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Evaluation of absolute luxury: effect of cues, consumers’ need for uniqueness, product involvement and
product knowledge on expected price
Gargi Bhaduri Nancy Stanforth
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To cite this document:
Gargi Bhaduri Nancy Stanforth , (2016),"Evaluation of absolute luxury: effect of cues, consumers’ need for uniqueness,
product involvement and product knowledge on expected price", Journal of Fashion Marketing and Management: An
International Journal, Vol. 20 Iss 4 pp. -
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http://dx.doi.org/10.1108/JFMM-12-2015-0095
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Introduction
with the global economy. This is thought to lead to the “globalization of uniformity” (Murti,
2010, p.162), that is, spread of similar ideas throughout the globe and this uniformity leading to
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fear of loss of cultural identity. There is, however, a more positive aspect to globalization, in
that better communication and distribution, as well as lower trade barriers have allowed more
variety into the market. Murti (2010) suggests the luxury market as a leader in providing a wide
variety of culturally diverse products to the global market. In this respect, the fashion industry is
The fashion luxury sector is important in the global economy. In 2014, global luxury
fashion sales were expected to exceed €318 billion, representing a 3% increase from 2013, with
emerging markets for luxury across Latin America, Asia Pacific, and Africa (Atwal and Bryson,
2014). While many luxury firms are huge multi-nationals today, many, if not most, began as
family owned enterprises in Europe (Kapferer and Bastien, 2009). Kapferer and Bastien’s
analysis of the industry provides insights into the universal phenomena of luxury. Luxury has
always been part of society, with even ancient societies evidencing luxury in the form of
ornaments, attire, etc. Luxury items represent the human desire to aspire to a superior lifestyle,
including wealth and social status. The appeal of a luxury product has been that it is a rare or
scarce item that not everyone can have. Therefore, the luxury sector has flourished based on
craftsmanship, rarity, and uniqueness (Kapferer, 2014). High quality craftsmanship has
necessarily made luxury items scarce, with these high quality items taking time and expertise to
create. Artisans are charged with bringing aesthetics and uniqueness to functional products.
Thus, luxury must project an image of not being mass produced but taking time and expertise to
create.
Craftsmanship and luxury have always been associated and multi-national luxury firms
helped to employ exceptionally skilled craft workers. However, the growth of so-called luxury
conglomerates has been accused of deceiving customers into thinking that they are receiving
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highly unique products or services, when the opposite may be true (Thomas, 2007). To offset
this perception and maintain the luxury image, major firms have created advertising to highlight
the work of the firms’ craftspeople (Kapferer, 2014). Examples include a Louis Vuitton
advertising campaign in 2009 and Chanel films on YouTube, showcasing the work of
craftspeople and artisans employed in their firms. The focus on hand-crafting can also be seen in
the popular press, with articles in Forbes luxury conglomerates such as Gucci and Louis Vuitton
opening their warehouses to the public to where consumers could see skilled craftsmen make
handbags (Wendlandt, 2014). However, little academic research has focused on this return to
absolute luxury, with little information on how consumers perceive the value of these
Kapferer (2012) asserts that the future of luxury is in the world of entrepreneurs who are
positioning their goods more a pieces of art than mere products. These artisans must position
their work as communication and are symbolic of the entrepreneur’s work. Therefore, the recent
rise of the absolute luxury has encouraged independent craft workers around the world to begin
production in hopes of growing a business. In this light, absolute luxury items are high-end
products with no logo, highest quality materials and exquisite craftsmanship (D'Arpizio, 2013).
In fact, in 2013, sales growth was highest in absolute luxury items (D’Arpizio, 2013) with leather
goods and other accessories growing faster than other luxury categories.
Consumers of luxury goods may be separated into three groups: absolute consumers,
trigger consumers and bandwagon consumers (Choi, 2008). Absolute luxury consumers are
those seeking rare brands and products, with customized products where artisans create the
products being increasingly popular for these consumers. These consumers present opportunities
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for very skilled craft workers to create unique products for major brands. Therefore, positioning
skilled workers’ creations as unique and special may attract absolute luxury consumers.
