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Integrating Brand Perception, Culture Dimension and Social Inﬂuence in

Predicting Purchase Intention in Luxury Brand Market
Conference Paper · January 2012
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3rd INTERNATIONAL CONFERENCE ON BUSINESS AND
910 ECONOMIC RESEARCH ( 3rd ICBER 2012 ) PROCEEDING
12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalconference.com.my
INTEGRATING BRAND PERCEPTION, CULTURE DIMENSION AND SOCIAL

INFLUENCE IN PREDICTING PURCHASE INTENTION IN LUXURY BRAND
MARKET
Fauziah Sh. Ahmad, Ali Ihtiyar, Wu Jing and Mohd Hassan Mohd Osman
International Business School
fsa@ibs.utm.my, iali3@live.utm.my
Abstract
Although few in numbers and mostly based on cases from advanced nations, previous studies on
luxury consumption have shed light on the field of branding and suggested the pivotal role of social
and intercultural dimensions in influencing consumers engagement and ultimately, their purchase
intention. However, luxury branding conception are still not sufficiently explored in emerging
economies to lend a satisfactory guideline for branding stakeholders to maneuver their policies and
brand development programs. After all, there is a saying “what cannot be measured cannot be
managed”. In particular, there is no statistically validated measure on the role of brand perception
(BP), culture dimension (CD) and social influence (SI) in predicting purchase Intention (PI). The study is
crucial for brand leaders and policy makers to partially access their readiness to embrace strategic
intercultural considerations to be more competitive global brand performers. This study intends to
propose an appropriate technique to empirically examine the inter relationships of latent BP; CD, SI
and PI through a new propose theory-based luxury brand purchase intention model. It is basically a
literature reviews on the related constructs and how the relationships assessment of those constructs
should be carried out. It suggests and justifies the need for adopting a sequential explanatory mixed
methods (EMM) research with the application of structural equation modeling (SEM) procedures for
quantitative explanation and content analysis for the follow-up in-depth qualitative interviews. This
proposal will provide insights and fill in the literature gaps on appropriate methodology to get
statistically validated representation of intercultural elements of branding for luxury brand
developments in Malaysia that may implicate other similar research in other emerging economies
with similar situations.
Field of Research: Luxury Brand Perception, Culture Dimension, Social Influence and Purchase
Intention.
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1. Introduction
Studies in luxury brand consumption have burgeoned in the past decades. The branding
practitioners and scholars eager to explore this US$ 2, 587billion industry in all of Asia-Pasific by
2016 (Seetharaman et al., 2001; Delong et al., 2004, Ahmad et al., 2007; Lu, 2008; Ahmad, 2010;
Teimourpour and Hanzaee, 2011; Parkvithee and Miranda, 2012). According to the report that was
conducted by MasterCard (2009), the average annual growth rate of luxury consumption was 12 per
cent. As highlighted at the same report, the growth rate of Malaysia is the highest score in all Asia-
Pacific countries and the percentage of luxury consumption in Malaysia, from 2006 to 2016, will
increase by 350 percent. This inclination has not been validated in Asia- Pacific region. In addition, it
is noted that the consumption of luxury brands in local and global markets have been increasing
significantly throughout the worldwide (Danziger, 2005; Karpova et al., 2007; Christodoulides et al.,
2009)
In order to understand why consumers purchase luxuries, the relationship between the motivation
of buying luxury brands and the notion of ‘buying to impress others’ might be understood clearly
and profoundly, and this relationship also leads to understand why consumers buy those products
for reaching the different status in their social environment (Tsai, 2005).Thus, the relationship
among those factors and direction of them might be identified in the context of the luxury
consumption.
The higher reputation of the luxury goods or services can be a result of their perceived premium
quality, unique style, equilibrium of price and quality and/or limited accessibility. These
characteristics illustrate functional, symbolic and /or experiential values in the perceptions of the
owners or others (Gardyn, 2002a; Chadha and Husband, 2007; Berthon et al., 2009) and luxury
brands as goods or services contribute to shape the owner’s social identity by individuality and
external world. One of the focal examples of luxury goods is luxury handbags. A luxury handbag
might be a significant symbol for consumers who wish to signify their economic power and social
status symbolically. It is also to show their ambitions and perhaps social acceptance in owning such
goods or services (Piacentini and Mailer, 2004; Park et al., 2008; Jing, 2011).
To carry out a research on luxury brand perceptions, the luxury brand item shall be appropriately
identified. A luxury brand can be identified as a “branded” product that is carefully crafted,
recognizable style and this definition was highlighted by Berthon et al. (2009). A study on luxury
brand should consider brands that are well recognized as branded item internationally. For example,
the study could focus on luxury items such as handbags or watches for a more focus purchase
intention. This will fill the gap in the market analysis as scholars still have limited knowledge with
consumption process and outcomes of consumer behavior (Arnould and Thompson 2005; Lye et al.
2005), even if they recognized the key factors behind the purchase intention for luxury brands
(Okonkwo, 2009).
To investigate the influencing factors such as BP, CD, SI on the purchase intention or PI in luxury
brand consumption in Malaysia, it is proposed that the study concentrate on a defined luxury item
such as handbags. Handbags might be defined as a complementary accessory for daily life, and the
consumers who are male or female in different ages and social status use trendy handbags for
various causes (Keller, 2003; Truong et al., 2008; Berthon et. al., 2009). Hereby, we assume
consumers purchase numerous fashionable handbags to match with their corresponding clothes,
and also the consumers who desire to be unique or to signify the life-style related to consumption of
the luxury handbags that are made by well-known brands. From 18th centuries to 21th, the notion
and shape of handbags have been illustrated modification and improvement, and the primary
reason of this evolution was needs of the consumers. Thus, the handbags that were used for
carrying coin or bread in the past centuries have become a social symbol for consumers, and today;
handbags have been used for carrying lighter things such as keys, hairbrush, mirror, tissue, mobile
phone and so on. Due to the increasing reason for consumption and usage of handbags, the
handbags prices, styles and qualities have been presenting significant variation.
2. Purchase Intention
The framework of purchase intention

