Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2017-07-18
Number: 17-063/III
Author-Name: Ning Mao
Author-Workplace-Name: China-ASEAN International College and Dhurakij Pundit University, Thailand
Author-Name: Michael McAleer
Author-Email: michael.mcaleer@gmail.com
Author-Workplace-Name: National Tsing Hua University, Taiwan; University of Sydney Business School; Erasmus University Rotterdam, The Netherlands, Complutense University of Madrid, Spain and Yokohama National University, Japan
Author-Name: Shuyu Bai
Author-Workplace-Name: Limian Material Technology Corporation, China
Title: Impact of Psychological Needs on Luxury Consumption
Abstract: This paper examines the impact of psychological needs on luxury consumption. Veblen’s Theory of the Leisure Class (1899) invented the term “conspicuous consumption” to describe luxury goods and services, in which Veblen indicated the purpose of luxury consumption was to display wealth and social status. This paper integrates the following two papers: (1) Han and Zhou (2002), who proposed an integrative model, and argued that three variables, namely Country-of-Origin, Brand Name, and Price, were major predictors for overall product evaluation and purchase intentions; and (2) Han, Nunes and Dreze (2010), who proposed a taxonomy called The Luxury 4Ps, to explain the inductive and deductive psychological needs of luxury consumption.
Classification-JEL: N35, Z12, Z13
Keywords: Psychological needs, Luxury consumption, Consumer behavior
File-Url: https://papers.tinbergen.nl/17063.pdf
File-Format: application/pdf
File-Size: 87185 bytes
Handle: RePEc:tin:wpaper:20170063