Marketing efforts are often used for the purpose of positioning, and one way of doing that
is through the use of descriptive terminologies or cues to help consumers better understand the
products (Meyers-Levy and Sternthal, 1991). Cues might be especially important for conveying
information about credence attributes of products, that is, attributes difficult to understand or
evaluate just by looking, such as, whether a product is handcrafted or made by artisans
(Organization for Economic Cooperation and Development, 1997). In this light, literature
indicates that product cues such as country of origin, brand and store names, etc. can act as
indicators of product quality and value (Teas and Agarwal, 2000). Product cues lead to better
understanding of product attributes, which often help consumers to justify their consumption
choices (Simonson and Nowlis, 2000). However, there is little empirical research on whether
product descriptors can help businesses better delineate their unique offerings to absolute luxury
consumers. In addition, literature also indicates that individual differences such as consumers’
category knowledge might influence their decision-making processes (Simonson and Nowlis,
2000; O’Cass, 2000). Therefore, this research seeks to investigate the effect of product
description cues as a way to differentiate luxury products for the absolute consumer and the
effect of individual consumer traits such as need for uniqueness, product involvement and
Literature Review
Given that absolute luxury products are characterized by uniqueness, exclusivity, high
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quality and superior craftsmanship, it is imperative that we understand consumers’ need for
uniqueness and its influence (if any) on their choice of absolute luxury products. Consumers’
need for uniqueness is grounded in Snyder and Fromkin’s (1977) uniqueness theory, which
explains how consumers pursue material goods as a way to differentiate themselves. It is defined
as the positive trait of pursuing differentness relative to others through the acquisition,
utilization, and disposition of consumer goods (Snyder and Fromkin, 1977; Tian, Bearden and
Hunter, 2001). Individuals high in need for uniqueness experience high similarity to others as
unpleasant, and seek ways to show relative uniqueness. According to Snyder (1992), people are
motivated to demonstrate their differences for two reasons: (1) to acquire the extrinsic rewards
that society provides to those who are different or unique; (2) to have the intrinsic satisfaction of
their self-perception that they are unique. Research indicates that consumers with a high need for
uniqueness are more likely to choose products others do not choose- such as absolute luxury
products, which are relatively scarce and therefore unique (Cheema and Kaikati, 2010). In
contrast, consumers with a low need for uniqueness tend to seek similarity with others in their
choices, conforming to social norms and following the behavior of others (Simonson and
Nowlis, 2000).
Consumers’ need for uniqueness is manifested in three behavioral dimensions: (1)
creative choice counter-conformity, (2) unpopular choice counter-conformity, and, (3) avoidance
of similarity. Creative choice counter-conformity is predicated on the idea that consumers seek
social differentiation from most others, but make selections that are likely to be considered good
choices by these others (Tian, Bearden, and Hunter, 2001). In this behavioral dimension,
consumers purchase goods that express both uniqueness and acceptance by others. Brand names
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and luxury products that offer some distinguishing attribute (e.g. unique features, exclusivity,
and prestige) appeal to consumers who demonstrate this type of counter-conformity (Dee and
Unpopular choice counter-conformity refers to the selection or use of products and brands
that deviate from group norms and thus risk social disapproval that consumers tolerate in order to
establish their differentness from others. However, similar to creative choice counter- conformity,
unpopular choice counter-conformity may also result in an enhanced self-image and social image
(Tian et al, 2001). These consumers are not concerned about criticism from others; in fact, they
tend to make purchase decisions that others might consider to be peculiar (Simonson and Nowlis,
2000). Finally, avoidance of similarity refers to devaluing and avoiding use or acquisition of
products that are considered to be commonplace. Avoidance of similarity is a way for consumers
Because western culture often considers possessions as extensions of the self (Belk,
1988), one socially accepted manner of expressing one's uniqueness is by possessing unique
products (Amaldoss and Jain, 2005). Clothing products, in particular, present an ideal situation to
examine the topic of uniqueness since consumers often bolster their self-images, portray their
unique identities, or express their individualities through their choice of clothing. Therefore high
need for uniqueness consumers might be willing to consume absolute luxury products, which by
definition are unique. However, in order to truly determine the uniqueness of these luxury
researchers have often listed clothing involvement as a variable of interest. Involvement can be
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involvement is defined as the extent to which the consumer views his/her interest on clothing as
a meaningful and engaging activity in his/her life (O’Cass, 2004) with high fashion clothing
Research concerning wine purchasing offers some insight into the way product
involvement is associated with consumers’ need for uniqueness. Wine consumers often respond
to perceived scarcity (Herpen et al., 2014), with a scarce wine preferred over others. The scarcity
principle asserts that scarcity of an object increases preference for the object. This perceived
scarcity, and in turn, exclusivity, in wine and many other products can be due to limited
production or high consumer demand. When scarcity is due to limited production, consumers
perceive the wine as exclusive and available to only a few, signaling the status of the consumer.