tention has been examined in many studies by scholars (Ercis at al.,
2007; Chen, 2008; Jing, 2011; Parkvithee and Miranda, 2012).
2012 The impact
mpact on the individual’s action
and brand consumption have been researched widely and the studies show that the purchase
Compliance
Social Influence
Identification
Internalization
Functional Value
Purchase Luxury Brand

Symbolic Value
Intention Perception
Experient
Experiential
Power Distance
Cultural
Dimension
Individualism
Uncertainty
Avoidance
Masculinity
intention having a positive influence on individual aspects and brand consumption (Pierre et al.,
2005; Schlosser et al., 2006;; Yoo and Lee, 2009).The
2009 purchase intention is defined in the study of
Fishbein and Ajzen (1975), as “aa person’s location on a subjective probability dimension involving a
relation between himself and some action”.
action” However, consumer’s behaviour has not been predicted
by consumer attitudes and their behavioural intentions (Belk,1985;; Chen, 2008).
2008 In other words,
their evaluation process might be affected by products’ products alternatives, brand, timing, store
atmosphere,
phere, payment method and so on (Jing, 2011). For the study of luxury brand purchase
intention, the proposed theoretical framework is as Figure 1.
Figure 1: Theoretical Framework of Study.
3. Purchase Intention and Culture Dimension
Cultural dimension has strong impact on the consumer behavior (Altuna,

