact their behavioral intention to consume (proposed in
H4). In the SEM model, brand loyalty, perceived quality
and brand knowledge were the exogenous constructs, with
affective attitude as the intermediate construct and
5

T3

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The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

Table II Constructs, measurement items and CFA results

Standardized loadinga

Construct and measurement items

t-valueb

Model fit indices: 2 140.12, df 80, p < 0.01; RMSEA 0.055; SRMR 0.049; CFI 0.97; IFI 0.97; NFI 0.94; NNFI 0.96
Brand loyalty (Mean 4.50; SD 1.10; CR 0.81; AVE 0.60; 0.803)
c
1. I consider myself to be loyal to that/those luxury brand(s)
0.79
2. That/Those luxury brand(s) would be my first choice
0.86
11.74
3. I will not buy other brands if luxury brands I like are available at the store
0.65
9.88

Perceived quality (Mean 5.35; SD 0.93; CR 0.74; AVE 0.59; R 0.586)

1. The likely quality of my favored luxury brand(s) is extremely high
2. The likelihood that my favored luxury brand(s) would be functional is very high

0.79
0.74

Brand knowledge (Mean 5.35; SD 0.94; CR 0.80, AVE 0.50; 0.797)

1. I can recognize that/those luxury brands among other competing brands
2. I am aware of that/those luxury brands particularly
3. Characteristics of that/those luxury brands come to my mind quickly
4. I can quickly recall the symbol or logo of that/those luxury brands

0.72
0.71
0.66
0.72

7.61
c

9.55
9.04
9.65

Consumer willingness to pay a premium price for a luxury brand (Mean 5.25; SD 1.10)
1. I am willing to pay a premium price for that/those luxury brands

Affective attitude (Mean 5.18; SD 1.13; CR 0.78, AVE 0.65; R 0.644)

1. Buying from that/those luxury brands would give me pleasure
2. My favorite luxury brand(s) would make me feel good

0.84
0.77

9.79

Face saving (Mean 5.21; SD 1.03; CR 0.83, AVE 0.56; 0.828)

1. I dont want to let others say Im stingy
2. I pay a lot of attention to how others see me
3. I dont want to let the people around me feel abashed
4. I am concerned with not bringing shame to myself

0.62
0.71
0.85
0.78

8.88
9.78
9.42

Notes: c Initially fixed at 1.0 for estimation purposes; RMSEA root mean square error of approximation; SRMR standardized root mean residual;
CFI comparative fit index; IFI incremental fit index; NFI normed fit index; NNFI non-normed fit index; SD standard deviation; CR: composite reliability; AVE average variance extracted; both CR and AVE are based on Fornell and Larckers (1981) formula; a the estimates are standardized
coefficients (all p 0.01); b t-values greater than 1.96 indicate significant effects at the 0.05 level for a two-tailed test
Table III Descriptive statistics of the variables
Variable
1. Gender
2. Age
3. Employment status
4. City
5. Brand loyalty
6. Perceived quality
7. Brand knowledge
8. Affective attitude
9. Willingness to pay a premium price
10. Face saving
Mean
SD
Note:

10

1
0.05
0.07
0.06
0.04
0.05
0.12
0.10
0.05
0.083
0.35
0.48

1
0.53
0.10
0.05
0.05
0.02
0.04
0.00
0.08
0.40
0.89

1
0.06
0.07
0.04
0.02
0.07
0.04
0.01
0.67
0.47

1
0.03
0.10
0.20
0.20
0.12
0.07
0.32
0.47

1
0.39
0.29
0.39
0.37
0.23
4.5
1.10

1
0.31
0.38
0.33
0.23
5.35
0.93

1
0.47
0.47
0.10
5.35
0.94

1
0.38
0.30
5.18
1.13

1
0.30
5.25
1.10

1
5.21
1.03

Correlation is significant at the 0.01 level (two-tailed)

indicate that brand loyalty ( 0.23, p 0.05), perceived

quality ( 0.22, p 0.05) and brand knowledge ( 0.48,
p 0.001) are all positively associated with affective attitude.
Affective attitude is also positively related to customer
willingness to pay a premium price for a luxury brand (
0.54, p 0.001). These findings support the first four
hypotheses.

willingness to pay a premium price as the outcome variable.