Involvement has been shown to play an important role for consumers preferring scarce products.
Especially, when the scarcity is due to limited supply, scarce wine was preferred by highly
involved (not the less involved) wine consumers demonstrating high creative choice counter-
conformity, that is, need for uniqueness to differentiate themselves from others. Absolute luxury
apparel might reveal a similar pattern, with those who are involved with clothing and have a goal
of demonstrating their uniqueness through their clothing choices preferring scarce products.
If consumers have high need for uniqueness, and want to portray their individuality and
differences through their creative choice counter-conformity when it comes to clothing choices,
it can be safely inferred that they will need to be involved in clothing to understand what is
unique, scarce and not common-place in a clothing that will allow them to stand out among
others. Understanding individual traits of consumers and how they influence clothing product
because highly involved consumers have often been seen as drivers, influential and legitimists of
the fashion adoption process (Goldsmith et al., 1999; Tigert et al., 1976, O’Cass, 2004). In
H1: Female participants’ need for uniqueness will be positively related to clothing
involvement.
Literature indicates that consumers who exhibit high levels of product involvement seek
continuous information on the product (Wu and Wang, 2011). They have high levels of
experience with and interest in the product category leading to high levels of perceived product
knowledge (O’Cass, 2004). Product knowledge can be acquired from a variety of sources,
including consumers’ own past experiences, feedback from other consumers, product reviews,
knowledge of brands in the product category, product-use contexts, product attribute knowledge,
frequency of use and experience (Johnson and Russo, 1984) as well as product familiarity, and
product expertise (O’Cass, 2004). In this light, product knowledge can be of two types:
subjective and objective. Objective knowledge is what a consumer actually knows about the
product while subjective or perceived knowledge is what a consumer believes s/he knows. It is
the second form, perceived product knowledge that is the focus of this study.
knowledge has been inconclusive. While O’Cass (2004) showed that product involvement was
an antecedent to product knowledge, other researchers have found that knowledge influenced
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involvement (Zinkhan and Muderrisoglu, 1985) while still others have suggested a reciprocal
relationship (Gardial and Zinkhan, 1984). We argue that since product knowledge can be
developed through previous interactions or experiences with a product/ product category, it can
be considered that increased involvement in fashion clothing will lead to consumers’ increased
perceived or subjective knowledge of the product category. It is important for researchers as well
as marketers to understand not only what consumers know about a product but also the
characteristics that lead some consumers to perceive that they have higher product knowledge
Perceived product knowledge is often used to evaluate past purchases and influence future
purchases. In fact, one of the issues challenging businesses is that consumers establish mental
prices for products based on their product knowledge which stems from past experiences, leading
to the development of expectations of probable retail prices. These expected retail prices can also
a product.
Kalwani, Yim, Rinne, and Sugita (1990) used the term “expected price” to convey that
consumers use information from past experience such as past paid price, but also consider
contextual variables or cues such as store atmosphere, product descriptions, and expectations of
future prices in making purchase decisions. Research indicates that the way cues are presented,
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may have an impact on product evaluations (Teas and Agarwal, 2000). In this light, the cue
utilization theory states that products have an array of extrinsic and intrinsic cues that facilitates
quality judgements (Collins-Dodd and Lindley, 2003). Extrinsic cues include price, brand name,
country of origin, packaging, and retail environment and are peripherally related to the actual
product (Teas and Agarwal, 2000). Intrinsic cues include information about the components of
the products, which may comprise fabrication, construction, or color. Extrinsic cues help the
consumer to infer intrinsic product attributes and form quality and value judgements.