Altuna, 2007;Jing,
2007 2011;Gupta,
2012) and the previous studies have illustrated that the purchase intention is influenced by the
cultural aspects and its related topics(Ko
topics et al., 2006;Cleveland
Cleveland et al., 2007; Khan et al., 2009;
Zhanget al.,2009; Gupta, 2012).). The consumers who are from different countries have the various
reasons to consume the luxury goods
good or services; the brand should design the different marketing
plans and strategies to meet the needs of the consumers or markets (Jing, 2011). Thus,
understanding the cultural dimensions or preferences
pre of the target markets’
ts’ or consumer groups’
might play an essential role in making decisions and that many scholars (KhanKhan et al., 2009; Jing,
2011; Teimourpour and Hanzaee, 2011) have been used the Hofstedes’ dimensions (1980, 2001) to
identify and determine the dimensions of the country in the their studies.
According to the Hofstede (1980, 2001), the index of power distance, individualism, uncertainty
avoidance and masculinity of Malaysia are 104, 26, 36 and 50. On the scale that ranges between 6
and 106, we could say that Malaysia has the high Hofstede ranking of power distance at 104. This
figures show that Malaysia is a country with unequal right and the deep gap between the rich and
the poor. The figure of individualism was the lowest score of the whole index. It means Malaysia is a
collective country and all of individuals embrace together like integration. For uncertainty avoidance,
Malaysia’s index is rather low at 36 while for Masculinity it gains an average index of 50.
4. Purchase Intention and Social Influence
Initially, the luxury brand purchase intention might be affected by the user’s or owner’s perception
that is listed as external or internal factors (i.e. self-expression attitude and self-presentation
attitude) and those factors contribute to a perceived value of goods’ or services’ (Ahuvia, 2005;
Truong et. al., 2010). Values of luxury brands signify the owner’s wealth, social status and power
(Danziger, 2005; Park et al., 2008; Wilcox et al., 2009; Jing, 2011). In other words, consumers who
are socially oriented are induced to possess luxury brands in order to show their status and success
to their targeted social groups (Tsai 2005; Altuna, 2007).
In the first goal of luxury brands, quality is the key factor to satisfying the consumers’ request to
perform the functional value (Berthon et al., 2009). The second goal of luxury brands is concerned to
experience and according to the definition of Holbrook and Hirschman (1982); experiential
consumption involves fantasies, feelings, and fun. Lastly, in the third goal of luxury brands, In
addition, there is a dimension of symbolic meaning (Keller, 2003; Berthon et al., 2009) to
communicate to others on the owner’s wealth, value, and group associations which might
strengthen the social image and stimulating a self-presentation attitude (Ercis at al., 2007;Park et al.,
2008; Truong et al. 2008).
In addition to the mentioned perceptions, which are internal, external factors also contribute to a
possession’s perceived value (Belk, 1988; Ahuvia, 2005; Truong et al., 2010). This is particularly
apparent when the purpose of a luxury brand purchase is to show wealth, trade up in social status
(Danziger, 2005; Park et al., 2008; Wilcox et al., 2009). The impact of social influence on purchase
intention of luxury goods or services was discussed and empirically supported by many authors
(Vigneron and Johnson, 2004; Tsai, 2005; Wiedmann et al.’s 2009). The consumers who are socially
adapted are motivated to gain luxury brands in order to display their status and achieve to their
aimed social groups (Tsai, 2005; Altuna, 2007). According to Kelman (1958), social influence has
three sub-dimensions that are entitled as ‘compliance’, ‘identification’ and ‘internationalization’.
This would be especially important in luxury brands, which are known internationally.
5. Purchase Intention and Perception towards Luxury Brand
Many scholars have examined significance of the purchase intention and consumption attitudes of
the brand (Tsai, 2005; Schlosser et. al., 2006; Berthon et. al., 2009). Berthon (2009) and Tsai (2005)
have quantified the influence of the external world and individuality on luxury brand consumption.
According to Keller (2003), luxury brands were comprised by three essential values that are entitled
as “functional value”, “experiential value” and “symbolic value”. Another study that was conducted
by Berthon (2009), the dimensions of this study were adjusted from the “three world” hypothesis of
Karl Popper (1979), the luxury brands composed three components as “the objective (material)”,
“the subjective (individual)” and “the collective (social)”.
The meaning of the first world was related to physical aspects in the study of Popper (1979), and
Berthon (2009) customized this dimension in his study as the level of “quality” for goods or services
that are perceived by consumers. As highlighted at the study that was conducted by Christodoulides
et. al. (2009), quality of goods or services identified as a key factor for consumers. Secondly,
“experiential value” is the field of the individualism, and it is directly related the “persons’ subjective
thought” such as feelings, sensations, cognitions and other related behavioural aspects that have
been conceptualized under the brand experience (Berthon 2009). The last value is “symbolic value”
that is highly involved the “conspicuousness”, “expensiveness” and “wealth” and it is the realm of
the collective dimension (Vigneron and Johnson, 2004; Berthon 2009). The first symbolic inclination
of the luxury brand is a caution to “others” and the second is a signal to “person’s self-concept”
(Belk et al., 1982; Gergen, 1991).
6. Proposed Research Methodology
This paper intends to propose an appropriate methodology to empirically examine the inter-related
relationships among the various constructs of the luxury brand purchase intention model and to test
whether it is a valid way of conceptualizing and explaining the luxury brand market situation in
emerging economy of Malaysia. The objectives of the intended relationship justify the adoption of
EMM research technique (Creswell, 2005) of combining both the quantitative and qualitative
techniques. Firstly, EMM priority in this research is given to collecting quantitative data and
analyzing them using SEM technique to examine relationships between constructs and to test model
fit. Subsequently, based on the quantitative findings, the research shall assess qualitative data to
understand the ‘how’ aspects of the context and thus refined the result (Creswell, 2005). The
following discussion explains and justifies the research design, details its administrative procedures