The control variables age, gender and employment status
were also included in the model and linked directly to affective
attitude and consumer behavioral intention. The model fit
indexes suggest an excellent fit for the hypothesized model
(2[69] 132.85, p 0.001; RMSEA 0.061; CFI 0.97;
IFI 0.97; NFI 0.93; and NNFI 0.95). The results
6

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F2

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Volume 33 Number 4 2016 000 000

4.2 Interaction effect of face saving and affective

attitude on willingness to pay a premium price
To test the interaction effect predicted by H5, moderated
regression analysis was performed. The results are reported in
Table IV. The control variables were entered in Step 1, and
the main effects and interaction term were then entered in
Steps 2 and 3, respectively. The findings confirm significant
predictive power for the interaction between face saving and
affective attitude in predicting a customers willingness to pay
a premium price for a luxury brand (b 0.21, p 0.001),
in support of H5.
Figure 2 shows how the interaction between face saving and
a consumers affective attitude predicts the consumers

behavioral intentions toward luxury brands. Planned contrasts

indicated that consumers who highly value face saving are
more willing to pay a premium price for a luxury brand than
those who value face saving less, as long as they do not have
strong affective attitude in favor of the luxury brand. As
predicted, among consumers who have low affective attitudes
toward a luxury brand, those who highly value face saving are
more willing to pay a premium price (M 5.56) than those
who value face saving less (M 4.58) (simple slope b 0.47,
p 0.001).
The importance of the interaction between face saving and
affective attitude was further tested in the SEM where a
single-item construct was created with the procedure
suggested by Mathieu et al. (1992). The significance of the
interaction was assessed by comparing the chi-square values
for models including and excluding the interaction term (i.e.
Affective Attitude Face Saving). The model including the
interaction term yielded a significantly better fit (2[71]
150.08, p 0.001; RMSEA 0.067; CFI 0.96; IFI
0.96; NFI 0.92; and NNFI 0.93) than a model without
it (2 12.92, df 1, p 0.01), supporting H5. Figure 3
shows that the interaction term was significantly related to
customers willingness to pay a premium price for a luxury
brand (b 0.24, p 0.001) (Table V).

Table IV Face saving and the relationship between attitude and the
willingness to pay a premium price for a luxury brand
Dependent variable
Willingness to pay a
premium price for a
luxury brand

Control variables
Gender
Age
Employment status

0.086
0.008
0.162

0.079
0.015
0.116

5. Discussion, implications and conclusions

Independent variables
Affective attitude
Face saving

0.319
0.218

Interaction term
Affective attitude Face saving
R2
Adjusted R2

0.189
0.172

0.318
0.236

5.1 Theoretical implications

These research findings suggest insights which academic
researchers may deem important. First, they respond to the
call for further research on non-Western countries and
cultures (Buil et al., 2013), and enrich scholarly
understanding of brand equity in the context of Chinese
luxury consumption.
The results also demonstrate the significant impact of the
cognitive component of CBBE on consumers affective
attitudes and how this, in turn, affects purchase behavior.
Cognitive cues including a consumers experience with a
brand, his perception of its image and the level of quality
associated with brand equity were found to be significant
predictors of consumer attitudes and behavioral responses.
The data support the idea that brand equity is a
multi-dimensional concept as previous studies have suggested.

0.210
0.234
0.215

Notes: Unstandardized regression coefficients; indicates significance

at the p 0.01 (p 0.001) level of confidence

Figure 2 Face saving, affective attitude and willingness to pay a

premium price for a luxury brand
6.5

Willingness to pay a premium price for luxury brands

T4,AQ:3

The role of brand equity and face saving

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

6.0

5.5

Figure 3 Full model including moderation effect

5.0

Brand Loyalty

0.21*

4.5

Perceived
Quality

4.0

Brand
Knowledge

3.5

3.0

Low level of
face saving

Medium level of
face saving

High level of
face saving

High level of
affective attitude

5.79

5.79

5.78

Medium level of
affective attitude

5.18

5.43

5.67

Low level of
affective attitude

4.58

5.07

5.56

0.24*

Affective
Attitude

0.45**

0.23**

0.47**
Face Saving

0.24**
Affective
Attitude
Face Saving

Notes: **p < 0.01; ***p < 0.001

Consumer Willingness
to Pay a Premium
Price for a Luxury
Brand

F3

T5

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Volume 33 Number 4 2016 000 000