Particularly with the advent of online retailing or for credence attributes of products, extrinsic
cues become more important as the consumer must rely on product descriptions in order to make
a decision.
In spite of the importance of cues on product judgment, little research has investigated the
way cues influence price perceptions. Especially for absolute luxury products which are difficult
to evaluate just by looking if the product is artisan made or curated, cues can help better position
the product and help in consumer decision-making. Consumers may combine their perceived
product knowledge with message cues that are used to explain the value of the product in relation
to the asking price, and subsequently develop an idea of how much they will have to pay to buy a
specific product. Previous research has hinted that consumers’ prior knowledge can
influence how they use various cues to evaluate a product (Rao and Monroe, 1988). However,
such studies have mostly focused on price as a cue for evaluation of product quality. In this light,
literature indicates that high levels of product knowledge lead to complex inferential processing
and intense affect toward product features (Peracchio and Tybout, 1996). An elaborate
knowledge structure is usually associated with a variety of categories and subcategories in which
to place new information. This leads to more consideration of attributes and more varied
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inferences. Thus product descriptors, in the form of message cues, may have a powerful
influence on both current and potential purchases for consumers with high product knowledge.
Coupled with a high need for uniqueness, extensive product knowledge can lead to a more
nuanced evaluation of product attributes, thus a better understanding of absolute luxury products
and their pricing. This is important, since understanding consumers’ expected prices based on
their personal characteristics as well as product cues can enable marketers to better position
Method
Product Selection
Jeans was identified as an appropriate product category for this study. Jeans have been
widely used by researchers as a product category to understand consumer responses since they
are almost universally worn by people across all age groups (Auty and Elliott, 1998). Both
branded and unbranded jeans are available in a wide range of prices starting from $10.99 for a
pair from a fast fashion brand to about $1200.00 for a pair of absolute luxury one, thus catering
to various market segments. Although branded jeans became very important in the 1970s the
market is now seeing a move to absolute luxury jeans for a segment of the market. They have
had a presence in the market for some time, and often use antique fabrics, replicate vintage
styles, and choice of hardware. Since, jeans are a product with which consumers are very
familiar with and have a wide range of available options, the product category was deemed
appropriate for the study. Participants were exposed to a description of a one-of-a-kind pair of
jeans, without any image, to control for the potential confounding effect of any style/color
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preference. Research indicates that because much of consumer shopping involves low
involvement, recognition methods are more effective than recall methods for evaluation of prices
(Suri and Monroe, 2001). Hence the product description also included a price range ($75- $400)
ensure that the pair of jeans was perceived as one-of-a-kind, high end from the product
description. Results indicated that the mean response was 4 (s.d. = 0.65), a scale of 1 (strongly
Product descriptors cues were selected through a pre-test. First, two researchers
identified twelve descriptors that were commonly used to describe absolute luxury or one of a
kind products. Second, 294 adult US-based female consumers recruited through a national
market research firm rated the terms based on their relevance to absolute luxury products. No
other criterion was imposed for recruitment of participants. Of the list of terms presented, 4 rated
as most relevant to absolute luxury, namely, artisan made, handcrafted, part of an emerging
designer collection, and part of a curated collection were selected for this study.