or operational framework to examine the data
6.1 Research Design
Research design is described as a framework for the collection and analysis of data (Brymann and
Bell, 2003). It explains the overall paradigm and approach adopted by the research in order to solve
the research problems objectively and realistically. In the propose research, both the quantitative
and qualitative research paradigms are adopted to meet the research goals. Since 1960s, social and
business research has seen the evolution of methodological approach from the purist mono method
in either quantitative or qualitative orientation to a more sophisticated mixed methodology design
(Tashakori and Teddlie, 1998). In 1990s, the evolution escalated at an increasing phase with the
introduction of varied methodological tools, sophisticated computer software and improved
information communication technologies.
Although the methodological issues related to business research, particularly in marketing have
always been dominated by the quantitative paradigm, the recent trend has seen the mixed method
approach as a more effective and appropriate technique to capture the complexities of the real-life
situations (Koller 2008; Easterby-Smith et al., 1991). Likewise, for marketing, a methodological
pluralism such as applying quantitative research to identify the substantive context followed by
qualitative research to provide in-depth knowledge is considered as more suitable research (Siu and
Kirby, 1999). Thus, methodological pluralism for this luxury brand study is a viable research option.
According to Gregory (2004), the progression towards better branding should start with a ‘discovery’,
process which includes internal exploration to understand the perspectives and experience of the
consumers at which the application of mix method research would allow the most accurate picture
possible.
The central premise of the mixed method approach of combining both quantitative and qualitative
data in a single study is that it provides a better understanding of research problems than either
approach alone (Creswell and Plano Clark, 2007). It is, however, noted that although business
researches are encouraged to consider pluralism approach (Perry 1998), due to time and resource
constraints, one of the methods normally takes a major role to suit the research problem while the
other method takes a secondary role (Perry, 1998).The EMM design requires a researcher to place a
priority on quantitative data where it must be performed first for it represents a major aspect of the
data collection. A small qualitative component follows in the second phase of the research. What
happens basically is that a researcher uses qualitative data to refine the results from the quantitative
phase. Quantitative data “provide generalizability” while qualitative data “offer information about
the context or setting” (Creswell, 2005). Creswell’s description is consistent with Shao (1999), which
said that qualitative data might explain or reinforce quantitative data. Yin (2003) pointed that it is a
misconception to believe that research should be arranged hierarchically where qualitative
exploration should only be used in preliminary investigation. Instead, it is appropriate to use case
studies to explain propositions, especially when the boundaries between phenomenon and context
are not clearly evident (Yin, 2003).The EMM for the proposed study is illustrated in the following
Figure 2.
QUANTITATIVE Qualitative
Data / Results Data/ Results
Follow-Up
Legend:
Box = data collection and results
Uppercase letters/lowercase letters = major emphasis, minor emphasis
Arrow = sequence
Figure 2: Explanatory Mixed Methods Design.
Source: Creswell (2005) p. 514.
In designing this research, the nature of the research problems and the objectives of the study,
which then translated into the conceptual framework, served as a basis to indicate the types of
design to be applied. This research shall start with the exploratory investigations relevant constructs
through substantial literature review and expert opinions in order to clarify and define the nature of
SME branding management. It will be followed with the establishment of theoretical based luxury
brand purchase intention model, research questions, hypotheses and research objectives.
Furtherance to that, based on the established conceptual framework, questionnaire survey will be
developed. The survey design should incorporate available tools from existing branding theories and
literature on each of the recognized elements of the research constructs namely BP, SI, CD and PI
discussed earlier.
The next step would be conducting fieldwork study or collecting the survey data among the
respondents to examine and measure the latent constructs based on the selected parameters and
variables. In this major quantitative phase, the study will apply SEM technique to assess the
relationships between the constructs and consequently address the hypotheses and model fit. The
advantage of the technique, which is a relatively new analytical tool, is that it combines the principle
of factor analysis and multiple regressions in one procedure (Hair et. al., 2006). The decision to
employ SEM over multiple regression analysis (MRA) in the study is based on its advantages as
pointed by Hair et al. (2006) and summarized as follows:
1) SEM facilitates simultaneous estimation of multiple dependent variables and restrains the
inflation of estimation error of the study.
2) It allows the mediating variables to be included in the same single model as predictors.
3) It tolerates a high degree of multicollinearity (r<.90) among the predictors. Multicollinearity
among predictors may hamper result interpretation in multiple regression analysis (MRA).
4) It accounts for error of each manifested variable while in MRA the predictor is assumed to be
measured without error.
5) It enables the identification of latent or unobserved construct and simultaneously estimates the
relationships among them.
Employing SEM technique would thus contribute to theory testing through its goodness of fit (GOF)
tests and form strong basis to explain the relationships among the model constructs. After
completing the quantitative phase, the study shall proceed with the qualitative phase not only to
gain a deeper explanation or refine the earlier quantitative findings but also to address the issue of
‘how’ and ‘why’ aspects of the actual branding implementation. It shall adoptsemi-structured
interview techniques with proper coding protocols for a more flexible and credible qualitative
approach. The operational framework designed for the study is illustrated in Figure 3.
Preparation: Identify background of the

