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Journal of Fashion Marketing and Management: An International Journal

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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Evaluation of absolute luxury: effect of cues, consumers’ need for uniqueness, product

involvement and product knowledge on expected price

Introduction

The contemporary understanding of globalization is the linking of national economies

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

one of the most globalized industries.

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

handcrafted, artisan-made luxury items.

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’

need for uniqueness, degree of product/product category involvement and product/product

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

product knowledge on product evaluation, particularly price.

Literature Review

Consumers’ Need for Uniqueness and Absolute Luxury Products

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

Eun Young, 2007).

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

to establish differentness and move away from the norm.

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

products, consumers have to be truly involved in clothing products.

Influence of Consumer Need for Uniqueness on Clothing Involvement

In order to understand the consumption behavior of consumers related to clothing,

researchers have often listed clothing involvement as a variable of interest. Involvement can be
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viewed as a relationship variable between an individual and an object. Particularly, clothing

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

involvement indicating greater relevance to the self (O’Cass, 2000).

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

perceptions and evaluations is of equal interest to academicians and marketers, especially


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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

addition, involvement can be seen as an antecedent of ultimate behavior as suggested by

prominent theories such as the Theory of Planned Behavior. Therefore we hypothesize:

H1: Female participants’ need for uniqueness will be positively related to clothing

involvement.

Influence of Clothing Involvement on Perceived Clothing Knowledge

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,

and/or advertising and marketing communications.

Studies focusing on fashion clothing have viewed fashion clothing knowledge as

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.

Previous studies investigating the influence of product involvement on product

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

compared with others. Therefore we hypothesize,

H2: Female participants’ clothing involvement will be positively related to their

perceived knowledge about clothing products.

Perceived Product Knowledge, Cues and Expected Price

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

be shaped by consumers’ exposure to company communications or interaction with


peers. Expected prices can be thought of as being symbolic of the value that consumers attach to

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

absolute luxury products. Therefore, we hypothesize,

H3: Female participants’ clothing knowledge will be positively related to a change in

expected price due to product descriptors or cues.

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)

for which a pair of one-of-a-kind jeans was available in the marketplace.

A manipulation check using 48 college students at a US state university was conducted to

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

disagree) to 5 (strongly agree), indicating successful manipulation of the product description.

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

counter-conformity, 11 items unpopular choice counter-conformity, and 9 items avoidance of

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

anchored at -100% (% less) to +100% (%more) with a mid-point of 0 indicating no change) .

Product cues included artisan made’, ‘handcrafted’, ‘part of an emerging designer collection’,

and, ‘part of a curated collection’.

Sample Selection and Procedure

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

providing electronic consent, participants completed demographic questions followed by items

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

Descriptive analyses of the study data were conducted to examine respondent


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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

Respondent characteristics. Age of the participants, all female, ranged from 18 to 87

(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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consumers are younger at heart (Amatulli, Guido and Nataraajan, 2015).

Participants represented a diverse mix of ethnicities including 203 (80.2%) Caucasians,

22 (8.7%) African Americans/Blacks, 7(2.8%) Hispanics/Latinos, 3 (1.2%) Pacific Islanders, 4

(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.

[Insert Table 1 here]

Change in expected prices. Results indicated that participants’ percent change in

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 and Scale Reliability

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

variable influencing knowledge and involvement.

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

(exogenous variable, 4 groups) on involvement and knowledge was controlled for.

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

appropriate for testing the study hypotheses.

H1 posited that participants’ need for uniqueness was related to their clothing

involvement. Path analysis results revealed that all three constructs of uniqueness significantly

influenced involvement. Uni_CC significantly influenced involvement (standardized path

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.

Uni_UC negatively influenced involvement (standardized path coefficient = - 0.12, p = 0.051),

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

clothing. Therefore H1 was supported.

H2 posited that participants’ involvement in fashion clothing was related to their

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

knowledgeable about fashion clothing.

In addition, age significantly influenced involvement (standardized path coefficient = -

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.

[Insert Figure 1 here]

Further Analyses for Effect of Knowledge on Price

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)

= -35.91, p < .001).

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

knowledge participant groups.

Conclusions and Implications

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

framework for understanding consumer traits that influence such evaluation.

The findings of the study have important contributions, hence implications. First, the

research has identified need for uniqueness as an influencer of clothing involvement.

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

product to increase consumer involvement, thus catering to this consumer cohort.

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

as by acquiring stakes in local tanneries and textile producers (Verner, 2013).

Fourth, younger participants, particularly millennials, seemed to be more involved in

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.

Presence of cues or product descriptors is an important factor in price judgements and

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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knowledgeable consumers expect to pay. This is especially important to academicians as well as

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

perceptions towards absolute luxury products as antecedents of consumer evaluation as well as

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

findings in various circumstances.

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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)

Variable Levels Frequency Percentage


Age 18-20 11 4.3
21-25 27 10.7
26-30 36 14.2
31-35 26 10.3
36-40 21 8.3
41-45 18 7.1
46-50 17 6.7
51-55 23 9.1
56-60 28 11.1
61-65 18 7.1
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66-70 16 6.3
71 and up 12 4.7

Gender Female 253 100

Ethnicity Caucasian 203 80.2


African American/Black 22 8.7
Hispanic/Latino 7 2.8
Pacific Islander 3 1.2
Native American/ Alaskan 4 1.6
Other 14 5.5

US Region Northeast 43 17.0


Midwest 66 26.1
West 54 21.3
South 90 35.6

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