Measures
An online survey was designed for the purpose of the study. Need for uniqueness was
measured using 31 items (Tian et al., 2001). Of the 31 items, 11 items measured creative choice
similarity. Fashion clothing involvement, was measured using 10 items (O’Cass, 2004), while
knowledge about fashion clothing was measured using 4 items (O’Cass, 2004). All three, need
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for uniqueness, involvement, and knowledge were measured on 7-point Likert-type scales (1-
strongly disagree; 7- strongly agree). Participants were asked the expected price at retail (US
dollars) and percent change in expected price in response to each product cue (on a slider
Product cues included artisan made’, ‘handcrafted’, ‘part of an emerging designer collection’,
A sample of 253 adult female US consumers was recruited using a market-based research
firm, Qualtrics. Female participants were selected for the study since females have been found to
make more than eighty percent of all buying decisions (Cleaver, 2004). Particularly, in the
context of fashion products, females are found to be more involved in fashion clothing than men
(O’Cass, 2004) and tend to pick up fashion cues faster than men (Auty and Elloitt, 1998). After
measuring need for uniqueness, involvement, and knowledge. Then they were exposed to the
description of a pair of one-of-a-kind, high-end jeans together with information about price range
in which similar a pair of jeans sell in the marketplace. Participants then indicated their expected
retail price for the product. Finally, participants were to indicate their percent change in expected
price for each of the cue terms- artisan made, handcrafted, part of an emerging designer
collection, and, part of a curated collection. The anchoring question for percent change in price
was “Now does this 'expected price' change if you see the following messages on a tag on the
product?”
Data analysis
characteristics and participants’ responses to change of expected prices for the four terms.
Principal component analysis (PCA) was conducted to determine the underlying dimensions of
participants’ need for uniqueness, knowledge and involvement. Inter-item reliability was
established through Cronbach’s α. In the next step, one-way ANOVAs were used to test for
differences in the study variables based on age. Finally, for hypotheses tests, maximum-
likelihood estimation based path analysis was conducted using AMOS 22.0. Overall fit of the
model was assessed by statistic indexes: model Chi-square (χ2), relative Chi-square (CMIN/DF),
standardized root mean square residual (SRMR), comparative fit index (CFI), normed fit index
(NFI), and, root mean square error of approximation (RMSEA) with confident limit (PCLOSE).
Results
Descriptive Statistics
(mean = 43.83, s.d. = 16.25), with 13% of the participants aged 65 years or older. A wide age
range was selected for two major reasons. First, the sample is representative of US consumers,
since according to 2014 Census estimate, 13.7% of the US population was aged 65 or older.
Second, younger consumers were included since it represents a growing segment of luxury
consumers (Clark, 2014). Older consumers were included because, between 2008 and 2020, the
number of people aged 65 to 80 in North America is expected to grow from 45 million to 65
million compared to younger segments which is expected to grow only slightly (The Boston
Consulting Group, 2010). These older consumers are expected to live longer and be healthier and
especially in western countries, be used to buying more luxury items, particularly because they
were the ones to fuel the rise of luxury market in 1990s. Research also indicates that older
consumers buy luxury based on their cognitive age (how old they feel) and today’s older
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(1.6%) Native Americans/Alaskans, and, 14 (5.5 %) belonging to other ethnic origins. Forty
three (17%) of participants were from the northeastern region of the US, 66 (26.1%) in the mid-
western region, 54 (21.3%) in the western region, and, 90 (35.6%) in the southern region.
According to the July 2014 estimate of the US Census Bureau , the US population consisted of
77.4% Whites (not Hispanic), 13.2% African Americans/ Blacks, 17.4% of Hispanic or Latino
Origin, 1.2% Native Americans/Alaskans, 5.4% Asians, 0.2% Pacific Islanders. Moreover,
14.5% of the population was 65 years or older. In addition, 17% of the US population resided in
northeastern region, 21.2% in mid-western region, 23.6% in western region, and, 37.6 % in
southern regioni. Table 1 shows the demographic characteristics of the participants in detail.
expected price were higher for all cues, and highest for handcrafted (mean = 55.34%, s.d. =
26.74), followed by emerging designer (mean = 48.94%, s.d. = 27.3), curated (mean = 47.29%,
s.d. = 25.03), and least for artisan made (mean = 45.4%, s.d. = 24.33). ANOVA results indicated
that the means were statistically different [F (3, 1008) = 7.03, p <.001). Post-hoc analyses
revealed that change in price for handcrafted was significantly different from artisan (p < .001),
emerging designer (p = .028), curated (p=.003). However, change in price for artisan, emerging
designer and curated were not statistically different from each other (p = .42 to p = 0.89).