problem Review of literature and
expert opinions
Construct Statement of the Problem

Form Research Questions and Objectives
Set the Conceptual Framework
Further review of the literature

Clarify theories and research design
Identify Respondents for Part I
PART 1: QUANTITATIVE DATA

Design Questionaire
No
Conduct Pilot Testing
>.07 Alpha Cronbach’s?
Yes
Conduct Data Gathering
SEM Analysis
Select respondents for Part 2
PART 2: QUALITATIVE DATA

Conduct Interview
Conduct Interview Data Analysis
Recommendations and Conclusion
Preparation Flow Process Option
Figure 3: Proposed Operational Framework.
7. Conclusion
The intention of this paper is to propose an appropriate technique to empirically examine the inter
relationships of latent BP; CD, SI and PI through a new propose theory-based luxury brand purchase
intention model. This discussion on literature reviews has established the proposed research
framework and the relationship between the constructs of the model. The methodology part has
explored on how the relationships assessment of those constructs should be carried out. Basically,
the discussion has suggested and justified the need for adopting a sequential explanatory mixed
methods (EMM) research with the application of structural equation modeling (SEM) procedures for
quantitative explanation and content analysis for the follow-up in-depth qualitative interviews. This
proposal will provide insights and fill in the literature gaps on appropriate methodology to get
statistically validated representation of intercultural elements of branding for luxury brand
developments in Malaysia that may implicate other similar research in other emerging economies
with similar situations.
Interestingly, the researchers have conducted the quantitative data gathering for the proposed
study and unexpectedly received a very low Alpha Cronbach for reliability for the tested constructs
although previous research have indicated sufficient or strong reliability (Aaker et al., 2001, Vigneron
and Johnson, 2004; Tsai, 2005; Smith et al., 2007). Hence the researchers are currently restudying
the design of the questionnaire in order to avoid the risk of underestimating the relationship
between predictor variables of each construct. If we conclude there's no relationship between the
variables when there is in fact a relationship, we will commit a statistical error. As such we have to
figure out the reasons behind these problems. Nonetheless, we proceeded with Pearson correlation
analysis to get an early gauge of the relationship situation between BP, CD, and SI on PI with strong
understanding that we must resolve the reliability issue for an appropriate generalization. Reliability
issue will also take its toll when we want to proceed with SEM analysis as it forms a major
prerequisite. Again, we must emphasis here that the following findings in Table 1 are only for the
purpose of gauging or guessing the future research findings and shall not be treated as final. The
decision part in Table 1 is a decision on whether to reject or not rejecting an assumption that the
indicators for related construct are positively correlated with purchase intention variable (PI).
Table 1: Relationship Result.
Positive Relationship with Purchase Intention Pearson Correlation Decision