Table V Summary of model testing results

Standardized estimate
(t-value)

Basic model without moderator (H1-H4)

H1: Brand loyalty Affective attitude
H2: Perceived quality Affective
attitude
H3: Brand knowledge Affective
attitude
H4: Affective attitude Willingness to
pay a premium price for a luxury brand

69

132.85

72
71

163.00
150.08

0.97

RMSEAb
0.061

Model
comparison
df
2

0.23 (2.52)
0.22 (1.98)
0.48 (5.85)
0.54 (6.49)

Models testing the effect of moderator (i.e. face saving)

Full model without interactionc
Full model with interaction
Notes: a CFI comparative fit index;
saving; p 0.05; p 0.01

df

Model fit indexes

2
CFIa

0.95
0.96

0.072
0.067

12.92

RMSEA root mean square error of approximation; c the interaction term was affective attitude by face

Yoo and Donthu (2001) have shown that the relative

importance of different dimensions of brand equity varies
according to the culture involved. They found that perceived
quality is the most important factor among Americans, while
brand loyalty is the most important element among Koreans.
Here, brand knowledge was found to be the most important
dimension. This may be due to Chinese consumers emphasis
on brand image and their greater recognition of brands with
established reputations. Chinese young peoples heightened
brand recognition allows them to be more discerning and to
seek experiential luxury (KPMG, 2013).
These results support the functional theory of attitude,
which would predict that Chinese luxury consumption is
driven by its social function. This confirms and extends the
work of Bian and Forsythe (2012) who found that
consumers purchase luxury brands for their social
functionality. The desire for social status or to gain face acts
as an important motivator for luxury purchases in China.
Liao and Wang (2009) found that face is a partial mediator
in the relationship between material value and brand
consciousness among Chinese adults. The present study
has shown that collectivism influences luxury consumption
in China market in which face saving plays an important
role in affecting consumers perceptions and responses
toward luxury brands. This echoes the functional theory of
attitude, which asserts that luxury consumption is
motivated by individuals attitudes. Attitudes toward luxury
brands serve a social identity function conveying a
particular social image and generating social approval (at
least in certain groups). This explains why Chinese
consumers who highly value face saving are more willing to
pay a premium price for a luxury brand even if they do not
have a strong liking for the brand. This research advances
scholarly understanding of the moderating role of face in
the behavior of Chinese consumers.
Nowadays, younger Chinese have more purchasing power
and are willing to pay more for luxury products than in the
past. Those under the age of 45 years constitute the main body
of luxury consumers in China (Atsmon et al., 2011). The

findings from this research reveal that younger Chinese are

concerned about public face.
This study has extended previous work by taking both
attitudinal and behavioral variables into consideration. The
findings indicate that emotional responses are linked to
consumers attitudes and strongly predict behavioral
intentions. More specifically, brand equity is positively
associated with consumers attitudes toward luxury brands,
which, in turn, influences their behavioral intentions.
5.2 Managerial implications
These results have significant implications for international
marketing managers. First, with the growing number of global
luxury brands in China, brand managers should be interested
in developing a better understanding of brand equity from the
Chinese perspective. Consistent with previous research (Buil
et al., 2013), these findings support CBBE as a significant
predictor of positive consumer affect and their behavioral
responses. They indicate that building brand equity should be
an important element of marketing strategy for a luxury brand
in the Chinese market.
The findings also highlight the key dimensions of brand
equity demanding particular attention. Knowledge in the
sense of brand awareness has been indicated as the
strongest influence on brand equity among young Chinese
consumers. Such knowledge is associated with the
likelihood that the brand comes to mind and that
appropriate information about the brand is recalled. For a
Western brand entering the China market, building
awareness is particularly important, as target consumers
may at first not have any information about it. Most
Chinese consumers can name only one or two luxury
brands in a given category (Zhan and He, 2012). So
managers of luxury brands targeting the China market
should build awareness through advertising sponsorship
and other publicity. They could associate the brand with
prestigious symbols that the target Chinese groups are
aware of, while at the same time trying to develop a unique
personality for the brand. Frequent and prominent
exposure to promotion will increase consumers ability to
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recognize and recall the brand. A European brand might,