Principal component analysis (PCA) with oblique rotation using eigenvalue >1 revealed
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one principal component each for involvement (86.96% of total variance explained; factor
loadings: 0.96 to 0.81) and knowledge (89.4% of total variance explained; factor loadings: 0.96
to 0.92). PCA for need for uniqueness revealed 3 principal components (75.89% of total variance
explained). All 11 items for creative choice counter conformity (henceforth, Uni_CC) loaded to
one component (factor loadings: 0.96-0.61), all 11 items for unpopular choice counter
conformity (henceforth, Uni_UC) loaded on to one component (factor loadings: 0.9-0.6), and, all
9 items for avoidance of similarity (henceforth, Uni_AS) loaded on to one component (factor
loadings: 0.93- 0.83). Reliabilities (Cronbach α) of the scales were as follows: involvement:
0.98, knowledge: 0.96, Uni_CC: 0.97, Uni_UC: 0.95, and, Uni_AS: 0.97.
Effect of Age
Since participants’ belonged to a wide range of age groups (18 through 87), tests were
undertaken to investigate the effect of age on the study variables. Participants were categorized
into four different age groups: millennials or generation Y aged 18 through 35 (n = 100),
generation X aged 36 through 50 (n = 56), baby boomers aged 51 through 70 (n = 85), and, the
silent generation aged 70-87 (n = 12) (Horovitz, 2012; Strauss and Howe, 1991). One-way
ANOVA results indicated that there was no significant effect of age on need for uniqueness (p =
0.69 to 0.95) and change in price variables (p = 0.55 to 0.88). However, age significantly
influenced fashion clothing involvement [F (3, 252) = 12.64, p < .001] and fashion clothing
knowledge [F (3, 252) = 9.39, p < .001]. Fashion clothing involvement was highest for
millennials (mean = 4.72, s.d. = 1.61), followed by generation Y (mean = 4.07, s.d. = 1.82),
silent generation (mean = 3.24, s.d. = 1.62), and baby boomers (mean = 3.30, s.d. = 2.01).
Fashion clothing knowledge was highest for millennials (mean = 4.44, s.d. = 1.75), followed by
generation Y (mean = 3.97, s.d. = 1.68), silent generation (mean = 3.62, s.d. = 1.39), and baby
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boomers (mean = 3.15, s.d. = 1.59). Therefore for hypotheses tests, age was included as a
Hypotheses Tests
Path analysis was conducted using AMOS. Observed variables were used for the
analysis, since the model was theoretically based and all the constructs were verified through
PCA to be reliable and valid. The path model consisted of three exogenous variables for
consumer’ need for uniqueness: Uni_CC, Uni_UC, and, Uni_AS. There were six endogenous
variables: involvement, knowledge, change in price for artisan, change in price for handcrafted,
change in price for emerging designer, and change in price for curated. The effect of age
In the path model, correlations were considered between all three uniqueness variables. In
addition, correlation was also considered between the error terms for all four change in price
variables. The overall model fit, indicated by χ2goodness of fit index was not satisfactory (χ2 =
49.9, df = 26, p = .003). However, χ2 is highly sensitive to sample size and size of correlations in
the model, hence other fit indices were considered to evaluate model fit (Hu and Bentler, 1999).
Other fit indices (CMIN/DF = 1.92, CFI = 0. 99, NFI = 0.97, SRMR = 0.07, RMSEA = 0.06,
PCLOSE = 0.23) indicate adequate to good model fit. Thus the path model was deemed
H1 posited that participants’ need for uniqueness was related to their clothing
involvement. Path analysis results revealed that all three constructs of uniqueness significantly
coefficient = 0.69, p < .001), meaning participants with a high need to express their individuality
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and be known for their good taste in fashion clothing were more involved in fashion clothing.
indicating that participants with a high need to select unpopular fashion items to express their
uniqueness were less involved in fashion clothing. Finally, Uni_AS significantly influenced
involvement (standardized path coefficient = 0.12, p = .043), meaning participants with a high
need for avoiding similarity with others in fashion clothing were more involved in fashion
knowledge about fashion clothing. Path analysis results indicated that involvement significantly
influenced knowledge (standardized path coefficient = 0.88, p < .001), supporting H2. This
indicated that highly involved participants were more knowledgeable about their fashion
clothing.