Cultural Dimension (CD)
Power Distance 0.016 Fail to reject
Uncertainty Avoidance 0.012 Fail to reject
Individualism 0.039 Fail to reject
Masculinity 0.040 Fail to reject
Long Term Orientation -0.020 Reject
Social Influence (SI)
Social Influence -0.008 Reject
Brand Perception (BP)
Perception -0.003 Reject
Functional Perception -0.001 Reject
Experiential Perception -0.020 Reject
Symbolic Perception 0.012 Fail to reject
During the above preliminary analysis, the Pearson Correlation was used to test the relationship
between CD, BP, SI on purchase intention, and the result of this research was not all of factors have
the positive relationship with purchase intention. Long-term orientation, social influence, perception
towards luxury handbags, functional perception and experiential perception have negative
relationship with purchase intention. It should be noted that once we could establish the reliability
of the study, the research shall proceed with measurement and structural test of SEM and the
adoption of Pearson correlation would be a redundancy.
The previous studies that were based on the Hofstede’s culture dimensions, found that the factors
of culture dimension were positive correlated with purchase intention (De Mooij, 2004; Vigneron
and Johnson, 2004; Berthon et. al., 2009). However, this preliminary assessment found the negative
relationship between long-term orientation and purchase intention. The previous studies show that
functional perception, experiential perception and symbolic perception have positive relationship
with purchase intention about luxury handbags (Vigneron and Johnson, 2004; Berthon et. al., 2009).
This study, however, shows that functional perception and experiential perception were negatively
correlated with purchase intention (Chen et. al., 2011). The previous studies also indicate that social
influence has positive relationship with purchase intention (Bearden and Etzel, 1982; Lalwani, 2002;
Algessheimer et.al., 2005) but this result was not validated in this preliminary assesment.
It is hoped that the methodology proposed for the intended luxury brand research will give some
guidance to future researchers in this field. It should be noted that the intended SEM analysis could
only be carried out when reliability and validity can be confirmed. As such it is very crucial for
researchers to visit the questionnaire design and ponder deeper on reliability as well as addressing
statistical error’s issues. This is critical before the proposed model can be qualified as sufficient and
robust.
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Integrating Brand Perception, Culture Dimension and Social Inﬂuence in

Conference Paper · January 2012

Ali Ihtiyar Fauziah Sh

Mohd Hassan Mohd Osman

Sustainability Management View project

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INTEGRATING BRAND PERCEPTION, CULTURE DIMENSION AND SOCIAL

The framework of purchase intention

Purchase Luxury Brand

3. Purchase Intention and Culture Dimension

Cultural dimension has strong impact on the consumer behavior (Altuna,

4. Purchase Intention and Social Influence

5. Purchase Intention and Perception towards Luxury Brand

6. Proposed Research Methodology

6.1 Research Design

Preparation: Identify background of the

Construct Statement of the Problem

Set the Conceptual Framework

Further review of the literature

Identify Respondents for Part I

PART 1: QUANTITATIVE DATA

Select respondents for Part 2

PART 2: QUALITATIVE DATA

Conduct Interview Data Analysis

Recommendations and Conclusion

Preparation Flow Process Option

Figure 3: Proposed Operational Framework.

Table 1: Relationship Result.

Positive Relationship with Purchase Intention Pearson Correlation Decision

Altuna, O.K. (2007). Uluslararasi mark a strateji formulasyonu: standardizasyon ve uyarlama

Gupta, N. (2012).The impact of globalization on consumer acculturation, Asia Pacific Journal of

Hofstede, G. (1980). Cultural Consequences, Sage, Beverley Hills, CA.

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions and

Wiedmann, K-P., Hennigs, N. and Siebels, A. (2009). Value-based segmentation of luxury

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