for example, emphasize its country of origin if it is a
traditional luxury market. Knowledge tends to build
stronger attachment, and this should lead to developing
positive affect toward the brand.
The findings also explain the significant role of face
saving in affecting the luxury consumption behavior of
Chinese consumers. Gabrielli et al. (2012) has argued that
luxury consumption is not only an economic matter but a
mirror that reflects public self. These findings indicate that
consumers who highly value face saving are more likely to
consume luxury brands, regardless of their attitudes toward
the brands themselves. This is so because in Chinese
society, social status and prestige are closely associated with
luxury consumption (Wang et al., 2011a, 2011b).
Marketers should, therefore, develop appeals that are
related to the success, rank and status consumers value.
Most luxury brands apply generic strategies worldwide
(Wiedmann et al., 2007), but these findings suggest that
global brand managers should better understand and
respond to the needs and distinctive characteristics of
consumers in different cultures when developing marketing
campaigns, at least for large markets such as Chinas. The
consumers need for social recognition should be reflected
in pricing, packaging, marketing communication and every
aspect of brand positioning. Luxury consumers in the
younger generation are a dynamic group whose practical
needs may change as they move on in their life cycle, but
their need to maintain face is likely to be more stable.
Furthermore, consumers in tier-one and tier-two cities in
China would be different in their demands because of the
differences in economic development. Therefore, repeated
market research may be needed to keep abreast of their
needs.

including other cities to better represent the general

population in China.
The cross-sectional survey methodology cannot, of course,
provide in-depth information about the complexity of Chinese
consumers perceptions, and it certainly cannot define
cause-and-effect relationships. Longitudinal designs would be
of interest for understanding the development of brand equity
and consumers perceptions and responses over time. That
would allow for inferring causality. Causality might
alternatively be demonstrated through a series of experimental
studies (e.g. with a pre-test and post-test design),
manipulating the levels of dimensions of brand equity.
Changes in consumer responses to luxury brands can be
captured through such time-series experiments.
Although common method variance did not appear to be a
significant problem in this research, future studies should
implement more precautionary techniques following
Podsakoff et al.s (2003) guidelines to prevent the invalidating
effects of methods bias. Future research should also be
cautious about socially desirable responses regarding
personality traits such as face saving.
The focus here was on attitude and behavioral intentions,
assessing how likely an individual would be to pay a premium
price for a brand perceived as luxurious. There is
presumably a gap between what people say and what they will
actually do, which may have resulted in unobserved systematic
bias. Future studies investigating not only attitude and
intentions but also actual purchasing behavior would seem to
be warranted. Identifying mediators in the observed
relationship between brand equity and luxury purchases could
also be a fruitful avenue for future research.

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Volume 33 Number 4 2016 000 000

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11

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tapraid4/t12-jcm/t12-jcm/t1200416/t122043d16z xppws S1 5/12/16 Art: 581190

The role of brand equity and face saving

Journal of Consumer Marketing

Noel Yee-Man Siu, Ho Yan Kwan and Celeste Yunru Zeng

Volume 33 Number 4 2016 000 000

About the authors

of International Consumer Marketing. Noel Yee-Man Siu is

the corresponding author and can be contacted at: nsiu@
hkbu.edu.hk

Noel Yee-Man Siu is Associate Professor of Marketing at

the Department of Marketing, School of Business, Hong
Kong Baptist University. Her current research interests
include services marketing, cultural consumption and
corporate social responsibility. Her articles have appeared
in journals such as Journal of International Marketing,
Industrial Marketing Management, European Journal of
Marketing, Journal of Business Ethics, International Journal of
Hospitality Management, Tourism Management and Journal

Ho-Yan Kwan is Lecturer at the Department of Marketing,

Hong Kong Baptist University. Her research interests focus on
service marketing, business ethics and corporate social
responsibility.
Celeste Yunru Zeng is Research Assistant at the Department
of Marketing, Hong Kong Baptist University.

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AUTHOR QUERIES
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The colours are for proofing purposes only. The colours will not appear online or in print.
AQ1 Please note that the following citation is not listed in the reference list. Please provide full
details for this citation: Aaker et al., 2001.
AQ2 Please provide a definition for the significance of ** in Table II.
AQ3 Please provide first column head and also note that the footnote designator ** is not cited
in the body of Table IV.
AQ4 Please provide issue number for the following reference: Truong et al., 2009.