H3 posited that participants’ knowledge influenced their change in expected prices for all
four cues presented (artisan, handcrafted, emerging designer, and curated). Path analysis results
indicated that participants’ knowledge significantly influenced their change in expected price for
artisan made clothing (standardized path coefficient = 0.17, p = .006), for handcrafted clothing
(standardized path coefficient = 0.12, p = .05), for clothing from an emerging designer
(standardized path coefficient = 0.172, p = .006), and for clothing from a curated collection
(standardized path coefficient = 0.18, p = .004), supporting H3. This indicated that change in
expected price for all the cue terms presented were higher for participants who were more
0.19, p = .001), while it did not significantly influence knowledge (standardized path coefficient
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= 0.024, p = .432). The negative influence of age on involvement indicated that participants’
involvement in fashion clothing decreased with increase in age. Figure 1 shows the conceptual
study hypotheses.
Further analyses investigated the effect of participants’ knowledge about fashion clothing
on their changes in expected prices. Of the 253 participants, those who scored in the top and
bottom third of the distribution were identified as participants with high (n = 80) and low (n =
92) knowledge respectively (Suri and Monroe, 2001; Petty and Cacioppo, 1982). The mean
knowledge for participants categorized as low knowledge was 1.98 (s.d. = 0.72) while that for
high knowledge was 5.89 (s.d. = 0.7), with significant different across high and low groups (t(170)
For initial expected price, there was no statistically significant mean difference between
high knowledge participants (mean = 75.02, s.d. = 42.91) compared to low knowledge
participants (mean = 69.66, s.d. = 38.91) (t (168) = -0.845, p = 0.4). However, mean percent
change in price for products labeled artisan was significantly higher (t (168) = -1.99, p = 0.048) for
high knowledge participants (mean = 49.83, s.d. = 24.64) than for low knowledge participants
(mean = 42.54, s.d. = 23.10). Mean percent change in price for products labeled emerging
designer was significantly higher (t (168) = -2.21, p = 0.028) for high knowledge participants
(mean = 45.73, s.d. = 28.01) than low knowledge participants (mean = 54.9, s.d. = 25.32). Mean
percent change in price for products labeled curated was significantly higher (t (168) = -2.32, p =
0.021) for high knowledge participants (mean = 52.31, s.d. = 23.32) than low knowledge
participants (mean = 43.39, s.d. = 26.41). However, mean percent change in price for products
labeled handcrafted was not significantly different at p = .05 level (t (168) = -1.7, p = 0.091) for
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high knowledge participants (mean = 58.9, s.d. = 26.32) and low knowledge participants (mean =
51.9, s.d. = 27.17). Interestingly, percent change in expected prices was highest for the term
handcrafted as compared to artisan, emerging designer or curated, for both high and low
This study investigated product description cues in relation to individuals’ need for
uniqueness, clothing involvement and clothing knowledge and subsequent expected prices for
luxury jeans. Therefore the study not only helps in understanding how message cues using
descriptors can influence the perceived value for luxury products, but also presents a broad
The findings of the study have important contributions, hence implications. First, the
Particularly, participants with high creative choice counter-conformity and those with high
avoidance of similarity were more involved in fashion clothing. On the other hand, participants
with high unpopular choice counter conformity were less involved in fashion clothing.
Therefore, although participants seemed to be more involved in fashion clothing when they
needed to express their identity or avoid dressing in clothing similar to others, their involvement
in fashion clothing was in fact lower when they needed to dress unconventionally and did not
care about social norms or trends. This might be because the involvement questions focus on
clothing involvement related to ‘fashion items’, which might represent items that are the
accepted style of a particular time, and hence consumers wanting to dress unconventionally did
not appear to be involved. These findings can be of importance to absolute luxury brands or
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producers in understanding their target consumer and cater to them better. Marketing messages
for absolute luxury products might benefit from emphasizing the various unique aspects of their
Second, the results indicate that apparel involvement positively influenced knowledge
about fashion clothing. Therefore consumers who were increasingly involved in fashion clothing
believed that they are more knowledgeable about clothing as well. Given that consumers have
varying levels of product knowledge and such knowledge can be influenced by information from
various sources such as personal experiences, exposure to marketing messages, interaction with
peers, and other factors (O’Cass, 2004), it is important for researchers as well as producers of
luxury products to understand what characteristics can cause certain consumer to perceive
themselves as more knowledgeable than others. This is particularly important since study results
indicate that clothing knowledge positively influence consumers’ expected prices of absolute
luxury products. This study shows that clothing involvement is one such antecedent of subjective
clothing knowledge.
Third, fashion clothing knowledge was positively related to the framing descriptors, with
all descriptor cues yielding increased expected prices. The cue of ‘handcrafted’ increased the
expected price most, followed by ‘emerging designer’, ‘curated’, and ‘artisan made’. Thus, the
study shows that the cues associated with luxury products may have an impact on the prices that
consumers expect to see on these products. This follows the current trend of the major luxury
brand’s main product line being less desirable and more traditional absolute luxury becoming
more important. High quality materials, superb production techniques, and excellent service are
more important to today’s luxury customer and, in response, many major luxury brands are
refocusing their branding strategies to highlight the “Hand of the Artisan” in their product
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offerings (Adams, 2014; Bottega Veneta, 2012). Italian luxury brand Prada even acknowledged
the contribution of artisans in their 2013 annual report. Additionally, parent luxury companies
such as Kering and LVMH have started to increase their holdings in the artisan labor sector such
clothing than older consumers. This is in accordance with findings of recent market reports
indicating that the new luxury consumers are aged 30-40 (as of 2014), are involved with
technology which has led them to be involved with luxury brands (Clark, 2014). This
involvement in turn influenced product knowledge which ultimately influenced expected price
for luxury products. Given, in the past couple of years, the luxury market has seen a rise of
young consumers with a need for status and sophistication (Clark, 2014), it might be essential for
luxury marketers to focus on this young group of customers more than the older population.
In summary, this study extends the research into the luxury market and identifies
elements of the marketing mix which might be manipulated to better inform potential customers
about the luxury product. Many luxury products are made in factories and therefore cannot be
considered truly exclusive. Clearly delineating the inherent quality of a product, its uniqueness
and specific production methods might better appeal to a customer who feels s/he knows about
and is involved with the product category, providing a unique product and experience for this
discerning client. Cues through product descriptors is an important factor in price judgements
and this study is further evidence of the effect message cues can have on price judgements.
this study is further evidence of the effect cues can have on price judgements. The way in which
a product is described may have a significant impact on the prices highly involved and
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marketers since high fashion involved consumers have often been seen as drivers, influential and
legitimists of the fashion adoption process (Goldsmith et al., 1999; Tigert et al., 1976, O’Cass,
2004).
This study is not without limitations. However, these limitations do not render the study
invalid, but provide future opportunities for research. First, generalization of the results should
be made with caution since the study sample comprised only US consumers. Therefore, future
studies with consumers from multiple countries will be beneficial, especially because such
consumers constitute an important section of the luxury market. This is all the more important
since consumers in various cultures might attach different values to handcraft and artisan labor
due to varying labor costs and quality perceptions in those countries. In addition, screening
participants to ensure that they have purchased absolute luxury products in the past might
provide fruitful insights. Second, future study can be conducted including consumers’ general
other indicators of evaluation such as perceived value of luxury products in the study model.
Third, in terms of the study design, jeans was the only product category used and further study
with multiple product categories might be essential to understand the applicability of the study
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i
http://www.census.gov/quickfacts/table/PST045214/00
Figure1. Path Model showing effect of Uniqueness, Involvement and Knowledge on Change in
Prices
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Note. *** indicates significant at .001 level. ** indicates significant at .05 level. Error terms for endogenous
variables not shown.
Table 1. Demographic Characteristics of Participants (n = 253)
66-70 16 6.3
71 and up 12 4.7